7. Supplementary Cash Flow Information

9 Months Ended

Feb. 28, 2015

Notes

7. Supplementary Cash Flow Information

7. SUPPLEMENTARY CASH FLOW INFORMATION

There was $25,743 cash paid for interest in the nine month period ended February 28, 2015 and $9,450 paid in cash in the nine month period ended February 28, 2014; there was no cash paid for income taxes during either of the nine month periods.

On June 16, 2014, the Company sold its El Tule Canyon mining claim and the remainder of the Gypsy claim for 1,500,000 shares of restricted common stock of the buyer; these shares were valued at $1,500,  which brings to 6,500,000 the number of shares of the buyer that are owned by the Company.

On October 22, 2014, $45,000 of the convertible notes payable and $8,995 of related interest were converted to 1,079,901 shares of Company common stock.

On February 28, 2015, the Company sold the mining claim known as the Turner Ranch.  Consideration for the sale was cancellation of a $252,000 note owed to the buyer.  The Company realized a $48,000 loss on the sale.

Seven demand notes due to the wife of the Company president (totaling $60,000), and a $25,000 promissory note due to a director were replaced by convertible notes due May 31, 2016.  These new notes bear interest at 16% per annum.  The $60,000 note is convertible at $.10 per share; the $25,000 note is convertible at $.05 per share.