Note 2 - Income Tax Disclosure

12 Months Ended

Sep. 30, 2012

Notes

Note 2 - Income Tax Disclosure

Note 2 - Income Taxes. At September 30, 2012, the Company had a depletion carryforward of $860,000 and a net operating loss carryforward ("NOL") of $1,680,000, $274,000, $303,000, $317,000, $330,000, $272,000, and $184,000 of this NOL expire in the years 2027, 2028, 2029, 2030, 2031 and 2032, respectively. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax assets at September 30, 2012, computed in accordance with the Income Tax Topic (Topic 740) of the Codification, is as follows:

Deferred Tax Assets
Depletion carryforward	$	301,000
Net operating loss carryforward		588,000
Accrued shareholder salary		62,000
Total Net Deferred Tax Assets		951,000
Less valuation allowance		(951,000)
Net Deferred Tax Asset	$	0

A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons:

		2012	2011
Tax benefit at 35% of net earnings	$	(102,000)	(119,000)
State income tax, net of Federal benefit		0	0
Change in valuation allowance for net deferred tax assets		102,000	119,000
Income tax expense	$	0	0

As of September 30, 2012, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2012, the Company’s tax years that remain subject to examination are 2009 - 2012 (Federal jurisdiction) and 2008 - 2012 (state jurisdictions).