INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED JUNE 30, 2009

(Expressed in Canadian Dollars, unless otherwise stated)

(Unaudited)

These financial statements have not been reviewed by the Company's auditors

CONTINENTAL MINERALS CORPORATION
Consolidated Balance Sheets
(Expressed in Canadian Dollars)

		June 30			December 31
		2009			2008
		(unaudited)
Assets
Current assets
Cash and cash equivalents	$	6,493,944		$	15,263,682
Amounts receivable		121,877			477,585
Amounts due from related parties (note 7)		343,893			556,426
Prepaid expenses and deposits		256,005			416,401
		7,215,719			16,714,094
Mineral property interests (note 5)		115,952,309			113,162,309
Equipment (note 4)		305,799			422,587
Investments		1			1
	$	123,473,828		$	130,298,991
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	4,539,516		$	5,950,065
Amounts due to related parties (note 7)		554,361			202,984
Current portion of long-term payable		581,500			609,000
		5,675,377			6,762,049
Long-term payable		581,500			609,000
Future income tax liabilities		31,620,000			32,638,000
Shareholders' equity
Share capital (note 6(b))		175,044,539			175,044,539
Contributed surplus (note 6(e))		13,240,621			9,517,334
Deficit		(102,688,209	)		(94,271,931	)
		85,596,951			90,289,942
Continuing operations and going concern (note 2)
Commitments (note 8)
Subsequent events (note 6(d))
	$	123,473,828		$	130,298,991

See accompanying notes to the consolidated financial statements

Approved by the Board of Directors

/s/ David J. Copeland	/s/ Rene G. Carrier
David J. Copeland	Rene G. Carrier
Director	Director

CONTINENTAL MINERALS CORPORATION
Consolidated Statements of Operations
(Expressed in Canadian Dollars except for number of shares)

		Three months ended June 30						Six months ended June 30
		2009			2008			2009			2008
Expenses
Amortization	$	20,395		$	12,788		$	40,138		$	23,948
Consulting		3,351			29,622			8,285			60,168
Exploration (Schedule)		2,618,879			1,895,469			5,580,937			3,426,555
Insurance		49,926			36,987			86,935			76,797
Interest income		(26,047	)		(119,169	)		(41,357	)		(461,245	)
Legal, accounting and audit		399,508			213,287			612,770			380,577
Office and administration		976,015			836,677			2,072,499			1,560,254
Project investigation		–			7,533			–			7,533
Shareholder communications		69,136			81,702			117,710			136,637
Stock based compensation		1,297,834			1,063,859			1,628,287			1,391,028
Travel and conference		102,711			263,133			180,943			453,517
Trust and filing		28,892			26,491			41,580			56,445
Loss before the following:		5,540,600			4,348,379			10,328,727			7,112,214
Foreign exchange loss (gain) related
to future income tax liability		(2,634,000	)		361,874			(1,713,000	)		2,551,874
Foreign exchange loss (gain)		(370,466	)		(9,154	)		(199,449	)		4,173
Loss for the period	$	2,536,134		$	4,701,099		$	8,416,278		$	9,668,261
Basic and diluted loss per share	$	(0.02	)	$	(0.04	)	$	(0.07	)	$	(0.07	)
Weighted average number of common shares
outstanding		129,053,041			129,053,041			129,053,041			129,053,041

Consolidated Statements of Comprehensive Loss
(Expressed in Canadian Dollars)

		Three months ended June 30				Six months ended June 30
		2009		2008		2009		2008
Loss for the period	$	2,536,134	$	4,701,099	$	8,416,278	$	9,668,261
Other comprehensive loss		–		–		–		–
Total comprehensive loss	$	2,536,134	$	4,701,099	$	8,416,278	$	9,668,261

See accompanying notes to the consolidated financial statements

Consolidated Statements of Deficit
(Expressed in Canadian Dollars)

		Three months ended June 30						Six months ended June 30
		2009			2008			2009			2008
Deficit, beginning of period	$	(100,152,075	)	$	(68,685,516	)	$	(94,271,931	)	$	(63,718,354	)
Loss for the period		(2,536,134	)		(4,701,099	)		(8,416,278	)		(9,668,261	)
Deficit, end of period	$	(102,688,209	)	$	(73,386,615	)	$	(102,688,209	)	$	(73,386,615	)

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION
Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)

		Three months ended June 30						Six months ended June 30
Cash provided by (used for)		2009			2008			2009			2008
Operating activities
Loss for the period	$	(2,536,134	)	$	(4,701,099	)	$	(8,416,278	)	$	(9,668,261	)
Items not involving cash
Amortization		57,852			66,954			121,866			140,178
Foreign exchange (gain) loss		(2,732,264	)		351,674			(1,768,000	)		2,545,074
Stock-based compensation		1,297,834			1,063,859			1,628,287			1,391,028
Changes in non-cash operating working capital
Amounts receivable		424,991			(116,095	)		355,708			(223,232	)
Prepaid expenses		55,032			(142,654	)		160,396			391,207
Accounts payable and accrued liabilities		(1,347,478	)		(177,750	)		(1,410,549	)		(819,496	)
Amounts due to and from related parties		(24,113	)		(33,670	)		563,910			(148,214	)
Cash used for operating activities		(4,804,280	)		(3,688,781	)		(8,764,660	)		(6,391,716	)
Investing activities
Acquisition of equipment		(2,668	)		(54,406	)		(5,078	)		(61,065	)
Principal payment on long-term payable		–			–			–			(446,250	)
Cash used for investing activities		(2,668	)		(54,406	)		(5,078	)		(507,315	)
Decrease in cash and cash equivalents		(4,806,948	)		(3,743,187	)		(8,769,738	)		(6,899,031	)
Cash and cash equivalents, beginning of period		11,300,892			29,884,735			15,263,682			33,040,579
Cash and cash equivalents, end of period	$	6,493,944		$	26,141,548		$	6,493,944		$	26,141,548
Components of cash and cash equivalents are as follows:
Cash	$	1,713,465		$	1,262,722		$	1,713,465		$	1,262,722
Treasury bills, bankers acceptances, and term deposits		4,780,479			24,878,826			4,780,479			24,878,826
	$	6,493,944		$	26,141,548		$	6,493,944		$	26,141,548

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION
Consolidated Schedules of Exploration Expenses
(Expressed in Canadian Dollars)

		Three months ended June 30				Six months ended June 30
Xietongmen Property, China		2009		2008		2009		2008
Exploration Costs
Amortization	$	37,457	$	54,166	$	81,728	$	116,230
Assays and analysis		4,917		21,560		7,741		77,863
Drilling		14,035		29,207		40,002		29,207
Engineering		889,394		654,454		2,114,499		1,031,176
Environmental		242,000		145,372		610,811		416,846
Equipment rentals and leases		13,529		7,868		13,529		8,375
Freight		14,701		39,177		14,701		39,177
Geological		189,191		67,456		371,620		155,465
Graphics		8,222		1,832		10,847		26,405
Property and finders' fees		228		2,378		1,384		2,565
Site activities		449,595		457,527		964,280		692,343
Socioeconomic		559,292		319,764		963,011		602,401
Transportation		196,318		94,708		386,784		228,502
Incurred during the period		2,618,879		1,895,469		5,580,937		3,426,555
Non-cash stock based compensation		189,121		251,513		287,275		263,635
		2,808,000		2,146,982		5,868,212		3,690,190
Accumulated exploration expenses, beginning of period		64,543,310		47,521,822		61,483,098		45,978,614
Accumulated exploration expenses, end of period	$	67,351,310	$	49,668,804	$	67,351,310	$	49,668,804

See accompanying notes to the consolidated financial statements

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

1.	BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
	Continental Minerals Corporation ("Continental" or the "Company") is incorporated under the laws of the province of British Columbia, Canada, and its principal business activity is the acquisition, exploration and development of mineral properties.
	These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles pursuant to the standard on Interim Financial Statements issued by the Canadian Institute of Chartered Accountants ("CICA"). These interim consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned.
	These interim financial statements do not include all the disclosures required for annual financial statements under generally accepted accounting principles. However, these interim financial statements follow the same accounting policies and methods of application as the Company's most recent audited annual financial statements except for the changes described in note 3 below. These interim consolidated financial statements should be read in conjunction with the Company's 2008 audited annual consolidated financial statements which are filed on www.sedar.com. Certain comparative information has been reclassified to conform to the presentation adopted in the current period.
	All material intercompany balances and transactions have been eliminated.
	Operating results for the three-month and six-month period ended June 30, 2009 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2009 or for any other period.
2.	CONTINUING OPERATIONS AND GOING CONCERN
	The Company is in the process of exploring its mineral property interests and has not yet determined whether its mineral property interests contain economically recoverable mineral reserves. The underlying value and the recoverability of the amounts shown for mineral property interests, and property and equipment are entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the development of the mineral property interests, and future profitable production or proceeds from the disposition of the mineral property interests.
	The Company is in the process of developing its Xietongmen Project located in Tibet, in the People's Republic of China (the "PRC"). The underlying value and the recoverability of the amounts shown for mineral property interests, and property and equipment are dependent upon the existence of economically recoverable mineral reserves, receipt of appropriate permits, the ability of the Company to obtain the necessary financing to complete the development of the project, and the future profitable production from, or the proceeds from the disposition of, this project.
	These consolidated financial statements are prepared on the basis that the Company will continue as a going concern. As at June 30, 2009, the Company had net working capital of approximately

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

$1.5 million (December 31, 2008 – $10 million) and continues to incur exploration and development expenditures related to the Xietongmen Project. The Company has not yet produced any revenue and has incurred recurring losses since inception. At June 30, 2009, the Company had approximately $6.5 million (December 31, 2008 – $15 million) in cash and cash equivalents.

Management recognizes that the Company will need to generate additional financing in order to meet its planned business objectives. There is no assurance that the Company will be able to raise these additional financial resources. If the Company is unable to obtain adequate additional financing, the Company will be required to curtail operations and exploration and development activities. The Company is continuing to look at and consider financing alternatives to fund its ongoing activities.

3.	CHANGES IN ACCOUNTING POLICIES
	Effective January 1, 2009, the Company adopted the following accounting standards issued by the Canadian Institute of Chartered Accountants ("CICA").

(a)	Newly adopted accounting standards
	(i)	Section 3064 – Goodwill and Intangibles
	The CICA issued Section 3064 which replaces Section 3062, Goodwill and Other Intangible Assets, and Section 3450, Research and Development Costs. This new section establishes standards for the recognition, measurement, presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets. Standards concerning goodwill remain unchanged from the standards included in the previous Section 3062. The Company evaluated the impact of this new standard and concluded that this standard did not have a significant impact on the consolidated financial statements.
	(ii)	EIC 173 – Credit Risk and the Fair Value of Financial Assets and Financial Liabilities
	The CICA issued EIC-173 which requires the Company to consider its own credit risk as well as the credit risk of its counterparties when determining the fair values of financial assets and liabilities, including derivative instruments. The standard is effective for the first quarter of 2009 and is required to be applied retrospectively without restatement of prior periods. The adoption of this standard did not have an impact on the valuation of financial assets or liabilities of the Company in the current period.
	(iii)	EIC 174 – Mining Exploration Costs
	The CICA issued EIC-174 which provides guidance to mining enterprises related to the measurement of exploration costs and the conditions that a mining enterprise should consider when determining the need to perform an impairment review of such costs. The accounting treatments provided in EIC-174 have been applied in the preparation of these financial statements and did not result in any changes in the valuation of the Company's mineral property interests.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

(b)	Future changes in accounting standards
	(i)	International Financial Reporting Standards ("IFRS")
	The Accounting Standards Board (“AcSB”) has announced its decision to replace Canadian GAAP with International Financial Reporting Standards ("IFRS") for all Canadian publicly-listed companies. The AcSB announced that the changeover date will commence for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The transition date for the Company to changeover to IFRS will be January 1, 2011. Therefore, the adoption of IFRS will require the restatement for comparative purposes of amounts reported by the Company for the year ending December 31, 2010. The Company is currently in the process of developing an IFRS conversion plan and evaluating the impact of the transition to IFRS.
	(ii)	Business Combinations/Consolidated Financial Statements and Non-Controlling Interests
	The AcSB issued CICA Handbook Section 1582, Business Combinations, Section 1601,
	Consolidated Financial Statements, and Section 1602, Non-Controlling Interests which supersede current Section 1581, Business Combinations, and Section 1600 Consolidated Financial Statements. These new sections replace existing guidance on business combinations and consolidated financial statements to harmonize Canadian accounting for business combinations with IFRS. These sections will be applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2011. Earlier adoption is permitted. If an entity applies these sections before January 1, 2011, it is required to disclose that fact and apply each of the new sections concurrently. The Company is currently evaluating the impact of the adoption of these changes on its consolidated financial statements.

4. PROPERTY AND EQUIPMENT

		June 30, 2009						December 31, 2008
				Accumulated		Net book				Accumulated		Net book
		Cost		amortization		value		Cost		amortization		value
Leasehold
Improvements	$	117,692	$	70,258	$	47,434	$	117,692	$	52,770	$	64,922
Computers		225,451		187,673		37,778		220,372		154,918		65,454
Field
Equipment		197,021		191,507		5,514		197,021		177,829		19,192
Furniture		41,734		32,386		9,348		41,734		27,497		14,237
Vehicles		530,562		324,837		205,725		530,562		271,780		258,782
	$	1,112,460	$	806,661	$	305,799	$	1,107,381	$	684,794	$	422,587

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

5. MINERAL PROPERTY INTEREST

				Year ended
		Six months ended		December 31,
Xietongmen Property		June 30, 2009		2008
Balance, beginning of the period	$	113,162,309	$	117,287,309
Increase (decrease) in accumulated mining permit costs		2,095,000		(3,095,000	)
Future income tax related to accumulated mining permit		695,000		(1,030,000	)
costs
Balance, end of the period	$	115,952,309	$	113,162,309

6. SHAREHOLDERS' EQUITY

(a)	Authorized share capital
	The Company’s authorized share capital consists of:
		an unlimited number of common shares without par value; and
		an unlimited number of non-voting, redeemable preferred shares without par value.
(b)	Issued and outstanding common share capital

	Number of
	common shares		Amount
Balance, December 31, 2008 and June 30, 2009	129,053,041	$	175,044,539

(c)	Warrants
	The continuity of the number of share purchase warrants is as follows:

Expiry date		February 14, 2009
Exercise price	$	1.59
Balance, December 31, 2008		500,000
Issued (Expired)		(500,000	)
Balance, June 30, 2009		–

(d)	Share purchase option plan
	The Company has a share option plan approved by the shareholders that allows it to grant options, subject to regulatory terms and approval, to its officers, directors, employees and consultants.
	A share option plan was approved by the Board and by the shareholders in June 2006. The share option plan (the "2006 Rolling Option Plan") is based on the maximum number of eligible shares

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

equaling a rolling percentage of up to 10% of the Company's outstanding common shares, calculated from time to time. Pursuant to the 2006 Rolling Option Plan, if outstanding options are exercised, or expire, or the number of issued and outstanding common shares of the Company increases, the number of options available to grant under the plan increases proportionately. The exercise price of each option is set by the Board of Directors at the time of grant but cannot be less than the market price (less permissible discounts). Options can have a maximum term of five years and typically terminate 90 days following the termination of the optionee's employment or engagement, except in the case of retirement or death. Vesting of options is at the discretion of the Board of Directors at the time the options are granted.

The continuity schedule of share purchase options, of which 7,221,000 were exercisable at June 30, 2009 (December 31, 2008 – 6,967,665), is as follows:

Share purchase options	Number of options		Weighted average exercise
outstanding			price
Balance, December 31, 2007	6,554,607		$ 1.77
Granted	5,139,000		1.28
Expired or cancelled	(1,362,941	)	1.45
Balance, December 31, 2008	10,330,666		$ 1.57
Expired or cancelled	(1,373,666	)	1.90
Balance, June 30, 2009	8,957,000		$ 1.52

The following table summarizes the Company's stock options outstanding at June 30, 2009:

		Number of options	Number of options
Expiry date	Option price	outstanding	exercisable
November 30, 2009	$ 1.61	250,000	250,000
September 30, 2010	$ 1.68	131,666	93,333
February 28, 2011	$ 1.61	2,800,000	2,566,667
February 28, 2011	$ 1.68	350,000	350,000
May 2, 2011	$ 1.32	4,025,334	2,694,333
October 1, 2011	$ 0.79	200,000	66,667
February 28, 2012	$ 2.01	1,200,000	1,200,000
Total		8,957,000	7,221,000
Weighted average option price		$ 1.52	$ 1.56

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

Using an option pricing model with the assumptions noted below, the estimated fair value of all options granted or vesting during the three and six months ended June 30, 2009, and which have been reflected in the consolidated statements of operations, is as follows:

		Three months ended June 30				Six months ended June 30
		2009		2008		2009		2008
Exploration
Engineering	$	74,861	$	106,094	$	120,661	$	117,961
Environmental,
socioeconomic and land		32,252		40,468		51,889		42,689
Geological		82,008		104,951		114,725		102,985
Exploration		189,121		251,513		287,275		263,635
Operations and administration		1,108,713		812,346		1,341,012		1,127,393
Total compensation cost
recognized in operations,
credited to contributed surplus	$	1,297,834	$	1,063,859	$	1,628,287	$	1,391,028

The weighted-average assumptions used to estimate the fair value of options vesting during the respective periods were as follows:

	Three months ended June 30		Six months ended June 30
	2009	2008	2009	2008
Risk free interest rate	2.90%	3.42%	2.90%	3.42%
Expected life	3 years	3 years	3 years	3 years
Expected volatility	65%	78%	65%	78%
Expected dividends	nil	nil	nil	nil

Subsequent to June 30, 2009, the Company granted 3,560,100 options at an exercise price of $1.05, expiring in July 2012 and 2014, to various employees, directors and consultants.

(e)	Contributed surplus
	Balance, December 31, 2008	$	9,517,334
	Changes during the period
	Non-cash stock-based compensation		1,628,287
	Mining permit cost		2,095,000
	Balance, June 30, 2009	$	13,240,621

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

7. RELATED PARTY BALANCES AND TRANSACTIONS

		June 30		December 31
Amounts due from related party		2009		2008
Hunter Dickinson Services Inc. (a)	$	341,730	$	556,426
Beijing Honglu (b)		121		–
Dong Ouyang (h)		2,042		–
	$	343,893	$	556,426

		June 30		December 31
Amounts due to related parties		2009		2008
Hunter Dickinson Services Inc. (a)	$	332,719	$	–
Tibet Bojing, Beijing Honglu, Wang Zhi (b)		141,181		148,774
C.E.C. Engineering Ltd. (c)		2,066		15,366
Sundecin Enterprises Inc. (d)		26,200		30,089
Dickson Hall & Associates Ltd. (e)		11,412		6,491
Zheng Xun Guo (g)		39,430		–
Gerald Panneton		1,353		2,264
	$	554,361	$	202,984

		Three months ended June 30				Six months ended June 30
Transactions:		2009		2008		2009		2008
Hunter Dickinson Services
Inc. – reimbursement for third
party expenses and services
rendered (a)	$	1,066,543	$	1,087,053	$	1,934,235	$	2,066,636
Tibet Bojing (b)		–		67,640		–		135,280
Beijing Honglu (b)		–		50,730		–		119,725
C.E.C. Engineering (c)		86,297		95,101		181,450		188,714
Sundecin Enterprise Inc. (d)		32,266		28,730		66,742		59,670
Dickson Hall & Associates
Ltd. (e)		78,011		64,668		150,287		133,616
Qi Deng (f)		64,678		61,134		99,232		119,610
Zheng Xun Guo (g)		61,334		16,472		81,778		33,855
Dong Ouyang (h)		26,034		–		52,068		–
Loan repayment to companies
associated with a director of
the Company (i)		–		–		509,850		–

(a) Hunter Dickinson Services Inc. ("HDSI") (formerly, Hunter Dickinson Inc.) is a private company owned equally by several public companies, one of which is Continental. HDSI has certain directors in common with the Company and provides geological, corporate development, administrative and management services to, and incurs third party costs on behalf of, the Company and its subsidiaries on a full cost recovery basis pursuant to an agreement dated June 1, 2008. Advances during 2008 were non-interest bearing and due on demand.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

Related party balances receivable or payable, in the normal course, during 2009 and 2008 were non-interest bearing and due on demand, and represent advances against current and future services rendered to, or costs incurred on behalf of, the Company by HDSI.

(b)	Tibet Bojing Minerals Investment Limited ("Tibet Bojing") and Beijing Honglu Shengdi Consulting Services Limited ("Beijing Honglu") are two companies controlled by a director of the Company, which provide consulting services.
(c)	C.E.C. Engineering Ltd is a private company controlled by a director of the Company, which provides engineering and project management services.
(d)	Sundecin Enterprises Inc. is a private company controlled by a director of the Company which provides consulting and advisory services.
(e)	Dickson Hall & Associates is a private company controlled by an officer of the Company which provides consulting and advisory services.
(f)	Mr. Qi Deng is a director of Tian Yuan, the Company's main Tibetan subsidiary, who provides consulting and project management services.
(g)	Mr. Zheng Xun Guo is a former director of Tian Yuan, the Company's main Tibetan subsidiary who provided consulting and project management services.
(h)	Mr. Dong Ouyang, became a director of Tian Yuan in September 2008, the Company's main Tibetan subsidiary, who provides for administrative and managerial services.
(i)	In December 2006, the Company acquired certain mineral properties (the "Surrounding Properties") from companies associated with Mr Zhi Wang, a director (see note 5(a)(iii) to consolidated financial statements for the year ended December 31, 2008).
	Cash payments for the acquisition of these three mineral property interests, totaling US$3.25 million ($3,761,225) were and are to be paid as follows: US$1.25 million ($1,446,625) was paid on December 15, 2006, the closing date of the acquisition, and US$500,000 is due on each of the next four anniversaries of the closing, which has been recorded as a liability. The payment due December 15, 2007, was delayed until early 2008, as the vendors were restructuring their banking affairs. This payment was made during the first quarter of 2008 on February 4, 2008. Accordingly, at June 30, 2009, US$ 500,000 ($581,500) is included in current liabilities and US$ 500,000 ($581,500) is presented as a long-term payable. This long-term payable is non-interest bearing and is unsecured.

CONTINENTAL MINERALS CORPORATION

Notes to Consolidated Financial Statements

For the three and six months ended June 30, 2009

(Unaudited – Expressed in Canadian Dollars)

8. COMMITMENTS

(a)	Office leases
	In 2008, the Company signed a lease agreement for office space in Beijing, with a two-year lease term ending June 30, 2010. The Company is committed to paying base rent and property management fees totaling approximately $129,198 in 2009 and $129,198 in 2010.
(b)	Housing for villagers
	In 2008, the Company entered into various agreements with village residents in the vicinity of the proposed mine site, for the construction of new houses and associated fencing and moving expenses. As at June 30, 2009, approximately $122,000 remained to be incurred for these costs, substantially all of which is expected to be paid during 2009.