SUPPLEMENTAL CASH FLOW INFORMATION

3 Months Ended

Jun. 30, 2011

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 10 – SUPPLEMENTAL CASH FLOW INFORMATION

During the six months ended June 30, 2011, the Company:

Issued 1,181,818 shares of common stock valued at $92,091 for payment of debt and accrued interest in the amount of $52,000, resulting in a loss on settlement in the amount of $40,091.

Recorded a capital contribution in the amount of $6,500 for rent.

During the six months ended June 30, 2010, the Company:

Exchanged a note receivable of $400,000 for the following assets and liabilities (in addition to the cash portion of $100,000 received):

Senior secured promissory note receivable	$	1,500,000
Related party note payable and related accrued interest	$	(1,000,000	)

Issued 4,714,861 shares of common stock valued at $706,066, for payment of debt in the amount of $520,765 resulting in a loss on settlement in the amount of $185,301.

Issued 4,232,154 shares of common stock valued at $424,815, for conversion of debentures in the amount of  $325,870, resulting in a loss on settlement in the amount of $98,946, which is net of the reversal of accrued interest expense.

Issued 3,425,000 shares of common stock for services rendered in the amount of $481,000.

Issued 7,000,000 shares of common stock for purchase of mining claim lease valued at $910,000.

Recorded a capital contribution in the amount of $13,000 for rent.

Actual amounts paid for interest and income taxes are as follows for the first six months of the year:

	2011		2010
Interest	$	-	$	-
Income taxes	$	-	$	-