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<title>Gryphon Gold Corporation: Form S-1 - Prepared by TNT Filings Inc.</title>

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<div class="Section1">
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  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
  <font size="2">As filed with the Securities and Exchange Commission on April
  30, 2008 </font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
  <font size="2">Registration Statement No. </font>
  <font size="2" style="font-family: Wingdings">u</font></p>
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    <b><font size="5">UNITED STATES<br>
    SECURITIES AND EXCHANGE COMMISSION</font></b><font size="5"> <br>
    </font>
  <b><font size="2">Washington, D.C. 20549</font></b><font size="2"> <br>
&nbsp;</font></div>
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    <b><font size="5">FORM S-1</font><font size="2"><br>
    REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</font></b><font size="2">
    </font>
    </p>
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    <p class="MsoNormal" style="text-align: center; border: medium none; margin-bottom: 0pt; padding: 0in" align="center">
    <b><font size="6"><img border="0" src="grypho1.jpg" width="324" height="85"><br>
    <br>
    GRYPHON GOLD CORPORATION</font></b></div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
  <font size="2">(Exact name of registrant as specified in its charter)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
  &nbsp;</p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 100%" cellSpacing="0" cellPadding="0" width="100%" border="0">
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        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 31.3%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="31%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <b><font size="2">Nevada</font></b></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.02%; PADDING-TOP: 0in" width="3%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        &nbsp;</td>
        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 31.3%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="31%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <b><font size="2">1041</font></b></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.04%; PADDING-TOP: 0in" width="3%">
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        &nbsp;</td>
        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 31.32%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="31%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <b><font size="2">92-0185596</font></b></td>
      </tr>
      <tr style="height: 25.35pt">
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 25.35pt" vAlign="top">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <font size="2">(State or other jurisdiction of<br>
        incorporation or organization) </font> </td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 25.35pt" vAlign="bottom">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt">&nbsp;</td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 25.35pt" vAlign="top">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <font size="2">(Primary Standard Industrial<br>
        Classification Code Number)</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 25.35pt" vAlign="bottom">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt">&nbsp;</td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 25.35pt" vAlign="top">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <font size="2">(I.R.S. Employer Identification No.)</font></td>
      </tr>
    </table>
  </div>
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    <p class="MsoNormal" style="text-align: center; border: medium none; margin-bottom: 0pt; padding: 0in" align="center">
    <b><font size="2"><br>
    810-1130 West Pender Street<br>
    Vancouver, British Columbia, Canada V6E 4A4<br>
    (604)-261-2229</font></b></p>
    </div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
  <font size="2">(Address, including zip code, and telephone number, including
  area code, of registrant's principal executive offices)</font></p>
  <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 1pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; mso-element: para-border-div">
    <p class="MsoNormal" style="text-align: center; border: medium none; margin-bottom: 0pt; padding: 0in" align="center">
    <b><font size="2" style="color: black">Dorsey &amp; Whitney LLP<br>
    Republic Plaza Building, Suite 4700<br>
    370 Seventeenth Street<br>
    Denver, CO 80202-5647<br>
    (303) 629-3400</font></b></p>
    </div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
  <font size="2">(Name, address, including zip code, and telephone number,
  including area code, of agent for service)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
  <b><i><font size="2">Copies to:</font></i></b><font size="2"><br>
  Kenneth G. Sam, Esq.<br>
  Dorsey &amp; Whitney LLP<br>
  Republic Plaza Building, Suite 4700<br>
  370 Seventeenth Street<br>
  Denver, CO 80202-5647</font></p>
  <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 1pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-element: para-border-div; mso-border-bottom-alt: solid windowtext .5pt">
    <p class="MsoNormal" style="text-align: center; border: medium none; margin-bottom: 0pt; padding: 0in" align="center">
    <b><font size="2">From time to time after the effective date of this
    registration statement</font></b></div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
  <font size="2">(Approximate date of commencement of proposed sale to public)</font></p>
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    <p class="MsoNormal" style="border: medium none; margin-bottom: 0pt; padding: 0in">
    <b><font size="2">If any of the securities being registered on this Form are
    to be offered on a delayed or continuous basis pursuant to Rule 415 under
    the Securities Act of 1933 check the following box:</font></b><font size="2">&nbsp;<font style="color: black; font-family: Wingdings">x</font>
    </font>
  </div>
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    <p class="MsoBodyTextFirstIndent" style="text-indent: 0in; border: medium none; margin-bottom: 0pt; padding: 0in">
    <b><font size="2">If this Form is filed to register additional securities
    for an offering pursuant to Rule 462(b)&nbsp; under the Securities Act,
    please check the following box and list the Securities Act registration
    statement number of the earlier registration statement for the same
    offering.</font></b><font size="2"> &nbsp;&nbsp;</font><font style="font-family: Wingdings"><font size="2">&#168;</font></font></div>
  <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 1pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-element: para-border-div; mso-border-bottom-alt: solid windowtext .5pt">
    <p class="MsoBodyTextFirstIndent" style="text-indent: 0in; border: medium none; margin-bottom: 0pt; padding: 0in">
    <b><font size="2">If this Form is a post-effective amendment filed pursuant
    to Rule 462(c) under the Securities Act, check the following box and list
    the Securities Act registration statement number of the earlier effective
    registration statement for the same offering.</font></b><font size="2">&nbsp;&nbsp;</font><font style="font-family: Wingdings"><font size="2">&#168;</font></font><font size="2">
    </font>
  </div>
  <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 1pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-element: para-border-div; mso-border-bottom-alt: solid windowtext .5pt">
    <p class="MsoBodyTextFirstIndent" style="text-indent: 0in; border: medium none; margin-bottom: 0pt; padding: 0in">
    <b><font size="2">If this Form is a post-effective amendment filed pursuant
    to Rule 462(d) under the Securities Act, check the following box and list
    the Securities Act registration statement number of the earlier effective
    registration statement for the same offering.</font></b><font size="2">&nbsp;&nbsp;</font><font style="font-family: Wingdings"><font size="2">&#168;</font></font><font size="2">
    </font>
  </div>
  <p class="MsoBodyTextFirstIndent" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0in">
  <b><font size="2">Indicate by check mark whether the registrant is a large
  accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
  reporting company. (Check one):</font></b></p>
  <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 1pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid; mso-element: para-border-div; mso-border-bottom-alt: solid windowtext .5pt">
    <p class="MsoNormal" style="border: medium none; margin-bottom: 0pt; padding: 0in" align="center">
    <b><font size="2">Large Accelerated Filer</font><font style="COLOR: black"><font size="2">
    </font>
    </font></b><font style="font-family: Wingdings"><font size="2">&#168;</font></font><b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Accelerated Filer </font> </b><font style="font-family: Wingdings">
    <font size="2">&#168;</font></font><b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Non-Accelerated Filer </font> </b><font style="font-family: Wingdings">
    <font size="2">&#168;</font></font><font size="2"><b> </b></font><b>
    <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Smaller Reporting Company&nbsp; </font> </b>
    <font style="color: black; font-family: Wingdings"><font size="2">x</font></font></div>
</div>
<div class="Section2">
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="NoTableHeading" align="center"><font size="2">CALCULATION OF
  REGISTRATION FEE</font></p>
  <table class="MsoNormalTable" style="border-collapse: collapse; border: medium none" cellSpacing="0" cellPadding="0" border="1" width="100%">
    <tr>
      <td style="border: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" align="left">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; ">
      <b><font size="2">Title of each class of securities to be registered</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">Amount <br>
      to be registered</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">Proposed maximum offering price per unit (1)</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">Proposed maximum aggregate offering price (1)</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">Amount of <br>
      registration fee</font></b></td>
    </tr>
    <tr>
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" align="left" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; ">
      <font size="2">Common Stock to be offered for resale by selling
      shareholders</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">4,486,500</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">.41</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="margin: 3pt 0in" align="center">
      <font size="2"><b>1,839,465</b></font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">$73</font></b></td>
    </tr>
    <tr>
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" align="left">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; ">
      <font size="2">Common Stock acquirable upon exercise of warrants to be
      offered for resale by selling stockholders (2)</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">4,562,030</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">.41</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="bodytext8pt" style="margin: 3pt 0in" align="center">
      <font size="2"><b>1,870,433</b></font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">$7</font></b><font size="2"><b>3</b></font></td>
    </tr>
    <tr>
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" align="left" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; ">
      <b><font size="2">TOTAL</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">9,048,530</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">.41</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="margin: 3pt 0in" align="center">
      <font size="2"><b>3,709,898</b></font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" bgcolor="#EDEBD3">
      <p class="bodytext8pt" style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">
      <b><font size="2">$146</font></b></td>
    </tr>
  </table>
  <p class="bodytext8pt" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: justify; margin-left:0.5in; margin-right:0in; margin-top:12pt; margin-bottom:12pt">
  <font size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Estimated pursuant to Rule 457(c) under the Securities Act of 1933, as
  amended, solely for purposes of calculating amount of registration fee, based
  on Cdn.$0.42, the average of the high and low sales prices of the Registrant's
  common stock on April 28, 2008, as quoted on the Toronto Stock Exchange.&nbsp;
  Based on a Cdn$ to US$ conversion rate of Cdn$1.0158/US$1.00 as of April 28,
  2008, based on the noon buying rates in New York City for cable transfers
  payable in Canadian Dollars and certified for customs purposes by the Federal
  Reserve Bank of New York.&nbsp; </font> </p>
  <p class="bodytext8pt" style="MARGIN: 0in 0in 12pt 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify">
  <font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Consisting of 4,486,500 shares of Common Stock issuable upon exercise of
  Series I warrants and 75,530 shares of Common Stock issuable upon exercise of
  Series J warrants.</font></p>
  <p class="bodytext8pt" style="MARGIN: 0in 0in 12pt 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify">
  &nbsp;</p>
  <p class="bodytext8pt" style="MARGIN: 0in 0in 12pt 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify">
  &nbsp;</p>
  <p class="bodytext8pt" style="MARGIN: 0in 0in 12pt 0.5in; TEXT-INDENT: -0.5in; TEXT-ALIGN: justify">
  <font size="2">&nbsp;&nbsp; </font> </p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="BodyTextLeft" align="justify"><font size="2">The Registrant hereby
  amends this Registration Statement on such date or dates as may be necessary
  to delay its effective date until the Registrant shall file a further
  amendment which specifically states that this Registration Statement shall
  thereafter become effective in accordance with Section 8(a) of the Securities
  Act of 1933, as amended (the &quot;Securities Act&quot;), or until this Registration
  Statement shall become effective on such date as the Commission, acting
  pursuant to said Section 8(a), may determine.</font><p class="BodyTextLeft" align="justify">&nbsp;<p class="BodyTextLeft" align="justify">&nbsp;<p class="BodyTextLeft" align="justify">&nbsp;<p class="BodyTextLeft" align="justify">&nbsp;<p class="BodyTextLeft" align="justify">&nbsp;<p class="BodyTextLeft" align="justify">&nbsp;<hr color="#000000" size="5"><p Style='page-break-before:always'></div>
<div class="Section3">
  <p class="MsoNormal" style="text-align: justify" align="left"><b>
  <font style="COLOR: red"><font size="2">The information contained in this
  prospectus is not complete and may be changed. The Selling Security Holders
  may not sell these securities until the registration statement filed with the
  Securities and Exchange Commission is effective. This prospectus is not an
  offer to sell these shares, and the Selling Security Holders are not
  soliciting an offer to buy these shares in any state where the offer or sale
  is not permitted .
  </font>
  </font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in">
      <p class="MsoNormal" style="text-align: center" align="center"><b>
      <font size="5">PRELIMINARY PROSPECTUS</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">Subject To Completion: Dated April 30, 2008</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center">
    <b><font size="6"><img border="0" src="grypho1.jpg" width="324" height="85"></font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="5">Gryphon Gold Corporation </font></b></p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 50%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="50%" border="0">
      <tr>
        <td style="width: 100%; border: 1pt solid windowtext; padding: 0in" width="100%">
        <p class="MsoNormal" style="text-align: center" align="center"><b>
        <font size="2">9,048,530 SHARES OF COMMON STOCK </font> </b></td>
      </tr>
    </table>
  </div>
  <p class="MsoNormal" align="justify"><font size="2">This prospectus relates to
  the sale, transfer or distribution of up to 9,048,530 shares of the common
  stock, par value $0.001 per share, of Gryphon Gold Corporation by the selling
  shareholders described herein. The price at which the selling shareholders may
  sell the shares will be determined by the prevailing market price for the
  shares or in negotiated transactions. The shares of common stock registered
  for sale: </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">4,486,500 shares of common stock held by
    selling shareholders; <br>
&nbsp;</font></li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">4,486,500 shares of common stock
    acquirable upon exercise of Series I Warrants at Cdn$1.00 if exercised
    within twelve months of the original issuance and at a price Cdn$1.25 if
    exercised there after but prior to expiry held by selling shareholders; and
    <br>
&nbsp;</font></li>
  </ul>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">75,530 shares of common stock acquirable
    upon the exercise of Series J Brokers' Warrants, issued in connection with
    the placement of the Series J Warrants, at Cdn$0.80 per share for a period
    on nine months from the original issuance held by selling shareholders. </font> </li>
  </ul>
  <p class="MsoNormal"><font size="2">We will not receive any proceeds from the
  sale or distribution of the common stock by the selling shareholders. We may
  receive proceeds from the exercise of the warrants, if any, and will use the
  proceeds from any exercise for general working capital purposes. </font> </p>
  <p class="MsoNormal"><font size="2">Our common stock is quoted on the Toronto
  Stock Exchange (&quot;TSX&quot;) under the symbol &quot;GGN&quot; and on the Financial Industry
  Regulatory Authority Over the Counter Bulletin Board (&quot;OTCBB&quot;) under the
  symbol &quot;GYPH&quot;. On April 28, 2008, the closing sale price for our common stock
  was $0.39 on the OTCBB and $0.41 on the TSX (converted from Cdn$0.42 based on
  the noon buying rates in New York City for cable transfers payable in Canadian
  Dollars and certified for customs purposes by the Federal Reserve Bank of New
  York as of April 28, 2008 of Cdn.$1.0158/US$1.00). </font> </p>
  <p class="MsoNormal"><b><font size="2">Investing in our common stock involves
  risks.&nbsp;&nbsp; See &quot;Risk Factors&quot; beginning on page 9. </font> </b></p>
  <p class="MsoNormal"><b><font size="2">These securities have not been approved
  or disapproved by the SEC or any state securities commission nor has the SEC
  or any state securities commission passed upon the accuracy or adequacy of
  this prospectus. Any representation to the contrary is a criminal offense. </font> </b></p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 50%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="50%" border="0">
      <tr>
        <td style="width: 100%; border: 1pt solid windowtext; padding: 0in" width="100%">
        <p class="MsoNormal" style="text-align: center" align="center"><b>
        <font size="2">THE DATE OF THIS PROSPECTUS IS APRIL 30, 2008</font></b></td>
      </tr>
    </table>
    <p>&nbsp;</div>
  <hr color="#000000" size="5"><p Style='page-break-before:always'><font FACE="Times New Roman" SIZE="2"><b>
  <p align="center">TABLE OF CONTENTS </p>
  </b></font>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      FORWARD-LOOKING STATEMENTS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      1</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">SUMMARY INFORMATION</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">2</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      RISK FACTORS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3">
      <font face="Times New Roman" size="2">10</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">RATIO OF EARNINGS TO
      FIXED CHARGES</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">18</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      USE OF PROCEEDS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      18</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">SELLING SECURITY
      HOLDERS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">18</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      PLAN OF DISTRIBUTION</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      22</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">DESCRIPTION OF
      SECURITIES TO BE REGISTERED</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">23</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      INTEREST OF NAMED EXPERTS AND COUNSEL</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      25</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">DESCRIPTION OF THE
      BUSINESS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">25</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      DESCRIPTION OF PROPERTY</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      31</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">LEGAL PROCEEDINGS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">60</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      61</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">FINANCIAL STATEMENTS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">64</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      SELECTED FINANCIAL DATA</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      117</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">SUPPLEMENTARY
      FINANCIAL INFORMATION</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">117</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATION</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      117</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">CHANGES IN AND
      DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">125</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      126</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">EXECUTIVE
      COMPENSATION</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">127</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      131</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">ORGANIZATION WITHIN
      LAST FIVE YEARS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">133</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      133</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">MATERIAL CHANGES</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">134</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      134</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font face="Times New Roman" size="2">THE SEC'S POSITION
      ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">134</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      TRANSFER AGENT AND REGISTRAR</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      135</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">LEGAL MATTERS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">135</font></td>
    </tr>
    <tr>
      <td WIDTH="95%" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      WHERE YOU CAN FIND MORE INFORMATION</font></td>
      <td WIDTH="5%" align="right" bgcolor="#EDEBD3"><font FACE="Times New Roman" SIZE="2">
      135</font></td>
    </tr>
    <tr>
      <td WIDTH="95%"><font FACE="Times New Roman" SIZE="2">DEFINITIONS</font></td>
      <td WIDTH="5%" align="right"><font FACE="Times New Roman" SIZE="2">135</font></td>
    </tr>
    <tr>
      <td WIDTH="95%">&nbsp;</td>
      <td WIDTH="5%" align="right">&nbsp;</td>
    </tr>
  </table>
  <hr color="#000000" size="5"><p Style='page-break-before:always'></div>
<div class="Section5">
  <h1 align="center"><a name="_Toc195437376"><font size="2">FORWARD-LOOKING
  STATEMENTS</font></a><font size="2">
  </font> </h1>
  <p class="MsoNormal" align="justify"><font size="2">This prospectus and the
  exhibits attached hereto contain &quot;forward-looking statements&quot; within the
  meaning of the Private Securities Litigation Reform Act of 1995. Such forward
  looking statements concern the Company's anticipated results and developments
  in the Company's operations in future periods, planned exploration and
  development of its properties, plans related to its business and other matters
  that may occur in the future. These statements relate to analyses and other
  information that are based on forecasts of future results, estimates of
  amounts not yet determinable and assumptions of management. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Any statements that
  express or involve discussions with respect to predictions, expectations,
  beliefs, plans, projections, objectives, assumptions or future events or
  performance (often, but not always, using words or phrases such as &quot;expects&quot;
  or &quot;does not expect&quot;, &quot;is expected&quot;, &quot;anticipates&quot; or &quot;does not anticipate&quot;,
  &quot;plans&quot;, &quot;estimates&quot; or &quot;intends&quot;, or stating that certain actions, events or
  results &quot;may&quot;, &quot;could&quot;, &quot;would&quot;, &quot;might&quot; or &quot;will&quot; be taken, occur or be
  achieved) are not statements of historical fact and may be forward-looking
  statements. Forward-looking statements are subject to a variety of known and
  unknown risks, uncertainties and other factors which could cause actual events
  or results to differ from those expressed or implied by the forward-looking
  statements, including, without limitation: </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt"><font size="2">the timing
    and possible outcome of pending regulatory and permitting matters; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt"><font size="2">the timing
    and outcome of our feasibility study; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt"><font size="2">the
    parameters and design of our planned initial mining facilities on the
    Borealis Property; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt"><font size="2">future
    financial or operating performances of Gryphon Gold, its subsidiaries, and
    its projects;
    </font>
    </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">the estimation of mineral resources and
    the realization of mineral reserves, if any, based on mineral resource
    estimates; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">the timing of exploration, development,
    and production activities and estimated future production, if any; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">estimates related to costs of production,
    capital, operating and exploration expenditures; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">requirements for additional capital and
    our ability to raise additional capital; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">government regulation of mining
    operations, environmental risks, reclamation and rehabilitation expenses; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">title disputes or claims;
    </font>
    </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">limitations of insurance coverage; and </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">the future price of gold, silver, or other
    minerals. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">This list is not
  exhaustive of the factors that may affect our forward-looking statements. Some
  of the important risks and uncertainties that could affect forward-looking
  statements are described further under the sections titled &quot;Risk Factors and
  Uncertainties&quot;, &quot;Description of the Business&quot; and &quot;Management's Discussion and
  Analysis&quot; of this prospectus. Should one or more of these risks or
  uncertainties materialize, or should underlying assumptions prove incorrect,
  actual results may vary materially from those anticipated, believed, estimated
  or expected. We caution readers not to place undue reliance on any such
  forward-looking statements, which speak only as of the date made. We disclaim
  any obligation subsequently to revise any forward-looking statements to
  reflect events or circumstances after the date of such statements or to
  reflect the occurrence of anticipated or unanticipated events. </font> </p>
  <p class="MsoNormal" align="justify"><a name="_Toc195437377"><b><font size="2">
  We qualify all the forward-looking statements contained in this prospectus by
  the foregoing cautionary statements.</font></b></a><b><font size="2"> </font> </b></p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  1</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="_Toc196194137"><font size="2">SUMMARY INFORMATION</font></a></h1>
  <p class="MsoNormal" align="justify"><i><font size="2">This summary does not
  contain all of the information you should consider before buying shares of our
  common stock. You should read the entire prospectus carefully, especially the
  &quot;Risk Factors and Uncertainties&quot; section and our consolidated financial
  statements and the related notes appearing at the end of this prospectus,
  before deciding to invest in shares of our common stock.</font><b><font size="2"> </font> </b></i></p>
  <h2 align="justify"><a name="_Toc195437378"><font size="2">Financial
  Information And Accounting Principles</font></a><font size="2">
  </font>
  </h2>
  <p class="MsoNormal" align="justify"><font size="2">In this prospectus all
  references to &quot;$&quot; or &quot;dollars&quot; mean the U.S. dollar, and unless otherwise
  indicated all currency amounts in this prospectus are stated in U.S. dollars.
  All references to &quot;Cdn$&quot; refer to the Canadian dollar. All financial
  statements have been prepared in accordance with accounting principles
  generally accepted in the United States and are reported in U.S. dollars. </font> </p>
  <h2 align="justify"><a name="_Toc195437379"><font size="2">Exchange Rate
  Information</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">The following table sets
  forth, for each of the years indicated, the year end exchange rate, the
  average closing rate and the high and low closing exchange rates of one
  Canadian dollar in exchange for U.S. currency based on the noon buying rates
  in New York City for cable transfers payable in Canadian Dollars and certified
  for customs purposes by the Federal Reserve Bank of New York. On April 28,
  2008, the closing rate was Cdn$1.0158 equals United States $1.00. For the
  purposes of this prospectus, U.S. dollars were converted into Canadian dollars
  at the rate of Cdn$1.0158 = US$1.00, rounded to the nearest thousand dollars,
  as applicable. </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Calendar Year Ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Fiscal Year Ended</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31</font></b></td>
      <td style="width: 16%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 16%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2005</font></b></td>
      <td style="width: 16%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="width: 16%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">High</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1.1852</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.9100</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8751</font></td>
      <td style="width: 16%; border: medium none; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.9100</font></td>
      <td style="width: 16%; border: medium none; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8850</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Low</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.9168</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8528</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.7853</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8437</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.7853</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Average</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1.0742</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8818</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8254</font></td>
      <td style="width: 16%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8787</font></td>
      <td style="width: 16%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8368</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Year End</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.9881</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8582</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8598</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8673</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8562</font></td>
    </tr>
  </table>
  <h2><a name="_Toc195442044"><font size="2">Metric Conversion Table</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal"><font size="2">For ease of reference, the following
  conversion factors are provided: </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Metric Unit</font></b></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">U.S. Measure</font></b></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">U.S. Measure</font></b></td>
      <td style="width: 26%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Metric Unit</font></b></td>
    </tr>
    <tr>
      <td style="width: 24%; border: medium none; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 26%; border: medium none; padding: 0in" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 hectare</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">2.471 acres</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 acre</font></td>
      <td style="width: 26%; padding: 0in; background: #edebd3" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.4047 hectares</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 metre</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3.2881 feet</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 foot</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 26%; PADDING-TOP: 0in" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.3048 metres</font></td>
    </tr>
    <tr>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 kilometre</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.621 miles</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 mile</font></td>
      <td style="width: 26%; padding: 0in; background: #edebd3" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.609 kilometres</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 gram</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.032 troy oz.</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 troy ounce</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 26%; PADDING-TOP: 0in" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">31.1 grams</font></td>
    </tr>
    <tr>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 kilogram</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">2.205 pounds</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 pound</font></td>
      <td style="width: 26%; padding: 0in; background: #edebd3" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.4541 kilograms</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 tonne</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.102 short tons</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 short ton</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 26%; PADDING-TOP: 0in" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.907 tonnes</font></td>
    </tr>
    <tr>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">1 gram/tonne</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.029 troy ozs./ton</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1 troy ounce/ton</font></td>
      <td style="width: 26%; padding: 0in; background: #edebd3" width="26%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">34.28 grams/tonne</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: center" align="left"><b><font size="2">
  &nbsp;</font></b><font style="text-transform: uppercase"><font size="2">2</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p><b><font size="2">The Offering
  </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">This is an offering of up
  to 9,048,530 shares of our common stock by certain selling shareholders. </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Shares Offered By the Selling</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">9,048,530 shares of common stock, $0.001 par value per
      share,</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Shareholders</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">including:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%" rowSpan="18">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></p>
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">&#149;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">4,486,500 shares of common stock held by</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">selling shareholders;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">&#149;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">4,486,500 shares of common stock acquirable</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">upon exercise of Series I Warrants at</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cdn$1.00 if exercised within twelve months of</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">the original issuance and at a price Cdn$1.25 if</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">exercised there after but prior to expiry held by</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">selling shareholders;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">&#149;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">75,530 shares of common stock acquirable</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">upon the exercise of Series J Brokers'</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Warrants, issued in connection with the</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">placement of the Series I Warrants, at</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cdn$0.80 per share held by selling</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">shareholders; and</font></td>
    </tr>
    <tr style="height: 20pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 20pt" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Offering Price</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Determined at the time of sale by the selling shareholders</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Common Stock Outstanding</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">61,735,395 common shares</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">as of April 28, 2008</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Use of Proceeds</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">We will not receive any of the proceeds of the shares
      offered by</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">the selling shareholders.</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Dividend Policy</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">We currently intend to retain any future earnings to fund
      the</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">development and growth of our business. Therefore, we do
      not</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">currently anticipate paying cash dividends.</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 45%; PADDING-TOP: 0in" width="45%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2">Toronto Stock Exchange Symbol</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">GGN</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 44%; PADDING-TOP: 0in" width="44%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: justify" align="left"><font size="2">
  The number of shares of our common stock that will be outstanding immediately
  after this offering is 61,735,395 shares of common stock outstanding as of
  April 28, 2008. This calculation excludes: </font> </p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal">
    <p align="justify"><font size="2">6,252,000 shares of common stock issuable
    upon vested exercise of options outstanding as of April 28, 2008; </font> </li>
    <li class="MsoNormal">
    <p align="justify"><font size="2">141,008 shares of common stock issuable
    upon exercise of pre-IPO warrants at an exercise price of $0.65; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">5,000,000 shares of common stock
    acquirable upon exercise of Series E Warrants at Cdn$1.10 for a period up to
    12 months after the issuance date and thereafter at Cdn$1.35 until expiry. </font> </li>
  </ul>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">85,050 shares of common stock acquirable
    upon exercise of Series F Warrants at Cdn$0.90 for a period of up to 12
    months after the issuance date; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">5,000,000 shares of common stock
    acquirable upon exercise of Series G Warrants at Cdn$1.00 for a period up to
    12 months after the issuance date and thereafter at Cdn$1.25 until expiry; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">265,050 shares of common stock acquirable
    upon exercise of Series H Warrants issued to agents at Cdn$0.83 for a period
    up to 9 months after the issuance date; </font> </li>
  </ul>
</div>
  <p align="center"><font style="text-transform: uppercase"><font size="2">3</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
<div class="Section5">
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p style="margin-top: 12pt" align="justify"><font size="2">4,304,000 shares
    of common stock acquirable upon exercise of Series I Warrants at Cdn$1.00
    for a period of up to 12 months after the issuance date and thereafter at
    Cdn$1.25 until expiry; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">75,530 shares of common stock acquirable
    upon exercise of Series J Warrants issued to agents at Cdn$0.80 for a period
    up to 9 months after the issuance date; </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">5,000,000 shares of common stock
    acquirable upon conversion of a $5,000,000 convertible note due March 30,
    2010, assuming the current conversion rate of the note of $1.00 per share of
    common stock; and </font> </li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify"><font size="2">942,500 shares of common stock available
    for future grant under our Omnibus Incentive Plan as of April 28, 2008. </font> </li>
  </ul>
  <h2 align="justify"><font size="2">Summary of Our Business </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">Gryphon Gold Corporation
  was formed under the laws of the State of Nevada on April 24, 2003. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Our principal business
  office, which also serves as our administrative and financing office, is
  located in Canada at Suite 810, 1130 West Pender Street, Vancouver, British
  Columbia, Canada V6E 4A4, and our telephone number there is 604-261-2229. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We own 100% of the issued
  and outstanding shares of our operating subsidiaries, Borealis Mining Company
  and Gryphon Nevada Eagle Holding Company. Gryphon Nevada Eagle Holding Company
  owns 100% of the membership interests in Nevada Eagle Resources LLC. We have
  no other subsidiaries. Borealis Mining Company was formed under the laws of
  the State of Nevada on June 5, 2003, Gryphon Nevada Eagle Holding Company was
  formed under the laws of the State of Nevada on July 27, 2007, and Nevada
  Eagle Resources LLC was organized under the laws of the State of Nevada on
  April 28, 2005. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In July 2003, through our
  wholly-owned subsidiary Borealis Mining, we initially acquired from Golden
  Phoenix Minerals, Inc. (&quot;Golden Phoenix&quot;) an option to earn up to a 70% joint
  venture interest in the mining lease for the Borealis Property (July 2003
  Option and Joint Venture Agreement) by making qualified development
  expenditures on that property.
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">During 2004, we completed
  drilling, technical and engineering work necessary to prepare a Plan of
  Operation in respect of the development of an open pit, heap leach mine on the
  Borealis Property. We submitted the Plan of Operation to the U.S. Forest
  Service on August 27, 2004, and we continue to work on satisfying all the
  requirements of the various approval agencies and completing all necessary
  reviews, including the approval of the Nevada Division of Environmental
  Protection. The principal mine operating permits were granted in 2006. A
  further discussion of operating permits and other governmental regulation
  concerns is described under the caption &quot;Permitting,&quot; below. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Following the course
  established by the recommendations in the preliminary scoping study, and based
  on additional geologic field work that was completed in 2004, we retained Ore
  Reserves Engineering, consulting resource modeling engineers, to complete an
  updated resource estimate model in accordance with National Instrument 43-101
  of the Canadian Securities Administrators. In May 2005, Ore Reserves
  Engineering delivered the report titled </font> </p>
  <p class="MsoNormal" align="justify"><i><font size="2">Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada.</font></i><font size="2"> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On January 10, 2005,
  Borealis Mining entered into a purchase agreement with Golden Phoenix which
  gave Borealis Mining the right to purchase the interest of Golden Phoenix in
  the Borealis Property for $1,400,000. Golden Phoenix transferred its interest
  in the Borealis Property to Borealis Mining on January 28, 2005. Borealis
  Mining paid $400,000 of the purchase price to Golden Phoenix upon closing of
  the purchase, and four additional quarterly payments of $250,000 were made to
  Golden Phoenix. With the final payment of $250,000 on January 24, 2006,
  Borealis Mining completed all the required payments under the purchase
  agreement and now has 100% control of the Borealis Property. A portion of the
  Borealis Property is subject to mining leases, as described under the caption
  &quot;Borealis Property,&quot; below. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">As sole shareholder of
  Borealis Mining, we control all of the lease rights to a portion of the
  Borealis Property, subject to advance royalty, production royalty, and other
  payment obligations imposed by the lease. Our acquisition of the interest of
  Golden Phoenix in the Borealis Property terminated the July 2003 Option and
  Joint Venture Agreement. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition to our
  leasehold interest to a portion of the Borealis Property, we also own through
  Borealis Mining numerous unpatented mining claims that make up the balance of
  the Borealis Property, and all of the documentation and samples from years of
  exploration and development programs carried out by the previous operators of
  the Borealis Property, totaling thousands of pages of data including, but not
  limited to, geophysical surveys, mineralogical studies and metallurgical
  testing reports. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">4</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On July 11, 2005, we
  accepted a joint proposal for a feasibility study from the firms of Samuel
  Engineering, Inc. and Knight Piesold and Company. Samuel Engineering provides
  services including metallurgical process development and design, and Knight
  Piesold provides mining, metallurgical and environmental engineering services.
  Both companies have worked together recently on completing similar studies. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">During the period from our
  inception on April 24, 2003 through March 31, 2004, we funded our capital
  needs by raising $2,419,200 in private placements, issuing 14,376,000 shares
  of common stock at prices ranging from $0.10 per share to $0.225 per share. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">During our fiscal year
  ended March 31, 2005, we raised $175,000 by issuing 500,000 shares of common
  stock to an executive officer at $0.35 per share under the terms of his
  employment agreement. We raised an additional $4,430,375 by issuing 6,815,962
  units in a series of private placements. Each unit consisted of one share of
  common stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the issue date and nine months following the date on
  which common stock is listed on a public stock exchange (subsequently revised
  to expire on December 22, 2006). </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">During our fiscal quarter
  ended June 30, 2005, we raised $3,919,765 by issuing 6,030,408 units in a
  series of private placements. Each unit consisted of one share of common stock
  and one-half of one share purchase warrant, each whole warrant exercisable to
  acquire one share of common stock at $0.90 per share until the earlier of two
  years from the issue date and nine months following the date on which common
  stock is listed on a public stock exchange (subsequently revised to expire on
  December 22, 2006.). </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On August 11, 2005, our
  Board authorized an increase in our authorized capital to consist of
  150,000,000 shares of common stock, par $0.001, and 15,000,000 shares of
  preferred stock, par $0.001. The increase was approved by shareholders. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On December 22, 2005, we
  completed our initial public offering of 6.9 million units for gross proceeds
  of approximately $ 5,036,497 with net proceeds of $2,794,557 after deducting
  costs of $2,241,940. The units were sold at a price of $0.73 (Cdn$0.85) each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable for a period of 12 months at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol &quot;GGN.&quot;
  The offering was underwritten by a syndicate of Canadian underwriters which
  included Desjardins Securities, CIBC World Markets, Border Investment Partners
  and Orion Securities. The units were offered for sale pursuant to a prospectus
  filed in four Canadian provinces (British Columbia, Alberta, Manitoba and
  Ontario). The units were also registered in a registration statement filed
  with the United States Securities and Exchange Commission. The proceeds of the
  offering will be used principally for the completion of the Company's
  feasibility study for its Borealis Property and its exploration program on the
  Borealis Property, as well as for working capital. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On March 24, 2006, we
  closed the private placement of 5,475,000 units for sale at Cdn$1.25 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one half of one Series B purchase
  warrant. The Series B warrants are exercisable until March 23, 2007 at a price
  of Cdn$1.65. The private offering raised gross proceeds of Cdn$6.8 million. We
  paid qualified registered dealers a 7% cash commission and issued compensation
  options to acquire 280,500 common shares at price of Cdn$1.40 until March 23,
  2007 on a portion of the private placement. The shares, warrants and
  underlying shares were not qualified by prospectus and have not been
  registered under U.S. securities laws and are subject to resale restrictions.
  The Company granted registration rights to the investors in this private
  placement and used commercially reasonable efforts to prepare and file with
  the SEC, within 120 days of closing, a registration statement under the
  Securities Act and caused such statement to be declared effective and remain
  effective. The proceeds of this offering have been and will be applied to fund
  the continuation of our exploration and development program on the Borealis
  Property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller. Mr. Longinotti was appointed as new Chief Financial Officer to the
  Company, effective May 15, 2006, and the Company has agreed to enter into a
  formal employment agreement with him in due course. Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006. Mr. Longinotti's employment
  commenced April 18, 2006. Mr. Rajwant Kang is the Corporate Controller to the
  Company. In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On November 30, 2006, our
  board of directors concluded that we would not proceed with near term
  construction and production financing of the Borealis heap leach mine. The
  feed for the proposed mine was remnants from the previously mined open pits,
  and heap and dump material associated with the historical mining operations.
  The decision not to proceed was made due to the impact of certain technical
  corrections to the previously announced Feasibility Study and related NI
  43-101 Technical Report, dated August 15, 2006. The technical corrections
  reduced the anticipated quantity of recoverable gold and silver over the
  project life, and resulted in a marginal projected return on investment. In
  light of the decision not to proceed with development of a mine, in December
  2006, we closed our Denver office and terminated operations and engineering
  staff, including our Chief Operating Officer Mr. Allen Gordon and Mr. Matt
  Bender, our Vice President of Borealis Project Development. Mr. Steven Craig,
  our Vice President of Exploration, was relocated to Nevada. As of December 1,
  2006, our Chief Financial Officer, Mr. Michael Longinotti commenced working on
  a part-time basis. Under this agreement, his time spent in the office was
  reduced by 50% along with his salary. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">5</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">In December 2006, we
  completed the geophysical survey, which commenced in September 2006. The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit. The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On January 11, 2007, we
  announced the results of the revised CIM compliant resource estimate in
  accordance with NI 43-101 which had been compiled by Mr. Alan C. Noble, P.E.
  of Ore Reserves Engineering. The results of the report were independently
  reviewed by AMEC to insure the methodology and assumptions used in the
  calculations were consistent with industry standards. The resource estimate
  includes the results of exploration drilling through February 28, 2006. The
  measured, indicated and inferred gold resource (combined oxide and sulfide
  material) reported in January 2007 is:
  </font>
  </p>
  <font FACE="Times New Roman" SIZE="2">
  <p ALIGN="JUSTIFY">On January 11, 2007, we announced the results of the
  revised CIM compliant resource estimate in accordance with NI 43-101 which had
  been compiled by Mr. Alan C. Noble, P.E. of Ore Reserves Engineering, titled
  </font><font FACE="Times New Roman" SIZE="2"><i>Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada, USA August 15, 2006, revised January 11, 2007</i> (the &quot;<u>Technical
  Report</u>&quot;). The results of the report were independently reviewed by AMEC to
  insure the methodology and assumptions used in the calculations were
  consistent with industry standards. The resource estimate includes the results
  of exploration drilling through November 5, 2006. The measured, indicated and
  inferred gold resource (combined oxide and sulfide material) reported in
  January 2007 is: </p>
  </font>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 15%; border: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: left; margin-left: 3.75pt" align="left">
      <b><font size="2">Date</font></b></td>
      <td style="width: 27%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="27%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Measured*</font></b></td>
      <td style="width: 28%; border-left: 1pt solid windowtext; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="28%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Indicated*</font></b></td>
      <td style="width: 31%; border: 1pt solid windowtext; padding: 0in" width="31%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Inferred*</font></b></td>
    </tr>
    <tr>
      <td style="width: 15%; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: left; margin-left: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Tons</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Grade</font></td>
      <td style="width: 9%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Ozs of</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Tons</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Grade</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Ozs of</font></td>
      <td style="width: 10%; border: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Tons</font></td>
      <td style="width: 10%; border: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Grade</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Ozs of Gold</font></td>
    </tr>
    <tr>
      <td style="width: 15%; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: left; margin-left: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(000's)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9%; PADDING-TOP: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">opt</font></td>
      <td style="width: 9%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Gold</font></td>
      <td style="width: 9%; border: medium none; padding: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(000's)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9%; PADDING-TOP: 0in" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">opt</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Gold</font></td>
      <td style="width: 10%; border: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(000's)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">opt</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 15%; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: left; margin-left: 3.75pt" align="left">
      <font size="2">January, 11, 2007</font></td>
      <td style="width: 9%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">16,360</font></td>
      <td style="width: 9%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">0.031</font></td>
      <td style="width: 9%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">503,700</font></td>
      <td style="width: 9%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">24,879</font></td>
      <td style="width: 9%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">0.029</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">709,800</font></td>
      <td style="width: 10%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">30,973</font></td>
      <td style="width: 10%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">0.020</font></td>
      <td style="width: 10%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">609,200</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2">The updated report
  confirmed a total gold resource (measured, indicated and inferred) of
  1,822,700 ounces contained in the Borealis property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">*<b>Cautionary Note to
  investors concerning estimates of Measured, Indicated and Inferred Mineral
  Resources</b>: We are a reporting issuer in Canada and are required to discuss
  mineralization estimates in accordance with Canadian reporting standards. The
  terms &quot;proven mineral reserve&quot; and &quot;probable mineral reserve&quot; used in this
  prospectus are in reference to the mining terms defined in the Canadian
  Institute of Mining, Metallurgy and Petroleum Standards, which definitions
  have been adopted by Canadian National Instrument 43-101 &#150; Standards of
  Disclosure for Mineral Projects. The definitions of proven and probable
  reserves used in NI 43-101 differ from the definitions in the United States
  Securities and Exchange Commission's Industry Guide 7. In the United States, a
  mineral reserve is defined as a part of a mineral deposit, which could be
  economically and legally extracted or produced at the time the reserve
  determination is made. Accordingly, information contained in this prospectus
  and the documents incorporated by reference herein containing descriptions of
  our mineral deposits in accordance with NI 43-101 may not be comparable to
  similar information made public by other U.S. companies under the United
  States federal securities laws and the rules and regulations thereunder. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition, the terms
  &quot;mineral resource&quot;, &quot;measured mineral resource&quot;, &quot;indicated mineral resource&quot;
  and &quot;inferred mineral resource&quot; are defined in and required to be disclosed by
  NI 43-101; however, these terms are not defined terms under SEC Industry Guide
  7 and are normally not permitted to be used in reports and registration
  statements filed with the SEC. Investors are cautioned not to assume that any
  part or all of mineral deposits in these categories will ever be converted
  into reserves. &quot;Inferred mineral resources&quot; have a great amount of uncertainty
  as to their existence, and great uncertainty as to their economic and legal
  feasibility. It cannot be assumed that all or any part of an inferred mineral
  resource will ever be upgraded to a higher category. Under Canadian rules,
  estimates of inferred mineral resources may not form the basis of feasibility
  or pre-feasibility studies, except in rare cases. Investors are cautioned not
  to assume that all or any part of an inferred mineral resource exists or is
  economically or legally mineable. Disclosure of &quot;contained ounces&quot; in a
  resource is permitted disclosure under Canadian regulations; however, the SEC
  normally only permits issuers to report mineralization that does not
  constitute &quot;reserves&quot; by SEC standards as in place tonnage and grade without
  reference to unit measures.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">In January 2007 we started
  the process of completing a mineral resource estimate covering the entire
  property that will include all drilling results obtained during calendar year
  2007.
  <font style="background-position: 0% 0%; background-image:url('none'); background-repeat:repeat; background-attachment:scroll">
  The mineral resource estimate is expected to be completed at the end of April
  or in early May 2008.</font> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development programs. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">6</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC (&quot;Nevada
  Eagle&quot;), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs beginning January 1, 2008. The remaining wholly-owned
  properties are retained for Gryphon's own exploration effort or additional
  future farm outs. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On August 7, 2007, we
  closed a private placement of 5 million units at a price of Cdn.$0.80 per unit
  for gross proceeds of Cdn.$4.0 million. Each unit will consist of one common
  share and one full purchase warrant. The two year warrants will be exercisable
  at a price of Cdn$1.00 if exercised within twelve months of the closing (the
  &quot;First Anniversary&quot;) and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development programs. </font> </p>
  <font FACE="Times New Roman" SIZE="2">
  <p ALIGN="JUSTIFY">On December 14, 2007 we completed a private placement of
  4,486,500 units at Cdn$0.80 for gross proceeds of approximately Cdn$3,589,200.
  The private placement closed in three tranches on November 22, November 27 and
  December 14, 2007. Each unit consisted of one common share and one series I
  warrant. Each series I warrant entitles the holder to purchase a common share
  at a price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
  We paid qualified registered dealers a 7% cash commission in the amount of
  Cdn$71,624 and issued compensation warrants (series J) to acquire 89,530
  common shares (at a price of Cdn$0.80 per share for a period of 9 months from
  closing) in respect of the 1,204,000 million units placed by them (14,000 of
  the compensation warrants were later rejected and cancelled by one of the
  registered dealers). We have a right to force warrant holders to exercise
  warrants, if the price of our common stock remains equal to or greater than,
  Cdn$1.85 per common share, for a period of twenty consecutive days. The
  shares, warrants and underlying shares were not qualified by prospectus, have
  not been registered under U.S. securities laws, and are subject to resale
  restrictions. We granted registration rights to the investors in this private
  placement and will use commercially reasonable efforts to prepare and file
  with the SEC, within 120 days of closing, a registration statement under the
  Securities Act and to cause such statement to be declared effective. The
  proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property. </p>
  </font>
  <p class="MsoNormal" align="justify"><font size="2">In the calendar year 2007,
  we continued extension drilling, focused on the expansion of the Graben
  deposit and exploration drilling for a new gold deposit within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments.
  This drilling program consisted of a series of Graben deposit expansion
  drilling and extension drilling north and west of the successful G3 &#150; G13
  fence of holes. The drilling of the Graben deposit alternated with follow up
  exploration drilling in the Central and Western Pediments where 10 holes have
  intersected two distinct hydrothermal systems hidden beneath the pediments. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><font size="2">
  Corporate Strengths </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">We believe that we have
  the following business strengths that will enable us to achieve our
  objectives: </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify" style="margin-top: 0; margin-bottom: 0"><font size="2">
    Our management team has significant exploration experience in the State of
    Nevada; </font> </li>
  </ul>
</div>
  <p align="center"><font style="text-transform: uppercase"><font size="2">7</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
<div class="Section5">
  <p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify" style="margin-top: 0; margin-bottom: 0"><font size="2">As
    the Borealis Property was the site of surface mining operations from 1981 to
    1990, we believe the process to receive permits and start operations on
    previously mined operations is less difficult than getting permits for a
    previously undisturbed area. The USDA Forest Service and the Nevada Bureau
    of Mining Regulation and Reclamation have both approved the Plan of
    Operations and Reclamation Plan, allowing us to proceed with the development
    of a heap leach mine assuming sufficient oxide resources are found and
    additional financing is available. We have also received approvals for
    surface exploration and water wells and have successfully progressed through
    the required agency and public review process for those permits. <br>
&nbsp;</font></li>
    <li class="MsoNormal" style="margin-bottom: 0pt">
    <p align="justify" style="margin-top: 0; margin-bottom: 0"><font size="2">
    Our land position is extensive, controlled by 752 unpatented mining claims
    covering approximately 15,500 acres. We believe many surface showings of
    gold mineralization on the Borealis Property may provide opportunities for
    discovery of gold deposits. Our Borealis Property has multiple types of gold
    deposits including oxidized material, partial oxidized material, and
    predominantly sulfide material, which we believe may allow us flexibility in
    our future plans for mine development and expansion, assuming additional
    financing is available.
    </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">We cannot be certain that
  any mineral deposits will be discovered in sufficient quantities and grade to
  justify commercial operations. We have no proven or probable reserves. Whether
  a mineral deposit will be commercially viable depends on a number of factors,
  including the particular attributes of the deposit; metal prices, which are
  highly cyclical; the cost to extract and process the mineralized material; and
  government regulations and permitting requirements. We may be unable to
  upgrade our mineralized material to proven and probable reserves in sufficient
  quantities to justify commercial operations and we may not be able to raise
  sufficient capital to develop the Borealis Property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We have specifically
  focused our activities on Nevada, which was rated the highest jurisdiction in
  the world for mining investment attractiveness by an independent survey.
  Mining is an integral part of Nevada's economy. In 2004, the mining industry
  increased Nevada's output by $5.89 billion including both direct and indirect
  impacts, up from $5.35 billion in 2002. Nevada ranks third in the world in
  gold production, after South Africa and Australia. Located in the State of
  Nevada are well known geological trends such as the Carlin Trend, Battle
  Mountain, Getchell Trend and the Walker Lane Trend. The Borealis Property is
  also located along the Aurora-Bodie trend which crosses the principal Walker
  Lane Trend. Borealis, Bodie, Aurora, and other historical producing districts,
  are aligned along this northeast-southwest belt of significant gold deposits.
  Nevada Eagle's principal properties have a cumulative 900,000 of historical
  (the historical estimates are based on internal reports prepared by prior
  owners prior to February 2001 and have not been prepared in accordance with NI
  43-101 standards and thus their reliability has not been verified) ounces of
  gold.
  </font>
  </p>
  <p align="center">&nbsp;</p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">8</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 style="TEXT-ALIGN: justify" align="left"><a name="_Toc196194138">
  <font size="2" style="text-transform: none">Selected Financial Data</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">The selected financial
  information presented below as of and for the periods indicated is derived
  from our financial statements contained elsewhere in this prospectus and
  should be read in conjunction with those financial statements. </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">INCOME STATEMENT</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nine Months Ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma**</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">DATA</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year Ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Consolidated</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">(Unaudited)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">(Unaudited)</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Three</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 13%; PADDING-TOP: 0in" width="13%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year Ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Months</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Ended</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; border: medium none; padding: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; border: medium none; padding: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 22%; padding: 0in; background: #edebd3" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Revenue</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">NIL</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Operating Expenses</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">9,059,866</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">5,770,506</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">6,634,010</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">6,734,510</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
    </tr>
    <tr>
      <td style="width: 22%; padding: 0in; background: #edebd3" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net (Loss)</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(8,737,141)</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(5,602,336)</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(6,463,678)</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(6,491,678)</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">(Loss) per Common share*</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.21)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.19)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.13)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.16)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.21)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(0.05)</font></td>
    </tr>
    <tr>
      <td style="width: 22%; padding: 0in; background: #edebd3" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Weighted Average Number of</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 22%; padding: 0in; background: #edebd3" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Common Shares Outstanding*</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">41,242,535</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">29,350,317</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">49,764,662</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">40,518,405</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">41,242,535</font></td>
      <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11%; padding: 0in; background: #edebd3" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">47,485,585</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">*
  Basic and diluted. </font> </p>
  <table class="MsoNormalTable" style="width: 92.58%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="92%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">BALANCE SHEET DATA</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.82%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 18.36%; PADDING-TOP: 0in" width="18%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">At December</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20.06%; PADDING-TOP: 0in" width="20%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">At December</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19.44%; PADDING-TOP: 0in" width="19%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">At March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 18.36%; PADDING-TOP: 0in" width="18%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">At March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">31, 2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.82%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">31, 2006</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 18.36%; PADDING-TOP: 0in" width="18%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(Unaudited)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20.06%; PADDING-TOP: 0in" width="20%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(Unaudited)</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.82%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 23.76%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Working Capital (Deficiency)</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 16.2%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">6,525,160</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 15.12%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">8,374,384</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 15.12%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,701,031</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 16.82%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,307,627</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Total Assets</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">9,553,194</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">11,693,218</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">18,823,177</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.82%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">7,272,468</font></td>
    </tr>
    <tr>
      <td style="width: 23.76%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accumulated (Deficit)</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 16.2%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(17,980,822)</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 15.12%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(9,243,681)</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 15.12%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(24,444,500)</font></td>
      <td style="width: 3.24%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 16.82%; padding: 0in; background: #edebd3" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(15,735,359)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23.76%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Stockholders' Equity</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.2%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">8,716,344</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">10,466,013</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15.12%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">13,373,371</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3.24%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 16.82%; PADDING-TOP: 0in" width="16%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">7,272,468</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2">** These unaudited pro
  forma consolidated financial statements of the Company, a TSX listed Company,
  have been prepared for illustrative purposes only, to show the effect of the
  Membership Interest Purchase Agreement dated as of August 21, 2007 between the
  Company and Gerald and Fabiola Baughman whereby Gryphon Gold acquired 100% of
  the members interests in Nevada Eagle Resources LLC, a Nevada limited
  liability company, as well as certain other mineral claims owned by the
  Baughman's (the &quot;Transaction&quot;). Nevada Eagle Resources LLC and the other
  mineral claims acquired are collectively referred to herein as Nevada Eagle. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">9</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><font size="2">RISK FACTORS</font></h1>
  <p class="MsoNormal" align="justify"><font size="2">Readers should carefully
  consider the risks and uncertainties described below before deciding whether
  to invest in shares of our common stock. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Our failure to
  successfully address the risks and uncertainties described below would have a
  material adverse effect on our business, financial condition and/or results of
  operations, and the trading price of our common stock may decline and
  investors may lose all or part of their investment. We cannot assure you that
  we will successfully address these risks or other unknown risks that may
  affect our business. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Estimates of mineralized
  material are forward-looking statements inherently subject to error. Although
  resource estimates require a high degree of assurance in the underlying data
  when the estimates are made, unforeseen events and uncontrollable factors can
  have significant adverse or positive impacts on the estimates. Actual results
  will inherently differ from estimates. The unforeseen events and
  uncontrollable factors include: geologic uncertainties including inherent
  sample variability, metal price fluctuations, variations in mining and
  processing parameters, and adverse changes in environmental or mining laws and
  regulations. The timing and effects of variances from estimated values cannot
  be accurately predicted. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><font size="2">
  Risks Related to Our Operations </font> </b></p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">Our operations will require future financing. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We are an early stage
  company and currently do not have sufficient capital to fully fund the Plan of
  Operation at the Borealis Property. Currently, we have sufficient cash on hand
  to fund the completion of our current drilling program, permitting and general
  and administrative expenses for approximately 12 months. However, we will
  require substantial additional financing for future development activities, if
  any, or if we encounter unexpected costs or delays. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Failure to obtain
  sufficient financing may result in the delay or indefinite postponement of
  exploration, and, development or production on any or all of the Borealis
  Property and any properties we may acquire in the future or even a loss of our
  property interest. This includes the Borealis Property, as our lease over
  claims covering the principal deposits will expire in 2009 unless we are
  engaged in active mining operations or development (including exploration
  drilling) at that time. We cannot be certain that additional capital or other
  types of financing will be available if needed or that, if available, the
  terms of such financing will be favorable or acceptable to us. Future
  financings may cause dilution to our shareholders.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">Risks related to the Borealis Property. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our primary mineral
  exploration property is the Borealis Property. Even though the Borealis
  Property encompasses several areas with known gold mineralization, unless we
  discover additional deposits at the Borealis Property, future development of
  the property may be uneconomic. We cannot provide any assurance that we will
  establish any reserves or successfully commence mining operations on the
  Borealis Property. </font> </p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">Risks related to Nevada Eagle properties </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We acquired approximately
  54 exploration properties with the acquisition of Nevada Eagle Resources LLC.
  Approximately 26 of these properties are leased out to other exploration
  companies. We can not provide any assurance that any reserves or successful
  mining operations will be established on any of these properties. We can not
  give assurance that the existing parties currently performing exploration on
  the leased properties will continue with their exploration efforts. In
  addition, management's expectations of the significance of the Nevada Eagle
  properties; the Nevada Eagle prospects, including resource estimates,
  projections, exploration and value; our planned exploration and drilling
  programs; or our expectations with respect to future property acquisition,
  diversification of our property base and Mr. Baughman's addition to the
  Gryphon Gold management team will prove accurate or increase shareholder
  value. </font> </p>
  <p class="MsoNormal"><font size="2">We cannot assure you that we will
  successfully integrate the Nevada Eagle properties into our portfolio or
  operations or that we will have sufficient capital or resources to
  successfully implement our diversification strategy. </font> </p>
  <p class="MsoNormal"><b><i><font size="2">We have no history of producing
  metals from our mineral property and there can be no assurance that we will
  successfully establish mining operations or profitably produce precious
  metals. </font> </i></b>
  </p>
  <p class="MsoNormal"><font size="2">We have no history of producing metals
  from the Borealis Property or Nevada Eagle Properties. While our plan is to
  move the Borealis Property into the development stage, production there will
  be subject to completing construction of the mine, processing plants, roads,
  and other related works and infrastructure. As a result, we are subject to all
  of the risks associated with establishing new mining operations and business
  enterprises including: </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  10</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the timing and cost, which can
    be considerable, of the construction of mining and processing facilities; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the ability to find sufficient
    gold resources to support a mining operation; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the availability and costs of
    skilled labor and mining equipment; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the availability and cost of
    appropriate smelting and/or refining arrangements; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">compliance with environmental
    and other governmental approval and permit requirements; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the availability of funds to
    finance construction and development activities; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">potential opposition from
    non-governmental organizations, environmental groups, local groups or local
    inhabitants which may delay or prevent development activities; and </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">potential increases in
    construction and operating costs due to changes in the cost of fuel, power,
    materials and supplies. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">The costs, timing and
  complexities of mine construction and development may be increased by the
  remote location of the Borealis Property. It is common in new mining
  operations to experience unexpected problems and delays during construction,
  development and mine start-up. In addition, delays in the commencement of
  mineral production often occur. Accordingly, we cannot assure you that our
  activities will result in profitable mining operations or that we will
  successfully establish mining operations or profitably produce metals at any
  of our properties. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><i>
  <font size="2">Historical production on the Borealis Property may not be
  indicative of the potential for future development. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis Mine actively
  produced gold in the 1980's, but we currently have no commercial production at
  the Borealis Property and have never recorded any revenues. You should not
  rely on the fact that there were historical mining operations at the Borealis
  Property as an indication that we will ever place the property into commercial
  production. We expect to continue to incur losses unless and until such time,
  if ever, as our property enters into commercial production and generates
  sufficient revenues to fund our continuing operations. The development of new
  mining operations at the Borealis Property will require the commitment of
  substantial resources for operating expenses and capital expenditures, which
  may increase in subsequent years as needed consultants, personnel and
  equipment associated with advancing exploration, development and commercial
  production of our properties are added. The amounts and timing of expenditures
  will depend on the progress of ongoing exploration and development, the
  results of consultants' analysis and recommendations, the rate at which
  operating losses are incurred, the execution of any joint venture agreements
  with strategic partners, our acquisition of additional properties, and other
  factors, many of which are beyond our control. We may not be able to place the
  Borealis Property into production or generate any revenues or achieve
  profitability. </font> </p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Our exploration
  activities on the Borealis Property may not be commercially successful, which
  could lead us to abandon our plans to develop the property and our investments
  in exploration. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our long-term success
  depends on our ability to identify additional mineral deposits on the Borealis
  Property, the Nevada Eagle Properties and other properties we may acquire, if
  any, that we can then develop into commercially viable mining operations.
  Mineral exploration is highly speculative in nature, involves many risks and
  is frequently nonproductive. These risks include unusual or unexpected
  geologic formations, and the inability to obtain suitable or adequate
  machinery, equipment or labor. The success of gold exploration is determined
  in part by the following factors: </font> </p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the identification of
    potential gold mineralization based on surficial analysis; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">availability of
    government-granted exploration permits; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the quality of our management
    and our geological and technical expertise; and </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">the capital available for
    exploration. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">Substantial expenditures
  are required to establish proven and probable reserves through drilling and
  analysis, to develop metallurgical processes to extract metal, and to develop
  the mining and processing facilities and infrastructure at any site chosen for
  mining. Whether a mineral deposit will be commercially viable depends on a
  number of factors, which include, without limitation, the particular
  attributes of the deposit, such as size, grade and proximity to
  infrastructure; metal prices, which fluctuate widely; and government
  regulations, including, without limitation, regulations relating to prices,
  taxes, royalties, land tenure, land use, importing and exporting of minerals
  and environmental protection. We may invest significant capital and resources
  in exploration activities and abandon such investments if we are unable to
  identify commercially exploitable mineral reserves. The decision to abandon a
  project may have an adverse effect on the market value of our securities and
  the ability to raise future financing. We cannot assure you that we will
  discover or acquire any mineralized material in sufficient quantities on any
  of our properties to justify commercial operations. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  11</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Actual capital
  costs, operating costs, production and economic returns may differ
  significantly from those we have anticipated and there are no assurances that
  our development activities will result in profitable mining operations. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We have estimated
  operating and capital costs for the Borealis Property based on information
  available to us and believe that these estimates are accurate. However,
  recently, costs for labor, regulatory compliance, energy, mine and plant
  equipment and materials needed for mine development and construction have
  increased significantly industry-wide. In light of these factors, actual costs
  related to our proposed mine development and construction may exceed our
  estimates. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We do not have an
  operating history upon which we can base estimates of future operating costs
  related to the Borealis Property, and we intend to rely upon the economic
  feasibility of the project and estimates that may be contained therein.
  Studies derive estimates of cash operating costs based upon, among other
  things: </font> </p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">anticipated tonnage, grades
    and metallurgical characteristics of the ore to be mined and processed;
    </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">anticipated recovery rates of
    gold and other metals from the ore; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">cash operating costs of
    comparable facilities and equipment; and </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">anticipated climatic
    conditions. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">Capital and operating
  costs, production and economic returns, and other estimates contained in
  feasibility studies may differ significantly from actual costs, and there can
  be no assurance that our actual capital and operating costs will not be higher
  than currently anticipated or disclosed. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition, our
  calculations of cash costs and cash cost per ounce may differ from similarly
  titled measures of other companies and are not intended to be an indicator of
  projected operating profit. </font> </p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">The figures for our
  reserves and resources are estimates based on interpretation and assumptions
  and may yield less mineral production under actual conditions than is
  currently estimated. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Unless otherwise
  indicated, mineralization figures presented in this prospectus and in our
  filings with securities regulatory authorities, press releases and other
  public statements that may be made from time to time are based upon estimates
  made by independent geologists and our internal geologists. When making
  determinations about whether to advance any of our projects to development, we
  must rely upon such estimated calculations as to the mineral reserves and
  grades of mineralization on our properties. Until ore is actually mined and
  processed, mineral reserves and grades of mineralization must be considered as
  estimates only. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">These estimates are
  imprecise and depend upon geological interpretation and statistical inferences
  drawn from drilling and sampling analysis, which may prove to be unreliable.
  We cannot assure you that: </font> </p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">these estimates will be
    accurate; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">reserve, resource or other
    mineralization estimates will be accurate; or </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">this mineralization can be
    mined or processed profitably. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">Any material changes in
  mineral reserve estimates and grades of mineralization will affect the
  economic viability of placing a property into production and a property's
  return on capital. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Because we have not made a
  decision with respect to mine construction at our Borealis Property and have
  not made a decision with respect to production, mineralization estimates,
  including reserve and resource estimates, for the Borealis Property may
  require adjustments or downward revisions based upon actual production
  experience if and when a decision is made to proceed with mine construction
  and production. In addition, the grade of ore ultimately mined, if any, may
  differ from that indicated by our technical reports and drill results. There
  can be no assurance that minerals recovered in small scale tests will be
  duplicated in large-scale tests under on-site conditions or in production
  scale. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The resource estimates
  contained in this prospectus have been determined and valued based on assumed
  future prices, cut-off grades and operating costs that may prove to be
  inaccurate. Extended declines in market prices for gold and silver may render
  portions of our mineralization, reserve (if any) and resource estimates
  uneconomic and result in reduced reported mineralization or adversely affect
  the commercial viability of our Borealis Property. Any material reductions in
  estimates of mineralization, or of our ability to extract this mineralization,
  could have a material adverse effect on our results of operations or financial
  condition. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  12</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><i>
  <font size="2">Changes in the market price of gold, silver and other metals,
  which in the past has fluctuated widely, will affect the profitability of our
  operations and financial condition. </font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our profitability and
  long-term viability depend, in large part, upon the market price of gold and
  other metals and minerals produced from our mineral properties. The market
  price of gold and other metals is volatile and is impacted by numerous factors
  beyond our control, including: </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">expectations with respect to the rate of inflation; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">the relative strength of the U.S. dollar and certain other
    currencies; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <font size="2">interest rates; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">global or regional political or economic conditions; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">supply and demand for jewelry and industrial products
    containing metals; and </font> </li>
  </ul>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">sales by central banks and other holders, speculators and
    producers of gold and other metals in response to any of the above factors. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">We cannot predict the
  effect of these factors on metal prices. Gold and silver prices have
  fluctuated during the last several years.&nbsp;
  </font>
  <font size="2" style="color: black">The price of gold has risen steadily for
  the last few years. &nbsp;Through 2005, gold traded in a fairly narrow price range
  between $410 and $530 per ounce, based on the London PM Fix Price. &nbsp;In 2006,
  gold traded between approximately $520 and $720 per ounce, based on London PM
  Fix Price.&nbsp; In 2007, gold traded between approximately $600 and $840 per
  ounce, based on the London PM Fix Price. The price of gold closed at $946.00
  per oounce on April 17, 2008, based on the London PM Fix Price.&nbsp; In 2005,
  the price of silver per ounce ranged approximately from $6.40 to $9.20, based
  on the London Fix Price. &nbsp;&nbsp;In 2006, the price of silver ranged from $8.80 to
  $14.90 per ounce, based on the London Fix Price.&nbsp; In 2007, silver traded
  between approximately $11.70 and 15.80 per ounce, based on the London Fix
  Price. &nbsp;The price of silver closed at $18.56 on April 17, 2008, based on the
  London Fix Price. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">A decrease in the market
  price of gold and other metals could affect the commercial viability of our
  Borealis Property and our anticipated development and production assumptions.
  Lower gold prices could also adversely affect our ability to finance future
  development at the Borealis Property, all of which would have a material
  adverse effect on our financial condition and results of operations. There can
  be no assurance that the market price of gold and other metals will remain at
  current levels or that such prices will improve. </font> </p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Mining is inherently
  dangerous and subject to conditions or events beyond our control, which could
  have a material adverse effect on our business. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Mining involves various
  types of risks and hazards, including: </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">environmental hazards; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">power outages; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">metallurgical and other processing problems; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">unusual or unexpected geological formations; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">structural cave-ins or slides; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">flooding, fire, explosions, cave-ins, landslides and
    rock-bursts; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">inability to obtain suitable or adequate machinery,
    equipment, or labor; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">metals losses; and </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">periodic interruptions due to inclement or hazardous weather
    conditions. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">These risks could result
  in damage to, or destruction of, mineral properties, production facilities or
  other properties, personal injury, environmental damage, delays in mining,
  increased production costs, monetary losses and possible legal liability. We
  may not be able to obtain insurance to cover these risks at economically
  feasible premiums. Insurance against certain environmental risks, including
  potential liability for pollution or other hazards as a result of the disposal
  of waste products occurring from production, is not generally available to us
  or to other companies within the mining industry. We may suffer a material
  adverse effect on our business if we incur losses related to any significant
  events that are not covered by our insurance policies. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  13</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">We are subject to significant governmental regulations. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our primary properties,
  operations and exploration and development activities are in Nevada and are
  subject to extensive federal, state, and local laws and regulations governing
  various matters, including:
  </font>
  </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">environmental protection; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">management and use of toxic substances and explosives; </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">management of natural resources; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">exploration, development of
    mines, production and post-closure reclamation; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">exports controls;
    </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">price controls;
    </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">regulations concerning
    business dealings with native groups; </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">labor standards and
    occupational health and safety, including mine safety; and </font> </li>
    <li class="MsoNormal" style="text-align: left">
    <p style="text-align: justify"><font size="2">historic and cultural
    preservation. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">Failure to comply with
  applicable laws and regulations may result in civil or criminal fines or
  penalties or enforcement actions, including orders issued by regulatory or
  judicial authorities enjoining or curtailing operations or requiring
  corrective measures, installation of additional equipment or remedial actions,
  any of which could result in us incurring significant expenditures. We may
  also be required to compensate private parties suffering loss or damage by
  reason of a breach of such laws, regulations or permitting requirements. It is
  also possible that future laws and regulations, or a more stringent
  enforcement of current laws and regulations by governmental authorities, could
  cause additional expense, capital expenditures, restrictions on or suspensions
  of our operations and delays in the development of our properties. </font> </p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Our activities are
  subject to environmental laws and regulations that may increase our costs of
  doing business and restrict our operations. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">All of our exploration and
  potential development and production activities are in the United States and
  are subject to regulation by governmental agencies under various environmental
  laws. These laws address emissions into the air, discharges into water,
  management of waste, management of hazardous substances, protection of natural
  resources, antiquities and endangered species and reclamation of lands
  disturbed by mining operations. Environmental legislation in many countries is
  evolving and the trend has been towards stricter standards and enforcement,
  increased fines and penalties for non-compliance, more stringent environmental
  assessments of proposed projects and increasing responsibility for companies
  and their officers, directors and employees. Compliance with environmental
  laws and regulations and future changes in these laws and regulations may
  require significant capital outlays and may cause material changes or delays
  in our operations and future activities. It is possible that future changes in
  these laws or regulations could have a significant adverse impact on our
  Borealis Property, Nevada Eagle Properties or some portion of our business,
  causing us to re-evaluate those activities at that time. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><i>
  <font size="2">Land reclamation requirements for our Borealis Property may be
  burdensome. </font> </i></b>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">Although variable
  depending on location and the governing authority, land reclamation
  requirements are generally imposed on mineral exploration companies (as well
  as companies with mining operations) in order to minimize long term effects of
  land disturbance. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Reclamation may include
  requirements to:
  </font> </p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">control dispersion of potentially deleterious effluents; and </font> </li>
    <li class="MsoNormal" style="text-align: left; margin-bottom: 0pt">
    <p style="text-align: justify">
    <font size="2">reasonably re-establish pre-disturbance land forms and
    vegetation.
    </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">In order to carry out
  reclamation obligations imposed on us in connection with our potential
  development activities, we must allocate financial resources that might
  otherwise be spent on further exploration and development programs. We have
  set up a provision for our reclamation obligations at the Borealis Property,
  but this provision may not be adequate. If we are required to carry out
  unanticipated reclamation work, our financial position could be adversely
  affected. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  14</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><i><font size="2">We may experience
  difficulty attracting and retaining qualified management to meet the needs of
  our anticipated growth, and the failure to manage our growth effectively could
  have a material adverse effect on our business and financial condition. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We are dependent on the
  services of key executives including Tony Ker, CEO, Michael Longinotti, CFO,
  Steve Craig, VP Exploration, and other highly skilled and experienced
  executives and personnel focused on managing our interests and on-going
  exploration and development programs on our properties. Our management is also
  responsible for the identification of new opportunities for growth and
  funding. Due to our relatively small size, the loss of these persons or our
  inability to attract and retain additional highly skilled employees required
  for our development activities may have a material adverse effect on our
  business or future operations. The failure to hire qualified people for these
  positions could adversely affect planned operations of the Borealis Property
  and Nevada Eagle Properties. We do not maintain key-man life insurance on any
  of our key management employees.</font><b><font size="2"> </font> </b></p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Increased
  competition could adversely affect our ability to attract necessary capital
  funding or acquire suitable producing properties or prospects for mineral
  exploration in the future. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The mining industry is
  intensely competitive. Significant competition exists for the acquisition of
  properties producing, or capable of producing, gold or other metals. We may be
  at a competitive disadvantage in acquiring additional mining properties
  because we must compete with other individuals and companies, many of which
  have greater financial resources, operational experience and technical
  capabilities than us. We may also encounter increasing competition from other
  mining companies in our efforts to hire experienced mining professionals.
  Competition for exploration resources at all levels is currently very intense,
  particularly affecting the availability of manpower, drill rigs, mining
  equipment and production equipment. Increased competition could adversely
  affect our ability to attract necessary capital funding or acquire suitable
  producing properties or prospects for mineral exploration in the future. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><i>
  <font size="2">We compete with larger, better capitalized competitors in the
  mining industry. </font> </i></b>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">The mining industry is
  competitive in all of its phases, including financing, technical resources,
  personnel and property acquisition. It requires significant capital, technical
  resources, personnel and operational experience to effectively compete in the
  mining industry. Because of the high costs associated with exploration, the
  expertise required to analyze a project's potential and the capital required
  to develop a mine, larger companies with significant resources may have a
  competitive advantage over us. We face strong competition from other mining
  companies, some with greater financial resources, operational experience and
  technical capabilities than us. As a result of this competition, we may be
  unable to maintain or acquire financing, personnel, technical resources or
  attractive mining properties on terms we consider acceptable or at all. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><i>
  <font size="2">Title to the Borealis Property may be subject to other claims,
  which could affect our property rights and claims. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Although we believe we
  have exercised commercially reasonable due diligence with respect to
  determining title to properties we own or control and the claims that are
  subject to the Borealis mining lease, there is no guarantee that title to such
  properties will not be challenged or impugned. The Borealis Property may be
  subject to prior unrecorded agreements or transfers or native land claims and
  title may be affected by undetected defects. There may be valid challenges to
  the title of the Borealis Property which, if successful, could impair
  development and/or operations. This is particularly the case in respect of
  those portions of the Borealis Property in which we hold our interest solely
  through a lease with the claim holders, as such interest is substantially
  based on contract and has been subject to a number of assignments (as opposed
  to a direct interest in the property).
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">All of the mineral rights
  to the Borealis Property consist of &quot;unpatented&quot; mining claims created and
  maintained in accordance with the U.S. General Mining Law. Unpatented mining
  claims are unique property interests, and are generally considered to be
  subject to greater title risk than other real property interests because the
  validity of unpatented mining claims is often uncertain. This uncertainty
  arises, in part, out of the complex federal and state laws and regulations
  under the U.S. General Mining Law, including the requirement of a proper
  physical discovery of valuable minerals within the boundaries of each claim
  and proper compliance with physical staking requirements. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition, unpatented
  mining claims are always subject to possible challenges by third parties or
  validity contests by the federal government. The validity of an unpatented
  mining or millsite claim, in terms of both its location and its maintenance,
  is dependent on strict compliance with a complex body of U.S. federal and
  state statutory and decisional law. In addition, there are few public records
  that definitively determine the issues of validity and ownership of unpatented
  mining claims. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  15</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">There are differences in U.S. and Canadian practices for
  reporting reserves and resources. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our reserve and resource
  estimates are not directly comparable to those made in filings subject to SEC
  reporting and disclosure requirements, as we generally report reserves and
  resources in accordance with Canadian practices. These practices are different
  from the practices used to report reserve and resource estimates in reports
  and other materials filed with the SEC. It is Canadian practice to report
  measured, indicated and inferred resources, which are generally not permitted
  in disclosure filed with the SEC. In the United States, mineralization may not
  be classified as a &quot;reserve&quot; unless the determination has been made that the
  mineralization could be economically and legally produced or extracted at the
  time the reserve determination is made. United States investors are cautioned
  not to assume that all or any part of measured or indicated resources will
  ever be converted into reserves. Further, &quot;inferred resources&quot; have a great
  amount of uncertainty as to their existence and as to whether they can be
  mined legally or economically. Disclosure of &quot;contained ounces&quot; is permitted
  disclosure under Canadian regulations; however, the SEC only permits issuers
  to report &quot;resources&quot; as in place tonnage and grade without reference to unit
  measures.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">Accordingly, information
  concerning descriptions of mineralization, reserves and resources contained in
  this prospectus, or in the documents incorporated herein by reference, may not
  be comparable to information made public by other United States companies
  subject to the reporting and disclosure requirements of the SEC. </font> </p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">We will be required to locate mineral reserves for our
  long-term success. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Because mines have limited
  lives based on proven and probable mineral reserves, we will have to
  continually replace and expand our mineral reserves, if any, if and when the
  Borealis Property produces gold and other base or precious metals. Our ability
  to maintain or increase its annual production of gold and other base or
  precious metals once the Borealis Property is restarted, if at all, will be
  dependent almost entirely on its ability to bring new mines into production. </font> </p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">We do not insure against all risks which we may be subject to
  in our planned operations.
  </font>
  </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We currently maintain
  insurance to insure against general commercial liability claims and losses of
  equipment. Our insurance will not cover all the potential risks associated
  with a mining company's operations. We may also be unable to maintain
  insurance to cover these risks at economically feasible premiums. Insurance
  coverage may not continue to be available or may not be adequate to cover any
  resulting liability. Moreover, we expect that insurance against risks such as
  environmental pollution or other hazards as a result of exploration and
  production may be prohibitively expensive to obtain for a company of our size
  and financial means. We might also become subject to liability for pollution
  or other hazards which may not be insured against or which we may elect not to
  insure against because of premium costs or other reasons. Losses from these
  events may cause us to incur significant costs that could negatively affect
  our financial condition and ability to fund our activities on the Borealis
  Property. A significant loss could force us to terminate our operations. </font> </p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2">Our directors and officers may have conflicts of interest as a
  result of their relationships with other companies. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Certain of the directors
  and officers of Gryphon Gold have served as officers and directors for other
  companies engaged in natural resource exploration and development and may also
  serve as directors and/or officers of other companies involved in natural
  resource exploration and development. For example, Richard Hughes is President
  of Klondike Gold Corp. and a director of Alamos Gold Inc. Consequently, there
  is a possibility that our directors and/or officers may be in a position of
  conflict in the future. </font> </p>
  <p class="MsoNormal"><b><i><font size="2">New legislation, including the
  Sarbanes-Oxley Act of 2002, may make it difficult for us to retain or attract
  officers and directors. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We may be unable to
  attract and retain qualified officers, directors and members of board
  committees required to provide for our effective management as a result of the
  recent and currently proposed changes in the rules and regulations which
  govern publicly-held companies. Sarbanes-Oxley Act of 2002 has resulted in a
  series of rules and regulations by the Securities and Exchange Commission that
  increase responsibilities and liabilities of directors and executive officers.
  We are a small company with a very limited operating history and no revenues
  or profits, which may influence the decisions of potential candidates we may
  recruit as directors or officers. The perceived increased personal risk
  associated with these recent changes may deter qualified individuals from
  accepting these roles. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  16</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><i><font size="2">While we believe we
  have adequate internal control over financial reporting, we will be required
  to evaluate our internal controls under Section 404 of the Sarbanes-Oxley Act
  of 2002, and any adverse results from such evaluation could result in a loss
  of investor confidence in our financial reports and have an adverse effect on
  the price of our shares of common stock. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Pursuant to Section 404 of
  the Sarbanes-Oxley Act of 2002, beginning with our annual report on Form
  10-KSB for the fiscal year ended March 31, 2008, we will be required to
  furnish a report by management on our internal controls over financial
  reporting. Such report will contain, among other matters, an assessment of the
  effectiveness of our internal control over financial reporting, including a
  statement as to whether or not our internal control over financial reporting
  is effective. This assessment must include disclosure of any material
  weaknesses in our internal control over financial reporting identified by our
  management. For our annual report on Form 10-KSB for the fiscal year ended
  March 31, 2009, such report must also contain a statement that our auditors
  have issued an attestation report on our management's assessment of such
  internal controls. Public Company Accounting Oversight Board Auditing Standard
  No. 2 provides the professional standards and related performance guidance for
  auditors to attest to, and report on, our management's assessment of the
  effectiveness of internal control over financial reporting under Section 404. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Failure to comply with the
  new rules may make it more difficult for us to obtain certain types of
  insurance, including director and officer liability insurance, and we may be
  forced to accept reduced policy limits and coverage and/or incur substantially
  higher costs to obtain the same or similar coverage. The impact of these
  events could also make it more difficult for us to attract and retain
  qualified persons to serve on our board of directors, on committees of our
  board of directors, or as executive officers. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><font size="2">
  Risks Related To This Offering </font> </b></p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Broker-dealers may
  be discouraged from effecting transactions in our common shares because they
  are considered a penny stock and are subject to the penny stock rules. </font> </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Rules 15g-1 through 15g-9
  promulgated under the Exchange Act impose sales practice and disclosure
  requirements on certain brokers-dealers who engage in certain transactions
  involving a &quot;penny stock.&quot; Subject to certain exceptions, a penny stock
  generally includes any non-NASDAQ equity security that has a market price of
  less than $5.00 per share. Our common stock is expected to trade below $5.00
  per share immediately upon closing of the offering. The additional sales
  practice and disclosure requirements imposed upon broker-dealers may
  discourage broker-dealers from effecting transactions in our shares, which
  could severely limit the market liquidity of the shares and impede the sale of
  our shares in the secondary market. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">A broker-dealer selling
  penny stock to anyone other than an established customer or &quot;accredited
  investor,&quot; generally, an individual with net worth in excess of $1,000,000 or
  an annual income exceeding $200,000, or $300,000 together with his or her
  spouse, must make a special suitability determination for the purchaser and
  must receive the purchaser's written consent to the transaction prior to sale,
  unless the broker-dealer or the transaction is otherwise exempt. In addition,
  the penny stock regulations require the broker-dealer to deliver, prior to any
  transaction involving a penny stock, a disclosure schedule prepared by the
  United States Securities and Exchange Commission relating to the penny stock
  market, unless the broker-dealer or the transaction is otherwise exempt. A
  broker-dealer is also required to disclose commissions payable to the
  broker-dealer and the registered representative and current quotations for the
  securities. Finally, a broker-dealer is required to send monthly statements
  disclosing recent price information with respect to the penny stock held in a
  customer's account and information with respect to the limited market in penny
  stocks. </font> </p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">In the event that
  your investment in our shares is for the purpose of deriving dividend income
  or in expectation of an increase in market price of our shares from the
  declaration and payment of dividends, your investment will be compromised
  because we do not intend to pay dividends.
  </font>
  </i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We have never paid a
  dividend to our shareholders, and we intend to retain our cash for the
  continued development of our business. We do not intend to pay cash dividends
  on our common stock in the foreseeable future. As a result, your return on
  investment will be solely determined by your ability to sell your shares in a
  secondary market. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  17</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="_Toc195437383"><font size="2">RATIO OF EARNINGS TO
  FIXED CHARGES</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">Not applicable.</font></p>
  <h1 align="center"><a name="_Toc196194140"><font size="2">USE OF PROCEEDS</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">We will not receive any
  proceeds from the sale or distribution of the common stock by the selling
  shareholders. We may receive proceeds from the exercise of the Series I
  Warrants or the Series J Warrants upon exercise of these warrants, if any, and
  will use the proceeds from any exercise for general working capital purposes. </font> </p>
  <h1 align="center"><a name="_Toc195437384"><font size="2">SELLING </font> </a><font size="2">
  SECURITY HOLDERS
  </font> </h1>
  <p class="MsoNormal" align="justify"><font size="2">This prospectus covers the
  offering of up to 9,048,530 shares of our common stock by selling
  shareholders&#151;this includes shares of our common stock acquirable upon warrants
  exercisable within 60 days of April 30, 2008. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The shares issued to the
  selling shareholders are &quot;restricted&quot; shares under applicable federal and
  state securities laws and are being registered to give the selling
  shareholders the opportunity to sell their shares. The registration of such
  shares does not necessarily mean, however, that any of these shares will be
  offered or sold by the selling shareholders. The selling shareholders may from
  time to time offer and sell all or a portion of their shares in the
  over-the-counter market, in negotiated transactions, or otherwise, at market
  prices prevailing at the time of sale or at negotiated prices. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The registered shares may
  be sold directly or through brokers or dealers, or in a distribution by one or
  more underwriters on a firm commitment or best efforts basis. To the extent
  required, the names of any agent or broker-dealer and applicable commissions
  or discounts and any other required information with respect to any particular
  offer will be set forth in an accompanying prospectus supplement. See &quot;Plan of
  Distribution&quot;. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Each of the selling
  shareholders reserves the sole right to accept or reject, in whole or in part,
  any proposed purchase of the registered shares to be made directly or through
  agents. The selling shareholders and any agents or broker-dealers that
  participate with the selling shareholders in the distribution of their
  registered shares may be deemed to be &quot;underwriters&quot; within the meaning of the
  Securities Act, and any commissions received by them and any profit on the
  resale of the registered shares may be deemed to be underwriting commissions
  or discounts under the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We will receive no
  proceeds from the sale of the registered shares. We have agreed to bear the
  expenses of registration of the shares, other than commissions and discounts
  of agents or broker-dealers and transfer taxes, if any. </font> </p>
  <h2 align="justify"><a name="_Toc195437385"><font size="2">Selling Shareholder
  Information</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">The following is a list of
  the selling shareholders who own or have the right to acquire an aggregate of
  9,048,530 shares of our common stock covered in this prospectus. Certain
  selling shareholders have the right to acquire shares of our common stock upon
  warrants sold in our private placements. See &quot;Transactions with Selling
  Shareholders&quot;. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><font size="2">
  At April 28, 2008 we had 61,735,395 shares of common stock issued and
  outstanding. </font> </p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  18</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <table class="MsoNormalTable" style="border-collapse: collapse; border: medium none; margin-left: -0.05in" cellSpacing="0" cellPadding="0" border="1" width="100%">
    <tr style="page-break-inside: avoid">
      <td style="border: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="40%" rowSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Name</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Before Offering</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" colSpan="3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">After Offering</font></b></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Total Number of Shares Beneficially Owned </font><sup>
      <font size="2" style="font-family: Times New Roman Bold">(1)</font></sup></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Percentage of Shares Owned </font><sup>
      <font size="2" style="font-family: Times New Roman Bold">(1)</font></sup></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Number of Shares Offered </font><sup>
      <font size="2" style="font-family: Times New Roman Bold">(2)</font></sup></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Shares Owned After Offering </font><sup>
      <font size="2" style="font-family: Times New Roman Bold">(3)</font></sup></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">Percentage of Shares owned After Offering</font></b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center"><b><sup>
      <font size="2" style="font-family: Times New Roman Bold">(3)</font></sup></b></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Andrus Voitk</font><sup><font size="2">(4)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      PO Box 2312, RR#1, Corner Brook, NL, A2H 2N2</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">284,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">248,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">36,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Michael Bertrand</font><sup><font size="2">(5)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      601-218 W 43<sup>rd</sup> Avenue, Vancouver, BC&nbsp; V6M 2E1</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">105,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">100,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">5,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Laurie Bertrand</font><sup><font size="2">(6)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      601-218 W 43<sup>rd</sup> Avenue, Vancouver, BC&nbsp; V6M 2E1</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">105,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">100,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">5,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      708178 Alberta Ltd</font><sup><font size="2">(7)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      7545 Elkton Drive SW, Calgary, AB&nbsp; T3H 3X3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Gord Welch</font><sup><font size="2">(8)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      7545 Elkton Drive SW, Calgary, AB&nbsp; T3H 3X3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Roytor &amp; Co.</font><sup><font size="2" style="font-family: Times New Roman Bold">(9)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      RBC Dexia Investor Services, Institutional &amp; Investor Services,Securities
      Cage/Vault Department, Attn: Free Desk, Royal Bank Plaza, 200 Bay St.,
      South Tower, SL Level</font></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      Toronto, ON&nbsp; M5J 2J5</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">10,100,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">15.3%</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">5,200,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">4,900,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">2.7%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Roytor &amp; Co.</font><sup><font size="2" style="font-family: Times New Roman Bold">(10)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      RBC Dexia Investor Services, Institutional &amp; Investor Services,Securities
      Cage/Vault Department, Attn: Free Desk, Royal Bank Plaza, 200 Bay St.,
      South Tower, SL Level</font></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      Toronto, ON&nbsp; M5J 2J5</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">1,050,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">1.7%</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">800,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">250,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Mahmood Kassam</font><sup><font size="2">(11)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      82 Ava Crescent, Richmond Hill, ONT., Canada, L4B 2X6</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">248,500</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">150,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">98,500</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Casey Early Opportunity Resource Fund LLC</font><sup><font size="2">(12)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      166 South Main Street #2, Stowe, VT 05672 USA</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">50,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">50,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Judith Munday</font><sup><font size="2">(13)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      #305-4567 Hazel St., Burnaby, BC, V5H 4V4 (Buzz Code: 1012)</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">25,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">25,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Genny Sturhahn</font><sup><font size="2">(14)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      #206 4400 Dominion St., Burnaby, BC, V5G 4G3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">35,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">35,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    </table>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  19</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <table class="MsoNormalTable" style="border-collapse: collapse; border: medium none; margin-left: -0.05in" cellSpacing="0" cellPadding="0" border="1" width="100%">
    <tr style="page-break-inside: avoid">
      <td style="border-left: medium none windowtext; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      &nbsp;</td>
      <td style="border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      &nbsp;</td>
      <td style="border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      &nbsp;</td>
      <td style="border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      &nbsp;</td>
      <td style="border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      &nbsp;</td>
      <td style="border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: 1px solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      &nbsp;</td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Munday Home Sales Ltd.</font><sup><font size="2">(15)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      #206 4400 Dominion St., Burnaby, BC, V5G 4G3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">1,410,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">2.3%</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">1,410,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Otis Brandon Munday</font><sup><font size="2">(16)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      9740 210 St., Langley, BC, V1M 2P7</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">30,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Douglas Johnson</font><sup><font size="2" style="font-family: Times New Roman Bold">(17)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      #508, 1440 Creekside Drive, Vancouver, BC V6J 5B6</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">500,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">400,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">100,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Richard Lehmann</font><sup><font size="2">(18)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      General Delivery, Homer, Alaska</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">219,010</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">200,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">19,010</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Don Bossert</font><sup><font size="2">(19)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      3307 McCall Court, Edmonton, AB T6R 3V3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">35,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">25,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">10,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Rohan Hazelton</font><sup><font size="2">(20)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      5685 White Pine Lane, North Vancouver, BC V7R 4S1</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">95,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">40,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">45,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="height: 36.85pt; page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Rick Machial</font><sup><font size="2" style="font-family: Times New Roman Bold">(21)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      33248 123<sup>rd</sup> Street RR1 </font></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      Oliver, BC&nbsp; V0H 1T0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">174,300</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">100,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">74,300</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Canaccord Capital</font><sup><font size="2" style="font-family: Times New Roman Bold">(22)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      2200-609 Granville Street, Vancouver, BC V7Y 1H2</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">7,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">7,000</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Md Management Ltd.</font><sup><font size="2" style="font-family: Times New Roman Bold">(23)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      164 MacDonald Dr, St. John's, NL, A1A 4B3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">8,680</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">8,680</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Otis Brandon Munday</font><sup><font size="2" style="font-family: Times New Roman Bold">(24)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      9740 210 St., Langley, BC, V1M 2P7</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">52,500</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">52,500</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      Haywood Securities Inc.</font><sup><font size="2" style="font-family: Times New Roman Bold">(25)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      2000-400 Burrard Street</font></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      Vancouver, BC V6C 3A6</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">33,600</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">2,100</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">31,500</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      BMO Nesbitt Burns</font><sup><font size="2" style="font-family: Times New Roman Bold">(26)</font></sup></b></p>
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      &nbsp;P.O. Box 150; 48<sup>th</sup> Floor; 1 First Canadian Place, Toronto,
      ONT., M5X 1H3</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">5,250</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">5,250</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">0%</font></td>
    </tr>
    <tr style="page-break-inside: avoid">
      <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><b><font size="2">
      TOTAL</font></b></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">9,482,840</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">14.2%</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">9,048,530</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">424,310</font></td>
      <td style="border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" width="12%" bgcolor="#EDEBD3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2">**</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font style="font-size: 9pt">**-
  Designates of percentage of ownership of less than 1%</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(1)&nbsp;&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">All percentages are based on 61,735,395 shares of
  common stock issued and outstanding on April 28, 2008.&nbsp; Beneficial
  ownership is calculated by the number of shares of common stock that each
  selling shareholder owns or controls or has the right to acquire within 60
  days of April 20, 2008.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(2)&nbsp;&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">This table assumes that each shareholder will
  sell all of its shares available for sale during the effectiveness of the
  registration statement that includes this prospectus.&nbsp; Selling
  shareholders are not required to sell their shares.&nbsp; </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(3)&nbsp;&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Assumes that all shares registered for resale by
  this prospectus have been issued and sold.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">20</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(4)&nbsp;&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 124,000 shares of common stock and
  124,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 36,000 shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(5)&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by Canaccord Capital in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities. Equity included in beneficial
  ownership total but not being registered under this statement include 5,000
  shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(6) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by Canaccord Capital in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities. Equity included in beneficial
  ownership total but not being registered under this statement include 5,000
  shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(7)&nbsp;  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 30,000 shares of common stock and 30,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by Haywood Securities in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities.&nbsp;&nbsp; Gord Welch and Rick
  Thomas in their capacity as President and Secretary exercises sole voting
  control and dispositive power over these securities.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(8)&nbsp; </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 30,000 shares of common stock and 30,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by Haywood Securities in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(9)&nbsp;  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 2,600,000 shares of common stock and
  2,600,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; These shares are held by Roytor &amp; Co
  in trust for Top Gold AG MVK.&nbsp; Mr. Martin Frick in his capacity as the
  investment advisor with Luxor Asset Management Trust rep exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 3,200,000 shares of common stock and 1,700,000 common stock acquirable
  upon the exercise of warrants.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(10)  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 400,000 shares of common stock and
  400,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; These shares are held by Roytor &amp; Co
  in trust for Golden Dhow Fund.&nbsp; Mr. Martin Frick in his capacity as the
  investment advisor with Luxor Asset Management Trust rep exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 125,000 shares of common stock and 125,000 common stock acquirable
  upon the exercise of warrants.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(11) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 75,000 shares of common stock and 75,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by Nesbitt Burns in trust
  for&nbsp; the named individual, who exercises sole voting control and
  dispositive power over these securities.&nbsp; Equity included in beneficial
  ownership total but not being registered under this statement include 98,500
  shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(12)
  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 25,000 shares of common stock and 25,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; Olivier Garret and David Gallant in their
  capacity as individuals with voting power within the LLC exercises sole voting
  control and dispositive power over these securites.
  </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(13)
  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 12,500 shares of common stock and 12,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; The named individual exercises sole voting
  control and dispositive power over these securities.
  </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(14)
  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 17,500 shares of common stock and 17,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; The named individual exercises sole voting
  control and dispositive power over these securities.
  </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(15)  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes705,000 shares of common stock and
  705,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; Maxwell Munday in his capacity as
  President exercises sole voting control and dispositive power over these
  securities.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(16)
  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 15,000 shares of common stock and 15,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; The named individual exercises sole voting
  control and dispositive power over these securities.
  </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(17) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 200,000 shares of common stock and
  200,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 100,000 shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(18) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 100,000 shares of common stock and
  100,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.&nbsp; The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 19,010 shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(19) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 12,500 shares of common stock and 12,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; The named individual exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 10,000 shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(20)  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 20,000 shares of common stock and 20,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; The named individual exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 45,000 shares of common stock.&nbsp; Rohan Hazelton is currently a
  member on the Board of Directors of Gryphon Gold.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(21) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.&nbsp; These shares are held by RBC Dominion Securities
  in trust for the named individual, who exercises sole voting control and
  dispositive power over these securities.&nbsp; Equity included in beneficial
  ownership total but not being registered under this statement include 74,300
  shares of common stock. </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(22) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 7,000 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of&nbsp; April 30,
  2008.&nbsp; Ken MacPherson in his capacity as Senior Vice President of Trading&nbsp;
  Canaccord Capital exercises sole voting control and dispositive power over
  these securities.&nbsp;&nbsp; </font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(23) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 8,680 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of&nbsp; April 30,
  2008.&nbsp;&nbsp; </font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">21</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(24)  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 52,500 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of&nbsp; April 30,
  2008.&nbsp; The named individual exercises sole voting control and dispositive
  power over these securities.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(25) </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 2,100 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of&nbsp; April 30,
  2008. Marilyn Dryhurst&nbsp; in her capacity as Manager of Securities Cage and
  Settlements for Haywood Securities Inc. exercises sole voting control and
  dispositive power over these securities.&nbsp;&nbsp; Equity included in
  beneficial ownership total but not being registered under this statement
  include 31,500 of common stock acquirable upon the exercise of warrants.</font></p>
  <p class="MsoList" align="justify"><font style="font-size: 9pt">(26)  </font></p>
  <p class="MsoList" align="justify" style="margin-left: 30; margin-top: -25.5pt">
  <font style="font-size: 9pt">Includes 5,250 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of&nbsp; April 30,
  2008. Jim Chouzouris&nbsp; in his capacity as Associate Investment Advisor for
  BMO Nesbitt Burns exercises sole voting control and dispositive power over
  these securities</font></p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><font size="2">
  Transactions With Selling Shareholders </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">On December 14, 2007, we
  closed the third and final tranche of our private placement of units as
  announced on November 12, 2007 and November 14, 2007. The first tranche closed
  on November 22, 2007 and consisted of 3.254 million units for gross aggregate
  proceeds of Cdn.$2.603 million. The second tranche closed on November 27, 2007
  and consisted of 1.050 million units for gross aggregate proceeds of Cdn.$840,000.
  The third tranche consisted of 182,500 units for gross aggregate proceeds of
  Cdn.$146,000. An aggregate of 4,486,500 units were issued for gross proceeds
  of Cdn.$3.589 million. Each unit consisted of one common share of the Company
  and one full Series I common share purchase warrant subject to adjustment.
  Each full Series I common share purchase warrant entitles the holder thereof
  to purchase one share of common stock of the Company, for a period of 24
  months commencing from the date of closing at a price per common share of
  Cdn$1.00 if exercised on or before the date that is twelve months from the
  date of closing and at a price per Warrant Share of Cdn$1.25 if exercised
  after the first twelve months from the date of closing, but prior to expiry. </font> </p>
  <p class="MsoNormal" align="justify"><font FACE="Times New Roman" SIZE="2">The
  units were offered for sale directly by us and by registered dealers. In
  relation to the private placement of the units, we paid qualified registered
  dealers a cash commission in the amount of Cdn.$71,624.00 and issued
  compensation options to acquire 89,530 common shares (exercisable at a price
  of C$0.80 for a period of up to 9 months from closing) (14,000 of the
  compensation warrants were later rejected and cancelled by one of the
  registered dealers). </p>
  </font>
  <p class="MsoNormal" align="justify"><font size="2">The securities of the
  private placement were not registered under the Securities Act, or the laws of
  any state, and are subject to resale restrictions and may not be offered or
  sold in the United States absent registration or an applicable exemption from
  the registration requirements. The units, including the common shares and
  common share purchase warrants comprising the units were placed pursuant to
  exemptions from registration requirements of the Securities Act provided by
  Section 506 of Regulation D of the Securities Act and by Rule 903 of
  Regulation S of the Securities Act, such exemptions being available based on
  information obtained from the investors to the private placement. </font> </p>
  <h1 align="center"><a name="_Toc196194142"><font size="2">PLAN OF DISTRIBUTION</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">&nbsp;</font><font size="2">We
  are registering the shares of common stock on behalf of the selling
  shareholders. When we refer to selling shareholders, we intend to include
  donees and pledgees selling shares received from a named selling shareholder
  after the date of this prospectus. &nbsp;All costs, expenses and fees in connection
  with this registration of the shares offered under this registration statement
  will be borne by us. &nbsp;Brokerage commissions and similar selling expenses, if
  any, attributable to the sale of shares will be borne by the selling
  shareholders. &nbsp;Sales of shares may be effected by the selling shareholders
  from time to time in one or more types of transactions (which may include
  block transactions) on the over-the-counter market, in negotiated
  transactions, through put or call options transactions relating to the shares,
  through short sales of shares, or a combination of such methods of sale, at
  market prices prevailing at the time of sale, or at negotiated prices. &nbsp;Such
  transactions may or may not involve brokers or dealers. The selling
  shareholders have advised us that they have not entered into any agreements,
  understandings or arrangements with any underwriters or broker-dealers
  regarding the sale of their securities, nor is there an underwriter or
  coordinating broker acting in connection with the proposed sale of shares by
  the selling shareholders.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The selling shareholders
  may effect such transactions by selling shares directly to purchasers or
  through broker-dealers, which may act as agents or principals. Such
  broker-dealers may receive compensation in the form of discounts, concessions,
  or commissions from the selling shareholders and/or purchasers of shares for
  whom such broker-dealers may act as agents or to whom they sell as principal,
  or both (which compensation as to a particular broker-dealer might be in
  excess of customary commissions).</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The selling shareholders
  and any broker-dealers that act in connection with the sale of shares might be
  deemed to be &quot;underwriters&quot; within the meaning of Section 2(11) of the
  Securities Act, and any commissions received by such broker-dealers and any
  profit on the resale of shares sold by them while acting as principals might
  be deemed to be underwriting discounts or commissions under the Securities
  Act. &nbsp;The selling shareholders may agree to indemnify any agent, dealer or
  broker-dealer that participates in transactions involving sales of the shares
  against some liabilities arising under the Securities Act.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">22</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Because the selling
  shareholders may be deemed to be &quot;underwriters&quot; within the meaning of Section
  2(11) of the Securities Act, the selling shareholders will be subject to the
  prospectus delivery requirements of the Securities Act. &nbsp;We have informed the
  selling shareholders that the anti-manipulative provisions of Regulation M
  promulgated under the Exchange Act may apply to their sales in the market.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In the event that the
  registration statement is no longer effective, the selling shareholders may
  resell all or a portion of the shares in open market transactions in reliance
  upon Rule 144 under the Securities Act, provided they meet the criteria and
  conform to the requirements of such Rule, including the minimum one year
  holding period.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Upon being notified by any
  selling shareholder that any material arrangement has been entered into with a
  broker-dealer for the sale of shares through a block trade, special offering,
  exchange distribution or secondary distribution or a purchase by a broker or
  dealer, we will file a supplement to this prospectus, if required, under Rule
  424(b) of the Act, disclosing:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">the name of each selling shareholder(s) and of the
    participating broker-dealer(s), </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">the number of shares involved, </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">the price at which the shares were sold, </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">the commissions paid or discounts or concessions allowed to
    the broker-dealer(s), where applicable, </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">that the broker-dealer(s) did not conduct any investigation
    to verify information set out or incorporated by reference in this
    prospectus; and
    </font>
    </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">other facts material to the transaction. </font> </li>
  </ul>
  <h1 align="center"><a name="_Toc195437387"><font size="2">DESCRIPTION OF
  SECURITIES </font> </a>
  <font size="2">TO BE REGISTERED</font></h1>
  <p class="MsoNormal" align="justify"><font size="2">Our authorized capital
  stock of Gryphon Gold consists of one hundred fifty million (150,000,000)
  shares of common stock, par value $0.001&nbsp;per share and fifteen million
  (15,000,000) shares of Preferred Stock, par value $0.001&nbsp;per share. No other
  class or series of capital stock is currently authorized under the
  Corporation's articles of incorporation. </font> </p>
  <h2 align="justify"><a name="_Toc195437388"><font size="2">Common Stock</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">We had 61,735,395 shares
  of common stock outstanding as of April 28, 2008. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Holders of common stock
  are entitled to one vote per share on all matters subject to stockholder vote.
  The common stock has no preemptive or other subscription rights. All of the
  presently outstanding shares of common stock are fully paid and non
  assessable. If the corporation is liquidated or dissolved, holders of shares
  of common stock will be entitled to share ratably in assets remaining after
  satisfaction of liabilities and subject to the rights, if any, of the holders
  of our preferred stock. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The holders of the common
  stock are entitled to receive dividends when and as declared by the Board of
  Directors, out of funds legally available therefore. The corporation has not
  paid cash dividends with respect to its common stock in the past. No share of
  common stock of the corporation which is fully paid is liable to calls or
  assessment by the corporation.
  </font> </p>
  <h2 align="justify"><a name="_Toc195437389"><font size="2">Preferred Stock</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">Our articles of
  incorporation authorize our board of directors to issue, by resolution and
  without any action by our stockholders, one or more series of preferred stock
  and to establish the designations, dividend rights, dividend rate, conversion
  rights, voting rights, terms of redemption, liquidation preference, sinking
  fund terms and all other preferences and rights of any series of preferred
  stock, including rights that could adversely affect the voting power of the
  holders of our common stock.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">One of the effects of
  undesignated preferred stock may be to enable the board of directors to render
  more difficult or to discourage an attempt to obtain control of us by means of
  a tender offer, proxy contest, merger or otherwise, and thereby to protect the
  continuity of our management. The issuance of shares of preferred stock
  pursuant to the board of directors' authority described above may adversely
  affect the rights of holders of common stock. For example, preferred stock
  issued by us may rank prior to the common stock as to dividend rights,
  liquidation preference or both, may have full or limited voting rights and may
  be convertible into shares of common stock. Accordingly, the issuance of
  shares of preferred stock may discourage bids for the common stock at a
  premium or may otherwise adversely affect the market price of the common
  stock. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">23</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h2 align="justify"><a name="_Toc195437390"><font size="2">Nevada Laws</font></a></h2>
  <p class="MsoNormal" align="justify"><font size="2">The Nevada Business
  Corporation Law contains a provision governing &quot;acquisition of controlling
  interest.&quot; &nbsp;This law provides generally that any person or entity that
  acquires 20% or more of the outstanding voting shares of a publicly-held
  Nevada corporation in the secondary public or private market may be denied
  voting rights with respect to the acquired shares, unless a majority of the
  disinterested shareholders of the corporation elects to restore such voting
  rights in whole or in part. The control share acquisition act provides that a
  person or entity acquires &quot;control shares&quot; whenever it acquires shares that,
  but for the operation of the control share acquisition act, would bring its
  voting power within any of the following three ranges:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 0pt">
    <p style="line-height: 100%; margin-top: 0; margin-bottom: 12">
    <font size="2">20 to 33 1/3%;</font></li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 0pt">
    <p style="line-height: 100%; margin-top: 0; margin-bottom: 12">
    <font size="2">33 1/3 to 50%; or </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="line-height: 100%; margin-top: 0; margin-bottom: 12">
    <font size="2">more than 50%. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">A &quot;control share
  acquisition&quot; is generally defined as the direct or indirect acquisition of
  either ownership or voting power associated with issued and outstanding
  control shares. &nbsp;The shareholders or board of directors of a corporation may
  elect to exempt the stock of the corporation from the provisions of the
  control share acquisition act through adoption of a provision to that effect
  in the articles of incorporation or bylaws of the corporation. &nbsp;Our articles
  of incorporation and bylaws do not exempt our common stock from the control
  share acquisition act.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The control share
  acquisition act is applicable only to shares of &quot;Issuing Corporations&quot; as
  defined by the Nevada law. &nbsp;An Issuing Corporation is a Nevada corporation,
  which:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">has 200 or more shareholders, with at least 100 of such
    shareholders being both shareholders of record and residents of Nevada; and </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">does business in Nevada directly or through an affiliated
    corporation.
    </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">At this time, we do not
  have 100 shareholders of record resident of Nevada. &nbsp;Therefore, the provisions
  of the control share acquisition act do not apply to acquisitions of our
  shares and will not until such time as these requirements have been met. &nbsp;At
  such time as they may apply, the provisions of the control share acquisition
  act may discourage companies or persons interested in acquiring a significant
  interest in or control of us, regardless of whether such acquisition may be in
  the interest of our shareholders.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">&nbsp;</font><font size="2">The
  Nevada &quot;Combination with Interested Shareholders Statute&quot; may also have an
  effect of delaying or making it more difficult to effect a change in control
  of us. &nbsp;This statute prevents an &quot;interested shareholder&quot; and a resident
  domestic Nevada corporation from entering into a &quot;combination,&quot; unless certain
  conditions are met. &nbsp;The statute defines &quot;combination&quot; to include any merger
  or consolidation with an &quot;interested shareholder,&quot; or any sale, lease,
  exchange, mortgage, pledge, transfer or other disposition, in one transaction
  or a series of transactions with an &quot;interested shareholder&quot; having:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">an aggregate market value equal to 5 percent or more of the
    aggregate market value of the assets of the corporation; </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">an aggregate market value equal to 5 percent or more of the
    aggregate market value of all outstanding shares of the corporation; or </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">representing 10 percent or more of the earning power or net
    income of the corporation. </font> </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">An &quot;interested
  shareholder&quot; means the beneficial owner of 10 percent or more of the voting
  shares of a resident domestic corporation, or an affiliate or associate
  thereof. &nbsp;A corporation affected by the statute may not engage in a
  &quot;combination&quot; within three years after the interested shareholder acquires its
  shares unless the combination or purchase is approved by the board of
  directors before the interested shareholder acquired such shares. If approval
  is not obtained, then after the expiration of the three-year period, the
  business combination may be consummated with the approval of the board of
  directors or a majority of the voting power held by disinterested
  shareholders, or if the consideration to be paid by the interested shareholder
  is at least equal to the highest of:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">the highest price per share paid by the interested
    shareholder within the three years immediately preceding the date of the
    announcement of the combination or in the transaction in which he became an
    interested shareholder, whichever is higher; </font> </li>
  </ul>
  <p align="center"><font style="text-transform: uppercase"><font size="2">24</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify; margin-top: 12pt">
    <font size="2">the market value per common share on the date of announcement
    of the combination or the date the interested shareholder acquired the
    shares, whichever is higher; or </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; text-align: left; margin-bottom: 8.35pt">
    <p style="text-align: justify">
    <font size="2">if higher for the holders of preferred stock, the highest
    liquidation value of the preferred stock. </font> </li>
  </ul>
  <h1 align="center"><a name="_Toc195437391"><font size="2">INTEREST OF NAMED
  EXPERTS AND COUNSEL</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">None.</font></p>
  <h1 align="center"><a name="_Toc195437392"><font size="2">DESCRIPTION OF THE
  BUSINESS</font></a></h1>
  <h2 align="justify"><a name="_Toc195437393"><font size="2">Name and
  Incorporation</font></a></h2>
  <p class="MsoNormal" align="justify"><font size="2">Gryphon Gold Corporation
  was formed under the laws of the State of Nevada on April&nbsp;24, 2003.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Our principal business
  office, which also serves as our administration and financing office is
  located in Canada at Suite&nbsp;810, 1130&nbsp;West Pender Street, Vancouver, British
  Columbia, Canada V6E&nbsp;4A4, and our telephone number there is 604-261-2229. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We own 100% of the issued
  and outstanding shares of our operating subsidiaries, Borealis Mining Company
  and Gryphon Nevada Eagle Holding Company. &nbsp;Gryphon Nevada Eagle Holding
  Company owns 100% of the membership interests in Nevada Eagle Resources LLC.
  &nbsp;We have no other subsidiaries. Borealis Mining Company was formed under the
  laws of the State of Nevada on June&nbsp;5, 2003, Gryphon Nevada Eagle Holding
  Company was formed under the laws of the State of Nevada on July 27, 2007, and
  Nevada Eagle Resources LLC was organized under the laws of the State of Nevada
  on April 28, 2005.</font></p>
  <h2 align="justify"><a name="_Toc195437394"><font size="2">History and
  Background of Company</font></a></h2>
  <p class="MsoNormal" align="justify"><font size="2">We were established as a
  private company in April 2003 by Albert Matter and Allen Gordon to acquire and
  develop gold properties in the United States. &nbsp;Our objective is to establish a
  producing gold company through the development and extraction of gold
  deposits.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In July 2003, through our
  wholly-owned subsidiary Borealis Mining, we acquired from Golden Phoenix an
  option to earn up to a 70% joint venture interest in the mining lease for the
  Borealis Property (July 2003 Option and Joint Venture Agreement) by making
  qualified development expenditures on that property.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">During 2004, we completed
  drilling, technical and engineering work necessary to prepare a Plan of
  Operation in respect of the development of an open pit, &nbsp;heap leach mine on
  the Borealis Property. We submitted the Plan of Operation to the U.S.&nbsp;Forest
  Service on August&nbsp;27, 2004, and we continue to work on satisfying all the
  requirements of the various approval agencies and completing all necessary
  reviews, including the approval of the Nevada Division of Environmental
  Protection. The principal mine operating permits were granted in 2006. &nbsp;A
  further discussion of operating permits and other governmental regulation
  concerns is described under the caption &quot;Permitting,&quot; below.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Following the course
  established by the recommendations in the preliminary scoping study, and based
  on additional geologic field work that was completed in 2004, we retained Ore
  Reserves Engineering, consulting resource modeling engineers, to complete an
  updated resource estimate model in accordance with National Instrument 43-101
  of the Canadian Securities Administrators. In May 2005, Ore Reserves
  Engineering delivered the report titled <i>Technical</i> <i>Report on the
  Mineral Resources of the Borealis Gold Project Located in</i> <i>Mineral
  County, Nevada.</i> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On January&nbsp;10, 2005,
  Borealis Mining entered into a purchase agreement with Golden Phoenix which
  gave Borealis Mining the right to purchase the interest of Golden Phoenix in
  the Borealis Property for $1,400,000. Golden Phoenix transferred its interest
  in the Borealis Property to Borealis Mining on January&nbsp;28, 2005. Borealis
  Mining paid $400,000 of the purchase price to Golden Phoenix upon closing of
  the purchase, and four additional quarterly payments of $250,000 were made to
  Golden Phoenix. &nbsp;With the final payment of $250,000 on January 24, 2006,
  Borealis Mining &nbsp;completed all the required payments under the purchase
  agreement and now has 100% control of the Borealis Property. &nbsp;A portion of the
  Borealis Property is subject to mining leases, as described under the caption
  &quot;Borealis Property,&quot; below.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">As sole shareholder of
  Borealis Mining, we control all of the lease rights to a portion of the
  Borealis Property, subject to advance royalty, production royalty, and other
  payment obligations imposed by the lease. Our acquisition of the interest of
  Golden Phoenix in the Borealis Property terminated the July 2003 Option and
  Joint Venture Agreement. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">25</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">In addition to our
  leasehold interest to a portion of the Borealis Property, we also own through
  Borealis Mining numerous unpatented mining claims that make up the balance of
  the Borealis Property, and all of the documentation and samples from years of
  exploration and development programs carried out by the previous operators of
  the Borealis Property, totaling thousands of pages of data including, but not
  limited to, geophysical surveys, mineralogical studies and metallurgical
  testing reports.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On July&nbsp;11, 2005, we
  accepted a joint proposal for a feasibility study from the firms of Samuel
  Engineering, Inc. and Knight Piesold and Company. Samuel Engineering provides
  services including metallurgical process development and design, and Knight
  Piesold provides mining, metallurgical and environmental engineering services.
  Both companies have worked together recently on completing similar studies. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">During the period from our
  inception on April&nbsp;24, 2003 through March&nbsp;31, 2004, we funded our capital
  needs by raising $2,419,200 in private placements, issuing 14,376,000&nbsp;shares
  of common stock at prices ranging from $0.10&nbsp;per share to $0.225&nbsp;per share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">During our fiscal year
  ended March&nbsp;31, 2005, we raised $175,000 by issuing 500,000&nbsp;shares of common
  stock to an executive officer at $0.35&nbsp;per share under the terms of his
  employment agreement. We raised an additional $4,430,375 by issuing
  6,815,962&nbsp;units in a series of private placements. Each unit consisted of one
  share of common stock and one-half of one share purchase warrant, each whole
  warrant exercisable to acquire one share of common stock at $0.90&nbsp;per share
  until the earlier of two years from the issue date and nine months following
  the date on which common stock is listed on a public stock exchange
  (subsequently revised to expire on December 22, 2006).</font></p>
  <p class="MsoNormal" align="justify"><font size="2">During our fiscal quarter
  ended June&nbsp;30, 2005, we raised $3,919,765 by issuing 6,030,408&nbsp;units in a
  series of private placements. Each unit consisted of one share of common stock
  and one-half of one share purchase warrant, each whole warrant exercisable to
  acquire one share of common stock at $0.90&nbsp;per share until the earlier of two
  years from the issue date and nine months following the date on which common
  stock is listed on a public stock exchange (subsequently revised to expire on
  December 22, 2006.).</font></p>
  <p class="MsoNormal" align="justify"><font size="2">&nbsp;On August&nbsp;11, 2005, our
  Board authorized an increase in our authorized capital to consist of
  150,000,000&nbsp;shares of common stock, par $0.001, and 15,000,000&nbsp;shares of
  preferred stock, par&nbsp;$0.001. &nbsp;The increase was approved by shareholders.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On December 22, 2005, we
  completed our initial public offering of 6.9 million units for gross proceeds
  of approximately $ 5,036,497 with net proceeds of $2,794,557 after deducting
  costs of $2,241,940. The units were sold at a price of $0.73 (Cdn$0.85) each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable for a period of 12 months at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol &quot;GGN.&quot;
  &nbsp;The offering was underwritten by a syndicate of Canadian underwriters which
  included Desjardins Securities, CIBC World Markets, Bolder Investment Partners
  and Orion Securities. &nbsp;The units were offered for sale pursuant to a
  prospectus filed in four Canadian provinces (British Columbia, Alberta,
  Manitoba and Ontario). The units were also registered in a registration
  statement filed with the United States Securities and Exchange Commission.
  &nbsp;The proceeds of the offering will be used principally for the completion of
  the Company's feasibility study for its Borealis Property and its exploration
  program on the Borealis Property, as well as for working capital.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On March 24, 2006, we
  closed the private placement of 5,475,000 units for sale at Cdn$1.25 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one half of one Series B purchase
  warrant. The Series B warrants are exercisable until March 23, 2007 at a price
  of Cdn$1.65. &nbsp;The private offering raised gross proceeds of Cdn$6.8 million.
  &nbsp;We paid qualified registered dealers a 7% cash commission and issued
  compensation options to acquire 280,500 common shares at price of Cdn$1.40
  until March 23, 2007 on a portion of the private placement. &nbsp;The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. &nbsp;The Company granted registration rights to the investors in
  this private placement and used commercially reasonable efforts to prepare and
  file with the SEC, within 120 days of closing, a registration statement under
  the Securities Act and caused such statement to be declared effective and
  remain effective. &nbsp;The proceeds of this offering have been and will be applied
  to fund the continuation of our exploration and development program on the
  Borealis Property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller. &nbsp;Mr. Longinotti was appointed as new Chief Financial Officer to
  the Company, effective May 15, 2006, and the Company has agreed to enter into
  a formal employment agreement with him in due course. &nbsp;Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006. &nbsp;Mr. Longinotti's employment
  commenced April 18, 2006. &nbsp;Mr. Rajwant Kang is the Corporate Controller to the
  Company. &nbsp;In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">26</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On November 30, 2006, our
  board of directors concluded that we would not proceed with near term
  construction and production financing of the Borealis heap leach mine. &nbsp;The
  feed for the proposed mine was remnants from the previously mined open pits,
  and heap and dump material associated with the historical mining operations.
  &nbsp;The decision not to proceed was made due to the impact of certain technical
  corrections to the previously announced Feasibility Study and related NI
  43-101 Technical Report, dated August 15, 2006. &nbsp;The technical corrections
  reduced the anticipated quantity of recoverable gold and silver over the
  project life, and resulted in a marginal projected return on investment. &nbsp;In
  light of the decision not to proceed with development of a mine, in December
  2006, we closed our Denver office and terminated operations and engineering
  staff, including our Chief Operating Officer Mr. Allen Gordon and Mr. Matt
  Bender, our Vice President of Borealis Project Development. &nbsp;Mr. Steven Craig,
  our Vice President of Exploration, was relocated to Nevada. &nbsp;As of December 1,
  2006, our Chief Financial Officer, Mr. Michael Longinotti commenced working on
  a part-time basis. &nbsp;Under this agreement, his time spent in the office was
  reduced by 50% along with his salary. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In December 2006, we
  completed the geophysical survey, which commenced in September 2006. &nbsp;The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit. &nbsp;The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit.</font></p>
  <font FACE="Times New Roman" SIZE="2">
  <p ALIGN="JUSTIFY">On January 11, 2007, we announced the results of the
  revised CIM compliant resource estimate in accordance with NI 43-101 which had
  been compiled by Mr. Alan C. Noble, P.E. of Ore Reserves Engineering, entitled
  </font><font FACE="Times New Roman" SIZE="2"><i>Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada, USA, August 15, 2006 Revised January 11, 2007</i>, the &quot;<u>Technical
  Report</u>&quot;. The results of the report were independently reviewed by AMEC to
  insure the methodology and assumptions used in the calculations were
  consistent with industry standards. The resource estimate includes the results
  of exploration drilling through November 5, 2006. The measured, indicated and
  inferred gold resource reported in January 2007 is: </p>
  </font>
  <p class="MsoNormal" align="justify"><font size="2">On January 11, 2007, we
  announced the results of the revised CIM compliant resource estimate in
  accordance with NI 43-101 which had been compiled by Mr. Alan C. Noble, P.E.
  of Ore Reserves Engineering. &nbsp;The results of the report were independently
  reviewed by AMEC to insure the methodology and assumptions used in the
  calculations were consistent with industry standards. &nbsp;The resource estimate
  includes the results of exploration drilling through February 28, 2006. &nbsp;The
  measured, indicated and inferred gold resource reported in January 2007 is:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 70.55pt; border-left: 1pt solid black; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="94">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Date </font> </b></td>
      <td style="width: 151.45pt; border: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="202" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Measured</font></b></td>
      <td style="width: 152.2pt; border-left: medium none; border-right: 1pt solid black; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="203" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Indicated</font></b></td>
      <td style="width: 152.2pt; border-left: medium none; border-right: 1pt solid black; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="203" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Inferred</font></b></td>
    </tr>
    <tr>
      <td style="width: 70.55pt; border-left: 1pt solid black; border-right: 1pt solid black; border-top: medium none; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="94">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50.05pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Tons</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">(000's)</font></td>
      <td style="width: 48pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Grade</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">opt</font></td>
      <td style="width: 53.4pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="71">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Ozs of Gold</font></td>
      <td style="width: 50.3pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Tons</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">(000's)</font></td>
      <td style="width: 48.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Grade</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">opt</font></td>
      <td style="width: 53.65pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="72">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Ozs of Gold</font></td>
      <td style="width: 50.3pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Tons</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">(000's)</font></td>
      <td style="width: 48.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Grade</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">opt</font></td>
      <td style="width: 53.65pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="72">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Ozs of Gold</font></td>
    </tr>
    <tr>
      <td style="width: 70.55pt; border-left: 1pt solid black; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="94">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">January, 11, 2007</font></td>
      <td style="width: 50.05pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">16,360</font></td>
      <td style="width: 48pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">0.031</font></td>
      <td style="width: 53.4pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="71">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">503,700</font></td>
      <td style="width: 50.3pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">24,879</font></td>
      <td style="width: 48.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">0.029</font></td>
      <td style="width: 53.65pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="72">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">709,800</font></td>
      <td style="width: 50.3pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="67">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">30,973</font></td>
      <td style="width: 48.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">0.020</font></td>
      <td style="width: 53.65pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="72">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">609,200</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; " align="justify">
  <font size="2" style="color: black">&nbsp;</font><font size="2">The updated report
  confirmed a total gold resource (measured, indicated and inferred) of
  1,822,700 ounces contained in the Borealis property.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The terms &quot;proven mineral
  reserve&quot; and &quot;probable mineral reserve&quot; used in this prospectus are in
  reference to the mining terms defined in the Canadian Institute of Mining,
  Metallurgy and Petroleum Standards, which definitions have been adopted by
  Canadian National Instrument 43-101 &#150; Standards of Disclosure for Mineral
  Projects. &nbsp;The definitions of proven and probable reserves used in NI 43-101
  differ from the definitions in the United States Securities and Exchange
  Commission's Industry Guide 7. &nbsp;In the United States, a mineral reserve is
  defined as a part of a mineral deposit, which could be economically and
  legally extracted or produced at the time the reserve determination is made.
  &nbsp;Accordingly, information contained in this prospectus and the documents
  incorporated by reference herein containing descriptions of our mineral
  deposits in accordance with NI 43-101 may not be comparable to similar
  information made public by other U.S. companies under the United States
  federal securities laws and the rules and regulations thereunder.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In January 2007 we started
  the process of completing a mineral resource estimate covering the entire
  property that will include all drilling results obtained during calendar year
  2007.
  <font style="background-position: 0% 0%; background-image:url('none'); background-repeat:repeat; background-attachment:scroll">
  The mineral resource estimate is expected to be completed at the end of April
  or in early May 2008.</font> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. &nbsp;Each unit consisted of one common
  share and one full purchase warrant. &nbsp;The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. &nbsp;We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and used commercially reasonable efforts to prepare and
  file with the SEC, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">27</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle, under which we agreed to
  purchase all of the outstanding limited liability company interests of Nevada
  Eagle. &nbsp;Upon closing of the membership interest purchase agreement on August
  21, 2007, we acquired Nevada Eagle from the sellers for the following
  consideration:</font></p>
  <p class="MsoNormal" style="text-indent: 0.5in; line-height: 13pt; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">(a)&nbsp;&nbsp;&nbsp;&nbsp; 2,500,000 in
  cash;
  </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 13pt; margin-left:0in; margin-right:0in; margin-top:4.15pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(b)&nbsp;&nbsp;&nbsp;&nbsp; four million
  five hundred thousand (4,500,000) shares of our common stock; and </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: 0.5in; LINE-HEIGHT: 13pt; margin-left:0in; margin-right:0in; margin-top:4.15pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(c)&nbsp;&nbsp;&nbsp;&nbsp; a 5%
  convertible note in the principal amount of $5,000,000. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The convertible note, due
  March 30, 2010, bears interest at the annual rate of 5% and is convertible at
  the option of the holder into common shares at an initial conversion price of
  $1.00 per share during first the twelve month period following the closing
  date, $1.25 per share during the second twelve month period following the
  closing date, $1.50 per share thereafter and $1.75 per share if converted on
  March 30, 2010. The interest payments are due on a semi-annual basis beginning
  on January 1, 2008. In addition to the purchase consideration, the Baughmans
  were entitled to all revenues of Nevada Eagle (payable in cash, stock, or
  other consideration) calculated to be received and received on the assets and
  properties of Nevada Eagle from January 1, 2007 through midnight on December
  31, 2007. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition, we granted
  the sellers registration rights under which we agreed to file (within the
  later of (i) 90 days of the closing date or (ii) any date in which we are
  required to file a registration statement for a third-party in connection with
  a financing or acquisition, but no later than 120 days of the closing date) a
  resale registration statement to register the common shares issuable at
  closing and issuable upon exercise of the convertible note under the
  Securities Act of 1933, as amended. Such registration rights were filed.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Under the terms of the
  purchase agreement, the closing of the acquisition was subject to closing
  conditions, including: </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:9pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Lock-up Agreement, dated August 21, 2007, under which the Sellers agreed
  that for a period of three months following the Closing Date not to sell
  Common Shares issued or issuable under the Purchase Agreement and Convertible
  Note and, thereafter, to limit the sale of such Common Shares to 20% of the
  aggregate Common Shares issued under the Purchase Agreement and Convertible
  Note each quarter (with unsold Common Shares aggregating each quarter
  thereafter); </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:9pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  An Employment Agreement between us and Mr. Baughman for a term of one year,
  renewable by the parties, to serve as our Vice President of Corporate
  Development; </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:9pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;A Non-Competition Agreement under which the Sellers have agreed not to
  compete with the Registrant for the latter of (i) twelve (12) months following
  the Closing Date (the &quot;Restricted Period&quot;), or (ii) twelve (12) months
  following the termination of the Company's employment of Gerald Baughman.&nbsp;
  The scope of the non-competition obligation relates to the business of
  acquiring and/or holding base metal and precious metal mineral assets located
  in the state of Nevada within the Area of Interest and to properties that have
  been examined by the Registrant or Mr. Baughman during the course of his
  employment by the Registrant, in any manner or capacity.&nbsp; &quot;Area of
  Interest&quot; is defined as any property owned by the Registrant, Nevada Eagle, or
  any affiliate of the Registrant or Nevada Eagle on the latter of (i) Closing
  Date or (ii) the termination date of Gerald Baughman's employment by the
  Registrant, if any, together with any adjacent areas within one kilometer of
  the exterior boundary of such properties; </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  &quot;First Anniversary&quot;) and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). &nbsp;The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and used commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. Such registration has been completed. The proceeds of
  this offering will be applied to fund the continuation of our exploration and
  development programs.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">28</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On December 14, 2007 we
  completed a private placement of 4,486,500 units at Cdn$0.80 for gross
  proceeds of approximately Cdn$3,589,200. &nbsp;The private placement closed in
  three tranches on November 22, &nbsp;November 27 and December 14, 2007. &nbsp;Each unit
  consisted of one common share and one series I warrant. &nbsp;Each series I warrant
  entitles the holder to purchase a common share at a price of Cdn$1.00 per
  share during the first 12 months after closing and Cdn$1.25 per share during
  the second 12 months after closing and until expiry. &nbsp;We paid qualified
  registered dealers a 7% cash commission in the amount of Cdn$71,624 and issued
  compensation warrants (series J) to acquire 89,530 common shares (at a price
  of Cdn$0.80 per share for a period of 9 months from closing) in respect of the
  1,204,000 million units placed by them (14,000 of the compensation warrants
  were later rejected and cancelled by one of the registered dealers). We have a
  right to force warrant holders to exercise warrants, if the price of our
  common stock remains equal to or greater than, Cdn$1.85 per common share, for
  a period of twenty consecutive days. &nbsp;The shares, warrants and underlying
  shares were not qualified by prospectus, have not been registered under U.S.
  securities laws, and are subject to resale restrictions. We granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In the calendar year 2007,
  we continued extension drilling, focused on the expansion of the Graben
  deposit and exploration drilling for a new gold deposit within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments.
  &nbsp;This drilling program consisted of a series of Graben deposit expansion
  drilling and extension drilling north and west of the successful G3 &#150; G13
  fence of holes. &nbsp;The drilling of the Graben deposit alternated with follow up
  exploration drilling in the Central and Western Pediments where 10 holes have
  intersected two distinct hydrothermal systems hidden beneath the pediments.</font></p>
  <h2 align="justify"><a name="_Toc195437395"><font size="2">Business Objectives</font></a><font size="2">
  </font> </h2>
  <p class="MsoNormal" align="justify"><font size="2">We are in the business of
  acquiring, exploring, and developing gold properties in the United States,
  emphasizing the state of Nevada. Our objective is to increase value of our
  shares through the exploration, development and extraction of gold deposits,
  beginning with our Borealis Property. The development and extraction may be
  performed by us or may be performed by potential partners. &nbsp;We will also
  consider the acquisition and exploration of other potential gold bearing
  properties within Nevada or areas that have a similar political risk profile.
  &nbsp;The Plan of Operations that has been approved by the U.S. Forest Service does
  not present an economic analysis, and we have not placed any information in
  the Plan of Operations regarding capital expenditures, operating costs, ore
  grade, anticipated revenues, or projected cash flows. The Plan of Operation
  was based on the general economic concepts as presented in the Preliminary
  scoping study.
  </font> </p>
  <h2 align="justify"><a name="_Toc195437396"><font size="2">Corporate Strengths</font></a></h2>
  <p class="MsoNormal" align="justify"><font size="2">We believe that we have
  the following business strengths that will enable us to achieve our
  objectives:</font></p>
  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc">
    <li class="MsoNormal" style="color: black; line-height: 13pt; margin-bottom: 8.35pt">
    <p align="justify" style="line-height: 100%">
    <font size="2">Our management team has significant exploration experience in
    Nevada;
    </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; margin-bottom: 8.35pt">
    <p align="justify" style="line-height: 100%">
    <font size="2">As the Borealis Property was the site of surface mining
    operations from 1981 to 1990, we believe the process to receive permits and
    start operations on previously mined operations is less difficult than
    getting permits for a previously undisturbed area. The USDA Forest Service
    and the Nevada Bureau of Mining Regulation and Reclamation have both
    approved the Plan of Operations and Reclamation Plan, allowing us to proceed
    with the development of a heap leach mine assuming sufficient oxide
    resources are found and additional financing is available. We have also
    received approvals for surface exploration and water wells and have
    successfully progressed through the required agency and public review
    process for those permits. . </font> </li>
    <li class="MsoNormal" style="color: black; line-height: 13pt; margin-bottom: 8.35pt">
    <p align="justify" style="line-height: 100%">
    <font size="2">Our land position is extensive, controlled by 752 unpatented
    mining claims covering approximately 15,500&nbsp;acres. We believe many surface
    showings of gold mineralization on the property may provide opportunities
    for discovery of gold deposits. Our property has multiple types of gold
    deposits including oxidized material, partial oxidized material, and
    predominantly sulfide material; which we believe may allow us flexibility in
    our future plans for mine development and expansion, assuming additional
    financing is available.
    </font>
    </li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">We cannot be certain that
  any mineral deposits will be discovered in sufficient quantities and grade to
  justify commercial operations. We have no proven or probable reserves. Whether
  a mineral deposit will be commercially viable depends on a number of factors,
  including the particular attributes of the deposit; metal prices, which are
  highly cyclical; the cost to extract and process the mineralized material; and
  government regulations and permitting requirements. We may be unable to
  upgrade our mineralized material to proven and probable reserves in sufficient
  quantities to justify commercial operations and we may not be able to raise
  sufficient capital to develop the Borealis Property.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">29</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">We have specifically
  focused our activities on Nevada, which was rated the highest jurisdiction in
  the world for mining investment attractiveness by an independent survey.
  Mining is an integral part of Nevada's economy. In 2004, the mining industry
  increased Nevada's output by $5.89&nbsp;billion including both direct and indirect
  impacts, up from $5.35&nbsp;billion in 2002. Nevada ranks third in the world in
  gold production, after South Africa and Australia. Located in the State of
  Nevada are well known geological trends such as the Carlin Trend, Battle
  Mountain, Getchell Trend and the Walker Lane Trend. The Borealis Property is
  also located along the Aurora-Bodie trend which crosses the principal Walker
  Lane Trend as shown in the illustration below. Borealis, Bodie, Aurora, and
  other historical producing districts, are aligned along this
  northeast-southwest belt of significant gold deposits. &nbsp;Nevada Eagle's
  principal properties have a cumulative 900,000 of historical (the historical
  estimates are based on internal reports prepared by prior owners prior to
  February 2001 and were not been prepared in accordance with NI 43-101
  standards and thus their reliability has not been verified) ounces of gold.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;<img border="0" src="grypho2.jpg" width="606" height="426"></font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; margin-top:0" align="center">
  <font size="2" style="color: black; font-family: Times New Roman PSMT"><br>
  (Source: Gryphon Gold, 2005) </font> </p>
  <h2 align="justify"><a name="_Toc195437397"><font size="2">Gold Industry</font></a></h2>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Gold Uses</font></i></b><font size="2"><i>.</i>&nbsp;&nbsp;&nbsp;&nbsp;Gold
  has two main categories of use: fabrication and investment. Fabricated gold
  has a variety of end uses, including jewelry, electronics, dentistry,
  industrial and decorative uses, medals, medallions and official coins. Gold
  investors buy gold bullion, official coins and jewelry. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; " align="justify">
  <b><i><font size="2">Gold Supply</font></i></b><font size="2"><i>.&nbsp;&nbsp;&nbsp;&nbsp;</i>The
  supply of gold consists of a combination of production from mining and the
  draw-down of existing stocks of gold held by governments, financial
  institutions, industrial organizations and private individuals. In recent
  years, mine production has accounted for 60% to 70% of the annual supply of
  gold. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; " align="justify">
  <b><i><font size="2" style="color: black">Gold Prices and Market Statistics
  </font> </i>
  </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The following table
  presents the annual high, low and average afternoon fixing prices for gold
  over the past ten years, expressed in U.S. dollars per ounce on the London
  Bullion Market. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">30</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="padding:0in; WIDTH: 60%; " vAlign="top" width="46%">
      <div style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 3pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; mso-element: para-border-div; mso-border-bottom-alt: solid black .5pt">
        <p class="MsoNormal" style="text-align: left; border: medium none; margin-bottom: 0pt; padding: 0in; margin-top:0" align="left">
        <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">Year</font></b></div>
      </td>
      <td style="padding:0in; WIDTH: 2%; " vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 19.72%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="19%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">High</font></b></td>
      <td style="padding:0in; WIDTH: 2%; " vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 9.4%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="9%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Low</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 12.7%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="12%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Average</font></b></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">11997</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">362</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">283</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">331</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60%; PADDING-TOP: 0in" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">11998</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">313</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">273</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">294</font></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">11999</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">326</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">253</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">279</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60%; PADDING-TOP: 0in" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">313</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">264</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">279</font></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22001</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">293</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">256</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">271</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60%; PADDING-TOP: 0in" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22002</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">349</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">278</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">310</font></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22003</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">416</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">320</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">363</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60%; PADDING-TOP: 0in" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22004</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">454</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">375</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">410</font></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22005</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">536</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">411</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">444</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60%; PADDING-TOP: 0in" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22006
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">726</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">521</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">604</font></td>
    </tr>
    <tr>
      <td style="width: 60%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="46%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -12pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">22007 </font> </td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">841</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 8%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">608</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$</font></td>
      <td style="padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">681</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">Source: Kitco and Reuters </font> </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  price of gold has risen steadily for the last few years. &nbsp;Through 2005, gold
  traded in a fairly narrow price range between approximately $410 and $530 per
  ounce, based on the London PM Fix Price. &nbsp;In 2006, gold traded between
  approximately $520 and $720 per ounce, based on London PM Fix Price.&nbsp; In
  2007, gold traded between approximately $600 and $840 per ounce, based on the
  London PM Fix Price. The price of gold closed at $946.00 per ounce on April
  17, 2008, based on the London PM Fix Price.&nbsp; In 2005, the price of silver
  per ounce ranged approximately from $6.40 to $9.20, based on the London Fix
  Price. &nbsp;&nbsp;In 2006, the price of silver ranged from $8.80 to $14.90 per ounce,
  based on the London Fix Price.&nbsp; In 2007, silver traded between
  approximately $11.70 and 15.80 per ounce, based on the London Fix Price. &nbsp;The
  price of silver closed at $18.56 on April 17, 2008, based on the London Fix
  Price. &nbsp;</font></p>
  <h1 align="justify"><a name="_Toc196194146"><font size="2">DESCRIPTION OF
  PROPERTY</font></a></h1>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">Executive Offices</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We lease our principal
  executive office at Suite&nbsp;810, 1130&nbsp;West Pender Street, Vancouver, BC V6E&nbsp;4A4.
  We do not currently maintain any investments in real estate, real estate
  mortgages or securities of persons primarily engaged in real estate
  activities, nor do we expect to do so in the foreseeable future. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">Borealis Property</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Unless stated otherwise,
  information of a technical or scientific nature related to the Borealis
  Property is summarized or extracted from the &quot;Technical Report on the Mineral
  Resources of the Borealis Gold Project Located in Mineral County, Nevada, USA&quot;
  dated August 15, 2006 and revised January 11, 2007, prepared by Mr.&nbsp;Alan C.
  Noble, P.E. of Ore Reserves Engineering in Lakewood, CO, a &quot;Qualified Person&quot;,
  as defined in National Instrument 43-101 of the Canadian Securities
  Administrators. Mr.&nbsp;Noble is independent from us. The Technical Report was
  prepared in accordance with the requirements of National Instrument&nbsp;43-101.
  Management's plans, expectations and forecasts related to our Borealis
  Property are based on assumptions, qualifications and procedures which are set
  out only in the full Technical Report. For a complete description of
  assumptions, qualifications and procedures associated with the following
  information, reference should be made to the full text of the Technical Report
  which will be available for review on the System for Electronic Document
  Analysis and Retrieval (SEDAR)&nbsp;at &nbsp;website: www.sedar.com and on the Company's
  website at www.gryphongold.com. &nbsp;</font></p>
  <p class="MsoNormal"><font size="2">The Borealis Property in Nevada is our
  principal asset, which we hold through our subsidiary, Borealis Mining Company
  (&quot;Borealis Mining&quot;). In the 1980's previous operators of the Borealis Property
  mined approximately 600,000 ounces of gold from near-surface oxide deposits.
  In this prospectus, the previously mined area is referred to as the &quot;Borealis
  site&quot;, the &quot;previously disturbed area&quot; or the &quot;previously mined area&quot;, while
  our references to the Borealis Property refer to the entire property we own or
  lease through Borealis Mining.</font></p>
  <p class="MsoNormal"><font size="2">Echo Bay Mines Limited ceased active
  mining operations in 1991. Full site reclamation was completed in 1994.
  Reclamation bonds were released and Echo Bay relinquished its lease in 1996.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">31</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">At Borealis, there is one
  large hydrothermal system, containing at least 14 known gold deposits, some of
  which are contiguous. There has been historical production from 8 of these
  deposits. As there are several other showings of gold mineralization across
  the property, there is an opportunity to identify additional gold deposits.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><i><font style="COLOR: black"><font size="2">Borealis Property Description
  and Location</font></font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis Property is
  located in Mineral County in southwest Nevada, 12&nbsp;miles northeast of the
  California border. The Borealis Property covers approximately 14,900&nbsp;acres.
  The approximate center of the property is at longitude 118&#176; 45' 34&quot; North and
  latitude 38&#176; 22' 55&quot; West. The figure below shows the location and access to
  the Borealis Property.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;<img border="0" src="grypho3.jpg" width="455" height="353"></font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center; margin-top:12" align="center">
  <font size="2" style="color: black; font-family: Times New Roman PSMT">
  (Source: Gryphon Gold, 2005)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black; font-family: Times New Roman PSMT">&nbsp;</font><font size="2">The
  Borealis Property is comprised of 859 unpatented mining claims of
  approximately 20&nbsp;acres each, totaling about 17,200 acres (or approximately 27
  square miles), and one unpatented millsite claim of approximately 5&nbsp;acres. Of
  the 859&nbsp;unpatented mining claims, 122&nbsp;claims are owned by others but leased to
  Borealis Mining, and 737 of the claims were staked by Golden Phoenix or
  Gryphon Gold and transferred to Borealis Mining. &nbsp;The above claims include a
  total of 112 claims staked during 2006.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Our rights, through
  Borealis Mining as the owner or lessee of the claims, allow us to explore,
  develop and mine the Borealis Property, subject to the prior procurement of
  required operating permits and approvals, compliance with the terms and
  conditions of the mining lease, and compliance with applicable federal, state,
  and local laws, regulations and ordinances. We believe that all of our claims
  are in good standing.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The 122&nbsp;leased claims are
  owned by John W.&nbsp;Whitney, Hardrock Mining Company and Richard J.&nbsp;Cavell, whom
  we refer to as the &quot;Borealis Owners.&quot; Borealis Mining leases the claims from
  the Borealis Owners under a Mining Lease dated January&nbsp;24, 1997 and amended as
  of February&nbsp;24, 1997. The mining lease was assigned to Borealis Mining by the
  prior lessee, Golden Phoenix. The mining lease contains an &quot;area of interest&quot;
  provision, such that any new mining claims located or acquired by Borealis
  Mining within the area of interest after the date of the mining lease shall
  automatically become subject to the provisions of the mining lease.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The term of the mining
  lease extends to January&nbsp;24, 2009 and continues indefinitely thereafter for so
  long as any mining, development (including exploration drilling) or processing
  is being conducted on the leased property on a continuous basis.</font><font size="2" style="color: black">&nbsp;</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">32</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">The remainder of the
  Borealis Property consists of 737&nbsp;unpatented mining claims and one unpatented
  millsite claim staked by Golden Phoenix, Gryphon Gold or Borealis Mining.
  Claims staked by Golden Phoenix were transferred to Borealis Mining in
  conjunction with our January&nbsp;28, 2005 purchase of all of Golden Phoenix's
  interest in the Borealis Property. A total of 263 &nbsp;claims of the total 737
  &nbsp;claims held by Gryphon Gold are contiguous with the claim holdings, are
  located outside of the area of interest, and are not subject to any of the
  provisions of the lease.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">All of the mining claims
  (including the owned and leased claims) are unpatented, such that paramount
  ownership of the land is in the United States of America. Claim maintenance
  payments and related documents must be filed annually with the Bureau of Land
  Management (BLM)&nbsp;and with Mineral County, Nevada to keep the claims from
  terminating by operation of law. Borealis Mining is responsible for those
  actions. At present, the estimated annual BLM maintenance fees are $125&nbsp;per
  claim, or $109,375 per year for all of the Borealis Property claims
  (859&nbsp;unpatented mining claims plus one millsite claim). </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">Royalty Obligations</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The leased portion of the
  Borealis Property is currently subject to advance royalty payments of
  approximately $9,485&nbsp;per month, payable to the Borealis Owners. These advance
  royalty payments are subject to annual adjustments based on changes in the
  United States Consumer Price Index.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2">The terms of the mining lease require the payment of a net
  smelter returns production royalty by Borealis Mining to the Borealis Owners
  in respect of the sale of gold (and other minerals) extracted from those
  claims within the area of interest specified in the mining lease. The royalty
  rate for gold is determined by dividing the monthly average market gold price
  by 100, with the result expressed as a percentage. The royalty amount is
  determined by multiplying that percentage by the amount of monthly gold
  production from the claims in the &quot;area of interest&quot; and by the monthly
  average market gold price, after deducting all smelting and refining charges,
  various taxes and certain other expenses. For example, using an assumed
  monthly average market gold price of $400, the royalty rate would be 4%. Using
  an assumed monthly production of 5,000&nbsp;ounces of gold from the leased claims,
  the monthly royalty amount would be 5,000&nbsp;ounces times $400&nbsp;per ounce, less
  allowable deductions, multiplied by 4%.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">At present, there is no
  royalty payable to the United States or the State of Nevada on production from
  unpatented mining claims, although legislative attempts to impose a royalty
  have occurred in recent years.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">Accessibility, Climate, Local
  Resources, Infrastructure and Physiography</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Primary access to the
  Borealis Property is gained from an all weather county gravel road located
  about two miles south of Hawthorne from State Highway&nbsp;359. Hawthorne is about
  133 highway miles southeast of Reno. The Borealis Property is about 16 road
  miles from Hawthorne.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The elevation on the
  property ranges from 7,200&nbsp;ft to 8,200&nbsp;ft above sea level. This relatively
  high elevation produces moderate summers with high temperatures in the 90&#176;F
  (32&#176;C) range. Winters can be cold and windy with temperatures dropping to 0&#176;F
  (-18&#176;C). Average annual precipitation is approximately 10&nbsp;inches, part of
  which occurs as up to 60&nbsp;inches of snowfall. Historically, the Borealis
  Property was operated throughout the year with only limited weather related
  interruptions.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Topography ranges from
  moderate and hilly terrain with rocky knolls and peaks, to steep and
  mountainous terrain in the higher elevations.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The vegetation throughout
  the project area is categorized into several main community types: pinyon/juniper
  woodland, sagebrush, ephemeral drainages and areas disturbed by mining and
  reclaimed. Predominate species include pinyon pine, Utah juniper, greasewood,
  a variety of sagebrush species, crested wheat grass and fourwing saltbush.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">There is a power line
  crossing the Borealis Property within 2&nbsp;miles of the center of the potential
  operations, which we will evaluate for the power source during our potential
  future engineering feasibility work. Water is available from two water basins
  located approximately 5&nbsp;miles and 7&nbsp;miles south of the planned mine site,
  respectively. Water for historical mining operations was supplied from the
  basin 5&nbsp;miles away from the site. We have obtained permits from the Nevada
  Division of Water Resources to access water from each of these basins. We
  believe that each of these basins, individually, would provide a sufficient
  water supply for our potential operations. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis site has been
  reclaimed by the prior operator to early 1990's standards. The pits and the
  project boundary are fenced for public safety. Currently, access to the pits
  and leach heap areas is gained through a locked gate. No buildings or power
  lines or other mining related facilities located on the surface remain. All
  currently existing roads in the project area are two&nbsp;&#151; track roads with most
  located within the limits of the old haul roads that have been reclaimed.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">33</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">The nearest available
  services for both mine development work and mine operations are in the small
  town of Hawthorne, via a wide well-maintained gravel road. Hawthorne has
  substantial housing available, adequate fuel supplies and sufficient
  infrastructure to meet basic supply requirements. Material required for
  property development and mine operations are generally available from
  suppliers located in Reno, Nevada.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">History of the District and Borealis
  Property</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2">The original Ramona mining district, now known as the Borealis
  mining district, produced less than 1,000&nbsp;ounces of gold prior to 1981. In
  1978 the Borealis gold deposit was discovered by S. W.&nbsp;Ivosevic (1979), a
  geologist working for Houston International Minerals Company (a subsidiary of
  Houston Oil and Minerals Corporation). The property was acquired from the
  Whitney Partnership, which later became the Borealis Owners, following
  Houston's examination of the submitted property. Initial discovery of
  ore-grade gold mineralization in the Borealis district and subsequent rapid
  development resulted in production beginning in October 1981 as an open pit
  mining and heap leaching operation. Tenneco Minerals acquired the assets of
  Houston International Minerals in late 1981, and continued production from the
  Borealis mine. Subsequently, several other gold deposits were discovered and
  mined by open pit methods along the generally northeast-striking Borealis
  trend, and also several small deposits were discovered further to the
  northwest in the Cerro Duro area. Tenneco's exploration in early 1986
  discovered the Freedom Flats deposit beneath thin alluvial cover on the
  pediment southwest of the Borealis mine. In October 1986, Echo Bay Mines
  acquired the assets of Tenneco Minerals.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">With the completion of
  mining of the readily available oxide ore in the Freedom Flats deposit and
  other deposits in the district, active mining was terminated in January 1990,
  and leaching operations ended in late 1990. Echo Bay left behind a number of
  oxidized and sulfide-bearing gold mineral resources. All eight open pit
  operations are reported to have produced 10.7&nbsp;million tons of ore averaging
  0.059 ounces of gold per ton (opt Au). Gold recovered from the material placed
  on heaps was approximately 500,000 ounces, plus an estimated 1.5&nbsp;million
  ounces of silver. Reclamation of the closed mine began immediately and
  continued for several years. Echo Bay decided not to continue with its own
  exploration, and the property was farmed out as a joint venture in 1990-91 to
  Billiton Minerals, which drilled 28 reverse circulation (RC)&nbsp;exploration holes
  on outlying targets for a total of 8,120 ft. Billiton stopped its farm-in on
  the property with no retained interest.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">Subsequently Santa&nbsp;Fe Pacific Mining, Inc.
  entered into a joint venture with Echo Bay in 1992-93, compiled data,
  constructed a digital drill-hole database and drilled 32 deep RC and deep core
  holes, including a number of holes into the Graben deposit. Echo Bay completed
  all reclamation requirements in 1994 and then terminated its lease agreement
  with the Borealis Owners in 1996.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In 1996 J.D. Welsh&nbsp;&amp;
  Associates, Inc. negotiated an option-to-lease agreement for a portion of the
  Borealis Property from the Borealis Owners. Prior to 1996,&nbsp;J.D. Welsh had
  performed contract reclamation work for Echo Bay and was responsible for
  monitoring the drain-down of the leach heaps. Upon signing the lease,&nbsp;J.D.
  Welsh immediately joint ventured the project with Cambior Exploration U.S.A.,
  Inc. Cambior performed a major data compilation program and several gradient
  IP surveys. In 1998 Cambior drilled 10&nbsp;holes which succeeded in extending one
  existing deposit and in identifying new zones of gold mineralization.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">During the Cambior joint
  venture period, in late 1997, Golden Phoenix entered an agreement to purchase
  a portion of J.D.&nbsp;Welsh's interest in the mining lease. J.D.&nbsp;Welsh
  subsequently sold its remaining interest in the mining lease to a third party,
  which in turn sold it to Golden Phoenix, resulting in Golden Phoenix
  controlling a 100% interest in the mining lease beginning in 2000. Golden
  Phoenix personnel reviewed project data, compiled and updated a digital
  drill-hole database (previous computer-based resource modeling databases),
  compiled exploration information and developed concepts, maintained the
  property during the years of low gold prices, and developed new mineral
  resource estimates for the entire property.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In July 2003 Borealis
  Mining acquired an option to earn an interest in a joint venture in a portion
  of the Borealis Property and in January 2005 Borealis Mining acquired full
  interest in the mining lease and mining claims comprising the Borealis
  Property. See, &quot;Description and Development of the Business: History and
  Background of the Company,&quot; above.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We have expended
  considerable effort consolidating the available historical data and flat files
  since acquiring our interest in the Borealis Property. This data has been
  scanned, and converted into a searchable electronic form. The electronic
  database has formed the basis of re-interpretation of the district geologic
  setting, and helped to form the foundation for a new understanding of the
  district's potential. We acquired this data from Golden Phoenix in May 2003. &nbsp;</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">34</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font style="COLOR: black"><i><font size="2">Historical Gold Production</font></i></font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis Property is
  not currently a producing mine. Historical data is presented for general
  information and is not indicative of existing grades or expected production.
  We have no probable or proven reserves on any of our properties. We cannot be
  assured that minerals will be discovered in sufficient quantities to justify
  commercial operations.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <b>
  <font size="2" style="color: black; font-family: Times New Roman PS">
  Photograph of Borealis district.<br>
  View to the east, with Freedom Flat pit in foreground.<br>
  The photograph shows the site as it was circa 1991.<br>
  </font>
  </b>
  <img border="0" src="grypho4.jpg" width="491" height="382"></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black; font-family: Times New Roman PSMT">
  (Source: Gryphon Gold, 2005)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black; font-family: Times New Roman PSMT">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify; margin-top:0" align="left">
  <font size="2" style="font-weight: normal">Several gold deposits have been
  previously defined through drilling on the Borealis Property by prior owners.
  Some gold deposits have been partially mined. Reports on past production vary.
  The past gold production from pits on the Borealis Property, as reported by
  prior owners is tabulated below. The total of past gold production was
  approximately 10.6&nbsp;million tons of ore averaging 0.057 ounces per ton
  (opt)&nbsp;gold. Mine production resulting from limited operations in 1990 is not
  included. Although no complete historical silver production records still
  exist at this time, the average silver content of ore mined from all eight
  pits appears in the range of five ounces of silver for each ounce of gold. We
  are determining the potential viability of silver recovery as our feasibility
  study and more detailed mine planning progress.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">35</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
  <b><font style="COLOR: black"><font size="2">Reported past Borealis
  production, 1981-1990</font><sup><font size="2">(1)</font></sup></font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Crushed and Agglomerated Ore(2)</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><u><font size="2" style="color: black">Tons</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <b><u><font size="2" style="color: black">Grade<br>
      </font>
      </u><font size="2" style="color: black">(opt&nbsp;Au)</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><u><font size="2" style="color: black">Contained Gold</font></u></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(oz)</font></b></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Borealis&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,488,900</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.103</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">153,360</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Freedom Flats&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,280,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.153</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">195,800</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Jaime's/Cerro Duro/Purdy&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">517,900</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.108</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">55,900</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">East Ridge&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">795,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.059</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">46,900</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Gold View&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">264,000</font></u></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">0.047</font></u></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">12,400</font></u></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Total&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">4,345,800</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">0.107</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">464,360</font></u></td>
    </tr>
    <tr style="height: 26.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Run of Mine Ore(3)</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">East Ridge&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2,605,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.021</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">54,700</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Polaris (Deep Ore Flats)&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">250,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.038</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">9,500</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Gold View&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">396,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.009</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">3,500</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Northeast Ridge&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">3,000,000</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">0.025</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">75,000</font></u></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; " vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Total&nbsp;</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">6,251,000</font></u></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">0.023</font></u></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; " vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">142,700</font></u></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Grand Total&nbsp;</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">10,596,800</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">0.057</font></u></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <u><font size="2" style="color: black">607,060</font></u></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left; margin-top:0" align="left">
  <font size="2" style="color: black">__________</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; margin-left:22.5pt; margin-right:0in; margin-top:12; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(1)&nbsp;&nbsp;&nbsp;&nbsp; The numbers
  presented in this table are based on limited production records. A later
  report in 1991 published by the Geologic Society of Nevada reports that
  production totaled 10.7&nbsp;million tons with an average grade of 0.059&nbsp;opt.</font></p>
  <p class="MsoNormal" style="margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(2)&nbsp;&nbsp;&nbsp;&nbsp; Crushed and
  agglomerated ore is that material which has been reduced in size by crushing,
  and as a result may contain a significant portion of very fine particles which
  is then, with the aid of a binding agent such as cement, reconstituted into
  larger particles and subsequently leached in a heap. The agglomerated ore
  typically has greater strength allowing for higher stacked heaps and may allow
  better percolation of leach solutions if the ore has high clay content.</font></p>
  <p class="MsoNormal" style="margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(3)&nbsp;&nbsp;&nbsp;&nbsp; Run of mine
  ore is that material which was fragmented by blasting only, and then stacked
  on the heaps without being further reduced in size by crushing or other
  beneficiation processes.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <b><i><font size="2" style="color: black">Borealis Property Background</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Following our
  consideration of the preliminary scoping study, and based on additional
  geologic field work, we retained Ore Reserves Engineering, consulting resource
  modeling engineers, to complete an updated resource estimate model in
  accordance with National Instrument 43-101. In May 2005, Ore Reserves
  Engineering delivered a report titled the <i>Technical Report on the Mineral
  Resources of the Borealis Gold</i> <i>Project Located in Mineral County,
  Nevada</i>. A second report by Ore Reserves Engineering entitled <i>Technical
  Report on the Mineral Resources of the Borealis Gold Project Located in
  Mineral County, Nevada, USA</i> dated August 15, 2006 and revised January 11,
  2007 was completed (the &quot;Technical Report&quot;).</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Technical Report
  states that the preferred course of action for Gryphon Gold is to continue
  with the three phased business plan contained in the preliminary scoping
  study, resulting in mine development if such development is technically
  warranted and commercially feasible.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Recommendations included
  in the Technical Report, revised January 11, 2007 state that the analysis of
  the geologic and drill hole data has identified a significant in-place
  resource that requires further expansion prior to defining surface mineable
  reserves.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We are undertaking a
  systematic district-scale exploration program designed to discover and
  delineate large gold deposits within the greater Borealis property, outside of
  the known mineral deposits, which should focus along known mineralized trends
  that project into untested gravel-covered areas with coincident geophysical
  anomalies.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">36</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The principal steps to the current
  exploration plans related to the Borealis Property include:<br>
  &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  maintaining all previously obtained permits;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  completing the permitting process;
  </font>
  </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  continuing our drilling program, database enhancement and geophysical surveys
  on the previously disturbed area of the Borealis Property, also referred to as
  the &quot;Borealis site&quot;;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  implementing a systematic metallurgical testing program for gold bearing
  samples collected;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  continuing drilling in the area known as the Graben to test the extent and
  further define the quality of known sulfide gold mineralization; and </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  continuing the exploration program for the areas of the Borealis Property
  outside the Borealis site.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We are actively working on
  completion of all the above steps. In addition and in accordance with the
  recommendations contained in the Technical Report, we are undertaking an
  exploration program on areas of the Borealis Property outside the Borealis
  Site, subject to receiving required permits. We are actively drilling the
  Graben zone, and are, or will be testing other high-potential targets
  contained in the Central and Western Pediment Prospect areas and the Rainbow
  Ridge and Tough Hills area.. &nbsp;We will evaluate whether the construction of
  mine facilities on the Borealis site is warranted by project economics upon
  the identification of additional gold resources. If we determine to proceed
  with mine construction, we will be required to obtain additional capital. See
  &quot;Management's Discussion and Analysis&nbsp;&#151; Liquidity and Capital Resources&quot; and
  &quot;Risk Factors and&nbsp;Uncertainties&quot;. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b><i>
  <font size="2" style="color: black">Geological Setting</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Regional Geology</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis mining
  district lies within the northwest-trending Walker Lane mineral belt of the
  western Basin and Range province, which hosts numerous gold and silver
  deposits. Mesozoic metamorphic rocks in the region are intruded by Cretaceous
  granitic plutons. In the Wassuk range the Mesozoic basement is principally
  granodiorite with metamorphic rock inclusions. Overlying these rocks are minor
  occurrences of Tertiary rhyolitic tuffs and more extensive andesite flows.
  Near some fault zones, the granitic basement rocks exposed in the eastern part
  of the district are locally weakly altered and limonite stained.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The oldest exposed
  Tertiary rocks are rhyolitic tuffs in small isolated outcrops which may be
  erosional remnants of a more extensive unit. The rhyolitic tuffs may be
  correlative with regionally extensive Oligocene rhyolitic ignimbrites found in
  the Yerington area to the north and within the northern Wassuk Range. On the
  west side of the Wassuk Range, a thick sequence of older Miocene andesitic
  volcanic rocks unconformably overlies and is in fault contact with the
  granitic and metamorphic rocks, which generally occur east of the Borealis
  district. The age of the andesites is poorly constrained due to limited
  regional dating, but an age of 19 to 15 Ma is suggested (&quot;Ma&quot; refers to
  million years before present). In the Aurora district, 10&nbsp;miles southwest of
  the Borealis district, andesitic agglomerates and flows dated at 15.4 to
  13.5&nbsp;Ma overlie Mesozoic basement rocks and host gold-silver mineralization.
  Based on these data, the andesites in the Borealis region can be considered as
  19 to 13.5&nbsp;Ma.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis district lies
  within the northeast-trending Bodie-Aurora-Borealis mineral belt; the Aurora
  district, with 1.9&nbsp;million ounces of past gold production, lies 10&nbsp;miles
  southwest of Borealis and the Bodie district, with 1.5&nbsp;million ounces of gold
  production, lies 19&nbsp;miles southwest in California. All three mining districts
  are hosted by Miocene volcanics. The intersection of northwesterly and
  west-northwesterly trending Walker Lane structures with the northeasterly
  trending structures of the Aurora-Borealis zone probably provided the
  structural preparation conducive to extensive hydrothermal alteration and
  mineralization at Borealis.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">37</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Local Geology</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis District
  comprises widespread high-sulfidation, acid-sulfate alteration, gold-silver
  mineralization that was the focus of recent and historical mining operations.
  &nbsp;&nbsp;The district trends N70-75W, for seven miles, from Bullion-Delta targets,
  west-northwest to Purdy Peak. The eastern boundary of the district is west of
  Mesozoic intrusive rocks, and Pre-Mesozoic sequences. The western limit of the
  district is unknown and unexplored.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis district
  represents a tectonic setting in which stress was accommodated via left
  lateral wrench tectonic system that was in an opposite sense relative to the
  Walker Lane Fault Zone (right lateral displacement). &nbsp;Local domains of reverse
  polarity are not uncommon in large transcurrent strike-slip fault systems.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Gold-silver
  mineralization, silicified fault breccias, zones of silicification, and
  associated alteration is structurally controlled within a left lateral wrench
  tectonic system.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The most important
  structural trends defined in the district are:</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Principal displacement zone: Cerro Duro Fracture Zone (CDFZ), striking
  approximately N70-75W, brittle fracture system, </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Transtensional zone: Freedom Flats-Borealis-East Pit-Northeast Pit (FFBENE),
  striking approximately N50E,</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Antithetic, right lateral, strike slip zones, trending approximately
  North-South,</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Reverse fault systems trending northwest.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Faults, fault breccias,
  linear zones of silicification and silicified sheeted joints dip steeply,
  vertical to 60 degrees. &nbsp;These zones dip predominately westerly, i.e.
  northwesterly, southwesterly, with subordinate northeast dips. &nbsp;Strucutral
  zones are laterally discontinuous exhibiting en-echelon patterns and complex
  sets of conjugate internal joint arrays.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In general, volcanic
  sequences dip from 20 to 60 degrees westerly. Primary bedding and flow
  foliation, adjacent to the eastern most volcanic-granite dip northerly at 20
  to 40 degrees. &nbsp;An early &quot;andesite phase&quot; was likely extruded during a
  &quot;earlier&quot; tectonic system relative to subsequent interbedded andesite
  autobreccias and flows. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Preliminary structural
  analysis suggests, (1) radial patterns around tectonic-volcanic centers, (2)
  volcanic sequences exhibit open fold geometries (less than 45 degrees),
  &nbsp;gently folded along northwest trending fold axis, and vertically (both normal
  and reverse) displaced along northwest and northeast trending fold axial
  planes. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Five distinct styles of
  silicification occur in the district:</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Pervasive micro-granular quartz, <u>
  +</u> chalcedony-opal, devoid of pyrite, associated with weak (to moderate)
  leaching, and bleaching of host rocks, i.e. low temperature clays.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Fine-medium grained granular quartz structurally controlled along faults and
  breccia zones, (a) with pyrite, (b) devoid of pyrite. &nbsp;Associated moderate
  leaching and bleaching, i.e. low to medium temperature clays.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Medium-grained granular quartz, structurally controlled along faults and
  breccia zones with pyrite, and zones of late stage vuggy-vapor phase acid
  leaching. &nbsp;Host lithologies, particularly volcaniclastic breccias exhibit a
  range in clast replacement, i.e. silica absorption, from weak to moderate.
  &nbsp;Groundmass is replaced by medium-grained granular quartz. &nbsp;Medium temperature
  clay alteration occurs as peripheral halos.&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Medium to coarse-grained quartz with pyrite, structurally controlled, with
  associated fault breccias and zones of intense silicification, moderate to
  total replacement of original host lithologies and occasionally replacing
  preexisting silicified fault breccia zones. &nbsp;Associated alunite, barite, with
  peripheral zones of moderate to intense medium to intense moderate to high
  temperatures clay alteration.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Quartz sericite pyrite alteration occurs in the granodiorite basement, up to
  500 feet from the contact with the volcanic stratigraphy, in fault zones, in
  zones of stockwork fracturing spatially associated with fault-contact between
  the basement and volcanic stratigraphy. &nbsp;An addition, as dilational zones, as
  &quot;pods&quot; in the granodiorite, occurring as granular white quartz.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font size="2" style="color: black">Mineral Deposits</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The gold deposits
  contained within the larger, district scale, Borealis hydrothermal system are
  recognized as high-sulfidation type systems with high-grade gold
  mineralization occurring along steeply dipping structures and lower grade gold
  mineralization both surrounding the high-grade and commonly controlled by more
  permeable volcanic rocks in relatively flat-lying zones. The gold deposits,
  some with minor amounts of silver mineralization are hosted by Miocene
  andesitic flows, laharic breccias, and volcaniclastic tuffs, which all strike
  northeasterly and dip shallowly to the northwest. Pediment gravels cover the
  altered-mineralized volcanic rocks at lower elevations along the mountain
  front and there is potential for discovery of more blind deposits, similar to
  the Graben deposit.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The surface &quot;footprints&quot;
  of the high-grade pods or pipe-like bodies, found to date are rather small and
  they can be easily missed with patterns of too widely spaced geophysical
  surveys and drill holes. Most of the drilling on the property by prior owners,
  including the Graben deposit, is vertical, and therefore did not adequately
  sample the steep higher-grade zones. Drill-hole orientation may have
  underestimated the grades within the district. The coarse gold component can
  best be captured with very careful sampling of drill cuttings and core and
  collecting large samples.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">38</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Several drill holes to the
  west of Freedom Flats and Borealis encountered gold within the alluvium
  stratigraphically above known deposits. These holes trace a gold-bearing zone
  that in plan appears to outline a paleochannel of a stream or gently sloping
  hillside that may have had its origin in the eroding Borealis deposit. The
  zone is at least 2,500&nbsp;feet long, up to 500&nbsp;feet wide, and several tens up to
  100&nbsp;feet thick. At this point it is unknown if this is a true placer deposit,
  an alluvial deposit of broken ore, or some combination of both. Additional
  drilling and beneficiation tests are needed to determine if an economic gold
  deposit exists.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b><i>
  <font style="COLOR: black"><font size="2">Exploration</font></font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Since the late 1970's,
  considerable exploration has been completed at the Borealis Property with the
  primary objective of finding near surface deposits with oxide type gold
  mineralization. Exploration work has consisted of field mapping, surface
  sampling, geochemical surveys, geophysical surveys, and shallow exploration
  drilling. Only limited drilling and geological field work has been completed
  in areas covered by pediment gravels, even though Freedom Flats was an
  unknown, blind deposit, without surface expression when discovered.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Many geophysical surveys
  have been conducted by others in the Borealis district since 1978. In
  addition, regional magnetics and gravity maps and information are available
  through governmental sources. The most useful geophysical data from the
  exploration programs has been induced polarization (IP) (chargeability),
  aeromagnetics, and, to a lesser degree, resistivity.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Areas with known
  occurrences of gold mineralization, which have been defined by historical
  exploration drilling, and have had historical mine production include: East
  Ridge and Gold View, Northeast Ridge, Freedom Flats, Borealis, and Deep Ore
  Flats (also known as Polaris). All of these deposits still have gold
  mineralization remaining in place, contiguous with the portions of each
  individual deposit which has been mined.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Discovery potential on the
  Borealis Property includes oxidized gold mineralization adjacent to existing
  pits, new oxide gold deposits at shallow depth within the large land position,
  gold associated with sulfide minerals below and adjacent to the existing pits,
  in possible feeder zones below surface mined ore and deeper gold-bearing
  sulfide mineralization elsewhere on the property. Both oxidized and
  sulfide-bearing gold deposits exhibit lithologic and structural controls for
  the locations and morphologies of the gold deposits.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The following areas have
  not been subject to historic mine production, but have been subject to
  historical exploration that has identified gold mineralization.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt"><i>
  <font size="2" style="color: black">Borealis Extension </font> </i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">The Borealis Extension deposit occurs at shallow to
  intermediate depth beneath the northern and western parts of the former
  Borealis pit. Most of the mineralization begins at 110 to 375 ft below the
  surface. Generally the top of this target occurs at or slightly below the
  7,000-ft elevation. The primary target is defined by 16&nbsp;contiguous drill holes
  completed by previous operators that have potential ore-grade intercepts and
  that penetrate beneath the 7,000-ft elevation. Thickness of low-grade
  mineralized intercepts ranges from 15 to 560&nbsp;ft with nine holes having from
  155 to 560 ft of +0.01 opt of gold; average thickness of the zone is 236 ft.
  &nbsp;We have drilled an additional 16 holes into the deposit. &nbsp;The drilling
  results were generally marginal. &nbsp;Further evaluation work is in progress.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Graben Deposit</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Graben deposit is
  currently defined with approximately 90 RC holes and 19 core holes. Drilling
  has defined a zone of gold mineralization, using an 0.01 opt Au boundary, that
  extends at least 2,000 ft in a north-south direction and between 400 and 900
  ft east-west, and up to 600 ft thick. The top of the deposit is generally 500
  feet below the surface. Near its southern margin the axis of the deposit is
  within 800 ft of the Freedom Flats deposit and along one portion of the
  southeastern margin low-grade mineralization may connect with the Freedom
  Flats mineralization through an east-west trending splay. Drilling data
  appears to confirm mineralization at the southern margin of the deposit is
  closed off.Drill hole GGC-G-14 drilled to test the west margin of the deposit
  and indicates the mineralized zone may extend to the west. Much of the eastern
  margin is poorly &nbsp;defined by drilling. During 2006 we completed a fence of
  drill holes that essentially closes off the northern extension of the
  mineralization. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Exploration drilling in
  the Graben continued during fiscal 2008 as one of the major focuses of our
  exploration program. Possible&nbsp;future drilling will include both in-fill areas
  of prospective high grade gold zones and step out from the Graben zone
  primarily in the west and east directions in order to delineate more gold
  mineralization.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">39</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">North Graben Prospect </font> </i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">The North Graben prospect is defined by the projection of known
  mineralization, verified by drilling sampling and coincident with a large
  intense aeromagnetic low and a broad chargeability (IP)&nbsp;high. The North Graben
  lies on trend of the north-northeast-elongate Graben mineralized zone. In
  1989, Echo Bay had completed a district-wide helicopter
  magnetic/electromagnetic survey, which identified a large, intense type
  aeromagnetic low in the North Graben area. This coincident magnetic
  low/chargeability high is now interpreted as being caused by an intensive and
  extensive hydrothermal alteration-mineralization system. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In &nbsp;2006 and 2007 we
  completed six holes into the North Graben geophysical anomaly. Five of the six
  holes intercepted a deep hydrothermal system as indicated by several zones of
  silicification and pyritization up to 20%. None of the holes contained
  significant amounts of gold, but were geochemically anomalous in gold and
  silver. Additional drilling is planned.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Cambior conducted a
  gradient IP survey in 1997, which identifies a deep-source broad chargeability
  anomaly that extends northerly from the northern margin of the Freedom Flats
  deposit, covers only part of the Graben zone and most of the North Graben
  area, and extends to the limit of the surveyed area. This anomaly is
  interpreted to be caused by high-sulfide mineralization. The North Graben
  prospect thus represents the possible extension of known mineralization of the
  Graben zone. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><i>
  <font size="2" style="color: black">Rainbow Ridge and Tough Hills Prospects</font></i><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Previous exploration
  drilling the Rainbow Ridge and Tough Hills Prospect areas targeted shallow
  oxide mineralization, generally less than 500 feet deep. &nbsp;In 2006 we completed
  four gradient IP/ resistivity survey blocks covering a total area of one
  square mile. &nbsp;Results from these surveys indicate a broad deep seated north,
  north-east trending chargeability anomaly and a prominent, shallow north west
  trending chargeability anomaly. &nbsp;Drill targeting and permitting for drill
  access are underway. </font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Central Pediment Prospect</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Between November 2006 and
  May 2007 we completed eight holes in the Central Pediment. &nbsp;Drilling in the
  Lucky Boy zone in the western margin of the Central Pediment has identified a
  thick, highly favorable gold bearing horizon. &nbsp;The horizon extends laterally
  more than 2,250 feet. &nbsp;Drill hole GGC-CP-2 demonstrated a hydrothermally
  altered zone as great as 1,300 feet thick. &nbsp;Zonge Geosciences Inc. completed
  IP/resistivity and CSAMT surveys within the Lucky Boy zone. &nbsp;The survey
  results support other geological evidences that the Lucky Boy zone may contain
  a major gold bearing hydrothermal system. Permits for additional drilling have
  been attained and drilling is planned during 2008.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Western Pediment Prospect</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Three drill holes
  (GGC-WP-1, through GGC-WP-3) were completed in the Flat Lands zone of the
  Western Pediment. &nbsp;These holes targeted mineralization south west along the
  Vuggy Hills trend. &nbsp;These holes encountered favorable alteration but were lost
  before reaching the intended target depth. &nbsp;Additional drilling along the
  Vuggy Hills trend is not planned in calendar 2008.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Sunset Wash Prospect </font> </font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Sunset Wash prospect
  consists of a gravel-covered pediment underlain by extensive hydrothermal
  alteration in the western portion of the Borealis district. Sixteen holes
  drilled by Echo Bay Mines indicate that intense alteration occurs within a
  loosely defined west-southwest belt that extends westerly from the Jaime's
  Ridge/Cerro Duro deposits. At the western limit of the west-southwest belt,
  Cambior's IP survey and drilling results can be interpreted to indicate that
  the alteration system projects toward the southeast into the pediment along a
  mineralized northwest-oriented fault. Cambior conducted a gradient array
  induced polarization (IP)&nbsp;survey over the Sunset Wash area effectively
  outlining a 1,000 by 5,000 ft chargeability anomaly. The anomaly corresponds
  exceptionally well to alteration and sulfide mineralization identified by Echo
  Bay's drill-hole results. Two structures appear to be mapped by the
  chargeability anomaly; one is a 5,000-ft long west-southwest-trending
  structure and the other is a smaller, northwest-trending structure that cuts
  off the W-SW structure at its western limit. Alteration types and intensity
  identified by the drilling, combined with the strong IP chargeability high and
  the aeromagnetic low, strongly suggest that the robust hydrothermal system at
  Sunset Wash is analogous to the mineralized systems at Graben and Freedom
  Flats. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Cambior drilled three
  holes to test portions of the Sunset Wash geophysical anomaly and to offset
  other preexisting drill holes with significant alteration. &nbsp;The westernmost of
  Cambior's three holes encountered the most encouraging alteration and best
  gold mineralization suggesting that this drillhole is near the most
  prospective area. This drill-hole intercepted altered rock from bedrock
  surface to total depth, including an extremely thick zone of chalcedonic
  replacement in the lower two-thirds of the hole. </font>
  <font FACE="Times New Roman" SIZE="2">An additional four holes (GGC-WP-4
  through WP 7) were drilled in the Sunset Wash target in 2007 with encouraging
  geologic and geochemical results. Follow up geophysical work by Zonge
  Geosciences Inc. with CSAMT surveys confirmed the presence and direction of
  the potential mineralized zone. Additional drilling during 2008 is planned. </p>
  </font>
  <p align="center"><font style="text-transform: uppercase"><font size="2">40</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Bullion Ridge/Boundary Ridge </font> </font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The northeast-trending
  alteration zone extending along Boundary Ridge into Bullion Ridge contains
  intense silicification that is surrounded by argillization, with abundant
  anomalous gold. Widely spaced shallow holes completed by previous operators
  have tested several of the alteration/anomalous gold zones defining discrete
  zones of mineralized material. We plan to conduct additional drilling into
  this target in 2008 following new permitting with the USFS.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b><i>
  <font size="2" style="color: black">Mineralization</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Overview</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Finely disseminated gold
  mineralization found in the Borealis epithermal system was associated with
  pyrite and other gold bearing sulfide minerals such as marcasite when
  initially deposited by the gold rich hydrothermal fluids. In some portions of
  the deposits, over time through natural oxidation, the pyrite was transformed
  to limonite releasing the gold particles. Through this geologic process, the
  mineral character of the deposit was altered, and gold was exposed so that
  conventional hydrometallurgical processes (e.g. gold heap leaching) could be
  effectively applied to recover the gold. Gold still bound in pyrite or
  pyrite-silica which was not as readily oxidized in the geologic process, is
  not as easily recovered by a simple heap leach operations and may require some
  type of more advanced milling operation. Limited evidence suggests that in
  certain deposits such as the Borealis and Freedom Flats deposits, that some
  coarse gold exists, probably in the higher-grade zones.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Oxide Gold Mineralization</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Oxide gold mineralization
  is generally more amenable to direct cyanidation processes such as heap
  leaching as compared to sulfide gold mineralization.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Oxide deposits in the
  district have goethite, hematite, and jarosite as the supergene oxidation
  products after iron sulfides, and the limonite type depends primarily on
  original sulfide mineralogy and abundance. Iron oxide minerals occur as thin
  fracture coatings, fillings, earthy masses, as well as disseminations
  throughout the rock. The degree of supergene oxidation, mineral constituents,
  and form and occurrence of the oxide minerals in the host rock are significant
  factors in determining metallurgical performance and ultimate gold recovery.
  As demonstrated in previous operations, this type of gold bearing material is
  amenable to conventional heap leaching methodology.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Depth of oxidation is
  variable throughout the district and is dependent on alteration type,
  structure, and rock type. Oxidation ranges from approximately 250 ft in
  argillic and propylitic altered rocks to over 600 ft in fractured silicified
  rocks. A transition zone from oxides to sulfides with depth is common with a
  mixing of oxide and sulfide minerals.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Except for the Graben
  deposit, all of the known gold deposits are at least partially oxidized.
  Typically the upper portion of a deposit is totally oxidized and the lower
  portions unoxidized. In places, such as the Ridge deposits, there is an
  extensive transition zone of partially oxidized sulfide bearing gold
  mineralization. Oxidation has been observed to at least 1,000 ft below the
  surface. Therefore, we believe that if additional gold deposits are found
  under gravel cover, some portion of them may be oxidized.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Sulfide Gold Mineralization</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Sulfide gold
  mineralization is generally less amenable to conventional direct cyanidation
  metallurgical processes, and may require more advanced processes such as
  milling, flotation and oxidation prior to cyanidation.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Sulfide deposits in the
  district are mostly contained within quartz-pyrite alteration with the
  sulfides consisting mostly of pyrite with minor marcasite, and lesser
  arsenopyrite and cinnabar. Many trace minerals of copper, antimony, arsenic,
  mercury and silver have also been identified. Pyrite content ranges from 5 to
  20&nbsp;volume percent with local areas of nearly massive sulfides in the
  quartz-pyrite zone and it occurs with grain sizes up to 1mm. At Borealis,
  euhedral pyrite grains are commonly rimmed and partially replaced with a later
  stage of anhedral pyrite overgrowths. Study of this phenomenon in other
  epithermal districts in Nevada has shown that gold occurs only in the late
  overgrowths. Mineralogical studies of Borealis samples suggest that this may
  also be true at Borealis, but are not fully conclusive.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Graben deposit is the
  best example found to date of the size and quality of sulfide deposits within
  the district. In addition sulfide mineral resources occur in the bottoms of
  most of the pits, but the most significant mineral resource in a pit
  environment is found beneath the Freedom Flats pit. Potential targets below
  most pits would include the feeder structures, many of which would be expected
  to have high-grade sulfide gold mineralization. Drilling of the Graben deposit
  has defined a total mineral resource of approximately 20&nbsp;million tons with an
  average grade of 0.044 ounces of gold per ton containing about 880,000 ounces
  of gold within the deposit, using a 0.01 opt cutoff grade, as stated in the
  Technical Report. The high-grade zones within the Graben deposit are estimated
  to contain 780,000 tons of measured and indicated resource and 220,000 tons of
  inferred resource with an average grade of 0.29 ounces of gold per ton. While
  the larger deposit is a target for additional exploration, the higher-grade
  zones represent an attractive deposit for development at most gold prices.</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">41</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font style="COLOR: black"><font size="2">&nbsp;</font><b><i><font size="2">Drilling</font></i></b></font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">We have conducted and are currently
  continuing a drilling program on the Borealis site. Set out below is a summary
  of the drilling work conducted on the Borealis Property by prior owners and by
  us.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Historical Drill Hole Database</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The drill-hole database
  used for the main Borealis project study area contains 1,747 drill holes with
  a total drilled length of 510,712 ft, including 1,626 which intersected gold
  mineralization. These holes were drilled by various prior operators.
  Drill-hole types include diamond core holes, reverse circulation (RC)&nbsp;holes
  and rotary holes. Only a few core holes have down-hole survey information.
  Mineralized zones covered by these drill holes include the Freedom Flats,
  Graben, Borealis, Polaris, East Ridge and Northeast Ridge. Except for Graben,
  all have been partially mined by previous operators of the project; the
  Borealis and Deep Ore Flats (also known as Polaris) pits have been back-filled
  with waste from the Freedom Flats pit. There are an additional 487 drill holes
  with a total drilled length of 103,562 ft scattered throughout the district,
  and mostly in the Cerro Duro, Jamie's Ridge, and Purdy Peak area, at
  approximately three miles distant northwest of the main Borealis mine area.
  The total existing drilling for the entire Borealis Property, therefore, is
  2,234&nbsp;holes with a total drilled length of 614,274 ft. None of these
  historical holes were drilled by us.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Drill hole sampling length
  is generally 5 ft for the RC holes, but varies for the core holes based on
  geological intervals. Sampling length is up to 25 ft for some of the early
  rotary holes. Gold assays in parts per billion (ppb)&nbsp;and troy ounces per short
  ton (opt)&nbsp;are provided for most of the sampling intervals. Silver assays in
  parts per million (ppm)&nbsp;and opt are also provided for some of the sampling
  intervals. Silver grade was not modeled in this study.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Drilling of Existing Heaps and Dumps</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">In May 2004 we completed a
  drilling program on the five Borealis site heaps and parts of the Freedom
  Flats and Borealis site dumps. This program consisted of 32&nbsp;holes totaling
  2,478.5 ft. Dump holes were drilled deep enough to penetrate the soil horizon
  below the dump, while holes on the heaps were drilled to an estimated 10-15 ft
  above the heap's liner.
  </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Current Drilling Program</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Our drill hole database
  used for resource modeling and mine planning is comprised of more than 2,400
  drill holes within the Central Borealis Area. &nbsp;These holes have been drilled
  during the period from 1978 through early November 2006. &nbsp;The average depth of
  the holes is about 300 ft, but the bulk of the holes are less than 200 ft with
  a limited number of holes in certain locations reaching depths of 1,500 to
  2,000 ft testing deeper mineralized zones. &nbsp;The average assay interval is
  about 5 ft. &nbsp;The majority of the drill holes contained in the database were
  completed by others, with Gryphon completing approximately 90 in 2005 and 84
  in 2006 in areas contiguous with known deposits. &nbsp;The database is summarized
  in the table shown:</font><font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 36.75pt">
      <td style="width: 249pt; height: 36.75pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Mineralized Zone</font></b></td>
      <td style="width: 96.75pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Number Holes Penetrating Zone </font> <sup>
      <font size="2">(1)</font></sup></b></td>
      <td style="width: 96.75pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Total Intervals Sampled</font></b></td>
      <td style="width: 96.75pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Sample Intervals Not Assayed</font></b></td>
      <td style="width: 97.5pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Sample Intervals Assayed</font></b></td>
      <td style="width: 97.5pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Total Assayed Footage </font> </b><font size="2">(ft)</font></td>
      <td style="width: 98.25pt; height: 36.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Average Assay Length </font> </b><font size="2">(ft)</font></td>
      <td style="width: 118.5pt; height: 36.75pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="center">
      <b><font size="2">Average Gold Grade </font> </b><font size="2">(opt Au)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 249pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Graben</font></td>
      <td style="width: 96.75pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">64</font></td>
      <td style="width: 96.75pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">2,773</font></td>
      <td style="width: 96.75pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">131</font></td>
      <td style="width: 97.5pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">2,642</font></td>
      <td style="width: 97.5pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">13,127</font></td>
      <td style="width: 98.25pt; height: 11.25pt; border: medium none; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.055</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 249pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Freedom Flats </font> <sup><font size="2">(2)</font></sup></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">147</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,323</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">225</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,098</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">30,486</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.064</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Borealis </font> <sup><font size="2">(2)</font></sup></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">337</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,045</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">125</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5,920</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">30,003</font></td>
      <td style="width: 98.25pt; height: 12pt; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.1</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.037</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Deep Ore Flats (2)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">181</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">2,544</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">46</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">2,498</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">12,520</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.013</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Crocodile Ridge (2)</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">39</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">560</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">3</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">557</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">2,785</font></td>
      <td style="width: 98.25pt; height: 12pt; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.006</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Alluvium</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">260</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,688</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">176</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,512</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">7,560</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.006</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Middle Ridge (2)</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">73</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,507</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">26</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,481</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">7,405</font></td>
      <td style="width: 98.25pt; height: 12pt; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.008</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Northeast Ridge (2)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">221</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,160</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">119</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,041</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">30,260</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.017</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">East Ridge (2)</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">211</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5,203</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">119</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5,084</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">25,512</font></td>
      <td style="width: 98.25pt; height: 12pt; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.019</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Purdy's Peak</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">39</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">726</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">721</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">3,610</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.017</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Cerro Duro (2)</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">105</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,363</font></td>
      <td style="width: 96.75pt; height: 12pt; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">19</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">1,344</font></td>
      <td style="width: 97.5pt; height: 12pt; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">6,446</font></td>
      <td style="width: 98.25pt; height: 12pt; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">4.8</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.058</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Jaime's Ridge (2)</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">42</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">910</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">3</font></td>
      <td style="width: 97.5pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">907</font></td>
      <td style="width: 97.5pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">4,530</font></td>
      <td style="width: 98.25pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.039</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 345.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="461" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Total in the Primary Mineralized Zones -</font></td>
      <td style="width: 96.75pt; height: 12pt; border: medium none; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">35,802</font></td>
      <td style="width: 96.75pt; height: 12pt; border: medium none; padding: 0in; background: #edebd3" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">997</font></td>
      <td style="width: 97.5pt; height: 12pt; border: medium none; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">34,805</font></td>
      <td style="width: 97.5pt; height: 12pt; border: medium none; padding: 0in; background: #edebd3" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">174,244</font></td>
      <td style="width: 98.25pt; height: 12pt; border: medium none; padding: 0in; background: #edebd3" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.0</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.033</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: medium none; padding: 0in" width="332">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 96.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="129">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 97.5pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="130">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 98.25pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="131">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="158">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 249pt; height: 12pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="332">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2">Total Outside Areas</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">-</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">71,953</font></td>
      <td style="width: 96.75pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="129">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">3,749</font></td>
      <td style="width: 97.5pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">68,204</font></td>
      <td style="width: 97.5pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="130">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">344,946</font></td>
      <td style="width: 98.25pt; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="131">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">5.1</font></td>
      <td style="width: 118.5pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="158">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:3.75pt; margin-right:3.75pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2">0.001</font></td>
    </tr>
  </table>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Footnotes</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">1-Drill holes may intersect more than one zone, therefore
      the number of holes by zone is not additive</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">2-Includes some drilling that is part of the mineralized
      zone, but that has been mined out.</font></td>
    </tr>
  </table>
  <p align="center"><font style="text-transform: uppercase"><font size="2">42</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; ">
  <font size="2">The tables below shows the results of exploration drilling for
  holes completed and assayed after the completion of the Technical Report was
  published or were included in the Technical Report because the drill results
  were in an area of exploration not considered in the Technical Report.
  </font>
  </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; ">
  &nbsp;</p>

  <div align="center">
    <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
      <tr>
        <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: medium none; padding: 0in">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <b><font size="2">Gryphon Gold Corporation</font></b></td>
      </tr>
      <tr>
        <td style="border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
        <b><font size="2">Compendium of April 2006 to December 2007 Drill Holes</font></b></td>
      </tr>
    </table>
  </div>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse; border-left-width:0; border-right-width:0" cellSpacing="0" cellPadding="0" width="100%" border="1" bordercolor="#111111">
    <tr>
      <td style="width: 20%; border-left: medium none windowtext; border-right: medium none windowtext; border-top: medium none windowtext; border-bottom: 1px solid; padding: 0in" width="20%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: medium none windowtext; border-top: medium none windowtext; border-bottom: 1px solid; padding: 0in" width="20%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: medium none windowtext; border-top: medium none windowtext; border-bottom: 1px solid; padding: 0in" width="20%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: medium none windowtext; border-top: medium none windowtext; border-bottom: 1px solid; padding: 0in" width="20%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: medium none windowtext; border-top: medium none windowtext; border-bottom: 1px solid; padding: 0in" width="20%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: 1px solid #111111; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1px solid #111111; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">From</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1px solid #111111; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">To</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1px solid #111111; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Interval</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: 1px solid #111111; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Gold</font></b></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">Hole No.</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">(feet)</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">(feet)</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">(feet)</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">(opt)</font></b></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px none #111111; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">Area: Graben</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px none #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-27</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">545</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">560</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">15</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.080</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      &nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,075</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,135</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">60</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.010</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-28</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">490</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,135</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">640</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.033</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">including</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">585</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">595</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">10</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.204</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">and</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">625</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">645</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">20</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.117</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">and</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1090</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1110</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">20</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.126</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-29</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">600</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">790</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">185</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.190</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">including</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">625</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">790</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">165</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.212</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-30</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">705</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">730</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">25</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.015</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      &nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">765</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">795</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">30</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.019</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      &nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">870</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">925</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">55</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.057</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-31</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">580</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">850</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">270</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.043</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">including</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">610</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">640</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">30</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.125</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      &nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">945</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1150</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">205</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.033</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-32</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">540</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">700</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">160</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.082</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">including</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">570</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">605</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">35</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.113</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">and</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">660</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">700</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">40</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.135</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">and</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">880</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1035</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">155</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.06</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-33</font></td>
      <td style="width: 44%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="44%" colSpan="2">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <font size="2">no significant assays</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0 </font> </td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;Nil</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-34</font></td>
      <td style="width: 44%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="44%" colSpan="2">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <font size="2">no significant assays</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0 </font> </td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;Nil</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-35</font></td>
      <td style="width: 44%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="44%" colSpan="2">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <font size="2">no significant assays</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;Nil</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-36</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">880</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">925</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">45</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.003</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-37</font></td>
      <td style="width: 44%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="44%" colSpan="2">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: center" align="center">
      <font size="2">no significant assays</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0 </font> </td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;Nil</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-38 (lost)</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;0</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;Nil</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-38A</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">485</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">495</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">10</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.032</font></td>
    </tr>
    <tr>
      <td style="width: 20%; border-left: 1px solid #111111; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      &nbsp;</td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">585</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">760</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">175</font></td>
      <td style="width: 20%; border-left: medium none; border-right: 1px solid #111111; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.041</font></td>
    </tr>
  </table>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-39</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">835</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">845</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">10</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.028</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-40</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">485</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">500</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">15</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.065</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">605</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">660</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">55</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.035</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">770</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">810</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">40</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.015</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1210</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1230</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">20</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.012</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-41</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">415</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">610</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">195</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">Trace Au</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-41A</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">615</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">675</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">60</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.017</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">780</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">795</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">15</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.025</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-42</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">675</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">760</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">95</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.098</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">725</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">760</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">35</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.164</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">850</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">930</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">80</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.036</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-43</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">680</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">925</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">245</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.094</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">710</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">790</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">80</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.21</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-44</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">645</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">730</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">85</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.061</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-45</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">710</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">940</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">230</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">Trace Au</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-46</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">635</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">895</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">230</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.053</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">815</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">825</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">10</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.214</font></td>
    </tr>
    <tr>
      <td WIDTH="94" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-47</font></td>
      <td WIDTH="103" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">925</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">950</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">25</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.036</font></td>
    </tr>
  </table>
  <p align="center"><font style="text-transform: uppercase"><font size="2">43</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-48</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">670</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">760</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">90</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.025</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-49</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">905</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">920</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">15</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.104</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-50</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">800</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">810</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">10</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.037</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-50A</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1005</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1120</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">115</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.013</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-51</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">605</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">730</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">125</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.145</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">640</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">715</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">75</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: none; border-bottom-width: medium">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.216</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">970</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1175</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">205</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.04</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-52</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">660</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">810</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">150</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.07</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">735</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">765</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">30</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.15</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1005</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1225</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">220</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.06</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1025</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1035</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">10</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.42</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-53</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">580</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">610</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">30</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.063</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">745</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">890</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">145</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.029</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-54</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">550</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">655</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">105</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.022</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">690</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">725</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">35</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.047</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">745</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">785</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">40</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.039</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">G-55</font></td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">565</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">595</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">30</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.033</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">660</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">890</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">230</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.114</font></td>
    </tr>
    <tr>
      <td WIDTH="87" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="109" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="198" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">765</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">870</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">105</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.201</font></td>
    </tr>
  </table>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="985" colSpan="5">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="985" colSpan="5">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Area: Northeastern Graben (intervals of favorable
      quartz-pyrite alteration)</font></b></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-16</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">970</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,065</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">95</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-17</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">870</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,120</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">250</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-19</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">900</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,070</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">170</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-20</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">645</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">970</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">325</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-21</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">915</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,120</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">205</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-22</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">885</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">990</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">105</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 147.75pt; height: 11.25pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">G-23</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">630</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">840</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">210</font></td>
      <td style="width: 147.75pt; height: 11.25pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 147.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 147.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 147.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 147.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 147.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="985" colSpan="5">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">Area: North Graben (intervals of favorable quartz-pyrite
      alteration)</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">NG-05</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">870</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: medium none; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,015</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">145</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">NG-06</font></td>
      <td style="width: 294.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="393" colSpan="2">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">No significant assays</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">Nil</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="985" colSpan="5">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">Area: Western Pediment (intervals of favorable
      quartz-pyrite alteration)</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">WP-01</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">410</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">853</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">443</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">detectable gold</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">WP-02</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">804</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">804</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">detectable gold</font></td>
    </tr>
  </table>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">WP-03</font></td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="195" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">200</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1300</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">including</font></td>
      <td WIDTH="195" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1460</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1470</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">10</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">0.011</font></td>
    </tr>
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">WP-04</font></td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="195" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">205</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">300</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">95</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">Nil</font></td>
    </tr>
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">WP-05</font></td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="195" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">Nil</font></td>
    </tr>
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">WP-06</font></td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="195" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">510</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">990</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="91" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">WP-07</font></td>
      <td WIDTH="104" align="right" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">&nbsp;</td>
      <td WIDTH="195" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">565</font></td>
      <td WIDTH="196" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="196" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">935</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
  </table>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; height: 12pt; border: medium none; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in; HEIGHT: 12pt" width="985" colSpan="5">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">Area: Central Pediment (intervals of favorable
      quartz-pyrite alteration)</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">CP-01</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">410</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">853</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">443</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">detectable gold</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">CP-02</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">433</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,845</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,412</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">detectable gold</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">CP-03</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">994</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1,319</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">325</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">detectable gold</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 147.75pt; height: 12pt; border-left: 1pt solid windowtext; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: left" align="left">
      <font size="2">CP-04</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1145</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">1155</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">10</font></td>
      <td style="width: 147.75pt; height: 12pt; border-left: medium none; border-right: 1pt solid windowtext; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="197">
      <p class="MsoNormal" style="MARGIN: 0 7.5pt; TEXT-ALIGN: right" align="right">
      <font size="2">0.011</font></td>
    </tr>
  </table>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td WIDTH="196" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">CP-05</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">620</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1300</font></td>
      <td WIDTH="199" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">680</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="196" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">CP-06</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">485</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="199" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1015</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="196" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">CP-07</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">250</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">795</font></td>
      <td WIDTH="199" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">545</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="196" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">CP-08</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">275</font></td>
      <td WIDTH="196" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="199" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1225</font></td>
      <td WIDTH="197" align="right" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
    <tr>
      <td WIDTH="196" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">CP-09</font></td>
      <td WIDTH="196" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">500</font></td>
      <td WIDTH="196" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1500</font></td>
      <td WIDTH="199" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">1000</font></td>
      <td WIDTH="197" align="right" style="border-style: solid; border-width: 1">
      <font FACE="Times New Roman" SIZE="2">
      <p style="margin-left: 7.5pt; margin-right: 7.5pt">detectable gold</font></td>
    </tr>
  </table>

  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 16.5pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Terms and Notice:</font></b></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 16.5pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">- The term 'nil' denotes that assay results returned less
      than 20 parts per billion (&quot;ppb&quot;) gold.</font></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 16.5pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">- The term 'detectable gold' denotes that assay results
      grades less than the cut-off grade of 0.34g/tonne (0.01oz/ton)</font></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 16.5pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">- Holes G-12, G-25, G-38 are listed as lost because they
      did not drill to target depths or were abandoned due to poor drilling
      conditions.</font></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 16.5pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">- Holes G-15, G-16, G-17 and G-19 through G-23 returned
      quartz pyrite alteration but no detectable gold in assay.</font></td>
    </tr>
    <tr style="height: 17.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 735.75pt; PADDING-TOP: 0in; HEIGHT: 17.25pt" width="981">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">- The mineralization comprises multiple fracture systems.
      The length of the vertical intercepts may or may not represent true
      width/thicknesses.</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2">A new CIM compliant 43-101
  technical report is underway and will include the above drill results.&nbsp;
  It is expected to be completed near the end of April 2008.</font></p>
  <p class="MsoNormal" align="center"><font size="2">44</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b><i>
  <font size="2" style="color: black">Sampling and Analysis</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">General</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis Mine operated
  from 1981 through 1990 producing approximately 10.7&nbsp;million tons of ore
  averaging 0.059&nbsp;ounces of gold per ton from seven open pits. The mined ore
  contained approximately 635,000 ounces of gold of which approximately 500,000
  ounces of gold were recovered through a heap leach operation (please refer to
  footnote to table &quot;Reported Past Borealis Production 1981-1990&quot;). This
  historic production can be considered a bulk sample of the deposits validating
  the database that was used for feasibility studies and construction decisions
  through the 1980s. With over 2,200 drill holes in the database that was
  compiled over a 20-year period by major companies, the amount of information
  on the project is extensive. It is primarily these data that have been used as
  the foundation of the current mineral resource estimate. The bulk of the data
  was collected beginning in 1978, the year of discovery of the initial
  ore-grade mineralization, and was continuously collected through the final
  year of full production. Subsequent owners who conducted exploration programs
  through the 1990s added to the database.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Previous Mining Operations&nbsp;&#151; Sampling,
  Analysis, Quality Control and Security</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Specific detailed
  information on sampling methods and approaches by the various mine operators
  is not available to us. However, a report written in 1981 (referred to in the
  Technical Report) noted that the drilling, sampling and analytical procedures
  as well as assay checks were reported as acceptable by industry practice.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Echo Bay Mines performed
  quality checks on their drill cuttings, sampling and assaying methods as part
  of their evaluation of the property prior to and following its purchase from
  Tenneco Minerals, indicating that the original assays were reliable and
  representative. During their exploration and development programs they also
  drilled a number of core hole twins of reverse circulation rotary drill holes
  to compare assay results in the same areas.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Houston Oil and Minerals,
  Tenneco, and Echo Bay Mines are reported to have used standard sample
  preparation and analytical techniques in their exploration and evaluation
  efforts, but detailed descriptions of the procedures have not been found. Most
  of the drill-hole assaying was accomplished by major laboratories that were in
  existence at the time of the drilling programs. Various labs including Monitor
  Geochemical, Union Assaying, Barringer, Chemex, Bondar-Clegg, Metallurgical
  Laboratories, Cone Geochemical, the Borealis Mine lab and others were involved
  in the assaying at different phases of the exploration and mining activity.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We believe that early work
  on the property relied on assay standards that were supplied by the
  laboratories doing the assaying. However, Echo Bay Mines (1986)&nbsp;reported using
  seven internal quality control standards for their Borealis Mine drill-hole
  assaying program. The seven standards ranged in gold concentrations from 170
  ppb to 0.37 opt. Assay labs involved in the standards analyses were Cone
  Geochemical, Chemex, and the Borealis Mine lab, and the precision of the three
  labs was reported as excellent (+/- 1 to 8%) for the higher gold grades
  (0.154-0.373 opt); acceptable (+/- 3 to 14%) for the lower grades (0.029-0.037
  opt); and fair (+/- 4 to 20%) for the geochemical anomaly grades (0.009 opt to
  170&nbsp;ppb). These data provide an initial estimation of the precision and
  accuracy of gold analyses of Borealis mineralization.</font></p>
  <p align="center"><font size="2" style="text-transform: uppercase">45</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">During 1986, Echo Bay
  instructed Chemex to analyze duplicate samples for five selected drill holes.
  A comparison was made of (a)&nbsp;1/2 assay-ton fire assay with a gravimetric
  finish, versus (b)&nbsp;1/2 assay-ton fire assay with an atomic absorption finish,
  versus (c)&nbsp;hot cyanide leach of a 10-gram sample. The 1/2 assay-ton fire
  assay&nbsp;&#151; gravimetric and the 1/2 assay-ton fire assay&nbsp;&#151; atomic absorption gave
  essentially the same results. However the hot cyanide leach gave results that
  were 5-11&nbsp;percent higher in one comparison and significantly lower in another,
  prompting Chemex to conclude that cyanide leach assaying was not appropriate
  for Borealis samples. The great majority of the assays in the database are
  based on fire assays.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">We have no information relating to the
  sample security arrangements made by the previous operators.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Gryphon Gold Operations&nbsp;&#151; Sampling,
  Analysis, Quality Control and Security </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">The work we performed to
  evaluate the 32 holes drilled in 2004 on the five previously leached heaps and
  two waste dumps was done by a sonic rig to retrieve a core-like sample. All
  drill holes were drilled vertical, with the sample immediately slid into a
  plastic sleeve that was sealed and marked with the drill hole number and
  footage interval. These plastic sample sleeves were not reopened until they
  reached the analytical lab. A Qualified Person and geologist, Dr. Roger
  Steininger, monitored all of the drill procedures and the handover to the
  analytical lab. A non-blind standard was added as the last sample of each
  hole, which was obvious to the lab since the standard was in a pulp bag,
  although the lab did not know the gold value of the standard. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">All samples were submitted
  to American Assays Labs of Sparks, Nevada. Each analytical sample was split in
  a rotary splitter with a one-fifth of the sample removed for assay and the
  remaining four-fifths retained for metallurgical testing. &nbsp;Each assay sample
  was pulverized and assayed for gold and silver by one assay ton fire assay,
  and a two hour 200 gram cyanide shake assay for dissolvable gold. &nbsp;As part of
  the quality control program, standards were submitted to American Assay Labs (AAL)&nbsp;with
  each drill hole, several assayed pulps and two standards were submitted to ALS
  Chemex, and three of the duplicates and two standards were submitted to
  ActLabs-Skyline.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">For the hard rock drilling
  program, started in 2005 and continuing, reverse circulation drilling services
  were provided by two international drilling contractors, Diversified Drilling
  LLC of Missoula, Montana and Eklund Drilling Company of Reno, Nevada. Drill
  bit size equaled 4 &#189; inches in diameter and samples were collected at 5-foot
  intervals (1.5 meters). All drill samples were bagged and sealed at the drill
  site by drill contractor employees, placed in bins, and delivered to a secure
  storage. &nbsp;American Assay Laboratories in Sparks, Nevada picked up the sample
  bins from secure storage. AAL is ISO/IEC 17025 certified and has successfully
  completed Canadian proficiency testing (CCRMP). Drill cuttings were dried,
  crushed to &#150;10 mesh, rotary split to 1,000 grams, pulverized to &#150;150 mesh,
  split to 350 gram pulps, fire assayed for gold and silver using 1-assay ton
  fire assay with gravimetric finish. Strict QA/QC protocol was followed,
  including the insertion of standards and blanks on a regular basis in the
  assaying process.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In the period between
  April 2006 and November 2007, reverse circulation drilling services were
  provided Eklund Drilling Company of Elko, Nevada. Drill bit size equaled 4 &#189;
  inches in diameter and samples were collected at 5-foot intervals (1.5
  meters). All drill samples were bagged and sealed at the drill site by the
  drill contractor employees, placed in bins, and delivered to a secure storage.
  Inspectorate America Corporation (IAC) in Sparks, Nevada picked up the sample
  bins from secure storage. IAC is ISO 9001:2000 certified (Certificate number:
  37295) and has successfully completed Canadian proficiency testing (CCRMP).
  Drill cuttings were dried, crushed to &#150;10 mesh, rotary split to 1,000 grams,
  pulverized to &#150;150 mesh, split to 350 gram pulps, fire assayed for gold and
  silver using 1-assay ton fire assay with an AA finish. Assays greater than
  0.10 opt Au were re-assayed by 1-assay ton fire assay with a gravimetric
  finish. Strict QA/QC protocol was followed, including the insertion of
  standards and blanks on a regular basis in the assaying process.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><i>
  <font style="COLOR: black"><font size="2">Historical Mining and Metallurgical
  Operations</font></font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">The historical mining
  operations processed both a run-of-mine ore and an ore that was crushed to a
  nominal 1 1/2-inch product as the primary feed material that was placed on the
  heap for leaching. The fines fraction was agglomerated with cement, mixed with
  the coarse fraction, and leached with sodium cyanide solution. Gold
  mineralization is finely disseminated and/or partially bonded with pyrite, and
  although there are very little ore mineralogy data available, historical
  operating reports suggest that some coarse gold may exist. Gold that is bound
  in pyrite or pyrite-silica is not easily recovered by simple heap leach
  cyanidation, however gold recovery in oxide ores is reported to average about
  80% for the ore treated. There are no reports of carbonaceous refractory
  components within the old heap or dump materials. The previous mine operators
  employed a Merrill Crowe circuit to enhance ease of silver recovery, followed
  by a retort to remove mercury.</font></p>
  <p align="center"><font size="2" style="text-transform: uppercase">46</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Laboratory testing
  subsequent to mine shut down in 1990 indicates that gold recoveries of 55 to
  80&nbsp;percent can be expected from remaining oxide material on the Borealis
  Property by heap leaching.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Based on limited testwork,
  gold bearing sulfide material appears to respond to conventional flotation
  concentration and cyanidation of oxidized concentrates. In the laboratory
  testing, chemical oxidation and bioxidation treatment of the sulfide material
  yield a high level of oxidation and correspondingly high gold recoveries after
  cyanidation of the oxidized material. Aeration of concentrate slurries may be
  a suitable oxidation method for the sulfide material. &nbsp;A test plan to evaluate
  recovery options for the sulfide ores from the Borealis Project site is
  planned for 2008. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b><i>
  <font size="2" style="color: black">Exploration &nbsp;and &nbsp;Development</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our development and
  exploration plans are based on the recommendations contained on the Technical
  Report and are subject to our ability to obtain additional capital to fund
  such plans. These plans are outlined below:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Permitting Process</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">We will maintain the
  permits we have received that are necessary for mine start up. Maintaining the
  permits necessary for mine start up does not require us to complete a
  feasibility study. The principal permits were issued during calendar 2006,
  while ordinary course permits will be sought prior to the possible mine start
  up. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The following is a summary and status of
  the principal permits and status of each as required for the Borealis Gold
  Project:<br>
  &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  An Approved Plan of Operations from the U.S. Forest Service was received
  during the second quarter of 2006. An Environmental Assessment was completed
  and submitted to the U.S. Forest Service to support the Plan of Operations.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Water Pollution Control Permit (WPCP) from the Nevada Division of
  Environmental Protection (NDEP), Bureau of Mining Regulation &amp; Reclamation:
  the WPCP was approved and granted to BMC on January 28, 2006.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Reclamation Permit from the NDEP, Bureau of Mining Regulation &amp; Reclamation
  issued in the second quarter of 2006, concurrent with the U.S. Forest Service
  approval of the Plan of Operations.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Tentative Permanent Closure Plan to be administered by the Bureau of Mining
  Regulation &amp; Reclamation: this plan was submitted with the WPCP application
  and accepted by NDEP. </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  An Air Quality Permit from the NDEP, Bureau of Air Pollution Quality: the
  Bureau issued this permit &nbsp;on April 28, 2006.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Surface Area Disturbance Permit from the NDEP, Bureau of Air Pollution
  Control: approved and granted to BMC on April 3, 2006.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Storm Water Permit from the NDEP: the Storm Water Pollution Prevention Plan
  (SWPPP) has been prepared for the project and distributed to NDEP and the U.S.
  Forest Service on February 6, 2006. &nbsp;NDEP requires that we file a Notification
  of Intent two days before we start operations and that we submit the SWPP
  within six months.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Spill Prevention, Control, and Countermeasure Plan, under the jurisdiction
  of the EPA, will be prepared and implemented before starting operations.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Threatened &amp; Endangered Species Act: a BA/BE (Biological Assessment/Biological
  Evaluation) was submitted with the EA.</font></p>
  <p align="center"><font size="2" style="text-transform: uppercase">47</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Historical Preservation Act (Section 107): consultation with the U.S. Forest
  Service and the State Historical Preservation Officer in conjunction with the
  preparation of the EA, has been completed. &nbsp;The State Historical Preservation
  Officer has concurred with the findings of the U.S. Forest Service.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Water Rights: Water Rights for the project have been granted by the Nevada
  Division of Water Resources. These water rights provide for sufficient water
  for the possible heap leach operation as defined by historical operations
  conducted in the 1980's The water right will be held for the period of time
  concurrent with mining operations.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <i>
  <font size="2" style="color: black">Drilling and Feasibility</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">We plan to continue our drilling and exploration program with
  the intent of locating additional sulfide and oxide gold resources on the
  Borealis property. &nbsp;The primary focus of the program will be within the
  previously disturbed area, the Graben zone and in the Central and Western
  Pediment areas. &nbsp;Once sufficient additional potential resources are
  discovered, we will assess possible methods of beginning production including
  the possible completion of a feasibility study.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><i>
  <font size="2" style="color: black">Possible Futur</font></i><font style="COLOR: black"><font size="2">e</font><i><font size="2">
  Mine Development</font></i></font></p>
  <p class="MsoNormal" align="justify"><font size="2">If warranted by the
  discovery and possible development of additional gold resources, project
  economics and if we are successful in obtaining adequate additional capital,
  we may propose to build a mine operation on the Borealis site. Our plan will
  be based on the Plan of Operation filed with the U.S.&nbsp;Forest Service and could
  change based on additional information as it is acquired and analyzed in our
  ongoing engineering studies and feasibility study. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Plan of Operation
  consists of the reopening of a previously reclaimed open pit mining operation.
  The Plan of Operation does not present an economic analysis, and we have not
  placed any information in the Plan of Operation regarding capital
  expenditures, operating costs, ore grade, anticipated revenues, or projected
  cash flows. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><i>
  <font size="2" style="color: black">Mineralized Material Expansion and
  Exploration Program </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">We have undertaken a
  systematic district scale exploration program designed to discover and
  delineate large gold deposits within the greater Borealis Property, outside of
  the known mineral deposits, which will focus along known mineralized trends
  that project into untested gravel-covered areas with coincident geophysical
  anomalies. The greatest potential in the district lies beneath a large
  gravel-covered area at the mountain front with several potential blind
  deposits (with no surface expression). The Graben zone is an example of this
  type of deposit, and other high-potential targets include Rainbow Ridge/Tough
  Hills, Sunset Wash, Lucky Boy, and others yet to be named generally within the
  areas referred to as the Central and Western Pediments. &nbsp;To date we have
  drilled and assayed 206 holes as part of the district wide exploration
  program.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In addition to the
  district exploration program, the Borealis property embraces numerous areas
  with potential for discovery of mineable gold deposits. The defined target
  areas can be grouped into categories based on our expectation for deposit
  expansion or potential for discovery. Our past emphasis was focused on targets
  which are the extensions of previously mined deposits, specifically within the
  previously disturbed areas the East Ridge-Gold View-Northeast Ridge
  mineralized trend, and around the margins of the Borealis, Freedom Flats, and
  Deep Ore Flats/Polaris deposits. Each has the potential to add to the material
  that can be developed as part of the initial mine plan. Our drilling program
  during 2005 and 2006 was completed primarily in areas where resources are
  known to exist. In addition to advancing existing resources to a higher level
  of confidence, this drilling program has further information gathering
  objectives for metallurgical assessment, waste characterization, and
  hydrological analyses that are required in support of our operating permit
  applications, environmental assessment, and engineering design. Results from
  drilling of heap leachable material will be incorporated into the feasibility
  study, should a feasibility study be completed. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Planned activities and
  expenditures include both field and compilation geology, geophysics,
  geochemistry, permitting and claim maintenance, road construction and
  drill-site preparation, reverse circulation (RC)&nbsp;and core drilling, drill-hole
  assaying, sampling protocol studies and assay quality control, preliminary
  metallurgical testing, and database management. We estimate that nearly 50% of
  the budget would be spent directly on drilling (mostly on RC drilling) with
  approximately 20% on geologists, 10% on assaying, and the remainder divided
  among the other items. The budget is expected to be sufficient to discover and
  delineate one or more deposits, but additional funding will be required for
  detailed development drilling and other development activities. </font> </p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">48</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">The names of deposits and exploration
  targets on the Borealis Property are shown on the map below. The map also
  shows the boundary of the claim holdings that comprise the Borealis Property.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="center">
  <font size="2" style="color: black">&nbsp;<img border="0" src="grypho5.jpg" width="601" height="346"></font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
  <font size="2" style="color: black; font-family: Times New Roman PSMT">
  (Source: Gryphon Gold, 2005) </font>
  </p>
  <p class="MsoNormal"><b><font size="2">United States Mining Laws</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Mining in the State of
  Nevada is subject to federal, state and local law. Three types of laws are of
  particular importance to the Borealis Property: those affecting land ownership
  and mining rights; those regulating mining operations; and those dealing with
  the environment.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Borealis Property is
  situated on lands owned by the United States (Federal Lands). Borealis Mining,
  as the owner or lessee of the unpatented mining claims, has the right to
  conduct mining operations on the lands subject to the prior procurement of
  required operating permits and approvals, compliance with the terms and
  conditions of the mining lease, and compliance with applicable federal, state,
  and local laws, regulations and ordinances. On Federal Lands, mining rights
  are governed by the General Mining Law of 1872 as amended, 30&nbsp;U.S.C. &#167;&#167;&nbsp;21-161
  (various sections), which allows the location of mining claims on certain
  Federal Lands upon the discovery of a valuable mineral deposit and proper
  compliance with claim location requirements. A valid mining claim provides the
  holder with the right to conduct mining operations for the removal of
  locatable minerals, subject to compliance with the General Mining Law and
  Nevada state law governing the staking and registration of mining claims, as
  well as compliance with various federal, state and local operating and
  environmental laws, regulations and ordinances. Historically, the owner of an
  unpatented mining claim could, upon strict compliance with legal requirements,
  file a patent application to obtain full fee title to the surface and mineral
  rights within the claim; however, continuing Congressional moratoriums have
  precluded new mining claim patent applications since 1993.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The operation of mines is
  governed by both federal and state laws. Part of the Borealis Property is
  situated within the Toiyabe National Forest, and that part is administered by
  the U.S.&nbsp;Forest Service. The rest of the Borealis Property is administered by
  the Bureau of Land Management (BLM). In general, the federal laws that govern
  mining claim location and maintenance and mining operations on Federal Lands,
  including the Borealis Property, are administered by the BLM. The Forest
  Service is concerned with surface land use, disturbances and rights-of-way on
  Federal Lands that it manages. Additional federal laws, such as those
  governing the purchase, transport or storage of explosives, and those
  governing mine safety and health, also apply. Various permits or approvals
  from the BLM and other federal agencies will be needed before any mining
  operations on the Borealis Property can begin.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The State of Nevada
  likewise requires various permits and approvals before mining operations can
  begin, although the state and federal regulatory agencies usually cooperate to
  minimize duplication of permitting efforts. Among other things, a detailed
  reclamation plan must be prepared and approved, with bonding in the amount of
  projected reclamation costs. The bond is used to ensure that proper
  reclamation takes place, and the bond will not be released until that time.
  The bond amount for a large mining operation is significant. Local
  jurisdictions (such as Mineral County) may also impose permitting requirements
  (such as conditional use permits or zoning approvals).</font></p>
  <p align="center"><font style="text-transform: uppercase"><font size="2">49</font></font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Mining activities on the
  Borealis Property are subject also to various environmental laws, both federal
  and state, including but not limited to the federal National Environmental
  Policy Act, the Comprehensive Environmental Response, Compensation and
  Liability Act, the Resource Recovery and Conservation Act, the Clean Water
  Act, the Clean Air Act and the Endangered Species Act, and certain Nevada
  state laws governing the discharge of pollutants and the use and discharge of
  water. Various permits from federal and state agencies are required under many
  of these laws. See, &quot;Permitting Requirements,&quot; below. Local laws and
  ordinances may also apply to such activities as waste disposal, road use and
  noise levels.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Permitting</font></b></p>
  <p class="MsoNormal" align="justify"><i><font size="2">Permit Acquisition and
  Fundamental Environmental Permitting Considerations</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">In 2004 we initiated a
  plan to obtain the required principal environmental operating permits in
  anticipation of a possible mine start-up.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">A staged permit
  acquisition program is in progress. The first permitting stage, started in the
  fall of 2003, has been completed. Permits obtained at that time authorized
  exploration activities needed to prove the mineral resource, condemn the heap
  sites and support infrastructure, and obtain environmental baseline data to
  support the permitting packages. A second stage of application for exploration
  drilling permits was submitted in December 2004 and approval was obtained in
  May 2005. A Plan of Operations for a new mine was submitted in August 2004 to
  the U.S.&nbsp;Forest Service and Nevada State agencies and approval was received in
  the second quarter of 2006. A Water Pollution Control Permit application for
  the reopening and expansion of the mine was submitted to the Nevada Bureau of
  Mining Regulation and Reclamation in January 2005. Future exploration
  activities and mine expansion initiatives will be included in applications for
  subsequent approvals on a case-by-case and as-needed basis. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The approved Plan of
  Operation focuses on the approximately 460&nbsp;acre area previously disturbed by
  mining operations. Deposits within this boundary, subject to permit
  applications generally, include the oxidized and partially oxidized portions
  of Borealis, Deep Ore Flats (also known as Polaris), East Ridge, Freedom
  Flats, and Northeast Ridge which are amenable to a conventional
  hydrometallurgical gold recovery process such as heap leaching. Also included
  in the Plan of Operations is the option for development of underground access
  to the Graben deposit to be used for exploration and future development
  activities, although no production plan has been submitted for consideration
  in this mineralized zone at this date. Crocodile Ridge, Middle Ridge, and
  other deposits within the study area boundaries of the Borealis Property will
  be added to the permit applications if warranted based on ongoing engineering
  and in-fill drilling results. </font> </p>
  <p class="MsoNormal" align="justify"><i><font size="2">Permitting Process
  Overview </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">The development,
  operation, closure and reclamation of mining projects in the United States
  require numerous notifications, permits, authorizations and public agency
  decisions. This section does not attempt to exhaustively identify all of the
  permits and authorizations that need to be gained, but instead focuses on
  those that are considered to be the main efforts that are on the critical path
  for possible project start-up. </font> </p>
  <p class="MsoNormal" align="justify"><i><font size="2">Environmental
  Inventories </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">There are certain
  environmental evaluations that routinely must be completed in order to provide
  the information against which project impacts are measured. Both the
  U.S.&nbsp;Forest Service and the Nevada Bureau of Mining Regulation and Reclamation
  (BMRR)&nbsp;have requirements to profile existing conditions and to evaluate what
  effects will result from implementing the project plans on those mineral
  resources. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Background information on
  geology, air quality, soils, biology, water resources, social and economic
  conditions, and cultural resources were assembled for us and submitted to the
  appropriate regulatory agency. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Permitting Requirements</font></b></p>
  <p class="MsoNormal" align="justify"><i><font size="2">U.S.&nbsp;Forest Service
  Requirements
  </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">The Bridgeport Ranger
  District of the U.S.&nbsp;Forest Service is the lead agency regulating mining and
  reclamation activities at the Borealis Property. The permitting process with
  the U.S.&nbsp;Forest Service approved our Plan of Operations in the second quarter
  of 2006, pursuant to the requirements of 36&nbsp;CFR Part&nbsp;228, Subpart A. Our Plan
  of Operations was filed in August 2004 describing the project plans in a
  step-by-step process. The Plan of Operations describes the development of the
  deposits identified in the Technical Report and recognizes and anticipates the
  effects of market impacts such as reductions or increases in gold price, and
  describes the measures that will be taken to adjust for these changing
  conditions. The emphasis of the Plan of Operations is on defining the spatial
  and temporal aspects, as they will affect the land that is managed by the
  agency. The Plan of Operations also describes the plans to reclaim the site,
  and includes an estimate of the cost to accomplish that reclamation. This cost
  estimate is the first step toward establishing the reclamation surety for the
  site. </font> </p>
  <p align="center"><font size="2" style="text-transform: uppercase">50</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">In order to satisfy the
  reclamation surety requirements of the U.S.&nbsp;Forest Service, we will consider
  obtaining an insurance policy for its benefit. This policy, if obtained on
  terms acceptable to us, would require us to pay into a &quot;commutation&quot; account
  of the insurer the agreed cost of the initial future reclamation work. The
  initial amount covered under the policy will be funded by a deposit into the
  &quot;commutation&quot; account, in an amount to be negotiated. The amount covered by
  the policy is expected to increase as reclamation costs increase due to
  expanded mining related disturbances. This additional policy coverage is
  expected to be funded from mining revenue once the mine is in operation. Once
  funded, the account will be available to pay for concurrent and final
  reclamation expenses as they are incurred. The policy is expected to provide
  us a mechanism to manage the overall cost of reclamation for a known cost for
  the entire life of mine and provide financial assurance required by the
  U.S.&nbsp;Forest Service. We would propose to acquire the policy once the plan of
  operations and associated reclamation plan are approved by the U.S.&nbsp;Forest
  Service. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The National Environmental
  Policy Act (NEPA)&nbsp;requires that any decision made by a Federal agency must
  consider the environmental effects of that decision. The USFS will decide
  whether or not there is a decision to be made, and whether that decision is
  significant or not. If there is no decision to be made, as in the instance of
  Categorical Exclusions (CE), the project can proceed with notification only.
  CE's are allowed when surface disturbances are limited to less than one mile
  of new road building. If a decision must be made, an environmental impact
  evaluation is completed and from that analysis, a determination of whether the
  environmental impact is significant or not. If the determination is a &quot;finding
  of no significant impact&quot; (FONSI), then the agency is authorized to approve
  the plan based on the Environmental Assessment (EA)&nbsp;findings. If the decision
  is that the impacts are in fact significant, then an Environmental Impact
  Statement (EIS)&nbsp;is required to arrive at the final decision. There is a
  significantly increased time period for review and public comment for an EIS
  versus an EA. Approvals of Gryphon Gold's site exploration activities to date
  were authorized under a CE. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The USFS Bridgeport Ranger
  District (District) determined that preparation of an Environmental Assessment
  (EA)&nbsp;was necessary to comply with the requirements of the National
  Environmental Policy Act (NEPA). The USFS and wemutually agreed to have Knight
  Piesold and Co. (KPCO), a third-party NEPA contractor, prepare the EA.
  Comments from a variety of stakeholders have been solicited. These comments
  have been incorporated into a Modified Plan of Operations, which includes some
  changes from the initial Plan of Operations submitted to account for updated
  operating plans and required mitigation measures to better protect the
  environment. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">At the completion of the
  NEPA process and decision, the reclamation surety must be posted with the USFS
  prior to any surface disturbance on site. The reclamation cost estimate
  provided in the Plan of Operations will be reviewed and refined by the agency
  and an acceptable amount agreed upon among the U.S.&nbsp;Forest Service, BMRR and
  us. </font> </p>
  <p class="MsoNormal" align="justify"><i><font size="2">Nevada Division of
  Water Resources Requirements
  </font> </i>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">Development of the
  Borealis Property will involve significant water demand in an arid region
  where the water basin has been over-appropriated and for which project water
  rights have been withdrawn. Successful mining and processing will require
  careful control of project water and efficient reclamation of project
  solutions back into the leaching process.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">The Nevada Division of
  Water Resources (NDWR)&nbsp;is the responsible agency for granting water rights
  permits. The basin from which water rights could be appropriatedis the same
  basin that was the water supply for the mining activities at Borealis during
  the 1980's and early 1990's. Although this basin appears to be over allocated
  to various users, many of these rights go unused, so it may be possible to
  transfer existing appropriations to the project if necessary. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We believe that water
  rights granted to us by the NDWR are sufficient to conduct planned operations.
  A wellfield to perfect this water supply has not yet been tested or developed.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">NDEP Bureau of Mining
  Regulation and Reclamation Requirements </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Nevada Division of
  Environmental Protection, Bureau of Mining Regulation and Reclamation (BMRR)&nbsp;regulates
  mining activities within the state including water pollution control and
  reclamation. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The heap leach and process
  solution ponds are presented in the water pollution control permit application
  that was filed in January 2004. The permit application package includes the
  engineering design report for the heap and ponds, certified by a Nevada
  registered professional engineer. In addition to the engineering report,
  operating plans describing the mineral processing circuit, fluid management
  plan, monitoring plans, emergency response plan, temporary closure plan and
  tentative permanent closure plan were presented. The Water Pollution Control
  Permit was issued on January 28, 2006. </font> </p>
  <p align="center"><font size="2" style="text-transform: uppercase">51</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">BMRR also administers and
  enforces the requirements relating to the reclamation of land subject to
  mining or exploration projects.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">A Reclamation Plan that
  contains the identical information as was contained in the Plan of Operations
  was submitted to the BMRR in August 2004. The Reclamation Plan was approved
  during the second quarter of 2006. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We will be required to
  post a reclamation bond from a financial institution or otherwise set aside a
  corresponding amount for the benefit of BMRR. We anticipate that BMRR will
  accept the reclamation bond we post for the benefit of the U.S.&nbsp;Forest
  Service. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Division of
  Environmental Protection&nbsp;&#151; Bureau of Air Quality Requirements </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Prior to the commencement
  of construction activities, an air quality permit will be necessary. The
  Nevada Bureau of Air Quality (BAQ)&nbsp;regulations state that a process flow
  diagram must be generated to communicate the technical aspects of the
  process/activity and determine which class of permit will be required. We have
  prepared the required process flow diagram and submitted our permit
  application. On April 28, 2006 the Class II air quality permit was issued by
  BAQ. </font> </p>
  <p class="MsoNormal" style="TEXT-ALIGN: justify" align="left"><b><font size="2">
  United States Regulatory Matters</font></b></p>
  <p class="MsoNormal" align="justify"><i><font size="2">General </font> </i></p>
  <p class="MsoNormal" align="justify"><font size="2">All of our exploration
  activities in the United States are subject to regulation by governmental
  agencies under various mining and environmental laws. The nature and scope of
  regulation depends on a variety of factors, including the type of activities
  being conducted, the ownership status of land on which the operations are
  located, the nature of the resources affected, the states in which the
  operations are located, the delegation of federal air and water-pollution
  control and other programs to state agencies, and the structure and
  organization of state and local permitting agencies. We believe that we are in
  substantial compliance with all such applicable laws and regulations. While
  these laws and regulations govern how we conduct many aspects of our business,
  we do not believe that they will have a material adverse effect on our
  operations or financial condition. We evaluate our projects in light of the
  cost and impact of regulations on the proposed activity, and evaluate new laws
  and regulations as they develop to determine the impact on, and changes
  necessary to, our operations. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Generally, compliance with
  environmental and related laws and regulations requires us to obtain permits
  issued by regulatory agencies and to file various reports and keep records of
  our operations. Some permits require periodic renewal or review of their
  conditions and may be subject to a public review process during which
  opposition to our proposed operations may be encountered. </font> </p>
  <p class="MsoNormal" align="justify"><i><font size="2">U.S.&nbsp;Federal and State
  Environmental Law</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">Our past and future
  activities in the United States may cause us to be subject to liability under
  various federal and state laws. Proposed mining activities on federal land
  trigger regulations promulgated by the U.S.&nbsp;Forest Service (USFS), the Bureau
  of Land Management (BLM), and potentially other federal agencies, depending on
  the nature and scope of the impacts. For operations on federal public lands
  administered by the BLM that disturb more than five acres, an operator must
  submit a Plan of Operations to BLM. On USFS-administered lands, the USFS
  requires the submission of a notice for all mining operations, regardless of
  size, and a Plan of Operations if the USFS determines that there will be any
  &quot;significant&quot; disturbance of the surface.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Comprehensive
  Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA),
  imposes strict, joint, and several liability on parties associated with
  releases or threats of releases of hazardous substances. Liable parties
  include, among others, the current owners and operators of facilities at which
  hazardous substances were disposed or released into the environment and past
  owners and operators of properties who owned such properties at the time of
  such disposal or release. This liability could include response costs for
  removing or remediating the release and damages to natural resources. We are
  unaware of any reason why our undeveloped properties would currently give rise
  to any potential CERCLA liability. We cannot predict the likelihood of future
  CERCLA liability with respect to our properties or surrounding areas that have
  been affected by historic mining operations.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Under the Resource
  Conservation and Recovery Act (RCRA)&nbsp;and related state laws, mining companies
  may incur costs for generating, transporting, treating, storing, or disposing
  of hazardous or solid wastes associated with certain mining-related
  activities. RCRA costs may also include corrective action or clean up costs.</font></p>
  <p align="center"><font size="2" style="text-transform: uppercase">52</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Mining operations may
  produce air emissions, including fugitive dust and other air pollutants, from
  stationary equipment, such as crushers and storage facilities, and from mobile
  sources such as trucks and heavy construction equipment. All of these sources
  are subject to review, monitoring, permitting, and/or control requirements
  under the federal Clean Air Act and related state air quality laws. Air
  quality permitting rules may impose limitations on our production levels or
  create additional capital expenditures in order to comply with the permitting
  conditions.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Under the federal Clean
  Water Act and delegated state water-quality programs, point-source discharges
  into &quot;Waters of the State&quot; are regulated by the National Pollution Discharge
  Elimination System (NPDES)&nbsp;program. Section&nbsp;404 of the Clean Water Act
  regulates the discharge of dredge and fill material into &quot;Waters of the United
  States,&quot; including wetlands. Stormwater discharges also are regulated and
  permitted under that statute. All of those programs may impose permitting and
  other requirements on our operations.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The National Environmental
  Policy Act (NEPA)&nbsp;requires an assessment of the environmental impacts of
  &quot;major&quot; federal actions. The &quot;federal action&quot; requirement can be satisfied if
  the project involves federal land or if the federal government provides
  financing or permitting approvals. NEPA does not establish any substantive
  standards. It merely requires the analysis of any potential impact. The scope
  of the assessment process depends on the size of the project. An
  &quot;Environmental Assessment&quot; (EA)&nbsp;may be adequate for smaller projects. An
  Environmental Impact Statement (EIS), which is much more detailed and broader
  in scope than an EA, is required for larger projects. NEPA compliance
  requirements for any of our proposed projects could result in additional costs
  or delays.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Endangered Species Act
  (ESA)&nbsp;is administered by the U.S.&nbsp;Department of Interior's U.S.&nbsp;Fish and
  Wildlife Service. The purpose of the ESA is to conserve and recover listed
  endangered and threatened species and their habitat. Under the ESA,
  &quot;endangered&quot; means that a species is in danger of extinction throughout all or
  a significant portion of its range. &quot;Threatened&quot; means that a species is
  likely to become endangered within the foreseeable future. Under the ESA, it
  is unlawful to &quot;take&quot; a listed species, which can include harassing or harming
  members of such species or significantly modifying their habitat. We conduct
  wildlife and plant inventories as required as part of the environmental
  assessment process prior to initiating exploration projects. We currently are
  unaware of any endangered species issues at any of our projects that would
  have a material adverse effect on our operations. Future identification of
  endangered species or habitat in our project areas may delay or adversely
  affect our operations.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We are committed to
  fulfilling our requirements under applicable environmental laws and
  regulations. These laws and regulations are continually changing and, as a
  general matter, are becoming more restrictive. Our policy is to conduct our
  business in a manner that safeguards public health and mitigates the
  environmental effects of our business activities. To comply with these laws
  and regulations, we have made, and in the future may be required to make,
  capital and operating expenditures.</font></p>
  <p class="MsoNormal" align="justify"><i><font size="2">U.S.&nbsp;Federal and State
  Reclamation Requirements</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2">We are subject to land
  reclamation requirements under state and federal law, which generally are
  implemented through reclamation permits that apply to exploration activities.
  These requirements often mandate concurrent reclamation and require the
  posting of reclamation bonds or other financial assurance sufficient to
  guarantee the cost of reclamation. If reclamation obligations are not met, the
  designated agency could draw on these bonds and letters of credit to fund
  expenditures for reclamation requirements.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Reclamation requirements
  generally include stabilizing, contouring and re-vegetating disturbed lands,
  controlling drainage from portals and waste rock dumps, removing roads and
  structures, neutralizing or removing process solutions, monitoring groundwater
  at the mining site, and maintaining visual aesthetics. We believe that we
  currently are in substantial compliance with and are committed to maintaining
  all of our financial assurance and reclamation obligations pursuant to our
  permits and applicable laws.</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: justify" align="left"><b>
  <font size="2" style="font-family: Times New Roman Bold">Nevada Eagle
  Properties</font></b></p>
  <p class="MsoNormal" align="justify"><b><i><font size="2">Nevada Eagle
  Properties General Description</font></i></b></p>
  <p class="MsoNormal" align="justify" dir="ltr"><font size="2">Nevada Eagle has
  interests in approximately 54 prospective gold properties covering over 70
  square miles of gold trends in Nevada. Twenty-four of these properties are in
  the Walker Lane belt and add to Gryphon's inventory of volcanogenic hosted
  gold resources. Seven of the properties are in the Cortez Trend, seven in the
  Austin-Lovelock Trend, two in the Carlin Trend and the balance are unique
  situations throughout Nevada with a few in contiguous states. These properties
  offer Gryphon both production opportunities or royalty income upon production.
  Twenty-six of the properties are 'farmed-out' through lease and option
  agreements that generate a positive cash flow net of carryings costs. The
  remaining wholly-owned properties are retained for Gryphon's own exploration
  effort or additional future farm outs.</font></p>
  <p align="center"><font size="2" style="text-transform: uppercase">53</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
</div>

<div class="Section5">
  <p class="MsoNormal"><font size="2">The following is a summary of the major
  properties in which Nevada Eagle has interests:</font></p>
  <p class="MsoNormal"><b><i><font size="2">Golden Arrow</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Golden Arrow property
  is located approximately 39 miles east of Tonopah within the Golden Arrow
  mining district of southern Nye County, Nevada, U.S.A., at geographic
  co-ordinates 37deg. 59min. North latitude by 116deg. 37min. West longitude.
  Access is excellent; 37 miles east of Tonopah, Nevada on Highway 6, then 12
  miles south on graded dirt road. It is comprised of 196 contiguous unpatented
  lode mining claims covering approximately 4,051 acres.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The property is situated
  regionally within the Walker Lane Structural Belt, a terrain dominated by
  northwesterly-trending transcurrent faulting and hosting numerous precious
  metal deposits across central Nevada, and locally along the western rim of the
  Kawich resurgent caldera. Estimated production from volcanic-hosted epithermal
  gold and silver deposits along this belt exceeds 40 million ounces of gold and
  540 million ounces of silver since 1859. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The property is underlain
  by Oligocene- to Miocene-age sequence of andesitic to rhyolitic volcanic and
  volcaniclastic rocks and spatially- and genetically-related to the tectonism
  and volcanism of the Kawich caldera. Rhyolitic domes and associated phreatic
  diatremes intruded the volcanic stratigraphy, and all lithologies are overlain
  by Pliocene-age basaltic glows prior to and coeval with Basin and Range
  faulting and erosion. Regional northwesterly- and northeasterly-oriented fault
  structures controlled both the deposition of the volcanic units and the
  distribution of siliceous and argillic alteration assemblages associated with
  precious metals-bearing mineralization. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Mineralization within the
  property is typical of a volcanic-hosted, low-sulphidation epithermal
  mineralizing system. Precious metal values are genetically- and
  spatially-associated with multi-episodic quartz-sulphide (/- adularia&nbsp;/-
  carbonate&nbsp;/- sericite&nbsp;/- barite) veins, veinlets and stockwork zones that are
  controlled by normal and oblique strike-slip faults within the
  rhyolitic-latite, volcaniclastic and andesite rock units. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Since 1981 ten successive
  companies, including Homestake Mining Company, Coeur d'Alene Mines and
  Kennecott Exploration Company, have conducted extensive geological,
  geochemical and geophysical surveying, and drilled at least 389 air-track,
  percussion, reverse circulation (RC) and diamond drill holes totaling at least
  137,481 feet. Most of this work has been directed at discovering and
  delineating the near-surface bulk-tonnage potential of two adjacent zones,
  namely Gold Coin/Confidence Mountain and Hidden Hill. Several resource
  estimates, all non-complaint with National Instrument 43-101, have been
  calculated. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">From July 2003 to January
  2004, Pacific Ridge Exploration Ltd. Drilled 29 RC drill holes totaling 18,721
  feet in seven separate target areas on the property. The majority of the holes
  tested for strike and down-dip extensions to higher-grade mineralized
  intercepts encountered in earlier drilling. Numerous high-grade intercepts,
  including 5 feet grading 2.435 opt. Au in the Confidence Mountain area, were
  encountered.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Several additional target
  areas have been identified as a result of Pacific Ridge's efforts which have
  the potential to host higher-grade, precious metals-bearing,
  structurally-controlled deposits. Within the drill-indicated disseminated gold
  mineralization, numerous structurally&#150;confined zones containing gold grades
  between one and three ounces per ton have been intercepted.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Seven drill holes listed
  below demonstrate the high grade potential that should be explored.</font><font size="2" style="color: black">&nbsp;</font></p>
</div>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH TGA 97-203 contains 15 feet 1.7 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH GA 90-121 contains 8 feet grading .95 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH GA 90-85 contains 10 feet grading .87 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH GA 90-83 contains 15 feet grading .60 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH KGA-3 contains 15 feet grading .47 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH GA 94-159 contains 5 feet grading 2.95 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH GA 94-166 contains 10 feet grading 1.88 opt Au.</font></p>
<div class="Section5">
  <p class="MsoNormal" align="justify"><font size="2">These high-grade gold
  intercepts were encountered in past drilling programs designed to explore for
  bulk tonnage, low-grade deposits. &nbsp;These intercepts have not been followed up
  systematically to determine the extent of high-grade mineralization. &nbsp;Also
  three parallel NE trending vein-structures, north of the resources areas have
  not yet been drilled. &nbsp;These structures have a cumulative strike length of
  over 3 miles.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="center">
  <font size="2" style="color: black">&nbsp;54</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font><b><i><font size="2">Regent </font> </i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">The Regent property is located approximately 38 miles southeast
  of Fallon within the Rawhide mining district of northern Mineral County,
  Nevada, U.S.A., at geographic co-ordinates 39deg. 2min. North latitude by
  118deg. 25min. West longitude. Access is Excellent; 32 miles east of Fallon,
  Nevada on Highway 50, then 21 miles south on Highway 31, thence west 6 miles
  along a well-maintained road. It is comprised of 110 contiguous unpatented
  lode mining claims covering approximately 2,272 acres.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The property is situated
  regionally along the northeastern margin of the northwest trending Walker Lane
  Structural Belt, a terrain dominated by northwesterly-trending transcurrent
  faulting. The Regent deposits more specifically lie along the northeastern
  margin of the Rawhide volcanic center. Numerous other volcanic hosted precious
  metal deposits are located within this northwest trending zone of complex
  structural disruption: &nbsp;Goldfield, Tonopah, Comstock Lode, Paradise Peak,
  Silver Peak, Candelaria and Tallapoosa. Estimated production from
  volcanic-hosted epithermal gold and silver deposits along this belt exceeds 40
  million ounces of gold and 540 million ounces of silver since 1859. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The property is underlain
  by a complex pile of mid-Miocene calc-alkaline volcanics, ranging in
  composition from basaltic andesite to latite to rhyolite. &nbsp;Pyroplastic tuffs
  and minor volcanically-derived epiclastic sediments underlie much of the area
  from the Rawhide deposit to Regent, but the majority of the Regent project
  area is composed of a series of coalescing latitic flow-dome complexes.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Mineralization at Regent
  occurs in quartz veins and in intensely silicified illite and clay altered
  volcanic rocks many of which show intense brecciation. Mineralization can be
  classified (as can most of the Walker Lane) as low to intermediate sulfidation
  epithermal type; in the case of Regent with a very strong structural control.
  Structures that have received the most exploration attention to date are NNE
  with west dips such as the Regent Hill structure and NNW with east dips such
  as the Regent Hill and Antithetic structure. There are strongly ENE structures
  such as the Broadway and Crosstown structure that have been underexplored to
  date.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Since 1984 Kennecott and
  Newmont conducted exploration programs designed to develop low grade open pit
  bulk mineable resources. These programs resulted in the drilling of over 560
  holes totaling at least 263,600 feet of shallow, vertical reverse circulation
  holes drilled within a limited area. Kennecott used these holes to define a
  small low-grade bulk mineable deposit. Both companies encountered significant
  high grade intercepts suggesting that a higher grade bonanza vein resource
  might be present</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Regent property has
  excellent potential for further discovery of multiple ore bodies, on the order
  of 0.5-3 million tons. Collectively the discovery of multiple gold deposits
  would contribute significantly to the established reserve base at Regent.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Also, Kennecott discovered
  several high-grade gold quartz veins but did not pursue high-grade vein
  occurrences. Their exploration program was specifically aimed at finding more
  bulk tonnage disseminated mineralization in the crystal-lithic tuff unit. They
  did not test the vein systems systematically for high grade/underground
  deposits even though they discovered several zones grading above .25 opt Au in
  their drilling programs.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b><i>
  <font size="2">Monte Cristo</font></i></b><font size="2" style="color: #00007f">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Monte Cristo property
  is located approximately 25 miles west of Tonopah within the Gilbert mining
  district of northern Esmeralda County, Nevada, U.S.A., at geographic
  co-ordinates 38deg. 11min. North latitude by 117deg. 42min. West longitude.
  Access is good; 28 miles west of Tonopah, Nevada on Highway 95, then 9 miles
  north on graded dirt road. It is comprised of 239 contiguous unpatented lode
  mining claims covering approximately 4,731 acres.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The property lies within
  the Walker Lane, a region dominated by right-lateral strike-slip faults. These
  regional faults have created structural complexes of crosscutting faults and
  pullapart/accommodation features in the Monte Cristo Range. Caldera-related
  Tertiary volcanic rocks of varying composition are the dominant lithology in
  the range. Estimated production from volcanic-hosted epithermal gold and
  silver deposits along this belt exceeds 40 million ounces of gold and 540
  million ounces of silver since 1859. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The structural setting of
  the Gilbert district is dominated by the strike-slip faulting typical of the
  Walker Lane. The dominant local structural trends are north-northeast and
  west-northwest. On the Monte Cristo property, a north-northeast to north-south
  striking fault separates older Tertiary rhyolitic pyroclastic flow units,
  rhyolite dikes, and rhyolite domes on the east from younger Tertiary andesitic
  flows and lahars on the west. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="center">
  <font size="2">55</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">The mineralization within
  the property is located on an 11 km long north-northeast fault zone in
  Tertiary volcanics which is offset by northwest cross faults.&nbsp;The host rocks
  are Tertiary andesites, the same as the host rocks of the famous Comstock Lode
  at Virginia City, that produced 8 Moz of gold.&nbsp;The gold-silver mineralization
  occurs within parallel shear structures on either side of the north-northeast
  fault.&nbsp;The McLean Lode, a zone of episodic veining, brecciation, and
  silicification with adularia, is hosted in clay altered andesitic rocks. The
  gold is associated with minor pyrite and acanthite.&nbsp;Native gold is seen in the
  centers of quartz veins as well as in silicified zones parallel to the shear
  fabric.&nbsp;The lode is 400m long, 300m down-dip and open, and averages 4.4m wide
  (1-11m), displaced at both ends by northwesterly cross-cutting faults.&nbsp;Both
  the historical RC drilling and core sampling by Gold Summit was used by MDA to
  estimate an inferred mineral resource of 365,000 tonnes at 6.5 g/t gold and 20
  g/t silver using a 3.4 g/t gold equivalent cut-off (69,000 oz gold and 203,000
  oz silver).</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Gold mineralization is
  recognized in fine-grained to massive quartz and calcite veins in brecciated
  Tertiary volcanics and sediments and in the Ordovician Palmetto Formation.
  Pyrite, adularia and barite are common gangue minerals. The veins dip 45-85
  degrees to the west.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The western-most vein
  occurs in what is now the McLean Pit. In the mid-1980's 20,000 ounces were
  extracted from an open pit operation. The host rocks are breccias and
  tuffaceous rhyolite with local wallrock silicification and clay alteration.
  Locally weak to moderate opal-alunite alteration is visible around the pit
  area. The average grade was 0.07 opt Au, however, local samples can reach 1.0
  opt Au. The vein and wallrock were mined about 250 feet deep. There was no
  visible structure or vein material at the surface. The hill that existed prior
  to the discovery, however, had features consistent within a high level,
  epithermal system. Trace elements As, Sb, and Hg are anomalous. The extensions
  of the structure down-dip pose an intriguing Midas-type, high-grade target.
  Projections of the structure north and south of the pit have never been found. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">To the east of the Mclean
  pit lies the Black Mammoth-New Hope vein system. Numerous segments of the vein
  crop out and values along its 8,000 feet strike length can reach 0.25 opt Au
  and up to 15 opt Ag. The main Gilbert vein (Monte Cristo) with the Gilbert
  Mine located at the southern end, forms a continuous structure for about 3,000
  feet. Values range up to 1.66 opt Au from dump samples at the Gilbert mine.
  The East vein lies approximately 3,000 feet east of the Gilbert vein. Samples
  taken along its 3,000 feet strike length include values as high as 0.53 opt
  Au.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Drilling in the district in the early
  1980's, primarily by Anaconda, tested parts of these structures at relatively
  shallow depths (less than 500 feet). Exploration in the district has been
  sporadic over the past 20 years and has included companies such as Getty, U.S.
  Borax, Inmet, Felmont and Homestake. The McLean mine, a small gold deposit was
  developed on a somewhat broader gold zone associated with the westernmost
  vein. The mine produced approximately 20,000 ounces at a grade of about 0.07
  opt Au. Values from the main part of the structure, however, can exceed 1.0
  opt gold. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The geologic environments of the district
  are diverse and provide numerous ore deposit target types such as gold-bearing
  jasperoids in the sedimentary lithologies of the Palmetto Formation, as well
  as porphyry copper, moly and associated skarn occurrences within and adjacent
  to a Cretaceous granitic intrusive complex. </font>
  <font size="2" style="color: #00007f">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b><i>
  <font size="2">Redlich</font></i></b><font size="2" style="color: #00007f">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Redlich property is
  located approximately 42 miles southeast of Hawthorne within the Rock Hill
  mining district of northern Esmeralda County, Nevada, U.S.A., at geographic
  co-ordinates 38deg. 11min. North latitude by 117deg. 59min. West longitude.
  Road access is excellent as the project is bisected by US Highway 95.&nbsp;It is
  comprised of 204 contiguous unpatented lode mining claims covering
  approximately 4,215 acres.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The property is situated
  regionally within the Walker Lane Structural Belt, a terrain dominated by
  northwesterly-trending transcurrent faulting and hosting numerous precious
  metal deposits across west-central Nevada. Redlich is located on the eastern
  flank of the Candelaria Hills.&nbsp; Road access is excellent as the project
  is bisected by US Highway 95. Redlich is within the Walker Lane mineral belt,
  a northwest-striking structural corridor of volcanic-hosted gold and silver
  deposits including Aurora, Borealis, Rawhide, Bullfrog, Goldfield, Tonopah,
  Paradise Peak and Midway. Estimated production from volcanic-hosted epithermal
  gold and silver deposits along this belt exceeds 40 million ounces of gold and
  540 million ounces of silver since 1859. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Redlich area is
  underlain by Ordovician through Tertiary sedimentary and volcanic rocks.
  Tertiary age rocks include a 15 to 17 Ma andesite that is overlain by a
  rhyodacitic ash flow tuff.&nbsp; The andesite is known to host bonanza veins
  and disseminated gold mineralization. Two distinct alluvial units overlie the
  volcanic sequence.&nbsp;Granodiorite dikes and stocks intrude the Palmetto
  Formation.&nbsp; These intrusive rocks are interpreted as ranging from
  Jurassic to Tertiary based on cross-cutting relations.&nbsp; Drilling
  indicates the granodiorite hosts gold mineralization. An isolated
  northwest-trending block of Permian Diablo Formation conglomerate overlies the
  Palmetto Formation along a low angle contact. The oldest exposed rocks on the
  project are siltstone, limestone and chert of the Ordovician Palmetto
  Formation.&nbsp; Drilling indicates this unit hosts bonanza veins. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">56</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Two styles of gold
  mineralization occur at Redlich.&nbsp; They include finely-banded quartz
  &quot;bonanza&quot; veins that typically contain gold grades exceeding 0.250 oz Au/t
  over 2 to 15 foot-wide (8.562 g Au/t over 0.6 to 4.6m) zones. Disseminated
  gold mineralization in clay altered or quartz stockwork controlled volcanic
  rocks and granodiorite.&nbsp; These gold zones tend to be 55 to 210 feet-thick
  (16.7 to 64.0m) with gold grades ranging from 0.010 to 0.056 oz Au/t (0.343 to
  1.918 g Au/t). </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Previous exploration by
  Inspiration, FMC and Cordex focused along strike of the Redlich fault and on a
  100 acre (40 hectares) area of Tertiary alluvium containing well-banded quartz
  vein float.&nbsp; Sampling of well-banded quartz cobbles returned assays up to
  4.0 oz Au/t (137.0 g Au/t) and 20 oz Ag/t (684.9 g Ag/t).&nbsp; The source of
  these gold-bearing cobbles is unknown and most of this area remains untested
  by drilling. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">FMC completed trenching,
  systematic soil sampling, rock sampling, and 8,270 feet (2521.3m) of drilling
  in 18 holes.&nbsp; Results included 30 feet of 0.031 oz Au/t (9.1m of 1.099 g
  au/t) in hole FMCR-5.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Cordex completed a CSAMT
  survey and 28 rotary drill holes (R-1 through R-28).&nbsp; Their drilling
  intersected higher-grade quartz vein zones and vertically extensive zones of
  lower-grade, disseminated gold mineralization.&nbsp; Significant results
  included: </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  10 feet of 0.284 oz Au/t (3.1m of 9.726 g Au/t) and 10 feet of 0.170 oz Au/t
  (3.1m of 5.822 g Au/t) in R-1
  </font>
  </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  60 feet of 0.017 oz Au/t (18.3m of 0.582 g Au/t) in R-2 </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  10 feet of 0.311 oz Au/t (3.1m of 10.651 g Au/t) in R-6 </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  90 feet of 0.017 oz Au/t (27.4m of 0.582 g Au/t) in R-19 &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Since the inception of the
  Miranda Gold / Newcrest joint venture, 65,334 feet (19.918m) of reverse
  circulation drilling in 90 drill holes has been completed.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In late 2004, Newcrest
  completed a phase one drill program consisting of 11,094 feet (3,382.3m) of
  inclined reverse circulation drilling in 19 holes (R-29 through R-47).&nbsp;
  Results included 5 feet of 1.350 oz Au/t (1.5m of 46.233 g Au/t) in R-43 and
  15 feet of banded epithermal quartz veins grading 0.330 oz Au/t (4.6m of
  11.267 g Au/t) in R-45.&nbsp; R-33 intersected 190 feet of 0.020 oz Au/t
  (70.1m of 0.684 g Au/t) in clay altered volcanic rocks with quartz stringers.&nbsp;
  During the summer of 2005, Newcrest completed an additional 16,145 feet of
  reverse circulation drilling in 26 holes (R-48 through R-74).&nbsp; These
  holes continued testing for high grade quartz-gold vein continuity along
  strike of the Redlich fault zone as well as offsetting mineralization in hole
  R-43.&nbsp; Results of this program include a thinly-banded quartz vein with 5
  feet grading 1.945 oz Au/t (1.5m of 66.610 g Au/t) in hole R-73.&nbsp; Bonanza
  gold grades in R-73 represent a deeper and higher grade gold zone.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Miranda Gold geologists
  have constructed a three dimensional computer model illustrating geology and
  drill results generated from the three phases of drilling.&nbsp; Four inclined
  holes (R-77, R-73, R-1 and R-84) with intercepts 0.250 oz Au/t or greater
  infer the existence of a north 30 degree west-striking and 80 degree
  northeast-dipping &quot;vein&quot; zone.&nbsp; This &quot;vein&quot; zone appears continuous along
  1,230 feet of strike and remains open to the northwest, southeast and at
  depth.&nbsp; The southeast projection of this &quot;vein&quot; zone is noteworthy as
  only three holes test a 3,940 foot distance between holes R-84 and R-43.&nbsp;&nbsp;
  Both holes intersect bonanza gold grades including 5 feet of 0.440 oz Au/t in
  R-84 and 5 feet of 1.350 oz Au/t in R-43.
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">The three dimensional
  model also outlines a 985 foot east-west by 1,230 foot north-south envelope of
  &gt;0.010 oz Au/t mineralization surrounding the higher-grade &quot;vein&quot; zone.&nbsp;
  This mineralization remains open to the west, southeast and south.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The potential quantity and
  grade is conceptual in nature as there has been insufficient exploration to
  define a mineral resource.&nbsp; Miranda Gold and Newcrest are encouraged by
  these results and the exploration potential remains high.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2">Red Rock</font></i></b><font size="2">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Red Rock property is
  located approximately 70 miles southwest of Tonopah within the Fish Lake
  Valley mining district of western Esmeralda County, Nevada, U.S.A., at
  geographic co-ordinates 37deg. 51min. North latitude by 118deg. 13min. West
  longitude. Access is excellent; 49 miles west of Tonopah, Nevada on Highway 6,
  then 12 miles south on Highway 264, then 6 miles west on graded dirt road. &nbsp;It
  is comprised of 177 contiguous unpatented lode mining claims covering
  approximately 3,657 acres.</font></p>
  <p class="MsoNormal" align="center"><font size="2">57</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: #00007f">&nbsp;</font><font size="2">The property is
  situated regionally within the Southwest portion of the Walker Lane Structural
  Belt, a terrain dominated by northwesterly-trending transcurrent faulting and
  hosting numerous precious metal deposits across west-central Nevada. The Red
  Rock property lies near the junction of two major tectonic blocks, the
  Inyo-Mono Block and the Excelsior-Coaldale Block, and has suffered from
  significant faulting and deformation from several events. Estimated production
  from volcanic-hosted epithermal gold and silver deposits along this belt
  exceeds 40 million ounces of gold and 540 million ounces of silver since 1859. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The property is underlain
  by the Lower Cambrian Poleta Formation which consist of carbonate rocks. Above
  the carbonate rocks, sediments dominated by siliceous siltstone, argillite and
  chert of the Ordovician Palmetto Formation occur. Cenozoic rocks consist
  mostly of the mid-late Miocene andesite of Trail Canyon (&gt;11 Ma), bedded
  sedimentary and volcaniclastic rocks correlative with the Esmeralda Formation,
  and late Miocene-Pliocene rhyolite tuffs, flows and dikes.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">At least three different
  styles of gold mineralization are recognized on the Red Rock property.
  Epithermal quartz-adularia veins are the principal target, and in the
  Discovery area consist of individual veins &lt;5-10 ft wide. The veins occur in
  at least 3 en-echelon or sub parallel vein sets, in zones perhaps as much as
  20 ft or more wide. The vein mineralogy and geochemistry is fairly simple,
  with very fine-grained free gold-electrum, minor ruby silver, and possibly
  other silver and antimony minerals. The highest grade sample values are: 3.061
  opt Au and 16.80 opt Ag in a 5 ft RC sample; and 2,926 opt Au and 17.57 opt in
  a 6.0 ft core sample. Silver: gold ratios are quite variable, but in most
  high-grade intercepts are ~5:1. Minor Se (to 20 ppm) occurs with the highest
  silver values suggesting trace silver selenides. Base metals, As, and Hg are
  generally low in the quartz-adularia veins. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Since 1982 eight
  successive companies, including Newmont, Amselco, Phelps Dodge, Curran
  Corporation, Cambior, Romarco, Victoria Resource Corporation and Escape Gold,
  have conducted extensive geological, geochemical and geophysical surveying,
  and drilled at least 147 air-track, percussion, reverse circulation (RC) and
  diamond drill holes totaling at least 88,035 feet. Most of this work has been
  directed at discovering and delineating the near-surface bulk-tonnage
  potential and later for discovering high grade epithermal veins.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Red property, offers
  excellent exploration potential in the form of expanding and refinement of the
  high grade but complex low sulphidation gold mineralized veins in the
  Discovery Zone and in the advancement of the other targets using similar
  exploration models. Emphasis for future exploration would reasonably combine
  identification of prospective structural settings, favorable host assemblages,
  and vertical zoning within the well developed low sulphidation style
  epithermal systems. Five drill holes listed below demonstrate the high grade
  potential that should be explored.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH RMR-4 contains 115 feet 1.61 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH RMR-14 contains 30 feet grading .34 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH RPC-90-907 contains 25 feet grading 1.98 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH RPR-89-14 contains 15, 10 &amp; 10 feet grading .91, 1.41 &amp; 1.27 opt Au.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; TEXT-ALIGN: left; margin-left:1.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  DH RPR-89-19 contains 15 feet grading .92 opt Au.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2" style="color: black">These intercepts have not been followed up
  systematically to determine the extent of high-grade mineralization.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b><i>
  <font size="2">Rosebud</font></i></b><font size="2">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Rosebud property is
  located approximately 48 miles west of Winnemucca within the Rosebud mining
  district of northern Pershing County, Nevada, U.S.A., at geographic
  co-ordinates 40deg. 48min. North latitude by 118deg. 39min West longitude.
  Access is excellent; 46 miles west of Winnemucca, Nevada on Jungo Road,
  (gravel) well-maintained then 7 miles south on dirt road. It is comprised of
  54 contiguous unpatented lode mining claims covering approximately 1,115
  acres.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The property is located in
  the Kamma Mountains near Rosebud Peak, about 5 miles southeast of the Hycroft
  mine operated by Allied Nevada. The ore deposits are located under Dozer Hill,
  which is a rounded promontory of about 200 feet in relief. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The property is underlain
  by Oligocene bimodal volcanic rocks interbedded with pyroclastic and
  water-lain tuff. Jurassic-Triassic metasediments of the Auld Lang Syne Group,
  composed of carbonaceous shales, siltstones, sandstones and limestones, form
  the basement for overlying Tertiary volcanics. From the base upward, the
  volcanic sequence consists mostly of ash flow tuffs and andesitic flows; and a
  fine grained rhyolite flow dome complex.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Rosebud is a low-sulfidation
  epithermal gold deposit. The mineralization within the property is
  characterized by up to four stages of discontinuous stockwork veins of quartz,
  calcite and clay. Sulphide content ranges from three to five percent as
  pyrite, marcasite, and trace amounts of chalcopyrite and sphalerite.
  Mineralization was indicated by drill intercepts as strong as 178 feet @0.72
  opt Au (Northern Miner, 6-24-91). &nbsp;One of the better intercepts in the East
  zone, in hole 198C, was 30 feet @ 1.89 opt Au (Mining Record, 7-24-91).
  &nbsp;Mineralization occurs in tabular zones associated with the South Ridge fault
  and cross-cutting high-angle faults. &nbsp;Quartz-calcite-clay veins cut clay
  altered, silicified, and/or sericitized Tertiary rhyolitic volcanic host
  rocks. Gold and silver minerals include electrum, aurian silver, naumannite,
  and argentite. These veins crosscut bleached, clay-altered and sericitized
  flows and tuffs. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">58</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">The Rosebud district was
  founded in 1906, and minor production occurred during the early years after a
  rush to the site ensued. In 1988, LAC Minerals entered the district by staking
  claims around Dozer Hill, and by forming a joint venture with Equinox
  Resources, which held adjacent ground to the northwest extending beyond the
  Dreamland mine. In 1989, LAC discovered ore on their 3<sup>rd</sup> drill
  hole, intersecting 55 ft of 0.12 opt Au. Equinox purchased LAC's interest in
  1993 and started an exploration decline. Hecla Mining completed the
  underground development after a merger with Equinox in the early 1994. Hecla
  and Santa Fe Pacific Gold formed the Rosebud Mining Company LLC (50/50) in
  late 1995 to develop the mine and truck the ore to the Twin Creeks mine to be
  processed. Hecla operated the mine, and Santa Fe operated the milling and
  exploration. Production commenced in April, 1997. Newmont took over Santa Fe's
  interest in the Rosebud joint venture upon acquisition of Santa Fe in May,
  1997. The Rosebud mine produced 396,842 oz of gold and 2.3 million ounces of
  silver from 1997 to 2000. The average grade of gold over the mine life was
  0.416 opt Au and 2.4 opt for Ag.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Currently Harvest Gold is
  compiling and reviewing all available historical data. All the paper maps and
  cross sections are being converted into digital data using Micromine 3D
  modeling software. The Company is focusing on 3 areas:</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(1)&nbsp;&nbsp;&nbsp; Evaluation of
  historic low and high grade gold mineralization that remains on the property;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(2)&nbsp;&nbsp;&nbsp; Exploration for near
  surface, high grade gold mineralization similar to that which has been
  discovered on the property in the past; and</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(3)&nbsp;&nbsp;&nbsp; Exploration for
  large bodies of gold-silver mineralization at depth.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">A detailed enzyme leach
  soil grid has been completed. &nbsp;Results clearly indicate the Rosebud ore
  bodies, Northwest Corridor, and Far East zone. &nbsp;A new target, the Northeast
  zone&lt; is also indicated by the soil results.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The company is currently
  investigating gold and silver zones located at or near the periphery of the
  mined area. &nbsp;To the northwest of the mine, the &quot;Northwest Corridor&quot; contains
  numerous high grade drill intercepts (described below). &nbsp;Additional high grade
  intercepts are also reported at the eastern margin of the mine in the &quot;Far
  East&quot; zone. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Numerous drill intercepts
  have been encountered to the northwest of the Rosebud mine in what is called
  the Northwest Corridor. &nbsp;Drill results in this area include: 10 feet @ 0.357
  opt Au, 3.8 feet @ 0.249 opt Au, 5 feet @ 0.311 opt Au, 12.5 feet @0.169 opt
  Au, 3.1 feet @ 0.635 opt Au, 5.6 feet @ 0.888 opt Au, 7 feet @ 0.334 opt Au,
  12 feet @ 0.522 opt Au, 16 feet @ 0.446 opt Au, and 9 feet @ 0.522 opt Au.
  Most of these intercept occur between 600 and 800 feet down hole.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Outside of the mined area,
  several other gold zones have been intersected by previous operators. &nbsp;Some of
  the best drill intercepts in these areas are described below. In the Dreamland
  area the best drill intercepts to date have been: 5.9 feet @ 0.819 opt Au
  including 2.9 feet @ 1.394 opt Au at a depth of 1660 feet from surface and 2.2
  feet @ 0.1 opt Au at a depth of 1208 feet. This mineralization is still
  undefined. The Motherload area contains a drill intercept of 15 feet @ 7.34
  opt Ag within a vein. Limited follow up drilling has not defined the geometry
  of the mineralized zone. To the northeast of the mine, alluvium and talus
  cover the South Ridge fault, a major ore-controlling feature. Very limited
  drilling has been undertaken in this target area. &nbsp;One hole drilled in this
  area in 2000 intersected 145 feet of stockwork veinlets containing drusy
  quartz, marcasite, and anomalous gold within metamorphic rocks that form the
  basement beneath the Tertiary volcanic host rocks at the mine.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In addition to the
  historical gold and silver target areas, Harvest Gold is systematically
  analyzing the potential of the remaining ground to identify new target areas
  that have not previously been recognized. The company is compiling, reviewing,
  and interpreting a large volume of project data generated by previous
  operators. These data include geologic mapping, rock chip geochemistry, soil
  geochemistry, geophysical data, and drilling data. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Harvest Gold
  geological crew has completed its own detailed soil grid utilizing modern
  geochemical techniques capable of detecting signals from blind or buried
  mineral zones. The Rosebud Mine orebodies are well indicated by strong gold
  responses. &nbsp;Gold mineralization in the Northwest Corridor and the Far East
  zone is also indicated by enzyme leach gold responses. &nbsp;A new target zone is
  indicated to the northeast of the mine by enzyme leach gold, silver, and other
  metals. &nbsp;The Northeast zone anomaly suggests a target of similar proportions
  and orientation to the Rosebud Mine. &nbsp;This new target has not been drill
  tested.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><b><i>
  <font size="2">Other Nevada Eagle &nbsp;Properties</font></i></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Eagle Resources
  controls a total of approximately 45 other exploration properties in Nevada,
  southeastern California and western Utah. &nbsp;These individual properties range
  in size from one mining claim to 129 mining claims for a grand total of 24,792
  acres. &nbsp;Target commodity types are mostly gold and gold/silver, but also
  include copper/molybdenum, lead/zinc/copper and barite. &nbsp;These target metals
  are found in a variety of geologic environments including volcanic-hosted
  epithermal bonanza veins and stock works, sediment hosted replacement and
  stock work deposits, granite-hosted mesothermal quartz veins and porphyry
  related quartz stock works and related deposits.</font></p>
  <p class="MsoNormal" align="center"><font size="2">59</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Sixteen properties host
  volcanic hosted gold and gold/silver targets as both discrete quartz veins and
  quartz stock work zones. &nbsp;These are located in the Walker Lane Belt of western
  Nevada, the Pioche Belt in eastern Nevada and in several unique locations in
  northern and central Nevada. Typical gold assay grades range from low grade,
  open pittable gold values in the 0.03 ounces per ton range upward to plus 1.0
  ounces per ton from underground mineable deposits. &nbsp;These properties are
  Blackrock, Star City, Bald Peak, Argentite, Brik, Gold Reef, Stateline, Gold
  Springs 1, Gold Springs 2, Cold Springs, Wonder, Florence Canyon, Blue Sphinx,
  Jasperoid Peak, Velvet and Black Velvet.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Twelve properties host
  sediment-hosted gold targets similar to those found on the Carlin Trend. These
  properties are located along the Carlin and Cortez Trends with a few in unique
  locations. The properties include Rock Creek, Scraper Springs, Bullion
  Mountain, Indian Creek, Black Mountain, Grass Valley, Water Canyon, Kobeh,
  Anchor, Gold Point, Horse Thief, Baxter Springs. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Nine properties host
  mesothermal high-grade gold quartz veins and stock works in granitic or
  metamorphic rocks. These are located in southeastern California and western
  Nevada. &nbsp;Typical gold assays and past production from the veins returned from
  0.25 to 1.5 ounces per ton. These properties are Southern Bell, Buckskin,
  Dale, Suitcase, Troy, Columbia, Cumberland, Ashby, and Argus. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Only three properties host
  lead/zinc/copper replacements in sedimentary rocks. &nbsp;These are located in
  western Nevada. &nbsp;Typical assays range from a combined Pb/Zn/Cu ranging of 5 to
  15%. &nbsp;These are found at Ruby, Four Aces and Mud Springs.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Three properties host
  porphyry-related copper/molybdenum targets, and located in western Nevada in
  the Walker Lane Belt. Past drilling has tested the broader reaches of the
  targets with drill intercepts returning molybdenum values in the 0.1% range
  and copper values in the 0.4% range. These properties are the New Boston, Ace
  and Fri Gold.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">One industrial mineral
  property, which hosts a high grade barite deposit is found in central Nevada.
  &nbsp;Past production from the Monitor property indicates that it qualifies for
  redevelopment due to its potential for high quality drilling mud production. &nbsp;</font></p>
  <h1 align="center"><a name="_Toc195437400"><font size="2">LEGAL PROCEEDINGS</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">Except as provided below,
  neither we nor any of our property, including the Borealis Property and the
  Nevada Eagle Properties, are currently subject to any material legal
  proceedings or other regulatory proceedings, and to our knowledge no such
  proceedings are contemplated.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On September&nbsp;16, 2005, our
  subsidiary, Borealis Mining Company, was named as a co-defendant in an ongoing
  civil action pending in the United States District Court for the District of
  Nevada, entitled <i>United States&nbsp;v. Walker River Irrigation District</i>
  (Court Doc. No.&nbsp;In Equity C-125, Subfile C-125-B). The action seeks to
  determine the existence and extent of water rights held by the federal
  government in the Walker River drainage area for use on federally reserved
  lands such as Indian reservations, National Forests, military reservations,
  and the like. The suit does not dispute nor seek to invalidate any existing
  water rights (including ours); rather, it seeks to determine the extent and
  priority of the federal government's water rights. On May&nbsp;27, 2003, the Court
  stayed all proceedings to allow the United States, the State of Nevada, the
  State of California, the Walker River Paiute Tribe, the Walker River
  Irrigation District, Mono County, California, Lyon County, Nevada, Mineral
  County, Nevada and the Walker Lake Working Group to attempt to mediate a
  settlement. Borealis Mining Company was named as one of several hundred
  co-defendants in this action because it owns water rights within a portion of
  the Walker River drainage area in Nevada, which were granted under a permit on
  September&nbsp;16, 2005. We, like most private water right owners, do not intend to
  participate in the merits of the lawsuit. We do not believe that this civil
  action, which will determine the extent and priority of federally reserved
  water rights in the area, will have any effect on our potential business
  operations as we currently have permits to access water from two sites for our
  Borealis Property, one of which is not subject to this action and either of
  which, individually, would provide a sufficient water supply for our potential
  operations.</font></p>
  <p class="MsoNormal" align="center"><font size="2">60</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="_Toc196194148"><font size="2">MARKET FOR COMMON
  EQUITY AND RELATED SHAREHOLDER MATTERS</font></a></h1>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b>
  <font size="2" style="color: black">Market Information</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Our common stock is quoted
  on the Toronto Stock Exchange (&quot;TSX&quot;) and the NASD Over-the-Counter Bulletin
  Board. &nbsp;Our common shares commenced trading on the TSX on December 22, 2005.
  &nbsp;Before trading on the TSX our stock was not publicly traded on any exchange.
  &nbsp;The high and low bid quotations of our common stock on the TSX were as
  follows:</font></p>
  <table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>Period</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>High</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>Low</u></font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>2008</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">First Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.79</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.40</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>2007</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">First Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.20</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn.$0.75</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Second Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.13</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.78</font></td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Third Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.95</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.62</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Fourth Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.98</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.50</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>2006</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">First Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.54</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.15</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Second Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$2.33</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.16</font></td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Third Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.69</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.19</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Fourth Quarter (TSX)</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.43</font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.72</font></td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2"><u>2005</u></font></td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td WIDTH="25%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="50%" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Fourth Quarter<sup>(1)</sup>
      (TSX)</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$1.15</font></td>
      <td WIDTH="25%" align="center" bgcolor="#EDEBD3">
      <p style="margin-top: 0; margin-bottom: 0"><font SIZE="2">Cdn$0.91</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 13.5pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">(1) &nbsp;Our shares were initially quoted for
  trading on &nbsp;December 22, 2005. &nbsp;There was no quote prior to December 22,
  2005.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On April 28, 2008 the
  closing sale price for our common stock was $0.39 on the OTCBB and $0.41 on
  the TSX &nbsp;(converted from Cdn$0.42 based on the noon buying rates in New York
  City for cable transfers payable in Canadian Dollars and certified for customs
  purposes by the Federal Reserve Bank of New York as of April 28, 2008 of Cdn.$1.0021/US$1.00).
  &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">As of April 28, 2008, we
  had 61,735,395 shares of common stock issued and outstanding, held by
  approximately 1783 registered shareholders. &nbsp;In many cases, shares are
  registered through intermediaries, making the precise number of shareholders
  difficult to obtain.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b>
  <font size="2" style="color: black">Dividend Policy</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We anticipate that we will
  retain any earnings to support operations and to finance the growth and
  development of our business. Therefore, we do not expect to pay cash dividends
  in the foreseeable future. Any further determination to pay cash dividends
  will be at the discretion of our board of directors and will be dependent on
  the financial condition, operating results, capital requirements and other
  factors that our board deems relevant. We have never declared a dividend.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify"><b>
  <font size="2" style="color: black">Purchases of Equity Securities by the
  Small Business Issuer and Affiliates</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">There were no purchases of our equity
  securities by us or any of our affiliates during the year ended March 31,
  2007.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">Equity Compensation Plans </font> </b>
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">Securities Authorized for Issuance</font></i></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On March&nbsp;29, 2005, our
  board of directors adopted a stock option plan which was approved by our
  shareholders on May&nbsp;13, 2005. &nbsp;As of March 31, 2007 we had granted 3,000,000
  stock options, of which 565,000 were forfeited and 107,500 were exercised,
  pursuant to the terms of our 2005 stock option plan with expiry dates to 2011.
  &nbsp;&nbsp;We may only issue up to 3,000,000&nbsp;shares of common stock under the terms of
  the 2005 stock option plan. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">61</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On April 4, 2006 (amended
  July 24, 2006), the Board of Directors approved the 2006 Omnibus Incentive
  Plan, which increased the number of reserved shares of common stock for
  issuance to employees, officers, directors, consultants and advisors, from
  3,000,000 to 7,000,000 shares.&nbsp; The 2006 Omnibus Incentive Plan was
  ratified by the shareholders at the company's annual general meeting on
  September 12, 2006, along with all options previously granted thereunder,
  pending such ratification.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On September 6, 2007, at
  the annual general meeting of the shareholders, the shareholders approved an
  increase in the number of shares of common stock issuable pursuant to the
  grant of stock options under the Omnibus Incentive Plan. After the shareholder
  approved increase, the 2006 Omnibus Incentive Plan authorizes the Company to
  grant 4,500,000 options and 1,000,000 restricted stock units. As of November
  14, 2007 we had granted 3,787,000 stock options, of which 375,000 were
  forfeited, pursuant to the terms of our omnibus incentive plan as described
  below with expiry dates to 2012; 809,500 restricted stock units had been
  granted as of November 14, 2007, of which 92,750 have been forfeited and the
  equivalent of 15,000 were issued in cash pursuant to the terms of our omnibus
  incentive plan. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We have no equity
  compensation plans in place that have not been approved by our shareholders,
  but amendments and proposed plans will be presented to shareholders for
  approval at the annual general meeting. &nbsp;&nbsp;The table below shows securities
  issued under our equity compensation plans as of April 28, 2008.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 294pt; border-left: 1pt solid windowtext; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: medium none; padding: 0in" width="392">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 147.75pt; border: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Number of securities to be issued
      upon exercise of outstanding options, warrants, and rights</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">(a)</font></b></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Weighted-average exercise price of
      outstanding options, warrants, and rights<br>
      (b)</font></b></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Number of securities remaining
      available for future issuance under equity compensation plans (excluding
      securities reflected in column (a))<br>
      (c)</font></b></td>
    </tr>
    <tr>
      <td style="width: 279pt; border: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="372">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font style="COLOR: black"><font size="2">Equity compensation plans
      approved by security holders</font><sup><font size="2">(1)</font></sup></font></b></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">6,252,000</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">$0.91*</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font style="COLOR: black"><font size="2">625,500</font><sup><font size="2">(2)</font></sup></font></td>
    </tr>
    <tr>
      <td style="width: 279pt; border-left: 1pt solid black; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="372">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Equity compensation plans not
      approved by security holders</font></b></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">--</font></td>
    </tr>
    <tr>
      <td style="width: 279pt; border-left: 1pt solid black; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="372">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">TOTAL</font></b></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">6,252,000</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 147.75pt; border-left: medium none; border-right: 1pt solid black; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="197">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">625,500</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in" vAlign="top" width="985" colSpan="4">
      <p class="MsoNormal" style="TEXT-INDENT: -22.5pt; TEXT-ALIGN: left; margin-left:22.5pt; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
      <sup><font size="2" style="color: black">&nbsp;(1)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;
      Consists of 2,377,500 outstanding options granted from the Stock Option
      Plan, 3,201,500 outstanding options granted from the Omnibus Incentive
      Plan, and 673,000 restricted stock units granted under the Omnibus
      Incentive Plan.</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in" vAlign="top" width="985" colSpan="4">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(2)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;
      Consists of 298,500 options and 327,000 restricted stock units remaining
      under the Omnibus Incentive Plan.</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 738.75pt; PADDING-TOP: 0in" vAlign="top" width="985" colSpan="4">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">* Based on the November 2007 exchange
      rate of Cdn$1.00 equals US$0.9337</font></td>
    </tr>
  </table>
</div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><i>
  <font size="2" style="color: black">Omnibus Incentive Plan </font> </i></b></p>
<div class="Section5">
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">The Plan is administered by the Compensation Committee, and has
  full and final authority with respect to the granting of options there under.
  Options may be granted under the Plan to such directors, officers, employees
  or consultants of Gryphon Gold and its subsidiaries as the Compensation
  Committee may from time to time designate (referred to as a &quot;participant&quot;).
  Each option will generally entitle a participant to purchase one share of
  common stock during the term of the option upon payment of the exercise price.
  The exercise price of any options granted under the Plan shall be determined
  by the Compensation Committee and may not be less than the market price of our
  common stock on the date of grant of the options (calculated in accordance
  with the rules of the Toronto Stock Exchange as the volume weighted average
  trading price for the five trading days preceding the date of grant). Gryphon
  Gold may provide financial assistance to eligible persons to purchase shares
  of common stock under the Plan, subject to applicable law and the rules and
  policies of any securities regulatory authority or stock exchange with
  jurisdiction over the Corporation or a trade in its securities. Any financial
  assistance so provided will be repayable with full recourse and the term of
  any such financing shall not exceed the term of the option to which the
  financing applies. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The term of any options
  granted shall be determined by the Compensation Committee at the time of the
  grant but the term of any options granted under the Plan shall not exceed ten
  years. If desired by the Compensation Committee, options granted under the
  Plan may be subject to vesting provisions. Options granted under the Plan are
  not transferable or assignable other than by will or otherwise by operation of
  law. In the event of death or disability of an option holder, options granted
  under the Plan expire one year from the death or disability of the option
  holder. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">62</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Certain restrictions contained in the Plan
  include:
  </font>
  </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  &nbsp;</p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  the number of shares of common stock which may be issued pursuant to the Plan
  (or any other employee-related plan or options for service) to any one person
  may not exceed 5% of all the common shares issued and outstanding on a
  non-diluted basis from time to time;&nbsp;and</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  the number of shares of common stock which may be issued pursuant to the Plan
  (or any other employee-related plan or options for services) to insiders (as
  defined in the rules of the Toronto Stock Exchange to include generally
  directors, senior officers of Gryphon Gold or its subsidiaries or shareholders
  who own more than 10% of our common stock) during any twelve month period may
  not exceed 10% of the common stock issued and outstanding on a non-diluted
  basis from time to time (unless approval of disinterested shareholders has
  been obtained in accordance with the rules of the Toronto Stock Exchange).</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  the number of shares of common stock which may be reserved for issuance in
  respect of options granted to insiders pursuant to the Plan (or any other
  employee-related plan or options for service) may not exceed 10% of the common
  stock issued and outstanding on a non-diluted basis from time to time unless
  approval of disinterested shareholders has been obtained in accordance with
  the rules of the Toronto Stock Exchange).&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Gryphon Gold's board of
  directors may at any time terminate or amend the Plan in any respect, provided
  however, that the board may not, without the approval of the shareholders,
  amend the Plan or any option granted thereunder in any manner that requires
  shareholder approval under applicable law or the rules and policies of any
  stock exchange or quotation system upon which the common shares are listed or
  quoted. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b>
  <font size="2" style="color: black">Sale of Unregistered Securities</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal"><font size="2">All sales of unregistered securities were
  previously reported in the Company's quarterly and current reports filed with
  the Securities and Exchange Commission.</font></p>
  <p align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  63</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="FINANCIAL_STATEMENTS"><font size="2">FINANCIAL
  STATEMENTS</font></a><font size="2" style="color: black">&nbsp;</font></h1>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="4" style="color: black">Consolidated Financial Statements</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="4" style="color: black">Gryphon Gold Corporation</font></b><font size="4" style="color: black"><br>
  </font><font size="2" style="color: black">(an exploration stage company)<br>
  March 31, 2007 and 2006<br>
  (Stated in U.S. dollars</font></p>
  <p class="MsoNormal" style="text-align: center; margin-left: 0in; margin-right: 0in; margin-top: 9pt; margin-bottom: 0pt" align="center">
  <b><font size="4" style="color: black">REPORT OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRM</font></b><font size="4" style="color: black"><br>
  &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">To the Shareholders of</font><b><font size="2" style="color: black"><br>
  Gryphon Gold Corporation</font></b><font size="2" style="color: black"><br>
  (an exploration stage company)&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">We have audited the accompanying
  consolidated balance sheets of <b>Gryphon Gold Corporation </b>(an exploration
  stage company) as of March 31, 2007 and 2006 and the related consolidated
  statements of operations, stockholders' equity and cash flows for each of the
  years in the three year period ended March 31, 2007 and for the period from
  April 24, 2003 (inception) to March 31, 2007. These financial statements are
  the responsibility of the Company's management. Our responsibility is to
  express an opinion on these financial statements based on our audits.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">We conducted our audits in accordance with
  the standards of the Public Company Accounting Oversight Board (United
  States). Those standards require that we plan and perform the audit to obtain
  reasonable assurance about whether the financial statements are free of
  material misstatement. We were not engaged to perform an audit of the
  Company's internal control over financial reporting. Our audits included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances but not
  for the purpose of expressing an opinion on the effectiveness of the Company's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements, assessing
  the accounting principles used and significant estimates made by management
  and evaluating the overall financial statement presentation. We believe that
  our audits provide a reasonable basis for our opinion.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In our opinion, the financial statements
  referred to above present fairly, in all material respects, the consolidated
  financial position of Gryphon Gold Corporation (an exploration stage company)
  at March 31, 2007 and 2006, and the consolidated results of its operations and
  its cash flows for each of the years in the three year period ended March 31
  2007 and for the period from April 24, 2003 (inception) to March 31, 2007, in
  conformity with United States generally accepted accounting principles.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt">
  <font size="2" style="color: black">
  <br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Vancouver, Canada,</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Ernst &amp; Young LLP</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">May 30, 2007.</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Chartered Accountants</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2">64</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">Gryphon Gold Corporation</font></b><font size="2" style="color: black"><br>
  (an exploration stage company)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <b><font size="4" style="color: black">CONSOLIDATED BALANCE SHEETS<br>
  </font></b><font size="2" style="color: black">(Stated in U.S. dollars)</font></p>
</div>
<div class="Section5">
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 4in; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">As at March 31</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 23.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 23.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 23.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">2007</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">$</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 23.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">2006</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">$</font></b></td>
    </tr>
    <tr style="height: 23.25pt">
      <td style="width: 70%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 70%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">ASSETS</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Current</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cash</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">7,150,154</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">9,390,925</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Accounts receivable</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">65,483</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">81,250</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 70%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Prepaid expenses</font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">129,065</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">110,090</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 70%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total current assets</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">7,344,702</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">9,582,265</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 70%; height: 12.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Reclamation deposit </font> <i>
      <font size="2">[note 9]</font></i></font></td>
      <td style="width: 15%; height: 12.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">134,759</font></b></td>
      <td style="width: 15%; height: 12.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">59,800</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Equipment </font> <i>
      <font size="2">[note 3]</font></i></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">153,362</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">152,946</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 70%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Mineral property costs </font> <i>
      <font size="2">[note 4]</font></i></font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">1,920,371</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,898,207</font></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="width: 70%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">9,553,194</font></b></td>
      <td style="width: 15%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">11,693,218</font></td>
    </tr>
    <tr style="height: 24.75pt">
      <td style="width: 70%; height: 24.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">LIABILITIES AND STOCKHOLDERS'
      EQUITY</font></b></td>
      <td style="width: 15%; height: 24.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 24.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Current</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Accounts payable and accrued
      liabilities</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">786,565</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,197,823</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 70%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Current portion of capital lease
      </font> <i><font size="2">[note 11]</font></i></font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">32,977</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">10,058</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 70%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total current liabilities</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">819,542</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,207,881</font></td>
    </tr>
    <tr style="height: 23.25pt">
      <td style="width: 70%; height: 23.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Capital lease<b> </b></font><i>
      <font size="2">[note 11]</font></i></font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">17,308</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">19,324</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Commitments and contingencies
      </font> <i><font size="2">[note 10]</font></i></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 70%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Stockholders' equity</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Common stock</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">47,298</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">40,295</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Additional paid-in capital</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">26,649,868</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">19,669,399</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 70%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Deficit accumulated during the
      exploration stage</font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 3.2pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(17,980,822)</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 3.2pt; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(9,243,681)</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 70%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total stockholders' equity</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">8,716,344</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">10,466,013</font></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="width: 70%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">9,553,194</font></b></td>
      <td style="width: 15%; height: 16.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">11,693,218</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font><i><font size="2" style="color: black">See
  accompanying notes</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;65</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">Gryphon
  Gold Corporation</font></b><font size="2" style="color: black"><br>
  (an exploration stage company)&nbsp;</font></p>
  <p class="MsoNormal" style="text-align: center; margin-bottom: 0pt" align="center">
  <b><font size="4" style="color: black">CONSOLIDATED STATEMENTS OF OPERATIONS</font></b><font size="4" style="color: black"><br>
  </font><font size="2" style="color: black">(Stated in U.S. dollars)<br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2006<br>
      $</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Period from <br>
      April 24, 2003 <br>
      (inception) <br>
      to March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">EXPENSES</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Exploration </font> <i>
      <font size="2">[note 5]</font></i></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">4,819,692</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,657,010</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">9,928,107</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Management salaries and
      consulting fees
      </font> <i>
      <font size="2">[note 7]</font></i></font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">2,632,794</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">1,145,626</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">5,243,152</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">General and administrative</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">890,596</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">480,891</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">1,574,528</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Legal and audit</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">330,005</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">307,942</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">960,487</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Travel and accommodation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">325,024</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">154,887</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">689,570</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Depreciation</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">53,368</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">22,918</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">85,430</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Loss on disposal of equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">19,722</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">19,722</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Foreign exchange (gain) loss</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(11,335)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">1,232</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(17,813)</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Interest income</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(322,725)</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(168,170)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(502,361)</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Net and comprehensive loss for the
      period</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(8,737,141)</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(5,602,336)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(17,980,822)</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 55%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Basic and diluted loss per share</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(0.21)</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(0.19)</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Basic and diluted weighted average
      number of common shares outstanding</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">41,242,535</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">29,350,317</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <i><font size="2" style="color: black">See accompanying notes</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2">66</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">Gryphon Gold Corporation</font></b><font size="2" style="color: black"><br>
  (an exploration stage company)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <b><font size="4" style="color: black">CONSOLIDATED STATEMENTS OF
  STOCKHOLDERS' EQUITY</font></b><font size="4" style="color: black"><br>
  </font><font size="2" style="color: black">(Stated in U.S. dollars)<br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 17.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 17.25pt" vAlign="top" width="25%" rowSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 17.25pt" vAlign="top" width="15%" colSpan="3">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="center">
      <b><font size="2" style="color: black">Common Stock</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 17.25pt" vAlign="top" width="15%" rowSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Additional Paid-In<br>
      Capital</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 17.25pt" vAlign="top" width="15%" rowSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Deficit Accumulated During the
      Exploration</font></b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Stage</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 17.25pt" vAlign="top" width="15%" rowSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Total</font></b></td>
    </tr>
    <tr style="height: 16.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 16.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Shares</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 16.5pt" vAlign="top" width="15%" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">Amount</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 25%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">#</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Balance, inception April 24, 2003</font></b></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Shares issued:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 0.6pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">For private placements <br>
      </font>
      <i><font size="2">[note 6[a]]</font></i></font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">21,691,962</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">21,692</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,002,883</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,024,575</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 0.6pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Share issue costs <br>
      </font>
      <i><font size="2">[note 6[a]]</font></i></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 9.5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(156,015)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 9.5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(156,015)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 0.6pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Compensation component of shares
      issued
      </font> <i>
      <font size="2">[note 7]</font></i></font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">226,000</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">226,000</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of agent's warrants
      issued
      </font> <i><font size="2">[note 6[b]]</font></i></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">45,100</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">45,100</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of options granted to
      a consultant
      </font>
      <i><font size="2">[note 6[c]]</font></i></font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">34,300</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">34,300</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Net loss from inception</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(3,641,345)</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(3,641,345)</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Balance, March 31, 2005</font></b></td>
      <td style="height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">21,691,962</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">21,692</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,152,268</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(3,641,345)</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,532,615</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Shares issued:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">For private placements</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,505,408</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,505</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,762,424</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,773,929</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Share issue costs</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 9.5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(489,013)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 9.5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(489,013)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Initial Public Offering (IPO)</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,900,000</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,900</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 8.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">5,029,597</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,036,497</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Share issue costs (IPO)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(2,241,940)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(2,241,940)</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of agents' warrants
      issued on private placements </font> <i><font size="2">[note 6[b]]</font></i></font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">111,640</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">111,640</font></td>
    </tr>
    <tr style="height: 33.75pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Fair value of underwriters'</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">compensation warrants on IPO</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2" style="color: black">[note 6[b]]</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">135,100</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 33.75pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">135,100</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 7.1pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercise of warrants</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">197,500</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">198</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">194,085</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">194,283</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of options granted to
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consultants </font> <i>
      <font size="2">[note 6[c]]</font></i></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">15,258</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">15,258</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Net loss for the period</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(5,602,336)</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(5,602,336)</font></td>
    </tr>
    </table>
  <p class="MsoNormal" style="text-indent: 2.75pt; line-height: 11pt; margin-bottom: 0pt" align="center">
  <font size="2">67</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 12pt">
      <td style="height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Balance, March 31, 2006</font></b></td>
      <td style="height: 12pt; border: medium none; padding: 0in" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,294,870</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,295</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,669,399</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(9,243,681)</font></td>
      <td style="height: 12pt; border: medium none; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">10,466,013</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Shares issued:</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">For private placements</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,129,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,129</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,966,518</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,971,647</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Share issue costs</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 14pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(95,505)</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 14pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(95,505)</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of agents' warrants
      issued on private placements </font> <i><font size="2">[note 6[a][b]]</font></i></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,397</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,397</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Fair value of options granted</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2" style="color: black">[note 6[c]]</font></i></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,314,961</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 22.5pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,314,961</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Fair value of stock granted</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <i><font size="2" style="color: black">[note 6[d]]</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">151,138</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">151,246</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercise of warrants</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,658,275</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,658</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,548,894</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 11.25pt; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,550,552</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercise of options</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">107,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">83,066</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">83,174</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Net loss for the period</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(8,737,141)</font></td>
      <td style="height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: 2.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(8,737,141)</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Balance, March 31, 2007</font></b></td>
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="bottom" colSpan="2">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">47,297,645</font></b></td>
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">47,298</font></b></td>
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">26,649,868</font></b></td>
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-INDENT: -1.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(17,980,822)</font></b></td>
      <td style="height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="bottom">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">8,716,344</font></b></td>
    </tr>
    <tr height="0">
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="175">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="105">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="49">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="105">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="105">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="105">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" width="105">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt; TEXT-ALIGN: left" align="left">
  <i><font size="2" style="color: black">See accompanying notes</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2">68</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">Gryphon Gold Corporation</font></b><font size="2" style="color: black"><br>
  (an exploration stage company)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <b><font size="4" style="color: black">CONSOLIDATED STATEMENTS OF CASH FLOWS</font></b><font size="4" style="color: black"><br>
  </font><font size="2" style="color: black">(Stated in U.S. dollars)<br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 59.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 59.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 59.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 59.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2006<br>
      $</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 59.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Period from<br>
      April 24, 2003 <br>
      (inception) to <br>
      March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 23.25pt">
      <td style="width: 55%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 23.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">OPERATING ACTIVITIES</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Net loss for the period</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(8,737,141)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.05pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(5,602,336)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(17,980,822)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Items not involving cash:</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Depreciation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">53,368</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">22,918</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">85,430</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Loss on disposal of equipment</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">19,722</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">19,722</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Compensation, shares and fair value of
      options issued for consulting fees</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">1,466,207</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">15,258</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">1,820,140</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 55%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Changes in non-cash working capital
      items:</font></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Amounts receivable</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">15,767</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(72,515)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(65,483)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Accounts payable and accrued
      liabilities</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 19.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(411,258)</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">744,630</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">786,565</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Prepaid expenses</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(18,975)</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(82,475)</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 19.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(129,065)</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 55%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Cash used in operating activities</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(7,612,310)</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.05pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(4,974,520)</font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(15,463,513)</font></td>
    </tr>
    <tr style="height: 23.25pt">
      <td style="width: 55%; height: 23.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 55%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">INVESTING ACTIVITIES</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Reclamation deposit</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(74,959)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 18.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(28,400)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 19.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(134,759)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Purchase of equipment</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(38,642)</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 13.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(123,546)</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 19.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(194,268)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Proceeds from sale of equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">3,950</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,950</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Mineral property expenditures</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(22,164)</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.05pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(1,122,881)</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(1,920,371)</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 55%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Cash used in investing activities</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 19.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(131,815)</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.05pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(1,274,827)</font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(2,245,448)</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 55%; height: 22.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 55%; height: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">FINANCING ACTIVITIES</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Capital lease payments</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(17,911)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(17,911)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cash received for shares issued</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">5,605,373</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">15,004,689</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">27,167,137</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Share issue costs</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 24.1pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(84,108)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 6.05pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(2,484,213)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(2,679,236)</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Subscription receivables collected</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">54,360</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">389,125</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 55%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Cash provided by financing
      activities</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">5,503,354</font></b></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">12,574,836</font></td>
      <td style="width: 15%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">24,859,115</font></td>
    </tr>
    <tr style="height: 22.5pt">
      <td style="width: 55%; height: 22.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black"><br>
      &nbsp;</font></b></td>
      <td style="width: 15%; height: 22.5pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: center; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="center">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 55%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Increase in cash during the period</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 11.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">(2,240,771)</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">6,325,489</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">7,150,154</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cash, beginning of period</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">9,390,925</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,065,436</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 55%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Cash, end of period</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">7,150,154</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">9,390,925</font></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:4pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">7,150,154</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font><i><font size="2" style="color: black">See
  accompanying notes</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2">69</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">1.
  NATURE OF OPERATIONS AND CONTINUANCE OF OPERATIONS</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Gryphon Gold Corporation and its
  subsidiary, Borealis Mining Company (collectively, &quot;the Company&quot;), were
  incorporated in the State of Nevada in 2003. The Company is an exploration
  stage company in the process of exploring its mineral properties, and has not
  yet determined whether these properties contain reserves that are economically
  recoverable.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The recoverability of amounts shown for
  mineral property interests in the Company's consolidated balance sheets are
  dependent upon the existence of economically recoverable reserves, the ability
  of the Company to arrange appropriate financing to complete the development of
  its properties, the receipt of necessary permitting and upon achieving future
  profitable production or receiving proceeds from the disposition of the
  properties. The timing of such events occurring, if at all, is not yet
  determinable.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><b>
  <font size="2" style="color: black">2. SUMMARY OF SIGNIFICANT ACCOUNTING
  POLICIES</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Basis of presentation</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">These consolidated financial statements
  are prepared in accordance with U.S. generally accepted accounting principles
  (&quot;GAAP&quot;). The consolidated financial statements include the accounts of the
  Company and its wholly owned subsidiary. All intercompany transactions and
  balances have been eliminated.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Use of estimates</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The preparation of financial statements in
  conformity with U.S. GAAP requires management to make estimates and
  assumptions that affect the reported amounts of assets and liabilities and the
  disclosure of any contingent assets and liabilities as at the date of the
  consolidated financial statements as well as the reported amounts of expenses
  incurred during the period. Significant areas requiring the use of management
  estimates include the determination of potential impairments of asset values,
  the calculation of fair values of options and warrants, and rates for
  depreciation of equipment. Actual results could differ from those estimates.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Financial instruments</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The Company's financial instruments
  consist of current assets and current liabilities, the fair value of which
  approximate their carrying values due to their short-term nature. Financial
  risk is the risk arising from fluctuations in foreign currency exchange rates.
  The Company does not use any derivative or hedging instruments to reduce its
  exposure to fluctuations in foreign currency exchange rates or metal prices.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Mineral property acquisition costs</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The costs of acquiring mineral properties
  are capitalized and will be amortized over their estimated useful lives
  following the commencement of production or expensed if it is determined that
  the mineral property has no future economic value or the properties are sold
  or abandoned.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Cost includes cash consideration and the
  fair market value of shares issued on the acquisition of mineral properties.
  Properties acquired under option agreements, whereby payments are made at the
  sole discretion of the Company, are recorded in the accounts at such time as
  the payments are made.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The recoverable amounts for mineral
  properties is dependent upon the existence of economically recoverable
  reserves; the acquisition and maintenance of appropriate permits, licenses and
  rights; the ability of the Company to obtain financing to complete the
  exploration and development of the properties; and upon future profitable
  production or alternatively upon the Company's ability to recover its spent
  costs from the sale of its interests. The amounts recorded as mineral
  properties reflect actual costs incurred and are not intended to express
  present or future values.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The capitalized amounts may be written
  down if potential future cash flows, including potential sales proceeds,
  related to the property are estimated to be less than the carrying value of
  the property. &nbsp;Management of the Company reviews the carrying value of each
  mineral property interest quarterly, and whenever events or changes in
  circumstances indicate that the carrying value may not be recoverable.
  &nbsp;Reductions in the carrying value of each property would be recorded to the
  extent the carrying value of the investment exceeds the estimated future net
  cash flows.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt" align="center">
  <font size="2" style="color: black">&nbsp;70</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in" align="justify"><b>
  <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Exploration and development costs</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Exploration costs are expensed as
  incurred. When it is determined that a mining deposit can be economically and
  legally extracted or produced based on established proven and probable
  reserves, further exploration costs and development costs incurred after such
  determination will be capitalized. The establishment of proven and probable
  reserves is based on results of final feasibility studies which indicate
  whether a property is economically feasible. Upon commencement of commercial
  production, capitalized costs will be transferred to the appropriate asset
  category and amortized over their estimated useful lives. Capitalized costs,
  net of salvage values, relating to a deposit which is abandoned or considered
  uneconomic for the foreseeable future, will be written off.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Foreign currency translation</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The U.S. dollar is the functional currency
  of the Company. Transactions involving foreign currencies for items included
  in operations are translated into U.S. dollars using the monthly average
  exchange rate; monetary assets and liabilities are translated at the exchange
  rate prevailing at the balance sheet date and all other balance sheet items
  are translated at the historical rates applicable to the transactions that
  comprise the amounts. Translation gains and losses are included in the
  determination of net income.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Equipment</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Equipment is recorded at cost and is
  comprised of office furniture, trucks, computers and lab equipment. &nbsp;The
  trucks are being amortized on a straight line basis over 2 years; other
  equipment is being amortized on a straight line basis over 5 years.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Income taxes</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Income taxes are accounted for using the
  liability method of tax allocation. Under this method deferred income tax
  assets and liabilities are recognized for the tax consequences of temporary
  differences by applying enacted statutory tax rates applicable to future years
  to differences between the financial statement carrying amounts and the tax
  bases of existing assets and liabilities.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The effect on deferred taxes for a change
  in tax rates is recognized in income in the period that includes the
  enactment. In addition, deferred tax assets are recognized to the extent their
  realization is more likely than not.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Stock-based compensation</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In December 2004, the Financial Accounting
  Standards Board issued Statement of Financial Accounting Standard (&quot;SFAS&quot;)
  123R, &quot;Share-Based Payment&quot;, (&quot;SFAS 123 (R)&quot;) a revision to SFAS 123. &nbsp;SFAS
  123(R) requires all share-based payments to be recognized in the financial
  statements based on their values using either a modified-prospective or
  modified-retrospective transition method.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Prior to March 31, 2006, the Company's
  stock-based employee compensation plans were accounted for under the
  recognition and measurement provisions of Accounting Principles Board Opinion
  (&quot;APB&quot;) No. 25, &quot;Accounting for Stock Issued to Employees&quot; (&quot;APB 25&quot;) and
  related interpretations, as permitted by FASB Statement No. 123, &quot;Accounting
  for Stock-Based Compensation&quot; (&quot;SFAS 123&quot;). &nbsp;The Company did not recognize
  employee stock-based compensation costs in its statement of operations for the
  periods prior to March 31, 2006 as all options granted had an exercise price
  equal to the market value of the underlying common stock on the date of the
  grant. &nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Effective April 1, 2006, the Company
  adopted the fair value recognition provisions of SFAS No. 123(R), using the
  modified-prospective-transition method. &nbsp;The Company's total employees are
  relatively few in number and turnover is considered remote, therefore the
  Company currently estimates forfeitures to be 5.5%. &nbsp;Estimation of forfeitures
  is reviewed on a quarterly basis. &nbsp;As a result of adopting FAS 123(R), the net
  loss for the year ended March 31, 2007 increased by $1,268,422 comparatively
  unrecognized expense for the prior year would have been $86,045. &nbsp;Both basic
  and diluted loss per share for the year ended March 31, 2007 increased by
  $0.03.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="center">
  <font size="2">71</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Loss per share</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Loss per common share is determined based
  on the weighted average number of common shares outstanding during the year.
  Diluted loss per share is calculated by the treasury stock method. Under the
  treasury stock method, the weighted average number of common shares
  outstanding for the calculation of diluted earnings per share assumes that the
  proceeds to be received on the exercise of dilutive stock options and warrants
  are applied to repurchase common shares at the average market price for the
  period. Stock options and warrants are dilutive when the Company has income
  from continuing operations and when the average market price of the common
  shares during the period exceeds the exercise price of the options and
  warrants.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in" align="justify"><b>
  <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Asset retirement obligations</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The Company records the fair value of an
  asset retirement obligation as a liability in the period in which it incurs a
  legal obligation associated with the retirement of tangible long-lived assets
  that results from the acquisition, construction, development or normal use of
  the assets with a corresponding increase in the carrying amount of the related
  long-lived asset. This amount is then depreciated over the estimated useful
  life of the asset. Over time, the liability is increased to reflect an
  interest element considered in its initial measurement at fair value. The
  amount of the liability will be subject to re-measurement at each reporting
  period. Currently, the Company has a reclamation liability of $5,600 which is
  disclosed further in Note 9.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Recent accounting pronouncements</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In June 2006, the FASB issued FASB
  interpretation No. 48 &#150; Accounting for Uncertainty in Income Taxes (&quot;FIN 48&quot;).
  &nbsp;FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
  an enterprise's financial statements in accordance with FASB Statement No.
  109, Accounting for Income Taxes. &nbsp;FIN 48 prescribes a recognition threshold
  and measurement attribute for the financial statement recognition and
  measurement of a tax position taken or expected to be taken in tax return.
  &nbsp;This Interpretation also provides guidance on derecognition, classification,
  interest and penalties, accounting in interim periods, disclosure and
  transition. &nbsp;This interpretation is effective for fiscal years beginning after
  December 15, 2006. &nbsp;The adoption of FIN 48 will not have a material impact on
  the Company's consolidated financial statements.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In September 2006, the FASB issued SFAS
  157, Fair Value Measurements (&quot;SFAS 157&quot;). &nbsp;SFAS 157 defines fair value,
  establishes a framework for measuring fair value in GAAP, and expands
  disclosures about fair value measurements. &nbsp;This Statement applies under other
  accounting pronouncements that require or permit fair value measurements, the
  Board having previously concluded in those pronouncements that fair value is a
  relevant measurement attribute. &nbsp;Accordingly, this Statement does not require
  any new fair value measurements. &nbsp;However, the application of this Statement
  will change current practice, effective December 1, 2007. &nbsp;The adoption of
  SFAS 157 will not have a material impact on the Company's consolidated
  financial statements.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; " align="justify">
  <b><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Reclassification</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">Certain comparative figures have been
  reclassified to conform to the current year presentation.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">3. EQUIPMENT</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">March 31, 2007</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Cost<br>
      $</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Accumulated <br>
      Depreciation<br>
      $</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Net Book Value<br>
      $</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Office and lab equipment</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 16.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">151,857</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 22.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">46,601</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 15.7pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">105,256</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Trucks under capital lease</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 21.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">71,319</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 22.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">23,213</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 20.7pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">48,106</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 16.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">223,176</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 22.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">69,814</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 15.7pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">153,362</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black"><br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">March 31, 2006</font></b></td>
    </tr>
    <tr style="height: 30.75pt">
      <td style="width: 55%; height: 30.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 30.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Cost<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="width: 15%; height: 30.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Accumulated <br>
      Depreciation<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="width: 15%; height: 30.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Net Book Value<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 9.75pt">
      <td style="width: 55%; height: 9.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Office and lab equipment</font></td>
      <td style="width: 15%; height: 9.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 16.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">152,504</font></td>
      <td style="width: 15%; height: 9.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 22.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">27,974</font></td>
      <td style="width: 15%; height: 9.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 15.7pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">124,530</font></td>
    </tr>
    <tr style="height: 0.75pt">
      <td style="width: 55%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="text-align: left; margin-bottom: 0pt; margin-top:0" align="left">
      <font size="2" style="color: black">Truck under capital lease</font></td>
      <td style="width: 15%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-indent: 21.3pt; text-align: right; margin-bottom: 0pt; margin-top:0" align="right">
      <font size="2" style="color: black">32,504</font></td>
      <td style="width: 15%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-indent: 27.55pt; text-align: right; margin-bottom: 0pt; margin-top:0" align="right">
      <font size="2" style="color: black">4,088</font></td>
      <td style="width: 15%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-indent: 20.7pt; text-align: right; margin-bottom: 0pt; margin-top:0" align="right">
      <font size="2" style="color: black">28,416</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 16.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">185,008</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 22.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">32,062</font></b></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 15.7pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">152,946</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">72</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b>
  <font size="2" style="color: black">4. MINERAL PROPERTY</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The Company initially entered into a
  property option agreement dated July 21, 2003 to acquire up to a 70% interest
  in the Borealis property in Nevada, USA from Golden Phoenix Minerals, Inc. for
  cash consideration of $125,000 and the obligation to make qualifying
  expenditures over several years. On January 28, 2005, the Company purchased
  outright the rights to a full 100% interest in the property for $1,400,000. A
  cash payment of $400,000 was made on closing and the Company accrued the
  outstanding liability of $1,000,000. &nbsp;This amount was paid in four quarterly
  payments of $250,000 over the following 12 months. </font> </p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 85%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Total</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 85%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 85%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Mineral property costs, &nbsp;March 31,
      2004</font></b></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 32.8pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">199,753</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 85%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expenditures during the year</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 25.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,575,573</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 85%; height: 14.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Mineral property costs, March 31,
      2005</font></b></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 25.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,775,326</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expenditures during the year</font></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 32.8pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">122,881</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 85%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Mineral property costs, March 31,
      2006</font></b></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 25.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,898,207</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 85%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expenditures during the year</font></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 37.8pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">22,164</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 85%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Mineral property costs, March 31,
      2007</font></b></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 25.3pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">1,920,371</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN: 9pt 0in 0pt; LINE-HEIGHT: 14pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">5. EXPLORATION</font></b></p>
  <p class="MsoNormal" style="MARGIN: 9pt 0in 0pt; LINE-HEIGHT: 14pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 58.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 58.5pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 58.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 58.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Year ended<br>
      March 31,<br>
      2006<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 58.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Period from <br>
      April 24, 2003 <br>
      (inception) to <br>
      March 31,<br>
      2007<br>
      </font>
      </b><font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 24pt">
      <td style="width: 55%; height: 24pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">NEVADA, USA</font></b></td>
      <td style="width: 15%; height: 24pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 24pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 24pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Borealis property</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 55%; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Exploration:</font></b></td>
      <td style="width: 15%; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 52.6pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 54.45pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Drilling</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">2,623,795</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,835,650</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 14.45pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">4,593,938</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Property maintenance</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">668,260</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">660,722</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 14.45pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,968,971</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Geologic and assay</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">657,976</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">414,595</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 14.45pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,223,939</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Project management</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">535,975</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">260,057</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 14.45pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,144,201</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Engineering</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">295,792</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">304,774</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 12pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 21.95pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">743,340</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 55%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Metallurgy</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">37,894</font></b></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">181,212</font></td>
      <td style="width: 15%; height: 12pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 21.95pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">253,718</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 55%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total exploration </font> </b></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">4,819,692</font></b></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">3,657,010</font></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 14.45pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">9,928,107</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">6.
  CAPITAL STOCK</font></b></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  &nbsp;</p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">a.&nbsp;&nbsp; Authorized capital stock
  consists of 150,000,000 common shares with a par value of $0.001 per share and
  15,000,000 preferred shares with a par value of $0.001 per share.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">On April 4, 2006, the Board of Directors
  approved, reserving 1,000,000 common shares to be granted as Restricted Stock
  Units. &nbsp;On July 24, 2006 the plan name was revised to the 2006 Omnibus
  Incentive Plan. &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: justify; margin-left:0in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">During the quarter ended June 30, 2006,
  the Company completed private placements to an officer and an employee of
  129,000 units at Cdn$1.35, with each unit comprising of one common share and &#189;
  of one common share 'series D' warrant. &nbsp;Each whole warrant entitles the
  holder to purchase a common share at a price of Cdn$1.82 per share until June
  10, 2007. &nbsp;Share issuance costs totaled $3,533 and the Company recorded
  compensation expense of $7,740 in relation to the discount received by the
  participants of the private placement.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;73</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">On February 9, 2007 the Company completed
  a private placement of 5,000,000 units at Cdn$0.90, each unit comprising of
  one common share and one series E warrant. &nbsp;Each series E warrant entitles the
  holder to purchase a common share at a price of Cdn$1.10 per share in year one
  and Cdn$1.35 per share in year two until February 9, 2009. The Company also
  issued 85,050 compensation warrants with a fair value of $11,397 (Series F
  warrants) to agents and are exercisable until February 9, 2008 at a price of
  Cdn$0.90 per share. &nbsp;Share issuance costs in addition to the broker warrant
  valuation was $80,575. &nbsp;The Company has a right to force warrant holders to
  exercise warrants if the common share price of the Company remains equal to or
  greater than Cdn$1.85 per common share for a period of twenty consecutive
  days.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">b.&nbsp; Warrants:&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">The following table contains information
  with respect to all warrants:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Number of Warrants</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Fair Value of Agents' and
      <br>
      Underwriter Warrants</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 70%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">#</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">$</font></td>
    </tr>
    <tr style="height: 23.25pt">
      <td style="width: 70%; height: 23.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Warrants outstanding, March 31,
      2004</font></b></p>
      </td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; height: 23.25pt; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 56.7pt; TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 56.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Private placements</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,407,981</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Agent's compensation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">141,008</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">45,100</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Warrants outstanding, March 31,
      2005</font></b></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,548,989</font></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">45,100</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 56.7pt; TEXT-ALIGN: left; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="left">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 56.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black"><br>
      &nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Private placements</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,015,204</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Agent's compensation on private
      placement</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">130,000</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">35,100</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Initial Public Offering (IPO) &#150; Series
      A</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">6,900,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Underwriters' compensation on IPO</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">690,000</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">135,100</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Private placements &#150; Series B</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,737,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Agents' compensation on private
      placement - Series C </font> </td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">280,500</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">76,540</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 17.5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(197,500)</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Warrants outstanding, March 31,
      2006</font></b></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 11.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">17,104,693</font></td>
      <td style="width: 15%; height: 12pt; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">291,840</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Private placements &#150; Series D</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">64,500</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Private Placements &#150; Series E</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">5,000,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Agent's compensation on private
      placement &#150; Series F</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">85,050</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 29.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">11,397</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 10pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(1,658,275)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 70%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expired</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(15,175,410)</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 54.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="width: 70%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Warrants outstanding, March 31,
      2007</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 16.7pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">5,420,558</font></b></td>
      <td style="width: 15%; height: 13.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-INDENT: 24.2pt; TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">303,237</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">The following table summarizes information
  about warrants outstanding and exercisable as at March 31, 2007:<br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 100%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%" colSpan="4">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Warrants Outstanding and Exercisable</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Average Remaining Life</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Warrants</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Years</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Exercise Price</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Expiry date</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">#</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">#</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">130,000</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.1</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$0.65</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">April 1, 2007</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">64,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.2</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">Cdn$1.82</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">June 10, 2007</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">141,008</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.8</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$0.65</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">January 28, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">85,050</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">0.9</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">Cdn$0.90</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">February 9, 2008</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">5,000,000</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1.9</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">Cdn$1.10*</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">February 9, 2009</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">5,420,558</font></b></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1.8</font></b></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$0.96**</font></b></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="TEXT-ALIGN: justify; margin-left:0in; margin-right:0in; margin-top:4pt; margin-bottom:0pt" align="left">
  <i><font size="2" style="color: black">*The warrants are exercisable through
  February 8, 2008 &nbsp;at Cdn$1.10 and exercisable at Cdn$1.35 per unit thereafter.<br>
  ** Based on the March 31, 2007 exchange rate of Cdn$1.1546 equals US$1.</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt" align="center">
  <font size="2" style="color: black">&nbsp;74</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The fair value of agents' and
  underwriters' warrants issued during 2007 and 2006 has been estimated using
  the Black-Scholes Option Pricing Model based on the following assumptions
  respectively: a risk-free interest rate of 3.38% to 5.21% as of the date of
  transaction; expected life of 1 to 3 years depending on their terms; an
  expected volatility of 53% to 70% (based on the average volatility of
  companies in the industry at date of issuance for period equivalent to the
  expected life); and no expectation for the payment of dividends.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">c.&nbsp; Stock options:&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In August 2005, two newly appointed
  directors were granted 300,000 options which vest over the following 18 months
  and are exercisable for 5 years at a price of $0.75 per share. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In September 2005, a newly appointed
  officer was granted 100,000 options which vest over the following 24 months
  and are exercisable for 5 years at a price equal to the initial public
  offering price of units of Cdn$0.85 per share.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">In November 2005, two employees were
  granted 95,000 options and a consultant was granted 20,000 options. These
  options vest over 18 to 24 months and are exercisable for 5 years at a price
  equal to the initial public offering price of units of Cdn$0.85 per share. &nbsp;&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">During the quarter ended March 31, 2006,
  the Company granted a total of 420,000 stock options, 245,000 to four
  employees exercisable at prices between Cdn$1.15 - Cdn$1.37 and 175,000 to
  three consultants exercisable at prices between Cdn$1.25 &#150; Cdn$1.37. &nbsp;These
  options vest over 14 to 24 months and are exercisable for 5 years from the
  date of the grant.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On April 4, 2006 (amended July 24, 2006),
  the Board of Directors approved the 2006 Omnibus Incentive Plan, which
  increased the number of reserved shares of common stock for issuance to
  employees, officers, directors, consultants and advisors, from 3,000,000 to
  7,000,000 shares. &nbsp;Within the increased number of shares reserved the 2006
  Omnibus Incentive Plan allowed 1,000,000 shares to be granted as restricted
  stock units. &nbsp;On April 4, 2006, 1,570,000 options were granted to directors,
  officers and a consultant, of which 1,475,000 have been granted under the 2006
  Omnibus Incentive Plan and vest on anniversary date of the grant, 95,000
  options were granted under the previous incentive plan and vest over 24
  months. &nbsp;On vesting, the options granted are exercisable for 5 years at a
  price of Cdn$1.37 per share. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On April 18, 2006, the Board of Directors
  approved the grant of 290,000 stock options to an officer, employee and a
  consultant. &nbsp;The options vest over 12 to 30 months and are exercisable, once
  vested, for 5 years at a price of Cdn$1.37 per share. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On May 26, 2006, the Board of Directors
  approved the grant of 30,000 stock options to an outside consulting firm who
  will be providing certain investor relations services to the company. &nbsp;The
  options vest over the next 24 months and are exercisable for 5 years from the
  date of grant at a price of Cdn$1.60 per share.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On July 24, 2006, the Board of Directors
  approved the grant of 80,000 stock options to two outside consulting firms who
  will be providing certain investor relations and consulting services to the
  company. &nbsp;The options vest within 12 months and are exercisable for 5 years
  from the date of grant at a price of Cdn$1.29 per share. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The 2006 Omnibus Incentive Plan was
  ratified by the shareholders at the company's annual general meeting on
  September 12, 2006, along with all options previously granted that were
  pending such ratification.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On September 25, 2006, the Board of
  Directors approved the grant of 40,000 stock options to an employee of the
  Company. &nbsp;The options vest over 4 to 24 months and are exercisable for 5 years
  at a price of Cdn$1.37 per share.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On October 31, 2006, the Company granted
  of 50,000 stock options to an outside consulting firm who are providing
  certain investor relations services to the company. &nbsp;The options vest over the
  next 15 months and are exercisable for 5 years from the date of grant at a
  price of Cdn$1.34 per share.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">On January 10, 2007, the Company granted
  three employees a total of 190,000 options and 50,000 options to a consultant.
  &nbsp;These options vest over a period of 12 months with 50% vesting immediately
  and the balance in 12 months and are exercisable for 5 years at a price of
  Cdn$0.81 per share.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="center">
  <font size="2">75</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: -1.45pt; text-align: justify; margin-left: 0in; margin-right: 0in; margin-top: 5pt; margin-bottom: 0pt; background: white" align="left">
  <font size="2" style="color: black">On January 28, 2007, the Company granted
  20,000 options to a consultant which are exercisable for 5 years. &nbsp;The options
  vest within 12 months and are exercisable at a price of Cdn$0.88 per share.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">On February 26, 2007, the Company granted
  425,000 options to certain officers of the Company. &nbsp;These options vest over a
  period of 12 months with 50% vesting immediately and the balance in 12 months
  and are exercisable for 5 years at a price of Cdn$0.80 per share.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">The Company recognizes stock-based
  compensation expense over the requisite service period of the individual
  grants, which generally equals the vesting period. &nbsp;SFAS 123(R) requires
  forfeitures to be estimated at the time of grant and revised, if necessary, in
  subsequent periods if actual forfeitures differ from those estimates.
  &nbsp;Stock-based compensation is expensed on a straight-line basis over the
  requisite service period.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">For the years ended March 31, 2007 and
  2006, the Company recorded total stock-based compensation expense related to
  stock options and restricted stock units as follows:&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 355.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="474">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 166.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="222">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Year Ended March 31, 2007</font></b></td>
      <td style="width: 153.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Year Ended March 31, 2006</font></b></p>
      </td>
    </tr>
    <tr>
      <td style="width: 355.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="474">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Management salaries </font> </td>
      <td style="width: 166.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="222">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 39.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,343,164</font></td>
      <td style="width: 153.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 78.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 355.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="474">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Consulting fees</font></td>
      <td style="width: 166.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="222">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 47.25pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">123,043</font></td>
      <td style="width: 153.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 53.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">15,258</font></td>
    </tr>
    <tr>
      <td style="width: 355.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="474">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Total stock-based compensation</font></b></td>
      <td style="width: 166.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="222">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 39.75pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">1,466,207</font></b></td>
      <td style="width: 153.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 53.55pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">15,258</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN: 8.35pt 0in 0pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  &nbsp;</p>
  <p class="MsoNormal" style="MARGIN: 8.35pt 0in 0pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <i><font size="2" style="color: black">Stock option activity</font></i><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">The following table summarizes the
  Company's stock option activity for the years ended March 31, 2007 and 2006:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  &nbsp;</p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 40%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year Ended </font> </b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">March </font> </b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">31, 2007</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Weighted Average exercise price</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">Year Ended </font> </b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">March</font></b></p>
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">31, 2006</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Weighted Average exercise price</font></b></td>
    </tr>
    <tr>
      <td style="width: 40%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Outstanding at April 1, 2006</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,879,000</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.77</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,000,000</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.75</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 40%; PADDING-TOP: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Granted</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,745,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$1.06</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">935,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.84</font></td>
    </tr>
    <tr>
      <td style="width: 40%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(107,500)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.77</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 40%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Forfeited</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(234,000)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$1.11</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">(56,000)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$1.07</font></td>
    </tr>
    <tr>
      <td style="width: 40%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Outstanding at March 31, 2007</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">5,282,500</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.91</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,879,000</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.77</font></td>
    </tr>
    <tr>
      <td style="width: 40%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Vested and exercisable at March 31,
      2007</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">3,205,000</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.81</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:3pt; margin-top:0; margin-bottom:0pt" align="right">
      <font size="2" style="color: black">2,272,000</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.75</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;The following table summarizes
  information about stock options outstanding as at March 31, 2007:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 705.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="941" colSpan="5">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Stock Options Outstanding and
      Exercisable</font></b></td>
    </tr>
    <tr>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Stock Options</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Outstanding</font></b></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Average Remaining Life</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">(Years)</font></b></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Stock Options</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Exercisable</font></b></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Average Remaining Life</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">of Exercisable (Years)</font></b></td>
      <td style="width: 141.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Weighted Average exercise price</font></b></td>
    </tr>
    <tr>
      <td style="width: 141pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2,262,500</font></td>
      <td style="width: 141pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.0</font></td>
      <td style="width: 141pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2,262,500</font></td>
      <td style="width: 141pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.0</font></td>
      <td style="width: 141.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">$0.75</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">115,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.6</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">75,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.6</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141.75pt; PADDING-TOP: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.85</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">90,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.8</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">54,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.8</font></td>
      <td style="width: 141.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.15</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.8</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3.8</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141.75pt; PADDING-TOP: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.25</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">205,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.0</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">106,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.0</font></td>
      <td style="width: 141.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">1,715,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">5.0</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">290,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">5.0</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141.75pt; PADDING-TOP: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">30,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">5.2</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">5.2</font></td>
      <td style="width: 141.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.60</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">80,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.3</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">30,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.3</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141.75pt; PADDING-TOP: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.29</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.6</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.6</font></td>
      <td style="width: 141.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.34</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">240,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.8</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">120,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141pt; PADDING-TOP: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.8</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 141.75pt; PADDING-TOP: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.81</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">20,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.8</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">5,000</font></td>
      <td style="width: 141pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.8</font></td>
      <td style="width: 141.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.88</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">425,000</font></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.9</font></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">212,500</font></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.9</font></td>
      <td style="width: 141.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
    </tr>
    <tr>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">5,282,500</font></b></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">3,205,000</font></b></td>
      <td style="width: 141pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="188">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 141.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="189">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">$0.91*</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN: 6pt 0in 0pt; LINE-HEIGHT: 11pt; TEXT-ALIGN: left" align="left">
  <i><font size="2" style="color: black">* Based on the March 31, 2007 exchange
  rate of Cdn$1.1546 equals US$1.</font></i></p>
  <p class="MsoNormal" style="LINE-HEIGHT: 11pt; TEXT-ALIGN: center; margin-left:0in; margin-right:0in; margin-top:6pt; margin-bottom:0pt" align="left">
  <font size="2">76</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <i><font size="2" style="color: black">Valuation assumptions</font></i><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">Compensation expense recorded in the
  financial statements has been estimated using the Black-Scholes option pricing
  model. The assumptions used in the pricing model include:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: -0.25in; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 285.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2.75in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">2007</font></b></td>
      <td style="width: 192pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">2006</font></b></td>
    </tr>
    <tr>
      <td style="width: 285.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 2.75in; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 192pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 285.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Dividend yield</font></td>
      <td style="width: 2.75in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">0%</font></b></td>
      <td style="width: 192pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0%</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 285.75pt; PADDING-TOP: 0in" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expected volatility</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 2.75in; PADDING-TOP: 0in" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">55%</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 192pt; PADDING-TOP: 0in" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">53% - 70%</font></td>
    </tr>
    <tr>
      <td style="width: 285.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Risk free interest rate</font></td>
      <td style="width: 2.75in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">4.54% - 5.21%</font></b></td>
      <td style="width: 192pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">3.38% - 4.7%</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 285.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="381">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Expected lives</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 2.75in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="264">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">3 years</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 192pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="256">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">3 years</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2">The risk-free interest rate is determined based on the rate at
  the time of grant for US government zero-coupon bonds for a 3 year term which
  is a term equal to the estimated life of the option. &nbsp;Dividend yield is based
  on the stock option's exercise price and expected annual dividend rate at the
  time of grant. &nbsp;Volatility is derived by measuring the average share price
  fluctuation of three publicly listed companies that operate in the same
  industry. &nbsp;The period of historical volatility is the same period as the
  expected life of the option being 3 years. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Black-Scholes
  option-pricing model used by the Company to calculate option values was
  developed to estimate the fair value of freely tradeable, fully transferable
  options without vesting restrictions, which significantly differ from the
  Company's stock option awards. &nbsp;Options pricing models require the input of
  highly subjective assumptions, including future stock price volatility and
  expected time until exercise, which greatly affect the calculated values.
  Changes in these assumptions can materially affect the fair value estimate and
  therefore it is management's view that the existing models do not necessarily
  provide a single reliable measure of the fair value of the Company's equity
  instruments.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">d.&nbsp; Restricted stock units:&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On April 4, 2006, the
  Board of Directors approved the grant of 8,000 restricted stock units ('RSU')
  to an officer of the company. The RSU's will vest over 12 to 24 months from
  the date of grant and once vested will entitle the grantee to 8,000 common
  shares in the Company.</font></p>
  <p class="MsoNormal" style="margin-left:0in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">On December 12, 2006, the Board of
  Directors approved the grant of 15,000 restricted stock units ('RSU') to an
  employee of the company. &nbsp;The RSU's will vest over 12 months from the date of
  grant and once vested will entitle the grantee to 15,000 common shares in the
  Company.</font></p>
  <p class="MsoNormal" style="margin-left:0in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">On January 10, 2007, 650,000 restricted
  stock units ('RSU') were granted to employees, officers and directors of the
  Company. &nbsp;The RSU's will vest within 18 months of granting and once vested
  will entitle the grantee one common share for each RSU.</font></p>
  <p class="MsoNormal" style="margin-left:0in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">The Company recognizes stock-based
  compensation is expensed on a straight-line basis over the requisite service
  period of the individual grants, which is generally equals the service period.
  &nbsp;The value of the restricted stock unit is calculated using the closing price
  of the Company's common stock on the date of the grant.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The following table summarizes information
  about restricted stock units outstanding as at March 31, 2007:</font></p>
  <p class="MsoNormal" style="MARGIN: 8.35pt 0in 0pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 298.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="398">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 112.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">RSU's</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Granted</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 116.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">RSU's</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Vested</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 132.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="177">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2" style="color: black">Weighted Average <br>
      Fair Value at Grant Date</font></b></td>
    </tr>
    <tr>
      <td style="width: 298.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="398">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Outstanding at April 1, 2006</font></td>
      <td style="width: 112.5pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 116.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 132.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="177">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 298.5pt; PADDING-TOP: 0in" vAlign="top" width="398">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued April 18, 2006</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">8,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116.25pt; PADDING-TOP: 0in" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">8,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132.75pt; PADDING-TOP: 0in" vAlign="top" width="177">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.63</font></td>
    </tr>
    <tr>
      <td style="width: 298.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="398">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued December 12, 2006</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">15,000</font></td>
      <td style="width: 116.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font style="COLOR: black"><font size="2">7,500</font><sup><font size="2">*</font></sup></font></td>
      <td style="width: 132.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="177">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.84</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 298.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="398">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Issued January 10, 2007</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 112.5pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">650,000</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 116.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">100,000</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 132.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="177">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.82</font></td>
    </tr>
    <tr>
      <td style="width: 298.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="398">
      <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="left">
      <b><font size="2" style="color: black">Outstanding at December 31, 2006</font></b></td>
      <td style="width: 112.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">673,000</font></b></td>
      <td style="width: 116.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">115,500</font></b></td>
      <td style="width: 132.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="177">
      <p class="MsoNormal" style="TEXT-ALIGN: right; margin-left:0in; margin-right:0in; margin-top:0; margin-bottom:0pt" align="right">
      <b><font size="2" style="color: black">$0.71</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font style="COLOR: black"><font size="2">&nbsp;*</font><i><font size="2">Vested on
  March 31, 2007. &nbsp;Stock certificate issued on April 1, 2007.</font></i></font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;&nbsp;77</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">All transactions with related parties have
  occurred in the normal course of operations and are measured at their exchange
  amount as determined by management. All material transactions and balances
  with related parties not disclosed elsewhere are described below.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">During the year ended March 31, 2007, the
  Company paid consulting fees to non-independent directors and officers in the
  amount of $150,353 [March 31, 2006 - $92,112; March 31, 2005 - $429,946;
  Period from inception to March 31, 2004 - $395,817] for services rendered on
  the exploration of the Borealis property.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">8. INCOME TAXES</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">Deferred income taxes reflect the net tax
  effects of temporary differences between the carrying amounts of assets and
  liabilities for financial reporting purposes and the amounts used for income
  tax purposes. Significant components of the Company's deferred tax balances
  are as follows:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 42%; PADDING-TOP: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border: medium none; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border: medium none; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border: medium none; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 42%; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Deferred tax assets</font></b></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 42%; PADDING-TOP: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net operating loss carryforwards</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,203,058</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,944,038</font></td>
    </tr>
    <tr>
      <td style="width: 42%; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property basis</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">451,485</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">321,245</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 42%; PADDING-TOP: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Feasibility costs</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">316,511</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">167,067</font></td>
    </tr>
    <tr>
      <td style="width: 42%; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Exploration costs</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,131,024</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,100,391</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 42%; PADDING-TOP: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Stock compensation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">543,376</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 42%; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Reclamation costs</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,075</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Equipment</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">6,588</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,730</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border: medium none; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Total deferred tax assets</font></td>
      <td style="width: 29%; border: medium none; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">6,654,117</font></td>
      <td style="width: 29%; border: medium none; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,534,471</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Valuation allowance</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(6,651,419)</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(3,502,530)</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net deferred tax assets</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,698</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">31,941</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border: medium none; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border: medium none; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border: medium none; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 42%; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Deferred tax liabilities</font></b></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 42%; PADDING-TOP: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Prepaid expenses</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,698)</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(31,941)</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Total deferred tax liabilities</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,698)</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(31,941)</font></td>
    </tr>
    <tr>
      <td style="width: 42%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="42%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;The potential income tax benefits
  relating to the deferred tax assets have not been recognized in the
  consolidated financial statements as their realization did not meet the
  requirements of &quot;more likely than not&quot; under the liability method of tax
  allocation. Accordingly, no deferred tax assets have been recognized as at
  March 31, 2007 and 2006.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The reconciliation of income taxes
  attributable to continuing operations computed at the statutory income tax
  rate of 37.06 % [2006 - 37.06%] is as follows:</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 12pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 43%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 43%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 28%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 29%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 43%; height: 15pt; border: medium none; padding: 0in" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 28%; height: 15pt; border: medium none; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; height: 15pt; border: medium none; padding: 0in" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 43%; height: 11.25pt; padding: 0in; background: #edebd3" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Tax at statutory tax rates</font></td>
      <td style="width: 28%; height: 11.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(3,057,999)</font></td>
      <td style="width: 29%; height: 11.25pt; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(913,588)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 43%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">State taxes, net of federal benefit</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(179,985)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 29%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="29%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(53,771)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 43%; height: 11.25pt; padding: 0in; background: #edebd3" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Non-deductible items</font></td>
      <td style="width: 28%; height: 11.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,101</font></td>
      <td style="width: 29%; height: 11.25pt; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,030</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 43%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Change in valuation allowance</font></td>
      <td style="width: 28%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="28%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,228,883</font></td>
      <td style="width: 29%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">966,329</font></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 43%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="43%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 28%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 29%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in; background: #edebd3" width="29%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">At March 31, 2007 the Company has
  non-capital losses of approximately $8.6 million [2006 - $5.2 million] in the
  United States available for future deduction from taxable income and which
  expire prior to 2026. The Company has not recognized as an asset any of these
  potential deductions as it cannot be considered more likely than not that they
  will be utilized.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt" align="center">
  <font size="2" style="color: black">&nbsp;78</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">&nbsp;9. RECLAMATION DEPOSIT</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">During the year ended March 31, 2007, the
  Company increased the amount of their performance bond from $59,800 to
  $108,176 by purchasing a further performance bond in the amount of $48,376
  from an insurance company. &nbsp;The Company earned $5,583 of interest income from
  the purchase of the bond. &nbsp;The total bond purchase is in support of the
  potential future obligations the Company may incur under a Plan of Operation
  for exploration within the brown-field area of the Borealis property filed
  with the U.S. Forest Service. &nbsp;The Company also deposited directly $21,000
  with the Bureau of Land Management (&quot;BLM&quot;) in support of its potential future
  obligations for reclamation during the Company's exploration activities within
  the BLM area. At March 31, 2007, the Company recorded a reclamation liability
  of $5,600 (March 31, 2006 &#150; $7,000) representing future obligations related to
  its drilling activities completed to March 31, 2007. The Company continues to
  hold the bond in support of potential future obligations under the Plan of
  Operation for exploration filed with the U.S. Forest Service.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">10. COMMITMENTS &amp; CONTINGENCIES</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">a.&nbsp;&nbsp;&nbsp;&nbsp; A portion of
  the Borealis Property is subject to a mining lease. The Company is required to
  make monthly lease payments of $9,094, adjusted annually based on the Consumer
  Price Index, for the duration of the lease term. In addition, production of
  precious metals from the Borealis Property will be subject to the payment of a
  royalty under the terms of the mining lease. The mining lease expires in 2009,
  but may be renewed by the Company annually thereafter, so long as mining
  activity continues on the Borealis Property. The Company has the option to
  terminate the mining lease at any time prior to expiry in 2009.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">b..&nbsp;&nbsp;&nbsp; The Company rents
  office space in Vancouver, BC on a 3 year term. &nbsp;The following are rental
  lease commitments in relation to the office lease:</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; LINE-HEIGHT: 12pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border: medium none; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border: medium none; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; padding: 0in; background: #edebd3" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">2008</font></td>
      <td style="width: 49%; padding: 0in; background: #edebd3" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">35,029</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">2009</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">14,595</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">c.&nbsp;&nbsp;&nbsp;&nbsp; During December
  2006, the Company closed its Lakewood, Colorado office and terminated certain
  office staff. &nbsp;Closure costs totalled to $96,964, which included various lease
  buyouts, and are included in general and administration expenses.</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">d.&nbsp;&nbsp;&nbsp;&nbsp; On January 18,
  2007, the Company was served with a motion to compel arbitration regarding the
  non-payment of severance to the former Chief Operating Officer. &nbsp;On April 19,
  2007, a comprehensive settlement agreement was reached that included a
  one-time payment by the Company of $75,000.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><font size="2" style="color: black">11. CAPITAL LEASE</font></b></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:8.35pt; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">a.&nbsp;&nbsp;&nbsp;&nbsp; The Company
  entered into a lease, maturing in May 2008, to acquire a second truck. &nbsp;The
  financing for both trucks are accounted for as capital leases, with the
  present value of the required lease payments recorded as a liability and an
  asset at inception and thereafter lease payments reduce the liability and
  result in interest expense and the asset is depreciated. &nbsp;The actual combined
  lease payments are $2,371 per month with a residual payment of $12,000 due
  October 2007 and $13,854 due May 2008.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">The present value of required payments
  during each fiscal year is as follows:<br>
  &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 80%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border: medium none; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 80%; border: medium none; padding: 0in" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; padding: 0in; background: #edebd3" width="49%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">2008</font></td>
      <td style="width: 80%; padding: 0in; background: #edebd3" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">32,977</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 49%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="49%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">2009</font></td>
      <td style="width: 80%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">17,308</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="left">
  <font size="2">79</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <font size="4" style="color: black">Unaudited Interim Consolidated Financial
  Statements<br>
  &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="4" style="color: black">Gryphon Gold Corporation</font></b><font size="4" style="color: black"><br>
  (an exploration stage company)<br>
  As of December 31, 2007<br>
  (Stated in U.S. dollars)</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2">80</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">Gryphon Gold Corporation<br>
  (an exploration stage company)</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font style="COLOR: black" size="4">CONSOLIDATED BALANCE SHEETS<br>
  </font></b><font size="2" style="color: black">(Stated in US dollars)<br>
  (unaudited)</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">As at</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31,</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2007</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 132pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">ASSETS</font></b></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Current</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Cash</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,541,213</font></b></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,150,154</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Accounts receivable</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">85,415</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">65,483</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Prepaid expenses</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">157,553</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">129,065</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Total Current Assets</font></b></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,784,181</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,344,702</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Mineral properties [<i>note 5</i>]</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">12,619,565</font></b></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,920,371</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Equipment [<i>note 4</i>]</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">158,042</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">153,362</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Other assets [<i>note 9</i>]</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">261,389</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">134,759</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 372pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 132pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">18,823,177</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 75.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 99.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,553,194</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">LIABILITIES AND STOCKHOLDERS, EQUITY</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Current</font></b></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Accounts payable and accrued
      liabilities</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">1,050,614</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">786,565</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Current portion of capital lease [<i>note
      11</i>]</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">32,536</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">32,977</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Total current liabilities</font></b></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">1,083,150</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">819,543</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Convertible promissory note [<i>note
      12</i>]</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">4,366,656</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">-</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Capital lease [<i>note 11</i>]</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">-</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">17,308</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Commitments &amp; contingencies [<i>note
      10</i>]</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Stockholders' equity</font></b></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 372pt; PADDING-TOP: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Common stock</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 132pt; PADDING-TOP: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">61,682</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 99.75pt; PADDING-TOP: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">47,298</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Additional paid-in capital</font></td>
      <td style="width: 132pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">37,756,189</font></b></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">26,649,868</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Deficit accumulated during the
      exploration stage</font></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">(24,444,500)</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,980,822)</font></td>
    </tr>
    <tr>
      <td style="width: 372pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Total stockholders' equity</font></b></td>
      <td style="width: 132pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">13,373,371</font></b></td>
      <td style="width: 75.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 99.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">8,716,344</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 372pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="496">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 132pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="176">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">18,823,177</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 75.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="101">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 99.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="133">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,553,194</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">See accompanying notes</font></i></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">81</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="page-break-before: always; text-align: left" align="left">
  <font size="2">&nbsp;</font><b><font size="2" style="color: black">Gryphon Gold
  Corporation<br>
  (an exploration stage company)</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font style="COLOR: black" size="4">CONSOLIDATED STATEMENT OF OPERATIONS<br>
  </font></b><font size="2" style="color: black">(Stated in US dollars)<br>
  (Unaudited)</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Period from</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">April 24, 2003</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 184.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom" width="246" colSpan="2">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Months Ended</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 190.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="254" colSpan="2">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nine Months Ended</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">(inception) to </font> </b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2006</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2006</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 0.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;</font></b></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 86.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 83.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exploration [<i>note 6</i>]</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">661,007</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,328,514</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,414,405</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,649,732</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">13,342,512</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Management salaries and consulting
      fees</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">529,729</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">855,562</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,663,160</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,746,164</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,906,312</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">General and administrative</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">254,831</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">240,219</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">812,436</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">721,437</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">2,386,964</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Legal and audit</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">111,020</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">106,258</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">308,877</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">271,017</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,269,364</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Travel and accommodation</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">68,704</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">96,678</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">172,408</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">282,117</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">861,978</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Depreciation</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">18,746</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">14,625</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">48,983</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,107</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">134,413</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Loss on disposal of equipment</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">-</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,135</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,552</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,135</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">26,274</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Foreign exchange (gain) loss</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,034</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">25,776</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">18,336</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">4,801</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">523</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Interest income</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(40,782)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(66,303)</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(170,332)</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(242,832)</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(672,693)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Interest expense</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">130,300</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">-</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">188,853</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">-</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">188,853</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Net loss for the period</font></b></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,736,589)</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(2,620,464)</font></td>
      <td style="width: 0.25in; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,463,678)&nbsp;</font></td>
      <td style="width: 86.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,491,678)&nbsp;</font></td>
      <td style="width: 83.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(24,444,500)&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 188.25pt; PADDING-TOP: 0in" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 86.25pt; PADDING-TOP: 0in" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 83.25pt; PADDING-TOP: 0in" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 188.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Basic and diluted loss per share</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 84.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$(0.03)&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 84.75pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;$(0.06)</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 0.25in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 89.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$(0.13)&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 86.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$(0.16)&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 83.25pt; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 86.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 83.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 188.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="251">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Basic and diluted weighted average
      number of common shares outstanding</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">58,954,952</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">41,703,926</font></td>
      <td style="width: 0.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="24">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">49,764,662</font></td>
      <td style="width: 86.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="115">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,518,405</font></td>
      <td style="width: 83.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="111">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">See accompanying notes</font></i></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">82</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="page-break-before: always; text-align: left" align="left">
  <font size="2">&nbsp;</font><b><font size="2" style="color: black">Gryphon Gold
  Corporation<br>
  (an exploration stage company)</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font style="COLOR: black" size="4">CONSOLIDATED STATEMENT OF <br>
  STOCKHOLDERS EQUITY<br>
  </font></b><font size="2" style="color: black">(Stated in US dollars)<br>
  (Unaudited)</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Deficit</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">accumulated</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Additional </font> </b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">during the</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 175.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom" width="234" colSpan="2">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">paid-in</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">exploration</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Shares</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Amount</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">capital</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">stage</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></b></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">#</font></b></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</font></b></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Balance, inception April 24 , 2003</font></b></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Shares issued</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For private placements</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">33,197,370</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">33,197</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">16,765,307</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">16,798,504</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Share issue costs</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(645,048)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(645,048)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Initial Public Offering (IPO)</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,900,000</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,900</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,029,597</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,036,497</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Share issue costs (IPO)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(2,241,940)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(2,241,940)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Compensation component of shares
      issued</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">226,000</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">226,000</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of agent's warrants issued
      [<i>note 7[b]</i>]</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">156,740</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">156,740</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of underwriters
      compensation warrant on IPO </font> <i><font size="2">[note 7[b]]</font></i></font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">135,100</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">135,100</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercise of warrants</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">197,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">198</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">194,085</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">194,283</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of options granted to
      </font> </td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">consultant [<i>note 7[c]</i>]</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">49,558</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">49,558</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Net loss for the year</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(9,243,681)</font></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(9,243,681)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Balance, March 31, 2006</font></b></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,294,870</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,295</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,669,399</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(9,243,681)</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">10,466,013</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Shares issued</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;For private placements</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,129,000</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,129</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,966,518</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,971,647</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Share issue costs</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(95,505)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(95,505)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Fair value of agent's warrants
      issued</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;on private placements [<i>note
      7[b]</i>]</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,397</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,397</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Fair value of options granted [<i>note
      7[c]</i>]
      </font>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,314,961</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,314,961</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of vested stock grants [<i>note
      7[d]</i>]</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108,000</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">151,138</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">151,246</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercise of warrants</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1658,275</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,658</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,548,894</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,550,552</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercise of options</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">107,500</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">108</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">83,066</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">83,174</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Net loss for the year</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(8,737,141)</font></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(8,737,141)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Balance, March 31, 2007</font></b></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">47,297,645</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">47,298</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">26,649,868</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,980,822)</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">8,716,344</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Shares issued</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;For private placements</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,486,500</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,487</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,346,341</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,355,918</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;For Mineral Properties</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">4,500,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">4,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,444,918</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,449,418</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Share issue costs</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(507,537)</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(507,537)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font style="COLOR: black"><font size="2">Fair value of agents' warrants
      issued on <br>
      private placements </font> <i><font size="2">[note 7[a][b]]</font></i></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">54,490</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">54,490</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of options granted [<i>note
      7[c]</i>]</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">361,731</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">361,732</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of vested stock grants [<i>note
      7[d]</i>]</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">267,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">267</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">321,918</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">322,184</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercise of warrants</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">130,000</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">130</font></td>
      <td style="width: 95.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">84,370</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">84,500</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 246.75pt; PADDING-TOP: 0in" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Net loss for the period</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 95.25pt; PADDING-TOP: 0in" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,463,678)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,463,678)</font></td>
    </tr>
    <tr>
      <td style="width: 246.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="329">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Balance, December 31, 2007</font></b></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">61,681,645</font></b></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">61,682</font></b></td>
      <td style="width: 95.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="127">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">37,756,189</font></b></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">(24,444,500)</font></b></td>
      <td style="width: 96pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="128">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">13,373,371</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">See accompanying notes</font></i><font size="2" style="color: black">
  </font>
  </p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">83</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="page-break-before: always; text-align: left" align="left">
  <font size="2">&nbsp;</font><b><font size="2" style="color: black">Gryphon Gold
  Corporation<br>
  (an exploration stage company)</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font style="COLOR: black" size="4">CONSOLIDATED STATEMENT OF CASH FLOWS<br>
  </font></b><font size="2" style="color: black">(Stated in US dollars)<br>
  (Unaudited)</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Period from</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">April 24, 2003</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 192.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding: 0in" vAlign="bottom" width="257" colSpan="2">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Months Ended</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 196.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="262" colSpan="2">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nine Months Ended</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">(inception) to </font> </b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2006</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2006</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;</font></b></td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">OPERATING ACTIVITIES</font></b></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Net Loss for the period</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,736,589)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(2,620,464)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,463,678)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,491,678)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(24,444,500)</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Items not involving cash:</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 10.4pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Depreciation</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">18,745</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">14,625</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">48,982</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">40,107</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">134,412</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 10.4pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Loss on disposal of equipment</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,135</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,552</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">19,135</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">26,274</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 10.4pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Fair value of options, warrants</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">and other non-cash compensation</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">199,422</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">529,683</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">683,916</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">779,747</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">2,504,056</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Non-cash interest expense</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">65,930</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">94,297</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">94,297</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Changes in non-cash working</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: -3.3pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">capital items:</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 10.4pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Accounts receivable</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(27,859)</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,325</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(19,932)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">26,674</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(85,415)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 10.4pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Accounts payable and accrued</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 7.1pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Liabilities</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(173,198)</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">101,677</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">264,049</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(506,431)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,050,614</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-indent: 7.1pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Prepaid expenses</font></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(82,496)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(54,536)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(28,487)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(13,883)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(157,553)</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Cash used in operating activities</font></b></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,736,045)</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(2,004,555)</font></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(5,414,301)</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,146,329)&nbsp;</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(20,877,815)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">INVESTING ACTIVITIES</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Reclamation deposit</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,177)</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(60,877)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(52,100)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(195,636)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Purchase of equipment</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,154)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,802)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(57,374)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(35,173)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(251,642)</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font style="COLOR: black"><font size="2">Nevada Eagle acquisition and<br>
      related non-compete agreement </font> <i><font size="2">[note 3]</font></i></font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(3,068,340)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(3,068,340)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font style="COLOR: black"><font size="2">Mineral property expenditures
      </font> <i><font size="2">[note 5]</font></i></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(5,409)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(9,119)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(22,164)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,929,490)</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Mineral property lease payments
      received
      </font>
      </td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">24,135</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">29,134</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">29,135</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Proceeds from sale of equipment</font></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">2,314</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,264</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Cash used by investing activities</font></b></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(4,605)</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,802)</font></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(3,164,262)</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(109,437)</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(5,409,709)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">FINANCING ACTIVITIES</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Capital lease principal payments</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(6,079)</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(5,437)</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(17,749)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(12,318)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(35,660)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Cash received for shares</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,621,211</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">662,053</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,494,908</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,755,514</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">34,662,045</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Share issue costs</font></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(261,123)</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(507,537)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(3,533)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(3,186,773)</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Subscription receivables collected</font></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">389,125</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Cash provided by financing activities</font></b></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,354,009</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">656,616</font></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,969,622</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,739,663</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">31,828,737</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 171.75pt; PADDING-TOP: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1.25in; PADDING-TOP: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 87.75pt; PADDING-TOP: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 18.75pt; PADDING-TOP: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 92.25pt; PADDING-TOP: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 89.25pt; PADDING-TOP: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 84.75pt; PADDING-TOP: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Increase (decrease) in cash &nbsp;</font></b></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 171.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">during the period</font></b></td>
      <td style="width: 1.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,613,359</font></td>
      <td style="width: 87.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,365,741)</font></td>
      <td style="width: 18.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,608,941)</font></td>
      <td style="width: 89.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(4,516,103)</font></td>
      <td style="width: 84.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,541,213</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Cash, beginning of period</font></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,927,854</font></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,240,563</font></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">7,150,154</font></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">9,390,925</font></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">--</font></td>
    </tr>
    <tr>
      <td style="width: 171.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="229">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">&nbsp;Cash, end of period</font></b></td>
      <td style="width: 1.25in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="120">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,541,213</font></b></td>
      <td style="width: 87.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="117">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">4,874,822</font></b></td>
      <td style="width: 18.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="25">
      <p class="MsoNormal" style="text-align: left; margin-right: 3pt; margin-top:0; margin-bottom:0" align="left">
      &nbsp;</td>
      <td style="width: 92.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="123">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,541,213</font></b></td>
      <td style="width: 89.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="119">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">4,874,822</font></b></td>
      <td style="width: 84.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="113">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,541,213</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">See accompanying notes</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="left">
  <font size="2">&nbsp;84</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
</div>

<div class="Section5">
  <p class="MsoNormal"><b><font size="2">1. NATURE OF OPERATIONS AND CONTINUANCE
  OF OPERATIONS</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Gryphon Gold Corporation
  was incorporated in the State of Nevada in 2003 and wholly owns its
  subsidiaries, Borealis Mining Company, Gryphon Nevada Eagle Holding Company
  and Nevada Eagle Resources LLC (collectively, &quot;the Company&quot;). The Company is
  an exploration stage company in the process of exploring its mineral
  properties, and has not yet determined whether these properties contain
  reserves that are economically recoverable.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">The recoverability of
  amounts shown for mineral property interests in the Company's consolidated
  balance sheets are dependent upon the existence of economically recoverable
  reserves, the ability of the Company to arrange appropriate financing to
  complete the development of its properties, the receipt of necessary
  permitting and upon achieving future profitable production or receiving
  proceeds from the disposition of the properties. The timing of such events
  occurring, if at all, is not yet determinable.</font></p>
  <p class="MsoNormal"><b><font size="2" style="color: black">2. BASIS OF
  PRESENTATION</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">These
  interim unaudited consolidated financial statements have been prepared by the
  Company in accordance with U.S. generally accepted accounting principles (&quot;GAAP&quot;)
  for interim financial statements, applied on a consistent basis. These interim
  financial statements follow the same significant accounting policies and
  methods of application as those disclosed in Note 2 to the Company's audited
  consolidated financial statements as at and for the year ended March 31, 2007
  (the &quot;Annual Financial Statements''), expect for the new revenue recognition
  and intangible asset policies described below related to the Nevada Eagle
  acquisition (see note 3). Accordingly, they do not include all disclosures
  required for annual financial statements. These interim unaudited consolidated
  financial statements and notes thereon should be read in conjunction with the
  Annual Financial Statements.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  preparation of these interim unaudited consolidated financial statements and
  the accompanying notes requires management to make estimates and assumptions
  that affect the amounts reported. In the opinion of management, these interim
  unaudited consolidated financial statements reflect all adjustments (which
  include only normal, recurring adjustments) necessary to state fairly the
  results for the periods presented. Actual results could vary from these
  estimates and the operating results for the interim periods presented are not
  necessarily indicative of the results expected for the full year.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">In
  June 2006, the FASB issued FASB interpretation No. 48 &#150; Accounting for
  Uncertainty in Income Taxes (&quot;FIN 48&quot;). &nbsp;FIN 48 clarifies the accounting for
  uncertainty in income taxes recognized in an enterprise's financial statements
  in accordance with FASB Statement No. 109, Accounting for Income Taxes. &nbsp;FIN
  48 prescribes a recognition threshold and measurement attribute for the
  financial statement recognition and measurement of a tax position taken or
  expected to be taken in a tax return. &nbsp;This Interpretation also provides
  guidance on derecognition, classification, interest and penalties, accounting
  in interim periods, disclosure and transition. &nbsp;This interpretation is
  effective for fiscal years beginning after December 15, 2006. &nbsp;Effective April
  1, 2007, the Company adopted FIN 48, which did not have a material impact on
  the Company's interim unaudited consolidated financial statements.</font></p>
  <p class="MsoNormal"><b><font size="2" style="color: black">Revenue
  recognition
  </font>
  </b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  Mineral lease rentals or option payments are treated as reductions of the cost
  of the property as the payor is accumulating an interest in the mineral
  property; payments in excess of capitalized costs are recognized in income.
  &nbsp;Some agreements provide for payments in the form of stock and other equity
  instruments as well as cash payments. &nbsp;Stock and other equity instruments are
  recognized based on their fair market value at the time of receipt.
  &nbsp;Fluctuations incurred during the holding period are accounted for as gains or
  losses from held for trading securities. &nbsp;&nbsp;The leases provide for the receipt
  of royalty payments upon production of the property. &nbsp;Royalty payments will be
  recognized in the period in which production occurs. &nbsp;There are no properties
  in the production stage at this time.</font></p>
  <p class="MsoNormal"><b><font size="2" style="color: black">Intangible Assets</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  Identifiable intangible assets include a non-competition agreement. &nbsp;The
  initial measurement of the non-competition agreements is based on the fair
  value of the consideration paid. &nbsp;The agreement is being amortized on a
  straight-line basis, over management's estimated useful like of five years. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">85</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2" style="color: black">3. ACQUISTION OF
  NEVADA EAGLE RESOUCES LLC</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  August 21, 2007 Gryphon Gold Corporation closed the acquisition of Nevada
  Eagle Resources LLC, a privately held Nevada limited liability company
  (&quot;Nevada Eagle&quot;), pursuant to a membership interest purchase agreement (the
  &quot;Purchase Agreement&quot;), dated July 4, 2007, by and between the Company, Gerald
  W. Baughman and Fabiola Baughman, as sellers (&quot;Sellers&quot;), and Nevada Eagle.
  Under the Purchase Agreement, the company acquired all of the outstanding
  limited liability company interests of Nevada Eagle from the Sellers (the
  &quot;Acquisition&quot;) for the following consideration, paid on August 21, 2007 (the
  &quot;Closing Date&quot;): </font>
  </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(a) </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal"><font size="2" style="color: black">$2,500,000 in
      cash;
      </font>
      </td>
    </tr>
    </table>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(b) </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal" align="justify"><font size="2" style="color: black">
      4,500,000 shares of common stock of the Company (the &quot;Common Shares&quot;)
      valued at $3,449,418; and
      </font>
      </td>
    </tr>
    </table>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(c) </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal" align="justify"><font size="2" style="color: black">a
      5% convertible note in the principal amount of $5,000,000 (the
      &quot;Convertible Note&quot;) with an issue date of August 21, 2007 and a fair value
      of $3,390,640.</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  Convertible Note, due March 30, 2010, bears interest at an annual rate of 5%
  and is convertible at the option of the holder into common shares of the
  Registrant at an initial conversion price of $1.00 per share during first the
  twelve-month period following the Closing Date, $1.25 per share during the
  second twelve-month period following the Closing Date, $1.50 per share
  thereafter, and $1.75 per share if converted on March 30, 2010. The interest
  payments are due &nbsp;beginning on January 1, 2008, and payable thereafter on each
  January 1, and June 1.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">In
  addition to the purchase consideration, the Sellers were entitled to all
  revenues of Nevada Eagle (payable in cash, stock, or other consideration)
  calculated to be received and received on the Assets and Properties from
  January 1, 2007 through midnight on December 31, 2007; however, pursuant to a
  letter agreement between the Company and the Sellers, dated August 21, 2007,
  the Sellers' revenue right did not include revenues generated or arising from
  any new agreements entered into by the Company regarding the acquired
  properties (as described below) executed after August 21, 2007. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  Gryphon granted the Sellers registration rights under which Gryphon agreed to
  file, within the later of (i) 90 days of the Closing Date or (ii) any date in
  which Gryphon is required to file a registration statement for a third-party
  in connection with a financing or acquisition, but no later than 120 days of
  the Closing Date, a resale registration statement under the Securities Act of
  1933, as amended (&quot;Securities Act&quot;), to register the Common Shares issuable at
  Closing and the common shares of the Company issuable upon exercise of the
  Convertible Note.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">Upon
  completion of the Acquisition, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of the Company. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and add to
  Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. These properties offer Gryphon both production
  opportunities or royalty income upon production. Twenty-six of the properties
  are 'farmed-out' through lease and option agreements that generate a positive
  cash flow net of carryings costs. The remaining wholly-owned properties are
  retained for Gryphon Gold's own exploration effort or additional future farm
  outs. </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">Under
  the terms of the Purchase Agreement, the closing of the Acquisition was
  subject to several closing conditions, including execution of several
  ancillary agreements as follows:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(a)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal" align="justify"><font size="2" style="color: black">A
      Lock-up Agreement, dated August 21, 2007, under which the Sellers agree
      that for a period of three months following the Closing Date not to sell
      Common Shares issued or issuable under the Purchase Agreement and
      Convertible Note and, thereafter, to limit the sale of such Common Shares
      to 20% of the aggregate Common Shares issued under the Purchase Agreement
      and Convertible Note each quarter (with unsold Common Shares aggregating
      each quarter thereafter);</font></td>
    </tr>
    </table>
  <p class="MsoNormal"><font size="2" style="display: none">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal">&nbsp;</td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(b)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal" align="justify"><font size="2" style="color: black">
      An Employment Agreement between the Registrant and Mr. Baughman for a term
      of one year, renewable by the parties, to serve as Gryphon's Vice
      President of Corporate Development; and</font></td>
    </tr>
  </table>
  <p class="MsoNormal">&nbsp;</p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal"><font size="2" style="color: black">(c)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 90%; PADDING-TOP: 0in" vAlign="top" width="90%">
      <p class="MsoNormal" align="justify"><font size="2" style="color: black">A
      Non-Competition Agreement under which the Sellers have agreed not to
      compete with the Company for the latter of (i) twelve (12) months
      following the Closing Date (the &quot;Restricted Period&quot;), or (ii) twelve (12)
      months following the termination of the Company's employment of Gerald
      Baughman.&nbsp; The scope of the non-competition obligation relates to the
      business of acquiring and/or holding base metal and precious metal mineral
      assets located in the state of Nevada within the Area of Interest and to
      properties that have been examined by the Company or Mr. Baughman during
      the course of his employment by the Company, in any manner or capacity.&nbsp;
      &quot;Area of Interest&quot; is defined as any property owned by the Company, Nevada
      Eagle, or any affiliate of the Company or Nevada Eagle on the latter of (i)
      Closing Date or (ii) the termination date of Gerald Baughman's employment
      by the Company, if any, together with any adjacent areas within one
      kilometre of the exterior boundary of such properties.</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="center"><font size="2">86</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><font size="2" style="color: black">Consideration<b> </b>
  paid for acquisition of Nevada Eagle</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash at closing</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$2,500,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash due diligence costs</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="text-align: right; margin-right: 60pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="text-align: left; margin-left: 20pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="text-align: left; margin-left: 20pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">and other expenses</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">568,340</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; border: medium none; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">3,068,340</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 150pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Common shares</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">3,449,418</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Convertible note and value</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">of conversion feature</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,272,359</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$10,790,117</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" vAlign="top" width="11%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; border: medium none; padding: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11%; PADDING-TOP: 0in" vAlign="top" width="11%" colSpan="3">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Allocation of Purchase Price</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: medium none; padding: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral properties</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">10,719,209</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Non-competition agreement</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">70,908</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5%; PADDING-TOP: 0in" vAlign="top" width="5%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; padding-left: 0.1in; padding-right: 0in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 1%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$10,790,117</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88%; PADDING-TOP: 0in" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">4. EQUIPMENT</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">December 31, 2007</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Accumulated</font></b></td>
      <td style="width: 24%; border: medium none; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Cost</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Depreciation</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Net Book Value</font></b></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 30%; border: medium none; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 24%; border: medium none; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Office and lab equipment</font></td>
      <td style="width: 23%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">197,986</font></td>
      <td style="width: 23%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">71,002</font></td>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">126,984</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Trucks under capital lease</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">71,319</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">40,261</font></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">31,058</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">269,305</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">111,263</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">158,042</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2">March 31, 2007</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border: medium none; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Accumulated</font></b></td>
      <td style="width: 24%; border: medium none; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Cost</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 23%; PADDING-TOP: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Depreciation</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 24%; PADDING-TOP: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Net Book Value</font></b></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 30%; border: medium none; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 23%; border: medium none; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 24%; border: medium none; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Office and lab equipment</font></td>
      <td style="width: 23%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">151,857</font></td>
      <td style="width: 23%; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">46,601</font></td>
      <td style="width: 24%; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">105,256</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Trucks under capital lease</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">71,319</font></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">23,213</font></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">48,106</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">223,176</font></b></td>
      <td style="width: 23%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="23%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">69,814</font></b></td>
      <td style="width: 24%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="24%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">153,362</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="margin-bottom: 0pt" align="center"><font size="2">
  87</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">5. MINERAL PROPERTIES</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company initially
  entered into a property option agreement dated July 21, 2003 to acquire up to
  a 70% interest in the Borealis property in Nevada, USA from Golden Phoenix
  Minerals, Inc. for cash consideration of $125,000 and the obligation to make
  qualifying expenditures over several years. On January 28, 2005, the Company
  purchased outright the rights to a full 100% interest in the property for
  $1,400,000. A cash payment of $400,000 was made on closing. &nbsp;The Company paid
  the full outstanding consideration of $1,000,000, in four quarterly payments
  of $250,000 during the year ended March 31, 2006.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Effective August 21, 2007,
  the Company purchased all the rights and interests of Nevada Eagle, as
  described in footnote 3. &nbsp;$10,719,209 of the purchase price was allocated to
  the value of the exploration properties acquired.&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Total</font></b></td>
    </tr>
    <tr>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 50%; border: medium none; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; border: medium none; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, March 31, 2005</font></b></td>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">1,775,326</font></b></td>
    </tr>
    <tr>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Expenditures during the year</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">122,881</font></td>
    </tr>
    <tr>
      <td style="width: 50%; border: medium none; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, March 31, 2006</font></b></td>
      <td style="width: 50%; border: medium none; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">1,898,207</font></b></td>
    </tr>
    <tr>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Expenditures during the year</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">22,164</font></td>
    </tr>
    <tr>
      <td style="width: 50%; border: medium none; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, March 31, 2007</font></b></td>
      <td style="width: 50%; border: medium none; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">1,920,371</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Nevada Eagle acquisition</font><i><font size="2">[note 3]</font></i></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">10,719,209</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Lease payments received</font></td>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(29,134)</font></td>
    </tr>
    <tr>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Expenditures during the period</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,119</font></td>
    </tr>
    <tr>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, December 31, 2007</font></b></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">12,619,565</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">6. EXPLORATION</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Period from</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">April 24, 2003</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Three months ended</font></b></td>
      <td style="width: 29%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="29%" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nine months ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(inception) to</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">December 30,</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">December 31,</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">December 30,</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2007</font></b></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border: medium none; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Borealis property</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Exploration :</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Property maintenance</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">194,654</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">96,035</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">546,233</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">527,395</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">2,515,204</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Project management</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">69,899</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">215,037</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">189,772</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">490,281</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,333,973</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Drilling</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">262,095</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">764,180</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1,990,632</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,872,538</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">6,584,570</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Engineering</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">15,353</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">123,777</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">20,353</font></b></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">275,646</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">763,693</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Geological</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">106,752</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">109,950</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">609,393</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">445,978</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,833,332</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Metallurgy</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">9,556</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">19,535</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">35,324</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">37,894</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">289,042</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border: medium none; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Subtotal Borealis property</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">658,309</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,328,514</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">3,391,707</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">3,649,732</font></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">13,319,814</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Other Exploration &amp; Development</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,698</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">22,698</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">-</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">22,698</font></td>
    </tr>
    <tr>
      <td style="width: 30%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total exploration</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">661,007</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,328,514</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">3,414,405</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">3,649,732</font></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">13,342,512</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">7. CAPITAL STOCK</font></b></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">a.&nbsp;&nbsp;&nbsp;&nbsp; Authorized
  capital stock consists of 150,000,000 common shares with a par value of $0.001
  per share and 15,000,000 preferred shares with a par value of $0.001 per
  share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  During the quarter ended December 31, 2007, 30,000 (192,500 for the nine
  months ended December 31, 2007) common shares were issued to employees and
  directors of the Company upon vesting of outstanding Restricted Stock Units.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  December 31, 2007, the Company issued an additional 22,500 (75,000 for the
  nine months ended December 31, 2007) common shares to a consultant acting as
  financial advisor to the Company in certain transactions. &nbsp;The issuance is
  based on the consulting agreement, which requires 7,500 common shares to be
  issuable monthly for the term (March 15, 2007 &#150; March 14, 2008) of the
  consulting agreement. &nbsp;The Company charged to expense $16,342 in the quarter
  attributable ($68,990 for the nine months ended December 31, 2007) to the fair
  value of the common shares.</font></p>
  <p class="MsoNormal" align="center"><font size="2">88</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  December 14, 2007, the Company completed the final tranche of a private
  placement totalling 4,486,500 units at Cdn$0.80 for gross proceeds of
  C$3,589,200. &nbsp;&nbsp;Each unit consisted of one common share and one series I
  warrant. &nbsp;Each series I warrant entitles the holder to purchase a common share
  at a price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
  &nbsp;Cash compensation of C$71,624 and 89,530 compensation warrants (series J)
  were issued to agents and are exercisable at a price of Cdn$0.80 per share and
  expire 9 months after closing (14,000 of the compensation warrants were later
  rejected and cancelled by one of the registered dealers). &nbsp;The Company has a
  right to force warrant holders to exercise warrants, if the common share price
  of the Company remains equal to or greater than, Cdn$1.85 per common share,
  for a period of twenty consecutive days.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  August 21, 2007, the Company issued 4,500,000 common shares as partial
  consideration for the acquisition of Nevada Eagle (see note 3, 'Acquisition of
  Nevada Eagle Resources LLC').</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  August 3, 2007, the Company completed a private placement of 5,000,000 units
  at Cdn$0.80 for gross proceeds of C$4,000,000. &nbsp;Each unit consisted of one
  common share and one series G warrant. &nbsp;Each series G warrant entitles the
  holder to purchase a common share at a price of Cdn$1.00 per share during the
  first 12 months after closing and Cdn$1.25 per share during the second 12
  months after closing and until expiry. &nbsp;Cash compensation of C$152,040 and
  265,050 compensation warrants (series H) were issued to agents and are
  exercisable at a price of Cdn$0.83 per share and expire 9 months after
  closing. The Company has a right to force warrant holders to exercise
  warrants, if the common share price of the Company remains equal to or greater
  than, Cdn$1.85 per common share, for a period of twenty consecutive days.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">As at
  February 14, 2008, the Company has 61,712,895 common shares issued and
  outstanding, which includes common shares, issued to consultants (see note 13,
  'Subsequent Events').</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: left; margin-left: 0.25in" align="left">
  <font size="2" style="color: black">b.&nbsp; Warrants:</font></p>
  <p class="MsoNormal" style="text-indent: 0.25in; text-align: left" align="left">
  <font size="2" style="color: black">The following table contains information
  with respect to all warrants:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Number of Warrants</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Fair Value of Warrants</font></b></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">#</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">$</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Warrants outstanding, March 31, 2004</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Private placements</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,407,981</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Agents' compensation</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">141,008</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">45,100</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Warrants outstanding, March 31, 2005</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,548,989</font></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">45,100</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Private placements</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">3,015,204</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Agents' compensation on private
      placement</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">130,000</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">35,100</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Initial Public Offering (IPO) &#150; Series
      A</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">6,900,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Underwriters' compensation on IPO</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">690,000</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">135,100</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Private placements &#150; Series B</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">2,737,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Agents' compensation on private
      placement &#150; Series C </font> </td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">280,500</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">76,540</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 25.4pt; text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(197,500)</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Warrants outstanding, March 31, 2006</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 20.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">17,104,693</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">291,840</font></b></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Issued for:</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Private placements &#150; Series D</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">64,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-indent: 12.55pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Private placements &#150; Series E</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,000,000</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-indent: 12.55pt; text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Agents' compensation on private
      placement &#150; Series F </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">85,050</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">11,397</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 19.4pt; text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(1,658,275)</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Expired</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 15.4pt; text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(15,175,410)</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Warrants outstanding, March 31, 2007</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">5,420,558</font></b></td>
      <td style="width: 182.25pt; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">303,237</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued for:</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 56.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Private placements &#150; Series G</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,000,000</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Private placements &#150; Series I</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 24.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">4,486,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Agents' compensation on private
      placement &#150; Series H </font> </td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">265,050</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">44,040</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 5in; PADDING-TOP: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;Agents' compensation on private
      placement &#150; Series J</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">89,530</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 182.25pt; PADDING-TOP: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 34.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">10,450</font></td>
    </tr>
    <tr>
      <td style="width: 5in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 25.4pt; text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(130,000)</font></td>
      <td style="width: 182.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Expired</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 29.4pt; text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(64,500)</font></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 54.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 5in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="480">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Warrants outstanding, December 31,
      2007</font></b></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 20.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">15,067,138</font></b></td>
      <td style="width: 182.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="243">
      <p class="MsoNormal" style="text-indent: 30.7pt; text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2" style="color: black">357,727</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" align="center"><font size="2">89</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2" style="color: black">The following table summarizes information
  about warrants outstanding and exercisable as at December 31, 2007:</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: center" align="center">
  <b><font size="2" style="color: black">Warrants Outstanding and Exercisable</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Average Remaining Life</font></b></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">Warrants</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Years</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Exercise Price</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">Expiry date</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">#</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">#</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">141,008</font></td>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.1</font></td>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 21pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$0.65</font></td>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">January 28, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">85,050</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.1</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 21pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.90</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">February 9, 2008</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,000,000</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.1</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 16.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.10*</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">February 9, 2009</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,000,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 11.25pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.80**</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">August 3, 2009</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">265,050</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.3</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 21pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.83</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">May 3, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,254,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.9</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 5.25pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.00***</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">November 22, 2009</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,050,000</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.9</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 5.25pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.00***</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">November 27, 2009</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">182,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.9</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 5.25pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.00***</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">December 14, 2009</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">17,780</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.6</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 21pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.80</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">August 22, 2008</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">71,750</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0.6</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 21pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.80</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">August 27, 2008</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 37.5pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">15,067,138</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">1.0</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$0.90****</font></td>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1.45pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">* </font> </i></b><i>
  <font size="2" style="color: black">The warrants are exercisable through
  February 8, 2008 at Cdn$1.10 and exercisable at Cdn$1.35 per unit thereafter
  until expiry</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1.45pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">**</font></i></b><i><font size="2" style="color: black">The
  warrants are exercisable through August 3, 2008 at Cdn$0.80 and exercisable at
  Cdn$1.10 per unit thereafter until expiry</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 1.45pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">***</font></i></b><i><font size="2" style="color: black">The
  warrants are exercisable through November 21, 26 and December 13, 2008 at
  Cdn$1.00 and exercisable at Cdn$1.25per unit thereafter until expiry</font></i></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
  <b><i><font size="2" style="color: black">**** </font> </i></b><i>
  <font size="2" style="color: black">Based on the December 31, 2007 exchange
  rate of Cdn$1 equals US$1.0088.</font></i></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  fair value of agents' and underwriters' warrants issued during 2007 and 2006
  has been estimated using the Black-Scholes Option Pricing Model based on the
  following assumptions: a risk-free interest rate of 3.38% to 5.21% as of the
  date of transaction; expected life of 1 to 3 years depending on their terms;
  an expected volatility of 51% to 70% (based on the average volatility of
  companies in the industry at date of issuance for period equivalent to the
  expected life); and no expectation for the payment of dividends.</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: justify; margin-left: 0.25in" align="left">
  <font size="2" style="color: black">c.&nbsp; Stock options:</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  October 11, 2007, an investor relations firm was awarded 47,000 stock options.
  &nbsp;The options have vested 100% in this quarter and are exercisable for 5 years
  at a price of Cdn$0.88 per share. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  September 6, 2007, a director was awarded 100,000 stock options. &nbsp;The options
  vest over one year and are exercisable for 5 years at a price of Cdn$0.77 per
  share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  September 13, 2007, an employee was granted 20,000 stock options that vest
  over 2.5 years and are exercisable for 5 years at a price of Cdn$0.81 per
  share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  September 21, 2007, four employees were granted 835,000 stock options that
  vest over two years and are exercisable for 5 years at a price of Cdn$0.90 per
  share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  July 27, 2007, a consultant was awarded 75,000 stock options that vest over 2
  years and are exercisable for 5 years at a price of Cdn$0.91 &nbsp;per share.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  May 11, 2007, two employees were granted a total of 60,000 stock options. &nbsp;The
  options vest over the next 18 months and are exercisable for 5 years at a
  price of Cdn$0.95 per share. 40,000 of these options have been subsequently
  forfeited. &nbsp;</font></p>
  <p class="MsoNormal" align="center"><font size="2">90</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  Company recognizes stock-based compensation expense over the requisite service
  period of the individual grants, which generally equals the vesting period. &nbsp;SFAS
  123(R) requires forfeitures to be estimated at the time of grant and revised,
  if necessary, in subsequent periods if actual forfeitures differ from those
  estimates. &nbsp;The Company's total employees are relatively few in number and
  turnover is considered remote, therefore the Company currently estimates
  forfeitures to be 5.5%. &nbsp;Estimate of forfeitures is reviewed on a quarterly
  basis. &nbsp;Stock-based compensation is expensed on a straight-line basis over the
  requisite service period.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  Company recorded total stock-based compensation expense related to stock
  options and restricted stock units as follows:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 40%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Three</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Three</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nine</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nine</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 40%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">months ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">months ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">months ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">months ended</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 40%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 30,</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 40%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 40%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; height: 15pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr style="height: 15pt">
      <td style="width: 40%; height: 15pt; border: medium none; padding: 0in; background: #edebd3" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Management salaries,</font></td>
      <td style="width: 15%; height: 15pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 15pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 40%; height: 14.25pt; padding: 0in; background: #edebd3" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">exploration expense, &amp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="width: 40%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="40%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">consulting fees</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">199,422</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">529,683</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">683,916</font></td>
      <td style="width: 15%; height: 12pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">779,747</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">Stock option activity</font></i></p>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2" style="color: black">The following table summarizes the
  Company's stock option activity for the nine months ended December 31, 2007:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="39%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Number of <br>
      Stock <br>
      Options</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Weighted <br>
      Average exercise <br>
      price*</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Outstanding, beginning of year</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,282,500</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&nbsp;$1.02</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 39%; PADDING-TOP: 0in" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Granted</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">1,137,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0.90</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Exercised</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Forfeited</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">(630,000)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$1.00</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Total outstanding at period end</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,789,500</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$1.00</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 16pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 39%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="39%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Vested and exercisable at period end</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">4,417,000</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$1.03</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-indent: 11.35pt; text-align: left" align="left">
  <i><font size="2" style="color: black">* Based on the December 31, 2007
  exchange rate of Cdn$1 equals US$1.0088</font></i></p>
  <p class="MsoNormal" style="text-indent: 0.25in; text-align: left" align="left">
  <font size="2" style="color: black">The following table summarizes information
  about stock options outstanding as at December 31, 2007:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Average</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Stock Options</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Average Remaining</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Stock Options</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Remaining Life</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Exercise price</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Outstanding</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Life</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">Exercisable</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">of Exercisable</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">(Years)</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">(Years)</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; border: medium none; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,912,500</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2.3</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,912,500</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2.3</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$0.75</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">115,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2.9</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">115,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2.9</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.85</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">90,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.0</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">72,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.0</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.15</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.0</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.0</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.25</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">190,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.3</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">158,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.3</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.37</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,490,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.3</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,490,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.3</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.37</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">30,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.4</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">30,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.4</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.60</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">80,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">80,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.29</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.8</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3.8</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$1.34</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">240,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.0</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">145,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.0</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.81</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.0</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.0</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.88</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">425,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.2</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">212,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.2</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.80</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.3</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">10,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.3</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.95</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">75,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">25,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.91</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">100,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.77</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.6</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.81</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">835,000</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.7</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.7</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.90</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 19%; PADDING-TOP: 0in" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">47,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.8</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">47,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4.8</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">Cdn$0.88</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 19%; padding: 0in; background: #edebd3" width="19%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">5,789,500</font></b></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">4,417,000</font></b></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2">$1.05*</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-indent: 0.25in; text-align: left" align="left">
  <font style="COLOR: black"><font size="2">*<b><i> </i></b></font><i>
  <font size="2">Based on the December 31, 2007 exchange rate of Cdn$1 equals
  US$1.0088</font></i></font></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">91</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><i>
  <font size="2" style="color: black">Valuation assumptions</font></i></p>
  <p class="MsoNormal" style="text-align: justify" align="left">
  <font size="2" style="color: black">Compensation expense recorded in the
  financial statements has been estimated using the Black-Scholes option pricing
  model. The assumptions used in the pricing model include:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="69%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2008</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">2007</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="69%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="69%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Dividend yield</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">0%</font></b></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">0%</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69%; PADDING-TOP: 0in" vAlign="top" width="69%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Expected volatility</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">49% - 55%</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">55% - 59%</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="69%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Risk free interest rate</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">4.09% - 4.63%</font></b></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">4.54% - 5.21%</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 69%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="69%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Expected lives</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">3 years</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1.5pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">3 years</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">The risk-free interest rate is determined
  based on the rate at the time of grant for US government zero-coupon bonds for
  a 3 year term, which is a term equal to the estimated life of the option.
  &nbsp;Dividend yield is based on the stock option's exercise price and expected
  annual dividend rate at the time of grant. &nbsp;Volatility is derived by measuring
  the average share price fluctuation of three publicly listed companies that
  operate in the same industry. &nbsp;The period of historical volatility is the same
  period as the expected life of the option being 3 years. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  Black-Scholes option-pricing model used by the Company to calculate option
  values was developed to estimate the fair value of freely tradable, fully
  transferable options without vesting restrictions, which significantly differ
  from the Company's stock option awards. &nbsp;Options pricing models require the
  input of highly subjective assumptions, including future stock price
  volatility and expected time until exercise, which greatly affect the
  calculated values. Changes in these assumptions can materially affect the fair
  value estimate and therefore it is management's view that the existing models
  do not necessarily provide a single reliable measure of the fair value of the
  Company's equity instruments.</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in">
  <font size="2" style="color: black">d.&nbsp; Restricted stock units:</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  May 11, 2007, the Board of Directors approved the grant of 10,000 restricted
  stock units ('RSU') to an employee of the Company which were subsequently
  forfeited on July 31, 2007.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  September 5, 2007 the Company entered into a Transition Agreement with an
  employee and director (see note 10(c)). Among other things, the agreement
  provided a grant of 112,500 RSU's that vest over two years; 18,750 RSU's that
  were to vest in January 2008 were forfeited; a grant of 50,000 RSU's was
  forfeited and replaced with a new RSU agreement that provides 2,778 units for
  each full month of service (subject to a maximum of 50,000 RSU's) completed as
  a member of the Board of Directors beginning January 1, 2007 and vest upon
  resignation from the Board of Directors.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  November 30, 2007 a consulting Director retired from the company, therefore,
  forfeiting 50,000 RSU's.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  following table summarizes information about restricted stock units
  outstanding as at December 31, 2007:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: black 1pt solid; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 50%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign="top" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: black 1pt solid; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">RSU's Granted</font></b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: black 1pt solid; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">RSU's<br>
      &nbsp;Vested </font> </b></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: black 1pt solid; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 20%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">Weighted Average Fair <br>
      Value at Grant Date</font></b></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Outstanding at April 1, 2006</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued April 18, 2006</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">8,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">8,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">Cdn$1.63</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued December 12, 2006</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">15,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">15,000</font></td>
      <td style="width: 20%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">Cdn$0.84</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued January 10, 2007</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">508,750</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">277,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">Cdn$0.82</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued September 6, 2007</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">112,500</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="width: 20%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">Cdn$0.77</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 50%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Issued September 6, 2007</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">50,000</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">&#151;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.1in; BORDER-TOP: medium none; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 20%; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">Cdn$0.77</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left"><b>
      <font size="2" style="color: black">Outstanding at December 31, 2007</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">694,250</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">300,500</font></b></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="20%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right"><b>
      <font size="2" style="color: black">$0.83</font></b><font size="2" style="color: black">*</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-indent: 10.35pt; text-align: left" align="left">
  <font style="COLOR: black"><font size="2">&nbsp;*</font><i><font size="2"> Based on
  the December 31, 2007 exchange rate of Cdn$1 equals US$1.0088</font></i></font></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">92</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">8. RELATED PARTY TRANSACTIONS</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">All
  transactions with related parties have occurred in the normal course of
  operations and are measured at their exchange amount as determined by
  management. All material transactions and balances with related parties not
  disclosed elsewhere are described below:</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  During the nine months ended December 31, 2007, the Company paid consulting
  fees to a non-independent director in the amount of $32,425 [December 31, 2006
  - $127,303] for services rendered on the exploration of the Borealis property.</font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">9. OTHER ASSETS</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">December 31,</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">March 31,</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2007</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2007</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Reclamation bond &amp; deposits</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">195,636</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">134,759</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Non-compete agreement</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">70,908</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#150;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accumulated Amortization</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(5,155)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#150;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">261,389</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">134,759</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  During the nine months ended December 31, 2007, the Company increased the
  amount of their performance bond from $113,759 to $168,459 by purchasing a
  further performance bond totaling $54,700 from an insurance company. &nbsp;The
  total bond purchase is in support of the potential future obligations the
  Company may incur under a Plan of Operation for exploration within the
  brown-field area of the Borealis property filed with the U.S. Forest Service.
  &nbsp;The Company also holds a deposit with the Bureau of Land Management (&quot;BLM&quot;)
  for $27,177 (March 31, 2007 - $21,000), which supports its potential future
  obligations for reclamation during the Company's exploration activities within
  the BLM area. The company increased the amount of this bond by $6,177 in
  December 2007. At December 31, 2007, the Company has recorded an estimated
  reclamation liability of $5,600 (June 30, 2006 &#150; $7,000) representing future
  obligations related to its drilling activities completed to December 31, 2007. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">As
  part of the acquisition of Nevada Eagle (footnote 3), the primary interest
  holder entered into a non-compete agreement. &nbsp;The non-compete agreement is
  being amortized over 5 years.</font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">10. COMMITMENTS &amp; CONTINGENCIES</font></b></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">a.&nbsp;&nbsp;&nbsp; A portion of the
  Borealis Property is subject to a mining lease. The Company is required to
  make monthly lease payments of $9,485, adjusted annually based on the Consumer
  Price Index, for the duration of the lease term. In addition, production of
  precious metals from the Borealis Property will be subject to the payment of a
  royalty under the terms of the mining lease. The mining lease expires in 2009,
  but may be renewed by the Company annually thereafter, so long as mining
  related activity continues on the Borealis Property. The Company has the
  option to terminate the mining lease at any time prior to expiry in 2009.</font></p>
  <p class="MsoNormal" style="text-indent: -17.85pt; margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">b.&nbsp;&nbsp;&nbsp; The Company rents
  office space in Vancouver, BC for a 3 year term. The following are rental
  lease commitments in relation to the office lease:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 79%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="79%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 79%; border: medium none; padding: 0in; background: #edebd3" width="79%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">2008</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">10,565</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 79%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt solid" width="79%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: left" align="left">
      <font size="2">2009</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 20%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt solid" width="20%">
      <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-ALIGN: center" align="center">
      <font size="2">17,609</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-indent: -17.85pt; margin-left: 0.25in" align="center">
  <font size="2">93</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: -17.85pt; margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">c.&nbsp; In September 2007, the Company
  entered into a Transition Agreement with an individual under which, the
  individual will cease to be an employee and will continue as a director of the
  Company. &nbsp;The agreement requires the Company to pay $12,500 per month, for 18
  months beginning October 2007, and the individual was granted 112,500
  Restricted Stock Units the will vest at 37,500 each on April 1, 2009, July 1,
  2009 and October 1, 2009. &nbsp;The agreement provides for certain incidental
  expenses for 18 months beginning October 2007. &nbsp;The Company recorded a charge
  to expense of $322,464 during the quarter ended September 30, 2007 to accrue
  the cost of the agreement.</font></p>
  <p class="MsoNormal" style="text-indent: -17.85pt; margin-left: 0.25in" align="justify">
  <font size="2" style="color: black">d.&nbsp; Nevada Eagle holds approximately
  23 exploration properties that are not leased out. &nbsp;Annual claim fees to hold
  these properties are approximately $34,000.</font><font size="2">&nbsp;</font></p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b>
  <font size="2" style="color: black">11. CAPITAL LEASE</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  Company leases two trucks that are both accounted for as capital leases, with
  the present value of the required lease payments recorded as a liability and
  an asset at inception and thereafter lease payments reduce the liability and
  result in interest expense and the asset is depreciated. &nbsp;The actual combined
  lease payments are $2,371 per month with a residual payment of $12,000 due
  December 2007 (will be paid in January 2008) and $13,854 due May 2008.</font></p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">The
  present value of required payments during each fiscal year:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 79%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="79%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 20%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 79%; border: medium none; padding: 0in; background: #edebd3" width="79%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">2008</font></td>
      <td style="width: 20%; border: medium none; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">10,565</font></td>
    </tr>
    <tr>
      <td style="width: 1%; padding: 0in; background: white" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-left: 0.25in" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 79%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt solid" width="79%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">2009</font></td>
      <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 20%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt solid" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">17,609</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">12. CONVERTIBLE PROMISSORY NOTE</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" vAlign="top" width="50%" rowSpan="4">
      <p class="MsoNormal" style="text-align: left" align="left">
      <font size="2" style="color: black">Convertible promissory note, with a
      face value of $5,000,000 due March 30, 2010 unsecured, bearing interest at
      5%. &nbsp;Interest is payable each January 1<sup>st</sup> and June 1<sup>st</sup>.
      &nbsp;Discount accretion for the period from August 21, 2007 (date of issue) to
      December 31, 2007, totalled $94,297.</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">December 31,</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 6%; PADDING-TOP: 0in" vAlign="top" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center">
      <font size="2" style="color: black">March 31,</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">2007</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 6%; PADDING-TOP: 0in" vAlign="top" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22%; PADDING-TOP: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">2007</font></td>
    </tr>
    <tr>
      <td style="width: 22%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 6%; PADDING-TOP: 0in" vAlign="top" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 22%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 22%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">4,366,656</font></td>
      <td style="width: 6%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 22%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="22%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">0</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">
  Gryphon Gold issued a Convertible Promissory Note to the former owner of
  Nevada Eagle with a face amount of $5,000,000, due March 30, 2010, bearing
  interest at 5% per annum, payable on January 1 and June 1 of each year. &nbsp;The
  note is convertible at the holder's option into shares for the first 12 months
  after closing at a conversion price of $1 per common share; for the next 12
  months at $1.25 per common share; for the period 24 months from closing to
  March 29, 2010 at $1.50 per common share and on March 30, 2010 at $1.75 per
  common share. &nbsp;The conversion rate is subject to certain anti-dilution
  adjustments and is also subject to adjustment on payment of cash dividends by
  Gryphon Gold. &nbsp;Upon an event of default, which includes amongst other things a
  change in control of Gryphon Gold, the holder may demand repayment of the
  principal amount of the debenture or exercise the conversion feature for a
  fixed number of shares. After an event of default, the interest rate on the
  convertible debenture increases to 9%. &nbsp;The change in control in an event of
  default is considered an embedded derivative however its issue date fair value
  is not considered to be significant, nor is it considered to be significant at
  December 31, 2007. &nbsp;The conversion feature does not require bifurcation in the
  financial statements because it is not a beneficial conversion feature and a
  cash payment is not required if common shares issued at time of conversion are
  never successfully registered. &nbsp;The Convertible Promissory Note, including the
  conversion feature and change in control event of default embedded derivative,
  has been recorded at its estimated issue date fair value of $4,272,359 at date
  of issue, in the unaudited consolidated balance sheet. Interest and discount
  accretion of $63,014 and $65,930, for the three months ended December 31,
  2007, has been recorded as interest expense in the unaudited consolidated
  income statements. &nbsp;The former owner of Nevada Eagle is also an employee of
  the Company (see note 3). &nbsp;</font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="2" style="color: black">13. SUBSEQUENT EVENTS</font></b></p>
  <p class="MsoNormal" style="text-align: justify" align="left">
  <font size="2" style="color: black">On January 10, 2008, 31,250 RSU's vested
  for three directors and one employee and common shares were issued.</font></p>
  <p align="center">
  <font size="2" style="color: black; font-family: Times New Roman">
  94</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2">Combined Financial Statements </font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="4">Nevada Eagle Resources</font></b><font size="4"> </font> <font size="2"> <br>
  December 31, 2006 and 2005 <br>
  (Stated in U.S. dollars) </font> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></b><font size="2"> </font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">To
  the Owner of
  </font> <b>
  <font size="2">
  <br>
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">We have audited the
  accompanying combined balance sheets of <b>Nevada Eagle Resources </b>as of
  December 31, 2006 and 2005 and the related combined statements of operations,
  owner's equity and cash flows for the years then ended. These financial
  statements are the responsibility of the Company's management. Our
  responsibility is to express an opinion on these financial statements based on
  our audits. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">We conducted our audits in
  accordance with the standards of the Public Company Accounting Oversight Board
  (United States). Those standards require that we plan and perform the audit to
  obtain reasonable assurance about whether the financial statements are free of
  material misstatement. We were not engaged to perform an audit of the
  Company's internal control over financial reporting. Our audits included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances but not
  for the purpose of expressing an opinion on the effectiveness of the Company's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements, assessing
  the accounting principles used and significant estimates made by management
  and evaluating the overall financial statement presentation. We believe that
  our audits provide a reasonable basis for our opinion. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In our opinion, the
  financial statements referred to above present fairly, in all material
  respects, the combined financial position of Nevada Eagle Resources at
  December 31, 2006 and 2005, and the combined results of its operations,
  owner's equity and cash flows for each of the years in the two year period
  ended December 31, 2006, in conformity with United States generally accepted
  accounting principles. </font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Vancouver, Canada,</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;/s/ Ernst &amp; Young LLP</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">October 11, 2007</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="text-align: left" align="left"><font size="2">
      Chartered Accountants</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">
  &nbsp;95</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">COMBINED BALANCE SHEETS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  As at December 31</font></b><font size="2"> </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2005</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">ASSETS</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">181,055</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">89,119</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accounts receivable</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">55,000</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">36,500</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Held for trading securities</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">404,450</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">443,134</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current assets</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">640,505</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">568,753</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Fixed assets, net of accumulated depreciation of $22,431</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">and $13,668, respectively</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">25,730</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">34,493</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property costs</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">57,420</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">90,386</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total assets</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">723,655</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">693,632</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">LIABILITIES AND OWNER'S EQUITY</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accounts payable and accrued liabilities</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,441</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,225</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current liabilities</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,441</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,225</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total owner's equity</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">721,214</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">691,407</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total liabilities and owner's equity</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">723,655</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">693,632</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">COMBINED STATEMENTS OF OPERATIONS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year ended</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
    </tr>
    <tr style="height: 13.5pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 13.5pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 13.5pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 13.5pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2005</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">REVENUES</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">1,002,140</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">561,127</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">EXPENSES</font></b></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral claim maintenance</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">68,233</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">38,993</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Depreciation</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">8,763</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">8,764</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">General and administrative</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">24,234</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">22,894</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Travel and accommodation</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">17,277</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">11,906</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Realized (gain) loss on sale of securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(58,492)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">797</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Interest income</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(1,945)</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(664)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Unrealized (gain) loss on securities</font></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">98,372</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(114,669)</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total expenses</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">156,442</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(31,979)</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 70%; height: 14.25pt; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 70%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Net and comprehensive income for the period</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">845,698</font></b></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">593,106</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p class="MsoNormal" align="center"><font size="2">96</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">COMBINED STATEMENTS OF</font></b><font size="2"> <b><br>
  OWNER'S EQUITY</b> <br>
  (Stated in U.S. dollars) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance, December 31, 2004</font></b></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">523,749</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the year ended</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">December 31, 2005</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">593,106</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner contributions</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">-</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 12.75pt">
      <td style="width: 25%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner draws</font></td>
      <td style="width: 25%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(425,448)</font></td>
      <td style="width: 50%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; height: 14.25pt; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; height: 14.25pt; border: medium none; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance, December 31, 2005</font></b></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">691,407</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the year ended</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">December 31, 2006</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">845,698</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner contributions</font></td>
      <td style="width: 25%; height: 14.25pt; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">261,184</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner draws</font></td>
      <td style="width: 25%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(1,077,075)</font></td>
      <td style="width: 50%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 25%; height: 14.25pt; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 50%; height: 14.25pt; border: medium none; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 25%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance December, 31, 2006</font></b></td>
      <td style="width: 25%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">721,214</font></b></td>
      <td style="width: 50%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p class="MsoNormal" align="center"><font size="2">97</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">COMBINED STATEMENTS OF CASH FLOWS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) </font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Year ended</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2005</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">OPERATING ACTIVITIES</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the year</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">845,698</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">593,106</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Items not involving cash:</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Depreciation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">8,763</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">8,764</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Gain on sale of securities</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(58,492)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">797</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Unrealized (gain) loss on held for trading securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">98,372</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(114,669)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Held for trading securities</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(502,588)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(293,789)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Changes in non-cash working capital items:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Amounts receivable</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(18,500)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(36,500)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accrued liabilities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">216</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(6,128)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Deferred revenue</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">-</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(50,000)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash provided by operating activities</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">373,469</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">101,581</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">INVESTING ACTIVITIES</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Purchase of fixed assets</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">-</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,471)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property acquisition outlay</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(27,332)</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(50,627)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property cost recovered</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">60,298</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">120,362</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Proceeds from sale of held for trading securities</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">501,392</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">83,745</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash provided by investing activities</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">534,358</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">151,009</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">FINANCING ACTIVITIES</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Contributions</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">261,184</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">-</font></b></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Draws</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(1,077,075)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(425,448)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Note receivable</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">-</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,000</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash used in financing activities</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(815,891)</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(375,448)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Decrease in cash during the year</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">91,936</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(122,858)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash, beginning of year</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">89,119</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">211,977</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border: medium none; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash, end of year</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">181,055</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">89,119</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  98</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">NOTES TO COMBINED FINANCIAL STATEMENTS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) </font> </p>
  <p class="MsoNormal"><font size="2">December 31, 2006 </font> </p>
  <p class="MsoNormal"><b><font size="2">1.</font></b><font size="2"> </font> <b>
  <font size="2">NATURE OF OPERATIONS </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Eagle Resources LLC
  is a single member limited liability company (&quot;the LLC&quot;) with a perpetual
  life, formed in the State of Nevada on December 30, 2003. The LLC obtains
  mineral claims and leases or options the development rights to third parties
  who are in the business of exploring the properties. The properties are
  located in Nevada, California and Northern Utah. The single member of the
  limited liability company also maintains ownership of certain additional
  mineral claims. All mineral property activity under the control of the member
  was acquired by Gryphon Gold Corporation on August 21, 2007. These mineral
  activities have been combined in these financial statements and include: </font> </p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal"><font size="2">Nevada Eagle Resources, LLC </font></li>
    <li class="MsoNormal"><font size="2">Monitor Property </font>
    </li>
    <li class="MsoNormal"><font size="2">Bald Peak Property </font></li>
    <li class="MsoNormal"><font size="2">Star City Property </font></li>
    <li class="MsoNormal"><font size="2">Wheeler Peak Property </font></li>
  </ul>
  <p class="MsoNormal"><font size="2" style="display: none">&nbsp;</font><font size="2">These
  mineral property activities are collectively referred to as Nevada Eagle
  Resources or the Company. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Eagle Resources has
  no employees. Services provided by the owner were without compensation.
  Drawings by the owner from Nevada Eagle Resources are presented within equity. </font> </p>
  <p class="MsoNormal"><b><font size="2">2.</font></b><font size="2"> <b>SUMMARY
  OF SIGNIFICANT ACCOUNTING POLICIES</b>
  </font>
  </p>
  <p class="MsoNormal"><b><font size="2">Basis of presentation</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">These combined financial
  statements are prepared in accordance with U.S. generally accepted accounting
  principles (&quot;GAAP&quot;).
  </font> </p>
  <p class="MsoNormal"><b><font size="2">Use of estimates</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The preparation of
  financial statements in conformity with U.S. GAAP requires management to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities and the disclosure of any contingent assets and liabilities as at
  the date of the consolidated financial statements as well as the reported
  amounts of expenses incurred during the period. Significant areas requiring
  the use of management estimates include the determination of potential
  impairments of asset values and the calculation of fair values of Held for
  trading securities. Actual results could differ from those estimates. </font> </p>
  <p class="MsoNormal"><font size="2">&nbsp;</font><b><font size="2">Revenue
  recognition </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as these
  arrangements represent farmouts where the payor is accumulating an interest in
  the mineral property; payments in excess of capitalized costs are recognized
  in income. Some agreements provide for payments in the form of stock and other
  equity instruments as well as cash payments. Stock and other equity
  instruments are recognized based on their fair market value at the time of
  receipt. Fluctuations incurred during the holding period are accounted for as
  gains or losses from held for trading securities. The leases provide for the
  receipt of royalty payments upon production of the property. Royalty payments
  will be recognized in the period in which production occurs. There are no
  properties in the production stage at this time. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Mineral properties
  represent mineral claims held by Nevada Eagle Resources. The costs of
  acquiring mineral properties are capitalized. If it is determined that the
  mineral property has no future economic value or the properties are sold or
  abandoned the carrying value will be expensed at that time. Cost is equal to
  the consideration paid for the acquisition of mineral properties. The
  capitalized amounts may be written down if potential future net cash flows,
  including potential sales proceeds, related to the property are estimated to
  be less than the carrying value of the property. Management of the Company
  reviews the carrying value of each mineral property interest annually, and
  whenever events or changes in circumstances indicate that the carrying value
  may not be recoverable. Reductions in the carrying value of each property
  would be recorded at the time in which the property is considered impaired
  based on the discounted amount of future net cash flows. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">99</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">Marketable equity securities</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Held for trading
  securities consist of marketable equity securities. Held for trading
  securities are stated at fair value, and unrealized holding gains and losses
  are reported in net income. Dividends on marketable equity securities are
  recognized in income when declared. Realized gains and losses are included in
  income. </font> </p>
  <p class="MsoNormal"><b><font size="2">Cash and cash equivalents</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Company considers all
  highly liquid debt instruments purchased with a maturity of three months or
  less to be cash equivalents.
  </font> </p>
  <p class="MsoNormal"><b><font size="2">Accounts receivable</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Accounts receivable is
  stated at the estimated realizable value. No allowance for uncollectible
  accounts has been provided as management has determined that the accounts
  receivable balance is collectible. </font> </p>
  <p class="MsoNormal"><b><font size="2">Equipment and depreciation</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Equipment is stated at
  cost. Expenditures for maintenance and repairs are expensed as incurred while
  renewals and betterments in excess of $1,000 are capitalized. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Depreciation is provided
  for in amounts sufficient to relate the cost of depreciable assets to
  operations over their estimated service lives, principally on the
  straight-line method. The estimated useful lives used for calculating
  depreciation for equipment classifications are as follows: </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-left: 22.5pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <u><font size="2">Life</font></u></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-left: 22.5pt" align="left">
      <font size="2">Vehicles</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">5 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-left: 22.5pt" align="left">
      <font size="2">Computer equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">5 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="text-align: left; margin-left: 22.5pt" align="left">
      <font size="2">Furniture and fixtures</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">7 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="justify"><font size="2">The Company does not incur
  federal or state income taxes; instead, LLC earnings are included in the
  member's income tax returns and taxed depending on the member's tax situation.
  Activity related to the claims held directly by the owner is also included in
  the owner's personal income tax return. Accordingly, these combined financial
  statements do not reflect a provision for income taxes. </font> </p>
  <p class="MsoNormal"><b><font size="2">3.</font></b><font size="2"> <b>CASH</b>
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">As of December 31, 2006
  and 2005, cash and cash equivalents was equal to $181,055 and $89,119,
  respectively. The Company maintains a business checking account with one
  financial institution located in Reno, Nevada and a cash account is maintained
  at a securities brokerage company located in Vancouver, British Columbia. The
  balance in the checking account is insured by the Federal Deposit Insurance
  Corporation (FDIC) up to $100,000 and the balance held by the securities
  broker is insured by the Securities Insurance Protection Corporation (SIPC)
  for up to $100,000. The Company's uninsured balance as of December 31, 2006
  and 2005 totaled $81,281 and $0, respectively. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">100</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">4.</font></b><font size="2"> <b>
  PROPERTY AND EQUIPMENT</b>
  </font> </p>
  <p class="MsoNormal"><font size="2">Property and equipment, stated at cost as
  of December 31, 2006 and 2005 consisted of the following: &nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2005</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Vehicles</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,286</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,286</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Computer equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,472</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,472</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Furniture and fixtures</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,403</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,403</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">48,161</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">48,161</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Less: accumulated depreciation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(22,431)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(13,668)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding: 0in; background: #edebd3" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">25,730</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">34,493</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">
  Depreciation expense for the years ended December 31, 2006 and 2005 was $8,763
  and $8,764, respectively. </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  5.</font></b><font size="2">
  </font><b><font size="2">MINERAL PROPERTY COSTS</font></b><font size="2">
  </font></p>
  <p class="MsoNormal"><font size="2">The Company holds interests in 49
  properties. 26 of those properties have been leased or optioned out to third
  parties. </font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 48%; PADDING-TOP: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 52%; PADDING-TOP: 0in" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">Total</font></b></td>
    </tr>
    <tr>
      <td style="width: 48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 52%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
    </tr>
    <tr>
      <td style="width: 48%; border: medium none; padding: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 52%; border: medium none; padding: 0in" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 48%; padding: 0in; background: #edebd3" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, December 31, 2004</font></b></td>
      <td style="width: 52%; padding: 0in; background: #edebd3" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <font size="2">160,121</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 48%; PADDING-TOP: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Acquisitions during the year</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 52%; PADDING-TOP: 0in" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,627</font></td>
    </tr>
    <tr>
      <td style="width: 48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Costs recovered during the year</font></td>
      <td style="width: 52%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="52%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(120,362)</font></td>
    </tr>
    <tr>
      <td style="width: 48%; border: medium none; padding: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, December 31, 2005</font></b></td>
      <td style="width: 52%; border: medium none; padding: 0in" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">90,386</font></b></td>
    </tr>
    <tr>
      <td style="width: 48%; padding: 0in; background: #edebd3" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Acquisitions during the year</font></td>
      <td style="width: 52%; padding: 0in; background: #edebd3" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <font size="2">27,332</font></td>
    </tr>
    <tr>
      <td style="width: 48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Costs recovered during the year</font></td>
      <td style="width: 52%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="52%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(60,298)</font></td>
    </tr>
    <tr>
      <td style="width: 48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="48%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, December 31, 2006</font></b></td>
      <td style="width: 52%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="52%">
      <p class="MsoNormal" style="text-align: right; margin-left: 3pt; margin-right:4; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">57,420</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal"><b><font size="2">6.</font></b><font size="2"> </font><b>
  <font size="2">SUBSEQUENT EVENTS</font></b><font size="2"> </font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company began a
  business sale negotiation with Gryphon Gold Corporation during March of 2007.
  All of the mineral property activities of Nevada Eagle Resources were acquired
  by Gryphon Gold Corporation on August 21, 2007. The prior owner of Nevada
  Eagle Resources became an employee of Gryphon Gold Corporation.</font></p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  101</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2">Unaudited Interim Combined Financial Statements </font>
  <b><font size="2"><br>
  </font><font size="4">Nevada Eagle Resources</font></b><font size="4"> </font> <font size="2">
  <br>
  June 30, 2007 <br>
  (Stated in U.S. dollars) <br>
  (unaudited) </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources</font></b><font size="2"> </font> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">INTERIM COMBINED BALANCE SHEETS</font></b><font size="2"> <br>
  (Stated in U.S. Dollars) <br>
  (unaudited) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">As at</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">As at</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">As at</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">ASSETS</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">28,495</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">90,823</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">181,055</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accounts receivable</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">-</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">55,000</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">55,000</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Held for trading securities</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">477,315</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">378,024</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">404,450</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current assets</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">505,810</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">523,847</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">640,505</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Fixed assets, net</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">21,224</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">23,477</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">25,730</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property costs</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">39,366</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">42,751</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">57,420</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total assets</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">566,400</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">590,075</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">723,655</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">LIABILITIES AND OWNER'S EQUITY</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accounts payable and accrued liabilities</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">12,896</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1,754</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,441</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current liabilities</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">12,896</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1,754</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,441</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total owner's equity</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">553,504</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">588,321</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">721,214</font></b></td>
    </tr>
    <tr>
      <td style="width: 55%; border: medium none; padding: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total liabilities and owner's equity</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">566,400</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">590,075</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">723,655</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">
  102</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources</font></b><font size="2"> </font> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">INTERIM COMBINED STATEMENT OF OPERATIONS <br>
  </font>
  </b><font size="2">(Stated in U.S. Dollars) <br>
  (unaudited) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the six</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the six</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">month</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">month</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">period ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">period ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 6%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 6%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="6%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border: medium none; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">REVENUES</font></b></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">442,696</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">766,107</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">189,865</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">264,271</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">252,831</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">501,836</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">EXPENSES</font></b></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral claim maintenance</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,733</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,331</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">847</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,833</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">886</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,498</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Depreciation</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,506</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,382</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,253</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,191</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,253</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,191</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">General and administrative</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,126</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,259</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,933</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,241</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,193</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Travel and accommodation</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,737</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,755</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,311</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,796</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,426</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">959</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Realized (gain) loss on sale of</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,075</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(10,108)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(57,979)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,075</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">47,871</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Interest income</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(192)</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(1,590)</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(119)</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(739)</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(73)</font></td>
      <td style="width: 12%; height: 14.25pt; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(851)</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Unrealized (gain) loss on</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">securities</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">385</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">84,827</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(20,541)</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">145,172</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,926</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(60,345)</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total expenses</font></b></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">28,744</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">89,723</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(9,990)</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">96,207</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">38,734</font></td>
      <td style="width: 12%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(6,484)</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 28%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; height: 14.25pt; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Net and comprehensive</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 28%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">income for the period</font></b></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">413,952</font></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">676,384</font></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">199,855</font></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">168,064</font></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">214,097</font></td>
      <td style="width: 12%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">508,320</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  103</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources</font></b><font size="2"> </font> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">INTERIM COMBINED STATEMENTS OF</font></b><font size="2"> <b><br>
  OWNER'S EQUITY</b> <br>
  (Stated in U.S. Dollars) <br>
  (unaudited) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance, December 31, 2006</font></b></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">721,214</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the quarter ended March 31, 2007</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">214,097</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner contributions</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">7,944</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner draws</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(354,934)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance, March 31, 2007</font></b></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">588,321</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the quarter ended June 30, 2007</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">199,855</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner contributions</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,083</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Owner draws</font></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(238,755)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 30%; PADDING-TOP: 0in" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 30%; padding: 0in; background: #edebd3" width="30%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Balance, June 30, 2007</font></b></td>
      <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">553,504</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i></p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">
  104</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources</font></b><font size="2"> </font> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">INTERIM COMBINED STATEMENTS OF CASH FLOWS <br>
  </font>
  </b><font size="2">(Stated in U.S. Dollars) <br>
  (unaudited) </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the six</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the six</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">month</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">month</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">For the</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">ended</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">period ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">period ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">quarter ended</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30, 2006</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">OPERATING ACTIVITIES</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Net income for the period</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">413,952</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">676,384</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">199,855</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">168,064</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">214,097</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">508,320</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Items not involving cash:</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Depreciation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,506</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,382</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,253</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,191</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,253</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,191</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Gain on sale of securities</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,075</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(10,108)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(57,979)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,075</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">47,871</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Unrealized (gain) loss</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">on held for trading securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">385</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">84,827</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(20,541)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">145,172</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,926</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(60,345)</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Held for trading securities</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(132,750)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(411,938)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(78,750)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(147,625)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(54,000)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(264,313)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Changes in non-cash working</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">capital items:</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Amounts receivable</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">55,000</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,000</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">55,000</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,000</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Accrued liabilities</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">10,455</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,225)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">11,142</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(687)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,225)</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash provided by operating</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">activities</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">360,623</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">346,322</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">168,959</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">109,823</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">191,664</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">236,499</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">INVESTING ACTIVITIES</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Purchase of fixed assets</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property acquisition</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">outlay</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(4,316)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(4,316)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property cost recovered</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">18,054</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">31,374</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,385</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">26,374</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">14,669</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,000</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Proceeds from sale of held for</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">trading securities</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,425</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">335,308</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">92,979</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">50,425</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">242,329</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash provided by investing</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">activities</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">68,479</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">362,366</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,385</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">115,037</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">65,094</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">247,329</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">FINANCING ACTIVITIES</font></b></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 28%; PADDING-TOP: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Contributions</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">12,027</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,083</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">7,944</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Draws</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(593,689)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(446,320)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(238,755)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(208,062)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(354,934)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(238,258)</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash used in financing</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">activities</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(581,662)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(446,320)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(234,672)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(208,062)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(346,990)</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(238,258)</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border: medium none; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Decrease in cash during the</font></b></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 28%; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">period</font></b></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(152,560)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">262,368</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(62,328)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">16,798</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(90,232)</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">245,570</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Cash, beginning of period</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">181,055</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">89,119</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">90,823</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">334,689</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">181,055</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">89,119</font></td>
    </tr>
    <tr>
      <td style="width: 28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="28%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Cash, end of period</font></b></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">28,495</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">351,487</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">28,495</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">351,487</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">90,823</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">334,689</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left; margin-right: 3pt" align="left">
  <i><font size="2">See accompanying notes.</font></i><font size="2"> </font> </p>
  <p align="center">
  <font size="2" style="font-family: Times New Roman">
  105</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left; margin-right: 3pt" align="left">
  <b><font size="2">Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) <br>
  (unaudited) </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">June
  30, 2007
  </font></p>
  <p class="MsoNormal"><b><font size="2">1.</font></b><font size="2"> </font><b>
  <font size="2">NATURE OF OPERATIONS </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Eagle Resources LLC
  is a single member limited liability company (&quot;the LLC&quot;) with a perpetual
  life, formed in the State of Nevada on December 30, 2003. The LLC obtains
  mineral claims and leases or options the development rights to third parties
  who are in the business of exploring the properties. The properties are
  located in Nevada, California and Northern Utah. The single member of the
  limited liability company also maintains ownership of certain additional
  mineral claims. All mineral property activity under the control of the member
  was acquired by Gryphon Gold Corporation on August 21, 2007. These mineral
  activities have been combined in these financial statements and include:</font></p>
  <ul type="disc" style="margin-bottom: 0in">
    <li class="MsoNormal"><font size="2">Nevada Eagle Resources, LLC </font></li>
    <li class="MsoNormal"><font size="2">Monitor Property </font>
    </li>
    <li class="MsoNormal"><font size="2">Bald Peak Property </font></li>
    <li class="MsoNormal"><font size="2">Star City Property </font></li>
    <li class="MsoNormal"><font size="2">Wheeler Peak Property </font></li>
  </ul>
  <p class="MsoNormal" align="justify"><font size="2">These mineral property
  activities are collectively referred to as Nevada Eagle Resources or the
  Company. </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Nevada Eagle Resources has
  no employees. Services provided by the owner were without compensation.
  Drawings by the owner from Nevada Eagle Resources are presented within equity. </font></p>
  <p class="MsoNormal"><b><font size="2">2.</font></b><font size="2"> </font><b>
  <font size="2">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></b><font size="2"> </font>
  </p>
  <p class="MsoNormal"><b><font size="2">Basis of presentation</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">These combined financial
  statements are prepared in accordance with U.S. generally accepted accounting
  principles (&quot;GAAP&quot;).
  </font> </p>
  <p class="MsoNormal"><b><font size="2">Use of estimates</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">The preparation of
  financial statements in conformity with U.S. GAAP requires management to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities and the disclosure of any contingent assets and liabilities as at
  the date of the consolidated financial statements as well as the reported
  amounts of expenses incurred during the period. Significant areas requiring
  the use of management estimates include the determination of potential
  impairments of asset values and the calculation of fair values Held for
  trading securities. Actual results could differ from those estimates. </font></p>
  <p class="MsoNormal"><b><font size="2">Revenue recognition </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as these
  arrangements represent farmouts where the payor is accumulating an interest in
  the mineral property; payments in excess of capitalized costs are recognized
  in income. Some agreements provide for payments in the form of stock and other
  equity instruments as well as cash payments. Stock and other equity
  instruments are recognized based on their fair market value at the time of
  receipt. Fluctuations incurred during the holding period are accounted for as
  gains or losses from held for trading securities. The leases provide for the
  receipt of royalty payments upon production of the property. Royalty payments
  will be recognized in the period in which production occurs. There are no
  properties in the production stage at this time. </font>
  </p>
  <p align="center">
  <font size="2" style="font-family: Times New Roman">
  106</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) <br>
  (unaudited) </font> </p>
  <p class="MsoNormal"><font size="2">June 30, 2007 </font></p>
  <p class="MsoNormal"><b><font size="2">Mineral property acquisition costs</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Mineral properties
  represent mineral claims held by Nevada Eagle Resources. The costs of
  acquiring mineral properties are capitalized. If it is determined that the
  mineral property has no future economic value or the properties are sold or
  abandoned the carrying value will be expensed at that time. Cost is equal to
  the consideration paid for the acquisition of mineral properties. The
  capitalized amounts may be written down if potential future net cash flows,
  including potential sales proceeds, related to the property are estimated to
  be less than the carrying value of the property. Management of the Company
  reviews the carrying value of each mineral property interest annually, and
  whenever events or changes in circumstances indicate that the carrying value
  may not be recoverable. Reductions in the carrying value of each property
  would be recorded at the time in which the property is considered impaired
  based on the discounted amount of future net cash flows. </font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Marketable equity
  securities</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Held for trading
  securities consist of marketable equity securities. Held for trading
  securities are stated at fair value, and unrealized holding gains and losses
  are reported in net income. Dividends on marketable equity securities are
  recognized in income when declared. Realized gains and losses are included in
  income. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Cash and cash
  equivalents</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company considers all
  highly liquid debt instruments purchased with a maturity of three months or
  less to be cash equivalents.
  </font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Accounts receivable</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Accounts receivable is
  stated at the estimated realizable value. No allowance for uncollectible
  accounts has been provided as management has determined that the accounts
  receivable balance is collectible. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Equipment and
  depreciation</font></b><font size="2">
  </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Equipment is stated at
  cost. Expenditures for maintenance and repairs are expensed as incurred while
  renewals and betterments in excess of $1,000 are capitalized. </font></p>
  <p class="MsoNormal" align="justify"><font size="2">Depreciation is provided
  for in amounts sufficient to relate the cost of depreciable assets to
  operations over their estimated service lives, principally on the
  straight-line method. The estimated useful lives used for calculating
  depreciation for equipment classifications are as follows: </font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Life</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Vehicles</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">5 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 50%; PADDING-TOP: 0in" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Computer equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">5 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 50%; padding: 0in; background: #edebd3" width="50%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Furniture and fixtures</font></td>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">7 Years</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: center" align="center"><font size="2">
  107</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) <br>
  (unaudited) </font> </p>
  <p class="MsoNormal"><font size="2">June 30, 2007 </font></p>
  <p class="MsoNormal"><b><font size="2">Income taxes</font></b><font size="2">
  </font>
  </p>
  <p class="MsoNormal" align="justify"><font size="2">The Company does not incur
  federal or state income taxes; instead, LLC earnings are included in the
  member's income tax returns and taxed depending on the member's tax situation.
  Activity related to the claims held directly by the owner is also included in
  the owner's personal income tax return. Accordingly, these combined financial
  statements do not reflect a provision for income taxes. </font></p>
  <p class="MsoNormal"><b><font size="2">3.</font></b><font size="2"> </font><b>
  <font size="2">CASH</font></b><font size="2"> </font></p>
  <p class="MsoNormal" align="justify"><font size="2">As of June 30, 2007, March
  31, 2007 and December 31, 2006, cash and cash equivalents was equal to
  $28,495, $90,823 and $181,055, respectively. The Company maintains a business
  checking account with one financial institution located in Reno, Nevada and a
  cash account is maintained at a securities brokerage company located in
  Vancouver, British Columbia. The balance in the checking account is insured by
  the Federal Deposit Insurance Corporation (FDIC) up to $100,000 and the
  balance held by the securities broker is insured by the Securities Insurance
  Protection Corporation (SIPC) for up to $100,000. The Company's bank balances
  were fully insured as of June 30, 2007 and March 31, 2007. The uninsured
  balance as of December 31, 2006 totaled $81,281. </font></p>
  <p class="MsoNormal"><b><font size="2">4.</font></b><font size="2"> </font><b>
  <font size="2">PROPERTY AND EQUIPMENT</font></b><font size="2"> </font></p>
  <p class="MsoNormal"><font size="2">Property and equipment, stated at cost as
  of June 30, 2007, March 31, 2007 and December 31, 2006 consisted of the
  following: </font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">June 30,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">March 31,</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">December 31,</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2007</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">2006</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Vehicles</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,286</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,286</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,286</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Computer equipment</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,472</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,472</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 12%; PADDING-TOP: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,472</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Furniture and fixtures</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,403</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,403</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,403</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">48,161</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">48,161</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">48,161</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Less: accumulated depreciation</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(26,937)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(24,684)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(22,431)</font></td>
    </tr>
    <tr>
      <td style="width: 55%; padding: 0in; background: #edebd3" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 3%; padding: 0in; background: #edebd3" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
      <td style="width: 12%; border: medium none; padding: 0in; background: #edebd3" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 55%; PADDING-TOP: 0in" width="55%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">21,224</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">23,477</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 3%; PADDING-TOP: 0in" width="3%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">$</font></td>
      <td style="width: 12%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="12%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">25,730</font></td>
    </tr>
  </table>
  <p class="MsoNormal"><font size="2">Depreciation expense for the quarters
  ended June 30, 2007 and March 31, 2007 was $$2,253 per quarter. Depreciation
  expense for the year ended December 31, 2006 was $8,763 </font> </p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  108</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Nevada Eagle Resources </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS</font></b><font size="2"> <br>
  (Stated in U.S. dollars) <br>
  (unaudited) </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">June
  30, 2007
  </font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  5.</font></b><font size="2"> <b>
  MINERAL PROPERTY COSTS</b> </font> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">The
  Company holds interests in 49 properties. 26 of those properties have been
  leased or optioned out to third parties. </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 85%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Total</font></b></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 85%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">$</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 85%; height: 14.25pt; border: medium none; padding: 0in" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; height: 14.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; padding: 0in; background: #edebd3" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, December 31, 2006</font></b></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">57,420</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 85%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Acquisitions during the quarter ended March 31, 2007</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">-</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Costs recovered during the quarter ended March 31, 2007</font></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(14,669)</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; border: medium none; padding: 0in" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, March 31, 2007</font></b></td>
      <td style="width: 15%; height: 11.25pt; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">42,751</font></b></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; padding: 0in; background: #edebd3" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Acquisitions during the quarter ended June 30, 2007</font></td>
      <td style="width: 15%; height: 11.25pt; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">-</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 85%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="85%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Costs recovered during the quarter ended June 30, 2007</font></td>
      <td style="width: 15%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(3,385)</font></td>
    </tr>
    <tr style="height: 0.75pt">
      <td style="width: 85%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="85%">
      <p class="MsoNormal" style="text-align: left; margin-bottom: 0; margin-top:0" align="left">
      <b><font size="2">Mineral property costs, June 30, 2007</font></b></td>
      <td style="width: 15%; height: 0.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <b><font size="2">39,366</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  6.</font></b><font size="2"> <b>
  SUBSEQUENT EVENTS</b> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Company began a
  business sale negotiation with Gryphon Gold Corporation during March of 2007.
  All of the mineral property activities of Nevada Eagle Resources were acquired
  by Gryphon Gold Corporation on August 21, 2007. The prior owner of Nevada
  Eagle Resources became an employee of Gryphon Gold Corporation. </font> </p>
  <p class="MsoNormal" align="center">
  <font size="2" style="font-family: Times New Roman">
  109</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="4">Consolidated <b><i>Pro Forma</i></b> Financial Statements </font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b>
  <font size="4">Gryphon Gold Corporation
  </font>
  <font size="2"> <br>
  </font></b><font size="2">(Stated in U.S. dollars) <br>
  (unaudited)</font></p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  <br style="page-break-before: always" clear="all">
  110</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">GRYPHON GOLD CORPORATION <br>
  </font>UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET</b> </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">As of June 30, 2007 <br>
  (expressed in United States dollars)</font></b><font size="2"> </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nevada Eagle</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Adjustments</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Resources</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Total</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Note</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Consolidated</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Reference</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current assets</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Cash</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,982,886</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">90,823</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(3,055,350)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3a, 3b, 3c, 3d</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">2,018,359</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Accounts receivable</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">87,252</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">55,000</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(55,000)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">87,252</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Prepaid expenses</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">237,413</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">237,413</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Held for trading securities</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">378,024</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(378,024)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3e</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current assets</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">5,307,551</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">523,847</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">(3,488,374)</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3e</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,343,024</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Deferred acquisition costs</font></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">103,813</font></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(103,813)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3k</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Reclamation deposit</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">144,459</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">144,459</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Fixed assets</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">163,345</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">23,477</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(23,477)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3f</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">163,345</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Intangible assets</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">70,908</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3g</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">70,908</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Mineral property costs</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,920,371</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">42,751</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">10,676,458</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3h</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">12,639,580</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total assets</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">7,639,539</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">590,075</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">7,131,702</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">15,361,316</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Current liabilities</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Accounts payable and accrued liabilities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">807,684</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,754</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(1,754)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3i</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">807,684</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Current portion of capital lease payable</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3b</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Note payable</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,272,359</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3b</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,272,359</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Interest payable</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total current liabilties</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">807,684</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1,754</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">4,270,605</font></b></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">5,080,043</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Capital lease payable, net of current</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">portion</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">44,532</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">44,532</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total liabilities</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">852,216</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">1,754</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">4,270,605</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">5,124,575</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Common stock</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">47,522</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,500</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3j</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">52,022</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Additional paid-in capital</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">26,947,176</font></td>
      <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">3,444,918</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3j</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">30,392,094</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">Deficit/equity</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(20,207,375)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">588,321</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(588,321)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3d</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(20,207,375)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total equity</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">6,787,323</font></b></td>
      <td style="width: 14%; border: medium none; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">588,321</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">2,861,097</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">10,236,741</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total liabilities and equity</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">7,639,539</font></b></td>
      <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">590,075</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">7,131,702</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <b><font size="2">15,361,316</font></b></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See accompanying notes</font></i><font size="2"> </font> </p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  111</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">GRYPHON GOLD CORPORATION <br>
  </font>UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS </b></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">&nbsp;</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">For the three months ended June 30, 2007 <br>
  (expressed in United States dollars)</font></b><font size="2"> </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nevada Eagle</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Adjustments</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Resources</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Total</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Note</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Consolidated</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">References</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">REVENUE</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">252,831</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(239,906)</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3h</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">12,925</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">EXPENSES</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Exploration</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,478,472</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,478,472</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Management salaries and consulting fees</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">438,363</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">43,750</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3c</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">482,113</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Mineral claim maintenance</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">886</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">886</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">13,847</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,253</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,292</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3f</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">17,392</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">General and administrative</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">242,861</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,407</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">13,750</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3c</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">259,018</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Legal and audit</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">71,297</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,834</font></td>
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      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">7,500</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3c</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">80,631</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">52,652</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">1,426</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">54,078</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Realized (gain) loss on sale of securities</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">9,075</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(3,727)</font></td>
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      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3e</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">5,348</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Foreign exchange (gain) loss</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,200</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">3,200</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Interest expense</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">131,140</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3b</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">131,140</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Interest income</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(74,139)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(73)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(74,212)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Unrealized (gain) loss on securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">20,926</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(8,951)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3e</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">11,975</font></td>
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    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total expenses</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,226,553</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">38,734</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">184,754</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">2,450,041</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Net and comprehensive income for the period</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,226,553)</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">214,097</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(424,660)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(2,437,116)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Basic and diluted loss per share</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$(0.05)</font></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$(0.05)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Basic and diluted weighted average number</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <b><font size="2">of common shares outstanding</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">47,485,585</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">4,500,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-right: 3pt; margin-top:0; margin-bottom:0" align="center">
      <font size="2">3j</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-right: 3pt; margin-top:0; margin-bottom:0" align="right">
      <font size="2">51,985,585</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See Accompanying Notes</font></i><font size="2"> </font> </p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  112</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">GRYPHON GOLD CORPORATION <br>
  </font>UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">For the year ended March 31, 2007 <br>
  (expressed in United States dollars)</font></b><font size="2"> </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Gryphon Gold</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Nevada Eagle</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Adjustments</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Pro Forma</font></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Corporation</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Resources</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Total</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Note</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">Consolidated</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">References</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2">$</font></b></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">REVENUE</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">1,002,140</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(982,140)</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3h</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">20,000</font></td>
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    <tr>
      <td style="width: 25%; border: medium none; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">EXPENSES</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Exploration</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,819,692</font></td>
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      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,819,692</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Management salaries and consulting fees</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">2,632,794</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">175,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3c</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">2,807,794</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Mineral claim maintenance</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">68,233</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">68,233</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Depreciation and amortization</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">53,368</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">8,763</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">5,419</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3f</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">67,550</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">General and administrative</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">890,596</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">24,234</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">55,000</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3c</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">969,830</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">330,005</font></td>
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      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">30,000</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3c</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">360,005</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">325,024</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">17,277</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">342,301</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Realized (gain) loss on sale of securities</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(58,492)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">9,668</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3e</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(48,824)</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Loss on disposal of equipment</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">19,722</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">19,722</font></td>
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    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
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      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(11,335)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(11,335)</font></td>
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    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Interest expense</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">515,823</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3b</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">515,823</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Interest income</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(322,725)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(1,945)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(324,670)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <font size="2">Unrealized (gain) loss on securities</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">&#151;</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">98,372</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(18,610)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3e</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">79,762</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Total expenses</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">8,737,141</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">156,442</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">772,300</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">9,665,883</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Net and comprehensive income for the period</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(8,737,141)</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">845,698</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(1,754,440)</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">(9,645,883)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Basic and diluted loss per share</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$(0.21)</font></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">$(0.21)</font></td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border: medium none; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2">Basic and diluted weighted average number</font></b></td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      &nbsp;</td>
      <td style="width: 15%; border: medium none; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
    </tr>
    <tr>
      <td style="width: 25%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt; margin-top:0; margin-bottom:0" align="left">
      <b><font size="2">of common shares outstanding</font></b></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">41,242,535</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      &nbsp;</td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">4,500,000</font></td>
      <td style="width: 15%; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">3j</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2">45,742,535</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><i><font size="2">
  See Accompanying Notes</font></i><font size="2">.</font></p>
  <p align="center"><font style="font-size: 10pt; font-family: Times New Roman">
  113</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  Gryphon Gold Corporation </font> </b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  NOTES TO UNAUDITED PRO FORMA</b>
  <b><br>
  CONSOLIDATED FINANCIAL STATEMENTS</b> </p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  NOTE 1 - BASIS OF PRESENTATION</font></b><font size="2"> </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">These unaudited pro forma
  consolidated financial statements of Gryphon Gold Corporation (&quot;Gryphon Gold&quot;
  or the &quot;Company&quot;), a TSX listed Company, have been prepared for illustrative
  purposes only, to show the effect of the Membership Interest Purchase
  Agreement dated as of August 21, 2007 between Gryphon Gold and Gerald and
  Fabiola Baughman whereby Gryphon Gold acquired 100% of the members interests
  in Nevada Eagle Resources LLC, a Nevada limited liability company, as well as
  certain other mineral claims owned by the Baughman's (the &quot;Transaction&quot;).
  Nevada Eagle Resources LLC and the other mineral claims acquired are
  collectively referred to herein as Nevada Eagle. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">These financial statements
  have been prepared by Gryphon Gold management. The unaudited pro forma
  consolidated financial statements are presented in conformity with United
  States generally accepted accounting principles. The pro forma consolidated
  income statement for the three month period ended June 30, 2007 combines the
  three month period ended June 30, 2007 for Gryphon Gold and the three month
  period ended March 31, 2007 for Nevada Eagle, representing the first quarter
  of each entity's fiscal year. The pro forma consolidated income statement for
  the twelve month period ended March 31, 2007 combines the year ended March 31,
  2007 for Gryphon Gold and December 31, 2006 for Nevada Eagle, the last fiscal
  year for each entity. The pro forma consolidated balance sheet as at June 30,
  2007 combines the June 30, 2007 consolidated balance sheet of Gryphon Gold and
  the March 31, 2007 balance sheet of Nevada Eagle. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The unaudited pro forma
  consolidated income statements have been prepared as if the Transaction was
  completed and became effective as of April 1, 2006. The unaudited pro forma
  consolidated balance sheet has been prepared as if the Transaction was
  completed as at June 30, 2007. Under the Transaction, Gryphon Gold acquired
  all the shares of Nevada Eagle Resources LLC and all the rights and interests
  in certain other mineral claims including all exploration properties and lease
  agreements. Consideration paid by Gryphon Gold at closing was 4,500,000 shares
  of common stock of Gryphon Gold, a 5% $5,000,000 convertible note due March
  30, 2010, and cash of $2,500,000. Assets and liabilities other than the
  exploration properties were distributed to the owners of Nevada Eagle
  immediately prior to closing. At closing, Gerald Baughman, the principal
  interest holder of Nevada Eagle, became an employee of Gryphon Gold and
  entered into a lock up agreement covering the common shares and eligible
  shares under the convertible note, and entered into a non-compete agreement. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The accounting policies
  used in the preparation of these statements are consistent with Gryphon Gold's
  accounting policies. The unaudited pro forma consolidated financial statements
  are not intended to reflect the results of operations or the financial
  position of Gryphon Gold which would have actually resulted had the
  Transaction been effected on the dates indicated. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The unaudited pro forma
  consolidated financial statements have been derived from and should be read in
  conjunction with the audited financial statements of Gryphon Gold for the year
  ended March 31, 2007 and the unaudited interim financial statements of Gryphon
  Gold for the three month period ended June 30, 2007 as well as the audited
  financial statements of Nevada Eagle Resources for the year ended December 31,
  2007 and the unaudited interim financial statements of Nevada Eagle Resources
  for the three month period ended March 31, 2007. </font> </p>
  <p class="MsoNormal"><b><font size="2">NOTE 2 - BUSINESS ACQUISITION</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In the preparation of
  these unaudited pro forma consolidated financial statements, the purchase
  price consideration has been allocated on a preliminary basis to the fair
  value of the assets acquired and liabilities assumed based on management's
  best estimates and taking into account all relevant information available at
  the time these unaudited pro forma consolidated financial statements were
  prepared. The Company will continue to review information and perform further
  analysis with respect to the fair values of assets and liabilities acquired
  prior to finalizing the purchase price allocation. The actual purchase price
  allocation will be based on the fair values of assets and liabilities acquired
  as of the August 21, 2007 closing date and may differ from that presented in
  these pro forma consolidated financial statements. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">114</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal">&nbsp;</p>
  <p class="MsoNormal" align="justify"><font size="2">The purchase price has
  been determined by reference to the fair value of the cash, stock and
  convertible debt consideration given up by Gryphon Gold. The preliminary
  allocation of the purchase price paid to the fair values of the assets and
  liabilities acquired is summarized in the table below: </font> </p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 50%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="50%" border="0">
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
        <font size="2">Purchase Price Paid</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
      </tr>
      <tr>
        <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Cash</font></td>
        <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">$</font></td>
        <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">2,500,000</font></td>
      </tr>
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Stock</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">3,449,418</font></td>
      </tr>
      <tr>
        <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Convertible note payable</font></td>
        <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">4,272,359</font></td>
      </tr>
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Legal, consulting and accounting fees</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">518,585</font></td>
      </tr>
      <tr>
        <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Claim fees</font></td>
        <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">49,755</font></td>
      </tr>
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
        <font size="2">Total</font></td>
        <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">$</font></td>
        <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">10,790,117</font></td>
      </tr>
    </table>
  </div>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
  <font size="2" style="display: none">&nbsp;</font></p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 50%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="50%" border="0">
      <tr>
        <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
        <font size="2">Net Assets Acquired</font></td>
        <td style="width: 2%; padding: 0in; background: #edebd3" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="width: 14%; padding: 0in; background: #edebd3" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
      </tr>
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Non-compete agreement</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 2%; PADDING-TOP: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">$</font></td>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 14%; PADDING-TOP: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">70,908</font></td>
      </tr>
      <tr>
        <td style="width: 35%; padding: 0in; background: #edebd3" width="35%">
        <p class="MsoNormal" style="text-align: left; margin-left: 11.25pt" align="left">
        <font size="2">Properties</font></td>
        <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        &nbsp;</td>
        <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">10,719,209</font></td>
      </tr>
      <tr>
        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 35%; PADDING-TOP: 0in" width="35%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
        <font size="2">Total</font></td>
        <td style="width: 2%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="2%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">$</font></td>
        <td style="width: 14%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" width="14%">
        <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
        <font size="2">10,790,117</font></td>
      </tr>
    </table>
  </div>
  <p class="MsoNormal"><b><font size="2">NOTE 3 - PRO FORMA ASSUMPTIONS AND
  ADJUSTMENTS</font></b><font size="2">
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The following assumptions
  and adjustments have been made to the unaudited pro forma consolidated
  financial statements of Gryphon Gold in each of the periods presented to
  reflect the Transaction: </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">a.) A cash payment of $2,500,000 by Gryphon Gold to the owner
  of Nevada Eagle upon closing has been recorded in the unaudited pro forma
  consolidated balance sheet as at June 30, 2007. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">b.) In addition to the initial cash payment of $2,500,000,
  Gryphon Gold issued a Convertible Note payable to the owner of Nevada Eagle in
  the amount of $5,000,000, due March 30, 2010, bearing interest at 5% per
  annum, payable on January 1 and June 1 of each year. The note is convertible
  at the holder's option into shares for the first 12 months after closing at a
  conversion price of $1 per common share; for the next 12 months at $1.25 per
  common share; for the period 24 months from closing to March 29, 2010 at $1.50
  per share and on March 30, 2010 at $1.75 per share. The conversion rate is
  subject to certain anti-dilution adjustments and is also subject to adjustment
  on payment of cash dividends by Gryphon Gold. Upon an event of default, which
  includes amongst other things a change in control of Gryphon Gold, the holder
  may demand repayment of the principal amount of the debenture or exercise the
  conversion feature for a fixed number of shares. After an event of default,
  the interest rate on the convertible debenture increases to 9%. The change in
  control event of default is considered an embedded derivative however its
  issue date fair value is not considered to be significant. The conversion
  feature does not require bifurcation as it is not a beneficial conversion
  feature and, although it is not considered conventional convertible debt under
  EITF 05-2, the application of EITF 00-19 to the conversion feature does not
  necessitate bifurcation. The Convertible Note payable, including the
  conversion feature and change in control event of default embedded derivative,
  has been recorded at its estimated issue date fair value of $4,272,359 in the
  pro forma consolidated balance sheet. Interest and discount accretion of
  $515,823 and $131,140 for the twelve months ended March 31, 2007 and three
  months ended June 30, 2007, respectively, has been recorded as interest
  expense in the pro forma consolidated income statements. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">c.) The unaudited pro forma consolidated financial statements
  include estimated costs incurred by Gryphon Gold in order to maintain and run
  the operations of Nevada Eagle. These costs include an increase to management
  salaries and consulting fees as the previous principal interest holder of
  Nevada Eagle became an employee of Gryphon Gold. The salaries adjustment of
  $175,000 per annum is based on the employment agreement that was a condition
  precedent to the completion of the Transaction. The remaining adjustments
  totaling $85,000 per annum pertain to various overhead items including rent
  expense for an office to be based in Reno, Nevada as well as increases to
  legal and accounting fees for purposes of contract review, and increased
  annual reporting requirements.
  </font>
  </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">d.) The net equity of Nevada Eagle has been eliminated in the
  pro forma consolidated balance sheet as a result of the application of
  purchase accounting. The cash balance of Nevada Eagle was distributed to the
  interest holders of Nevada Eagle prior to closing. As a result, the Nevada
  Eagle cash balance has been removed in the pro forma consolidated balance
  sheet. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">e.) Held for trading securities owned by Nevada Eagle were
  distributed to the owner prior to closing. As a result, the Nevada Eagle held
  for trading securities balance has been removed in the pro forma consolidated
  balance sheet. </font> </p>
  <p class="MsoNormal" style="margin-bottom: 0pt" align="center">
  <font size="2">115</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">f.) Equipment consisting of a vehicle and general office
  equipment were distributed to the owners of Nevada Eagle immediately prior to
  closing. As a result, the Nevada Eagle fixed asset balance has been removed in
  the pro forma consolidated balance sheet. Similarly, fixed asset depreciation
  has been removed from the pro forma consolidated income statements. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">g.) Of the total purchase price, $70,908 was allocated to a
  Non-competition Agreement entered into at closing of the transaction which is
  being amortized over five years. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">h.) The mineral property claims value has been adjusted to the
  purchase price allocation amount of $10,719,209 based on its fair value.
  Subsequent mineral lease rentals and option payments reduce the carrying value
  of the specific mineral property claims until the value is reduced to zero,
  and thereafter further receipts are recorded as revenue. The cost reduction
  approach applies as the payors accumulate interests in the mineral claims as
  payments are made.
  </font>
  </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">i.) The outstanding accounts payable balance of Nevada Eagle on
  the closing date remains a liability of the vendors and was not acquired by
  Gryphon Gold.
  </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">j.) The purchase price included 4,500,000 shares of common
  stock of Gryphon Gold which were valued at $3,449,418 based on closing price
  of Gryphon Gold shares on the date of announcement of the Transaction. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">k.) Gryphon Gold incurred due diligence, legal and certain
  other costs totaling $103,813 associated with the Transaction in the first
  quarter of 2007. These expenses were deferred by Gryphon Gold pending the
  closing of the Transaction and have been included in the purchase price
  allocated to the net assets acquired. The remaining transaction costs,
  including claim fees paid on behalf of Nevada Eagle of $464,527 are reflected
  as a reduction from cash in the pro forma consolidated balance sheet. </font> </p>
  <p class="MsoNormal" style="margin-left: 22.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">l.) To the extent any income is generated for tax purposes by
  the acquired assets such income is expected to be offset for tax purposes by
  ongoing exploration expenditures to be incurred by Gryphon Gold. To the extent
  the acquired assets generate loss carryforward benefits, such amounts are not
  considered more likely than not to be realized. As a result, no tax expense or
  recovery has been recorded in the pro forma consolidated statements of income.</font></p>
  <p class="MsoNormal" style="margin-bottom: 0pt" align="center">
  <font style="font-size: 10pt; text-transform: uppercase; font-family: Times New Roman Bold">
  116</font></p>
</div>

<div class="Section5">
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
</div>

<div class="Section5">
  <h1 align="center"><a name="_Toc196194150"><font size="2">SELECTED FINANCIAL
  DATA</font></a></h1>
  <p class="MsoNormal"><font size="2">Not applicable.</font></p>
  <h1 align="center"><a name="_Toc196194151"><font size="2">SUPPLEMENTARY
  FINANCIAL INFORMATION</font></a></h1>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">Not
  applicable.</font></p>
  <h1 align="center"><a name="_Toc195437401"><font size="2">MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND</font></a><font size="2"> </font> <a name="_Toc195437402">
  <font size="2">RESULTS OF OPERATION</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">You should read the
  following discussion and analysis of our financial condition and results of
  operations together with our financial statements and related notes appearing
  elsewhere in this prospectus. &nbsp;This discussion and analysis contains
  forward-looking statements that involve risks, uncertainties and assumptions.
  &nbsp;Our actual results may differ materially from those anticipated in these
  forward-looking statements as a result of many factors, including, but not
  limited to, those set forth under &quot;Risk Factors and Uncertainties&quot; and
  elsewhere in this prospectus. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Overview</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">In May 2005 we initiated a
  drilling program which is continuing. &nbsp;As of March 31, 2007, approximately 172
  holes and 105,735 feet of RC drilling have been completed. &nbsp;A majority of the
  holes were in the area of existing mineralization in order to allow us to
  start a feasibility study with the aim of identifying gold reserves and, if
  economically feasible, building a mine. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">&nbsp;We are currently
  performing exploration and drilling on the Borealis Property for the purpose
  of identifying additional potential gold resources. &nbsp;If we are able to
  identify additional potential resources we may prepare a feasibility study on
  the previously mined area of the Borealis Property to further delineate the
  gold mineralization available for the operation of a mine, to upgrade some or
  all of the mineralized material to proven and probable reserves, design the
  open pit mine, heap leach pads and gold recovery plant and to estimate the
  capital and operating costs of the proposed mining scenario. Metallurgical
  test work completed to date indicates the oxide material is amenable to
  conventional heap-leach recovery methods. If we complete a feasibility study
  and, if warranted have made a decision to begin development, we intend to
  develop our Borealis Property and place it into production, assuming adequate
  additional capital is available. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In December, 2005, we
  completed an underwritten initial public offering of 6,900,000 units for gross
  proceeds of Cdn$5.9 million. The units were sold at a price of Cdn$0.85 each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable until December 22, 2006 at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol &quot;GGN&quot;.
  &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In March, 2006, we
  completed a private placement of 5,475,000 units for gross proceeds of Cdn$6.8
  million. &nbsp;The units were sold at a price of Cdn$1.25 each and consisted of one
  common share and one-half of one Series B warrant. &nbsp;Each whole Series B
  warrant was exercisable until March 23, 2007 at a price of Cdn$1.65.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On June 10, 2006, we
  completed private placements to an officer and employee of 129,000 units for
  gross proceeds of Cdn$174,150. The units were sold at a price of Cdn$1.35 each
  and consist of one common share and one-half of one purchase warrant. Each
  warrant was exercisable until June 10, 2007 at a price of Cdn$1.82.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On June 26, 2006, we
  announced that the USDA Forest Service and the Nevada Bureau of Mining
  Regulation and Reclamation have both approved the Plan of Operations and
  Reclamation Plan, allowing Gryphon Gold to proceed with the development of a
  heap leach mine at the Borealis Gold Project. These approvals, combined with
  the previously approved operating permits from the State of Nevada, represent
  the key regulatory approvals required to place the Borealis gold
  mineralization into production. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In December 2006, we
  completed the geophysical survey, which commenced in September 2006. The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit. The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On February 9, 2007, we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. &nbsp;Each unit consisted of one common
  share and one full purchase warrant. &nbsp;The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. &nbsp;We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property and for general
  working capital.</font></p>
  <p class="MsoNormal" align="center"><font size="2">117</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC (&quot;Nevada
  Eagle&quot;), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. &nbsp;Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. &nbsp;Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  &quot;First Anniversary&quot;) and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). &nbsp;The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development programs.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On December 14, 2007, we
  completed a private placement of 4,486,500 units at Cdn$0.80 for gross
  proceeds of approximately Cdn$3,589,200. &nbsp;The private placement closed in
  three tranches on November 22, &nbsp;November 27 and December 14, 2007.&nbsp; Each
  unit consisted of one common share and one series I warrant. &nbsp;Each series I
  warrant entitles the holder to purchase a common share at a price of Cdn$1.00
  per share during the first 12 months after closing and Cdn$1.25 per share
  during the second 12 months after closing and until expiry. &nbsp;We paid qualified
  registered dealers a 7% cash commission in the amount of Cdn$71,624 and issued
  compensation warrants (series J) to acquire 89,530 common shares (at a price
  of Cdn$0.80 per share for a period of 9 months from closing) in respect of the
  1,204,000 million units placed by them (14,000 of the compensation warrants
  were later rejected and cancelled by one of the registered dealers). We have a
  right to force warrant holders to exercise warrants, if the price of our
  common stock remains equal to or greater than, Cdn$1.85 per common share, for
  a period of twenty consecutive days. &nbsp;The shares, warrants and underlying
  shares were not qualified by prospectus, have not been registered under U.S.
  securities laws, and are subject to resale restrictions. We granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.</font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="background-position: 0% 0%; background-image:url('none'); background-repeat:repeat; background-attachment:scroll">During the calendar year 2007, we
  continued extension drilling that focused on the expansion of the Graben
  deposit and exploration drilling for new gold deposits within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments. </font> </p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="background-position: 0% 0%; background-image:url('none'); background-repeat:repeat; background-attachment:scroll">The following activities are planned
  for calendar year&nbsp; 2008:</font><font size="2">
  </font> </p>
  <font FACE="Times New Roman" SIZE="2">
  <p ALIGN="JUSTIFY">Complete a CIM compliant 43-101 technical report to
  incorporate all current drill results and begin the process of completing a
  feasibility study for the possible mining of the oxide deposits. Continue
  exploration drilling at both the Central Pediment and Western Pediment, which
  are northwest of the Graben sulphide deposit. Drilling will be guided by the
  results of the geological and geophysical exploration model. </p>
  </font>
  <p class="MsoNormal" align="justify"><font size="2">Commence detailed review
  of properties acquired through Nevada Eagle Resources acquisition and compile
  exploration and development schedule.</font></p>
  <p class="MsoNormal"><font size="2">Complete joint venture and lease
  agreements for the un-leased properties held by Nevada Eagle Resources.</font></p>
  <p class="MsoNormal" align="center"><font size="2">118</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">Discussion and Analysis</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">This discussion and
  analysis should be read in conjunction with the accompanying Consolidated
  Financial Statements and related notes. The discussion and analysis of the
  financial condition and results of operations are based upon the consolidated
  financial statements, which have been prepared in accordance with accounting
  principles generally accepted in the United States. The preparation of
  financial statements in conformity with accounting principles generally
  accepted in the United States of America requires the company to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities, disclosure of any contingent liabilities at the financial
  statement date and reported amounts of revenue and expenses during the
  reporting period. On an on-going basis the company reviews its estimates and
  assumptions. The estimates were based on historical experience and other
  assumptions that the company believes to be reasonable under the
  circumstances. Actual results are likely to differ from those estimates under
  different assumptions or conditions, but the company does not believe such
  differences will materially affect our financial position or results of
  operations. Critical accounting policies, the policies the company believes
  are most important to the presentation of its financial statements and require
  the most difficult, subjective and complex judgments, are outlined below in
  &quot;Critical Accounting Policies,&quot; and have not changed significantly.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Critical Accounting
  Policies and Estimates
  </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The preparation of our
  consolidated financial statements is in accordance with accounting principles
  generally accepted in the United States. The following are critical accounting
  policies and estimates which we believe are important to understanding our
  financial results. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Use of estimates </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The preparation of
  financial statements requires us to make estimates and assumptions which
  affect the reported amounts of assets and liabilities at the date of the
  financial statements and the revenues and expenses for the period reported. By
  their nature, these estimates are subject to measurement uncertainty and the
  effect on the financial statements of changes in such estimates in future
  periods could be significant. Actual results will likely differ from these
  estimates. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Revenue recognition </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as the
  payor is accumulating an interest in the mineral property; payments in excess
  of capitalized costs are recognized in income. &nbsp;Some agreements provide for
  payments in the form of stock and other equity instruments as well as cash
  payments. &nbsp;Stock and other equity instruments are recognized based on their
  fair market value at the time of receipt. &nbsp;Fluctuations incurred during the
  holding period are accounted for as gains or losses from held for trading
  securities. The leases provide for the receipt of royalty payments upon
  production of the property. &nbsp;Royalty payments will be recognized in the period
  in which production occurs. &nbsp;There are no properties in the production stage
  at this time.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Exploration of mineral
  property interests
  </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">We expense exploration
  costs as they are incurred. When we determine that a mining deposit can be
  economically and legally extracted or produced based on established proven and
  probable reserves, development costs incurred after such determination will be
  capitalized. The establishment of proven and probable reserves is based on
  results of final feasibility studies which indicate whether a property is
  economically feasible. Upon commencement of commercial production, we will
  transfer capitalized costs to the appropriate asset category and amortize them
  over their estimated useful lives and/or ounces produced, as appropriate. We
  capitalize the cost of acquiring mineral property interests (including claims
  establishment and maintenance) until we have determined the viability of the
  property. We expense capitalized acquisition costs if we determine that the
  property has no future economic value. We will also write down capitalized
  amounts if estimated future cash flows, including potential sales proceeds,
  related to the mineral property are estimated to be less than the carrying
  value of the property. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Stock-based
  compensation</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">In December 2004, the
  Financial Accounting Standards Board issued Statement of Financial Accounting
  Standard 123R, Share-Based Payment, (&quot;SFAS 123 (R)&quot;) a revision to SFAS 123.&nbsp;
  SFAS 123(R) requires all share-based payments to be recognized in the
  financial statements based on their values using either a modified-prospective
  or modified-retrospective transition method.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Prior to March 31, 2006,
  the Company's stock-based employee compensation plans were accounted for under
  the recognition and measurement provisions of Accounting Principles Board
  Opinion (&quot;APB&quot;) No. 25, &quot;Accounting for Stock Issued to Employees&quot; (&quot;APB 25&quot;)
  and related interpretations, as permitted by FASB Statement No. 123,
  &quot;Accounting for Stock-Based Compensation&quot; (&quot;SFAS 123&quot;).&nbsp; The Company did
  not recognize employee stock-based compensation costs in its statement of
  operations for the periods prior to March 31, 2006, as all options granted had
  an exercise price equal to the market value of the underlying common stock on
  the date of the grant.&nbsp; &nbsp;</font></p>
  <p class="MsoNormal" align="center"><font size="2">119</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">Effective April 1, 2006,
  the Company adopted the fair value recognition provisions of SFAS No. 123(R),
  using the modified-prospective-transition method.&nbsp; The Company's total
  employees are relatively few in number and turnover is considered remote,
  therefore the Company currently estimates forfeitures to be 5.5%.&nbsp;
  Estimation of forfeitures will be reviewed on a quarterly basis.&nbsp; &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Asset retirement
  obligations</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company records the
  fair value of an asset retirement obligation as a liability in the period in
  which it incurs a legal obligation associated with the retirement of tangible
  long-lived assets that results from the acquisition, construction, development
  or normal use of the assets with a corresponding increase in the carrying
  amount of the related long-lived asset. This amount is then depreciated over
  the estimated useful life of the asset. Over time, the liability is increased
  to reflect an interest element considered in its initial measurement at fair
  value. The amount of the liability will be subject to re-measurement at each
  reporting period. &nbsp;As at December 31, 2007, the Company has a reclamation
  liability of $5,600 which is disclosed further in Note 9 of the financial
  statements.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Tax valuation allowance </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">We have recorded a
  valuation allowance that fully reserves for our deferred tax assets because at
  this time we cannot establish that we will be able to utilize the tax loss
  carryforwards in the future. If in the future we determine that we will be
  able to use all or a portion of our deferred tax assets in the future, based
  on our projections of future taxable income, we will reduce the valuation
  allowance, thereby increasing income in that period. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Foreign currency
  translation </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The United States dollar
  is our functional currency. Transactions involving foreign currencies for
  items included in operations are translated into U.S. dollars using average
  exchange rates; monetary assets and liabilities are translated at the exchange
  rate prevailing at the balance sheet date and all other balance sheet items
  are translated at the historical rates applicable to the transactions that
  comprise those amounts. Translation gains and losses are included in our
  determination of net income. </font> </p>
  <p class="MsoNormal" align="justify"><b><font size="2">Recent Accounting
  Pronouncements </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The United States
  Securities and Exchange Commission recently announced that it would provide
  for a phased-in implementation process for FASB Statement No. 123(R),
  Share-Based Payment (&quot;SFAS 123(R)&quot;). Registrants must adopt SFAS 123(R)'s fair
  value method of accounting for share-based payments to employees no later than
  the beginning of the first annual period beginning after December 15, 2005. We
  adopted SFAS 123(R) effective April 1, 2006. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Financial Accounting
  Standards Board ratified the consensus of the Emerging Issues Task Force that
  stripping costs incurred during the production phase of a mine are variable
  production costs that should be included in the costs of the inventory
  produced during the period that the stripping costs are incurred. This
  consensus is effective for the first reporting period in fiscal years
  beginning after December 15, 2005, with early adoption permitted. To date the
  Company has not incurred any stripping costs.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In June 2006, the FASB
  issued FASB interpretation No. 48 &#150; Accounting for Uncertainty in Income Taxes
  (&quot;FIN 48&quot;). &nbsp;FIN 48 clarifies the accounting for uncertainty in income taxes
  recognized in an enterprise's financial statements in accordance with FASB
  Statement No. 109, Accounting for Income Taxes. &nbsp;FIN 48 prescribes a
  recognition threshold and measurement attribute for the financial statement
  recognition and measurement of a tax position taken or expected to be taken in
  tax return. &nbsp;This Interpretation also provides guidance on derecognition,
  classification, interest and penalties, accounting in interim periods,
  disclosure and transition. &nbsp;This interpretation is effective for fiscal years
  beginning after December 15, 2006. &nbsp;The adoption of FIN 48 did not have a
  material impact on the Company's consolidated financial statements.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">In September 2006, the
  FASB issued SFAS 157, Fair Value Measurements (&quot;SFAS 157&quot;). &nbsp;SFAS 157 defines
  fair value, establishes a framework for measuring fair value in GAAP, and
  expands disclosures about fair value measurements. &nbsp;This Statement applies
  under other accounting pronouncements that require or permit fair value
  measurements, the Board having previously concluded in those pronouncements
  that fair value is a relevant measurement attribute. &nbsp;Accordingly, this
  Statement does not require any new fair value measurements. &nbsp;However, the
  application of this Statement will change current practice, and is effective
  for the Company's 2009 fiscal year. &nbsp;The adoption of SFAS 157 will not have a
  material impact on the Company's consolidated financial statements.</font></p>
  <p class="MsoNormal" align="center"><font size="2">120</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">Results of Operations</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">We are in an exploration
  stage and currently have no producing mineral properties and thus we had no
  revenues during all reporting periods.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Year ended March 31,
  2007 compared to year ended March 31, 2006</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">For the year ended March
  31, 2006, we had a net loss of $8,737,141 or $0.21 per share compared to a net
  loss of $5,602,336 or $0.19 per share for the prior year, as spending on our
  exploration activities increased significantly, along with an increase in
  staffing levels and higher corporate administration costs.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Exploration expenses
  during the year ended March 31, 2007 were $4,819,692 or 55% of our total
  expenses compared to $3,657,010 or 65% of total expenses in the prior year.
  The increase in spending was related to continuation of permitting activities,
  exploration drilling program and completing the feasibility study on our
  Borealis property, which commenced May 2005 and was terminated in November
  2006. &nbsp;During the year we drilled a total of 56 reverse circulation holes
  (totaling 54,530 feet) on the Borealis property, compared to 136 holes drilled
  during the prior year.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Management salaries and
  consulting fees for the year ended March 31, 2007 were $2,632,794 compared to
  $1,145,626 incurred in the prior year as staffing increased and the company
  adopted the fair value recognition provisions of SFAS No. 123(R), &quot;Stock-Based
  Payment&quot;, which resulted in additional non-cash compensation expense of
  $1,268,422 to be recognized in the year. &nbsp;Salaries and consulting fees are
  expected to decrease in future periods as we have reduced staff due to
  postponing the development of our heap leach mine on the Borealis property.
  &nbsp;General and administrative expenses totaled $890,596, compared to $480,891 in
  the prior year. &nbsp;The increase is due to higher spending on investor relations,
  rent related to our Lakewood and Hawthorne offices, related office support and
  insurance. &nbsp;We incurred $96,964 in closing costs of our Lakewood, Colorado
  office, this amount was included in general and administrative expenses.
  &nbsp;Legal and audit fees for the period increased to $330,005 from $307,942 for
  the year ended March 31, 2006, this is mainly due to costs associated with
  being a public company that reports in both Canada and the United States and
  is therefore subject to additional reporting and compliance requirements.
  &nbsp;Travel and accommodation expense for the year ended March 31, 2007 was
  $325,024, compared to $154,887 for the prior year. &nbsp;The increase is due to
  greater corporate travel associated with investor relations and property site
  visits. &nbsp;Interest income earned on cash deposits was $322,725 for the year
  ended March 31, 2007, compared to $168,170 in the prior year due to higher
  cash balances held on average through the current year versus the prior year.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Year ended March 31,
  2006 compared to year ended March 31, 2005</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">For the year ended March
  31, 2006 we had a net loss of $5,602,336 million, or $0.19 per share, compared
  to a net loss of $2,525,420 million, or $0.17 per share, as spending on our
  exploration activities increased significantly. The current year period loss
  does not reflect the costs directly related to the completion of our initial
  public offering (IPO) in December 2005 and a private placement in March 2006,
  as those costs are treated as share issue costs and are offset directly
  against the proceeds of the offering. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Exploration expenses
  during the year ended March 31, 2006 were $3,657,010 or 65% of our total
  expenses compared to $1,009,173 or 40% of total expenses in the prior year.
  The increase in spending was all related to continuation of permitting
  activities and the drilling program and feasibility study on our Borealis
  property initiated in May 2005 and ongoing. During the year we drilled a total
  of 136 reverse circulation holes (totaling 60,830 feet) on the Borealis
  property, compared to 32 holes drilled during the prior year. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Management salaries and
  consulting fees were $1,145,626 compared to $1,059,871 expended in the prior
  fiscal year, as staffing increased. Legal and audit fees expensed increased to
  $307,942 from $217,457 spent in fiscal 2005, the increase in costs reflecting
  activity related to exploring financing alternatives and changing our
  reporting to US generally accepted accounting principles (GAAP) from Canadian
  GAAP. Our travel and accommodation expenses were $154,887, up from $125,950
  spent in the prior year, the increase is due to higher staffing and travel
  related to financing activities prior to the IPO and also more frequent travel
  to the Borealis property. Travel costs directly related to the IPO were
  recorded as part of share issue costs in stockholders' equity. General and
  administrative expenses for the year were $480,891 up from $116,219 in the
  prior year. The increase was due to higher spending on investor relations,
  rent with the establishment of our Lakewood office in September, office
  support, insurance and telephone. Interest income earned on cash deposits was
  $168,170 compared to $9,646 in the prior year due to significantly higher cash
  balances in 2006 and the use of interest bearing bank accounts for a full year
  in 2006 compared to only part of the year in 2005. </font></p>
  <p class="MsoNormal" align="center"><font size="2">&nbsp;121</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><font size="2">Three months ended
  December 31, 2007 compared to three months ended December 31, 2006 </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">For the three months ended
  December 31, 2007 we had a net loss of $1,736,589 or $0.03 per share compared
  to a net loss of $2,620,464 or $0.06 per share in the same period in the prior
  year, as spending on our exploration activities on the Borealis property
  decreased by $667,507 and management salaries and consulting fees decreased by
  $325,833.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Exploration expenses
  during the three months ended December 31, 2007 were $661,007 or 38% of our
  total expenses compared to $1,328,514 or 51% of total expenses in the prior
  year. During the third quarter ended December 31, 2007 we completed drilling 5
  holes, totaling 5,515 feet (1,681 meters) compared to completing 11 holes
  totaling 13,680 feet (4,169 meters) in prior year's comparable period.
  &nbsp;Drilling costs for quarter ended December 31, 2007 were $262,095 versus
  $764,180 in the prior years comparable quarter. &nbsp;Drilling costs decreased
  because drilling was temporarily suspended beginning mid-November 2007 (versus
  mid-December 2006) to allow for a larger CSAMT geophysical study to be
  completed over the pediment areas and the permitting activity to be completed
  for the next years drilling program.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Management salaries and
  consulting fees in the quarter ended December 31, 2007 were $529,729 compared
  to $855,562 incurred in the quarter ended December 31, 2006 due to the costs
  incurred in the prior year associated with closing the Denver based
  engineering office. &nbsp;Total non-cash compensation costs included in the quarter
  ended December 31, 2007 were $199,422 versus $529,683 in the prior year's
  comparable quarter. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">General and administrative
  costs for the quarter ended December 31, 2007 was $254,831 compared to
  $240,219 for the quarter ended December 31, 2006, a 6% increase. &nbsp;Included in
  General and administrative are investor relations costs which increased by
  $206,311, during the comparable periods. &nbsp;Legal and audit fees for the period
  increased to $111,020 from $106,258 for the three months ended December 31,
  2006, and is mainly due to costs associated with being a public company that
  reports in both Canada and the United States, and registering stock issued
  under private placements. Travel and accommodation expense during the quarter
  ended December 31, 2007 was $68,704, compared to $96,678 expended on travel in
  the prior year's comparable quarter. The decrease is due to cost savings from
  closing the Denver office in the prior year and fewer property site visits.
  Interest income earned on cash deposits was $40,782 for the quarter ended
  December 31, 2007, compared to $66,303 in the prior year quarter due to lower
  average cash balances then the comparable quarter. &nbsp;Interest expense was
  $130,300 during the quarter ended December 31, 2007 due to the issue of a
  convertible promissory note as partial payment for the purchase of the
  membership interest of Nevada Eagle Resources LLC in August 2007. &nbsp;$65,930 of
  the total interest was non-cash interest expense.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Nine months ended
  December 31, 2007 compared to nine months ended December 31, 2006 </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">For the nine month period
  ended December 31, 2007 we incurred a net loss of $6,463,678 or $0.13 per
  share compared to a net loss of $6,491,678 or $0.16 per share incurred during
  the same period in the prior year, as costs for most categories of
  expenditures remained consistent year on year. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Exploration expenses
  during the six month period ended December 31, 2007 were $3,414,405 or 53% of
  our net loss compared to $3,649,732 or 56% of our net loss in the prior year.
  During the current fiscal year we have drilled a total of 31 holes at the
  Borealis property, representing 36,405 feet (11,096 meters) compared to 41
  holes representing 39,715 feet (12,105 meters). &nbsp;Fewer holes were drilled
  during the current year because the drilling program focused on drilling deep
  holes in the Graben and Pediment areas versus drilling shallow holes to add
  oxide resources in the prior year. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Management salaries and
  consulting fees in the nine months ended December 31, 2007 were $1,663,160
  compared to $1,746,164 for the same period in the prior year. &nbsp;Current year
  costs include $322,464 in one-time costs for a transition agreement covering a
  single employee and director including non-cash costs of $81,235. &nbsp;The
  majority of the cash costs will be paid out over an 18 month period. &nbsp;Prior
  years costs include expense for running the Denver engineering office that was
  closed effective December 31, 2006. &nbsp;&nbsp;Total non-cash compensation costs
  included in the nine months ended December 31, 2007 were $683,916 versus
  $779,747 in the prior year's comparable period. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">General and administrative
  expenses were $812,436, versus $721,437 in the prior year's comparable period.
  The increase is due to a $306,641 spending on investor relations. &nbsp;Legal and
  audit fees for the nine month period increased to $308,877 from $271,017
  incurred in the prior year's comparable period. &nbsp;Travel and accommodation
  during the nine months ended December 31, 2007 was $172,408, compared to
  $282,117 reported in prior year nine month period ended December 31, 2006. The
  decrease was due to a reduction is site visits and the closure of the Denver
  engineering office in late 2006.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Interest income earned on
  cash deposits was $170,332 for the nine months ended December 31, 2007,
  compared to $242,832 for the nine months ended December 31, 2006, due to lower
  average cash balances during the nine month period. &nbsp;&nbsp;Interest expense totaled
  $188,853 and arose from the issuance of a convertible promissory note related
  to the purchase of Nevada Eagle Resources LLC on August 21, 2007. &nbsp;$94,297 of
  the interest expense is non-cash.&nbsp;</font></p>
  <p class="MsoNormal" align="center"><font size="2">122</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal"><b><font size="2">Liquidity and Capital Resources</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">Our principal source of
  liquidity is cash that is raised by way of sale of common shares from
  treasury. During the fiscal year ended March 31, 2007 total cash of $3,932,234
  was raised from the sale of stock in private placements. &nbsp;A further $1,550,553
  was raised through the exercise of warrants to common shares of the company. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">At March 31, 2007, we had
  working capital of $6,525,160, and we had current assets consisting of
  $7,150,154 in cash, $65,483 in accounts receivable and $129,065 in prepaid
  expenses. &nbsp;We had $819,542 in current liabilities at March 31, 2007,
  consisting of $786,565 in accounts payable and accrued liabilities and $32,977
  in current portion of capital leases. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">At December 31, 2007, we
  had working capital of $4,701,031. &nbsp;Current assets consisted of $5,541,213 in
  cash, $85,415 in accounts receivable and $157,553 in prepaid expenses. &nbsp;We had
  $1,083,150 in current liabilities at December 31, 2007, consisting of
  $1,083,150 in accounts payable and accrued liabilities and $32,536 related to
  the current portion of capital leases. The increase in accounts payable and
  accrued liabilities compared to the balance at March 31, 2007 is related to
  the recognition of the transition agreement that will be paid over 18 months. </font> </p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="background-position: 0% 0%; background-image:url('none'); background-repeat:repeat; background-attachment:scroll">Currently, we do have sufficient
  working capital to continue with our operations for the next twelve months.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">During the quarter ended
  December 31, 2007, we used cash in operating activities of $1,736,046, which
  included our net loss during the quarter of $1,736,590, offset by depreciation
  of $18,745, non-cash compensation of $199,422, non-cash interest expense of
  $65,930 and changes in non-cash working capital used cash of $283,553. &nbsp;We
  used cash in investing activities of $4,604, including $6,177 for reclamation
  deposits, $17,153 for equipment purchases, $5,409 in new claim fees and
  $24,135 of cash was received in lease payments on Nevada Eagle properties.
  &nbsp;Financing activities provided cash of $3,354,009, which included $3,360,088
  from the issuance of shares in connection with a private placement, offset by
  capital lease principal payments of $6,079. &nbsp;Cash increased during the period
  by $1,613,359 to $5,541,213 as at December 31, 2007.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Under the terms of the
  acquisition agreement for Nevada Eagle Resources a cash payment of $2,500,000
  was made on August 21, 2007. &nbsp;Refer to the section 'Contractual Obligations'
  under this document for a full description of the acquisition and commitment.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On February 9, 2007, we
  closed the private placement of 5,000,000 units for sale at Cdn$0.90 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one Series E purchase warrant. The
  Series E warrants are exercisable until February 8, 2008 at a price of
  Cdn$1.10 (first anniversary) and from February 9, 2008 until February 8, 2009
  at a price of Cdn$1.35. &nbsp;The private offering raised gross proceeds of Cdn$4.5
  million. &nbsp;We paid qualified registered dealers a 7% cash commission and issued
  compensation Series F warrants to acquire 85,050 common shares at price of
  Cdn$0.90 until February 9, 2008 on a portion of the private placement. &nbsp;The
  shares, warrants and underlying shares were not qualified by prospectus and
  have not been registered under U.S. securities laws and are subject to resale
  restrictions. &nbsp;The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  &nbsp;The proceeds of this offering will be applied to fund the continuation of our
  exploration program on the Borealis Property. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On March 15, 2007, we
  entered into a Advisory Services Agreement with Roman Friedrich &amp; Company Ltd.
  (RFC) &nbsp;Under the terms of the Advisory Services Agreement, commencing March
  15, 2007, in exchange for RFC's financial advisory services, we agreed to
  compensate RFC by paying a retainer fee of Cdn$7,500 per month and issuing
  7,500 common shares per month, payable on &nbsp;a quarterly basis commencing June
  2007. &nbsp;&nbsp;As of November 14, 2007, 55,000 shares were issued to Roman Friedrich. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC (&quot;Nevada
  Eagle&quot;), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. &nbsp;Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. &nbsp;Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">123</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit will consist of one
  common share and one full purchase warrant. The two year warrants will be
  exercisable at a price of Cdn$1.00 if exercised within twelve months of the
  closing (the &quot;First Anniversary&quot;) and at a price Cdn$1.25 if exercised after
  the First Anniversary but prior to expiry. We paid qualified registered
  dealers cash commissions in the amount of Cdn$152,040 and issued warrants to
  acquire 265,050 common shares (at a price of Cdn$0.83 for a period of up to 9
  months from closing). &nbsp;The shares, warrants and underlying shares were not
  qualified by prospectus and have not been registered under U.S. securities
  laws and are subject to resale restrictions. The Company has granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  programs.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">We completed a private
  placement of 4,486,500 units at Cdn$0.80 for gross proceeds of approximately
  Cdn$3,589,000. &nbsp;The private placement closed in three tranches on November 22,
  &nbsp;November 27 and December 14, 2007. &nbsp;Each unit consisted of one common share
  and one series I warrant. &nbsp;Each series I warrant entitles the holder to
  purchase a common share at a price of Cdn$1.00 per share during the first 12
  months after closing and Cdn$1.25 per share during the second 12 months after
  closing and until expiry. &nbsp;We paid qualified registered dealers a 7% cash
  commission in the amount of Cdn$71,624 and issued compensation warrants
  (series J) to acquire 89,530 common shares (at a price of Cdn$0.80 per share
  for a period of 9 months from closing) in respect of the 1,204,000 million
  units placed by them (14,000 of the compensation warrants were later rejected
  and cancelled by one of the registered dealers). We have a right to force
  warrant holders to exercise warrants, if the price of our common stock remains
  equal to or greater than, Cdn$1.85 per common share, for a period of twenty
  consecutive days. &nbsp;The shares, warrants and underlying shares were not
  qualified by prospectus, have not been registered under U.S. securities laws,
  and are subject to resale restrictions. We granted registration rights to the
  investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development program on the Borealis
  Property.</font></p>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2" style="color: black">Updated share capital as of December 31,
  2007:</font></p>
  <table class="MsoNormalTable" style="width: 50%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="50%" border="0">
    <tr>
      <td style="width: 231.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="309">
      <p class="MsoNormal" style="text-align: left" align="left">
      <font size="2" style="color: black">Basic Common Stock Issued and
      Outstanding</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="75">
      <p class="MsoNormal" style="text-align: right" align="right">
      <font size="2" style="color: black">61,681,645</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 231.75pt; PADDING-TOP: 0in" vAlign="top" width="309">
      <p class="MsoNormal" style="text-align: left" align="left">
      <font size="2" style="color: black">Warrants, Options and other
      Convertible Securities</font></td>
      <td style="width: 56.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="75">
      <p class="MsoNormal" style="text-align: right" align="right">
      <font size="2" style="color: black">21,550,888</font></td>
    </tr>
    <tr>
      <td style="width: 231.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="309">
      <p class="MsoNormal" style="text-align: left" align="left">
      <font size="2" style="color: black">Fully Diluted Common Stock
      </font> </td>
      <td style="width: 56.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt double black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="75">
      <p class="MsoNormal" style="text-align: right" align="right">
      <font size="2" style="color: black">83,232,533</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <b><font size="2" style="color: black">Summary of any product research and
  development that the company will perform for the term of the plan </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company does not
  anticipate performing any product research and development under its plan of
  operation.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><b>
  <font size="2" style="color: black">Expected purchase or sale of plant and
  significant equipment</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The Company is reviewing alternatives for
  purchase of mine equipment if the development of a mine on the Borealis
  property is warranted by a feasibility study and additional financing is
  obtained. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <b><font size="2" style="color: black">Significant changes in number of
  employees</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">We started the year with eleven employees
  but due to closing the Lakewood, Colorado office this number decreased to
  eight in late 2006. &nbsp;We currently have eight employees. &nbsp;We do not expect a
  significant change in this number.&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify"><b>
  <font size="2" style="color: black">Off-Balance Sheet Arrangements
  </font> </b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The Company does not have any off-balance
  sheet arrangements that have or are reasonably likely to have a current or
  future effect on our financial condition, changes in financial condition,
  revenues or expenses, results of operations, liquidity, capital expenditures
  or capital resources that is material to investors. </font></p>
  <p class="MsoNormal" align="justify">
  <b><font size="2" style="color: black">Contractual Obligations </font> </b>
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">We make advance royalty payments of $9,094
  per month to certain lease holders while exploration is proceeding on the
  Borealis Property. Also, to maintain its existing claims, we make payments
  totaling approximately $130,000 annually. These payments are contingent upon
  us maintaining an interest in the property. </font> </p>
  <p class="MsoNormal" align="center">
  <font size="2">124</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2" style="color: black">&nbsp;As of December 31, 2007, we had the
  following non-cancelable contractual obligations: </font> </p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%" colSpan="5">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Payments Due by Period</font></b><sup><font size="2" style="color: black">(3)</font></sup></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%" colSpan="5">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Total</font></b><font size="2" style="color: black">
      </font>
      </td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">Less than 1<br>
      year</font></b><font size="2" style="color: black"> </font> </td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2-3 Years</font></b><font size="2" style="color: black">
      </font>
      </td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">4-5 Years</font></b><font size="2" style="color: black">
      </font>
      </td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid windowtext; border-bottom: 1pt solid windowtext; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: center; margin-top:0; margin-bottom:0" align="center"><b>
      <font size="2" style="color: black">More than 5<br>
      Years</font></b><font size="2" style="color: black"> </font> </td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font style="COLOR: black"><font size="2">Operating Lease Obligation
      </font> <sup><font size="2">(1)</font></sup></font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$10,565</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$10,565</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Capital Lease obligations <sup>(2)</sup>
      </font>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">32,536</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">32,536</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
    </tr>
    <tr>
      <td style="width: 25%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Debenture &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,000,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">5,000,000</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">0</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 25%; PADDING-TOP: 0in" vAlign="top" width="25%">
      <p class="MsoNormal" style="text-align: left; margin-top:0; margin-bottom:0" align="left">
      <font size="2" style="color: black">Total</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$5,043,101</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$43,101</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$5,000,000</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0</font></td>
      <td style="width: 15%; border-left: medium none; border-right: medium none; border-top: 1pt solid black; border-bottom: medium none; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="text-align: right; margin-top:0; margin-bottom:0" align="right">
      <font size="2" style="color: black">$0</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: left; margin-left: 0.25in" align="left">
  <sup><font size="2" style="color: black">(1)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;
  Obligation for the rental of office space in Vancouver BC with an initial 3
  year term, terminating August 2008 and payments of approximately $3,388 per
  month, based on the December 31, 2007 exchange rate of Cdn$0.9913 equals US$1.
  </font>
  </p>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: justify; margin-left: 0.25in" align="left">
  <sup><font size="2" style="color: black">(2)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;
  The capitalized leases are for the purchase of two trucks.</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; text-align: justify; margin-left: 0.25in" align="left">
  <sup><font size="2" style="color: black">(3)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;
  The table does not include employment contracts with certain executive
  management which are described in our 10K-SB filed June 22, 2007 under the
  section heading &quot;Executive Compensation&quot;.</font></p>
  <p class="MsoNormal" style="text-align: justify" align="left"><font size="2">
  Under the terms of the Purchase Agreement we closed with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle, we acquired Nevada Eagle
  from the Baughman's for the following consideration, paid on August 21, 2007: </font> </p>
  <p class="MsoNormal" style="text-align: justify; margin-left: 22.5pt; margin-bottom: 0pt" align="left">
  <font size="2">(a) $2,500,000 in cash; </font> </p>
  <p class="MsoNormal" style="text-align: justify; margin-left: 22.5pt; margin-bottom: 0pt" align="left">
  <font size="2">(b) four million five hundred thousand (4,500,000) shares of
  our common stock; and </font> </p>
  <p class="MsoNormal" style="text-align: justify; margin-left: 22.5pt; margin-bottom: 0pt" align="left">
  <font size="2">(c) a 5% convertible note in the principal amount of
  $5,000,000.
  </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">The Convertible Note, due
  March 30, 2010, bears interest at the annual rate of 5% and is convertible at
  the option of the holder into common shares at an initial conversion price of
  $1.00 per common share during first the twelve month period following the
  Closing Date, $1.25 per common share during the second twelve month period
  following the Closing Date, $1.50 per common share thereafter and $1.75 per
  common share if converted on March 10, 2007. The interest payments are due
  each January 1 and June 1, beginning on January 1, 2008. In addition to the
  purchase consideration, the Sellers will be entitled to all revenues of Nevada
  Eagle (payable in cash, stock, or other consideration) calculated to be
  received and received on the assets and properties from January 1, 2007
  through midnight on December 31, 2007. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In addition, we granted
  the Sellers registration rights under which we agreed to file (within the
  later of (i) 90 days of the Closing Date or (ii) any date in which we are
  required to file a registration statement for a third-party in connection with
  a financing or acquisition, but no later than 120 days of the Closing Date) a
  resale registration statement to register the common shares issuable at
  Closing and issuable upon exercise of the Convertible Note under the
  Securities Act of 1933, as amended. We also entered into an Employment
  Agreement with Mr. Baughman for a term of one year, renewable by the parties,
  to serve as our Vice President of Corporate Development. </font> </p>
  <p class="MsoNormal"><font size="2">Certain information contained in this
  &quot;Management Discussion and Analysis&quot; constitutes forward looking information
  and actual results could differ from estimates, expectations or beliefs
  contained in such statements.</font></p>
  <h1 align="center"><a name="_Toc196194153"><font size="2">CHANGES IN AND
  DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</font></a></h1>
  <p class="MsoNormal" style="text-align: left" align="left"><font size="2">
  None.
  </font> </p>
  <p class="MsoNormal" style="text-align: center" align="left"><font size="2">
  125</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="_Toc195437403"><font size="2">DIRECTORS, EXECUTIVE
  OFFICERS AND CONTROL PERSONS</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">Our directors hold office
  until the next annual meeting of the stockholders and the election and
  qualification of their successors. Officers are elected annually by the Board
  of Directors and serve at the direction of the Board of Directors.</font></p>
  <p class="MsoNormal"><font size="2">The following table and information that
  follows sets forth, as of April 28, 2008,<b> </b>the names, and positions of
  our directors and executive officers:</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 22.5pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Name and Municipality of<br>
      Residence</font></b><font size="2" style="color: black">
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Current Office with<br>
      Gryphon Gold</font></b><font size="2" style="color: black">
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Principal Occupation<br>
      Last Five Years</font></b><font size="2" style="color: black">
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 22.5pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><font size="2" style="color: black">Director Since</font></b><font size="2" style="color: black">
      </font>
      </td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 136.35pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 116pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 210.2pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63.85pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 36.75pt">
      <td style="width: 136.35pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Anthony (Tony) D. J. Ker</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">West Vancouver, British Columbia</font></td>
      <td style="width: 116pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Director, Chief Executive Officer and
      President</font></td>
      <td style="width: 210.2pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Appointed Chief Executive Officer
      September 2006, Executive Vice President, Gryphon Gold Corporation, 2003
      to present, General Manager, Transcontinental Printing Inc., 1996 to 2004.</font></td>
      <td style="width: 63.85pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">May 7, 2004</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 36.75pt">
      <td style="width: 136.35pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Richard W. Hughes</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">North Vancouver, British Columbia</font></td>
      <td style="width: 116pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Director</font></td>
      <td style="width: 210.2pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">President of Klondike Gold Corp. 1985
      to present.</font></td>
      <td style="width: 63.85pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">June 14, 2003</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 45pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 45pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Rohan Hazelton</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">North Vancouver, British Columbia</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 45pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Director</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 45pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Vice President Finance 2006 to
      present, formerly corporate Controller 2004 to 2006 and Mgr. Treasury and
      Finance, 2002 to 2004, Goldcorp Inc. (and Predecessor Wheaton River
      Minerals Ltd.), Auditor, Deloitte &amp; Touche LLP, 1999 to 2002.</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 45pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">July 6, 2005</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="width: 136.35pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 116pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 210.2pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 63.85pt; height: 14.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 36.75pt">
      <td style="width: 136.35pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Donald W. Gentry</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Bella Vista, Arkansas </font> </td>
      <td style="width: 116pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Director</font></td>
      <td style="width: 210.2pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">President, Chief Executive Officer,
      Chairman and Director of PolyMet Mining Corporation, 1998 to 2003</font></td>
      <td style="width: 63.85pt; height: 36.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">July 18, 2005</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 56.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 56.25pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Michael K. Longinotti</font></b><font size="2" style="color: black">
      </font>
      </p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">North Vancouver, British Columbia</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 56.25pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Chief Financial Officer and Secretary</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 56.25pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Chief Financial Officer, appointed May
      15, 2006, Chief Financial officer Digital Payment Technologies February
      2005 to May 2006, CFO Knight Signs Sept 2004 to February 2005, CFO Silent
      Witness, Nov. 2000 to June 2003. 1992 to 2000 Comptroller and then
      Treasurer of Cominco Ltd.</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 56.25pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">&#151;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 136.35pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="182">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 116pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="155">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 210.2pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="280">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63.85pt; PADDING-TOP: 0in; HEIGHT: 14.25pt" vAlign="top" width="85">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">The following is a description of the
  business background of the directors and executive officers of the
  Corporation.</font></p>
  <p class="MsoNormal" align="center"><font size="2">126</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><b><font size="2">Richard W. Hughes, </font> </b>
  <font size="2">75, Director, is President of Hastings Management Corp., a
  private management company providing administrative and professional services
  to public companies engaged in mineral exploration. &nbsp;He is also President of
  five companies listed on the Toronto Venture Stock Exchange (TSX): Klondike
  Gold Corp., Klondike Silver Corp., Abitibi Mining Corp., Sedex Mining Corp.,
  Amador Gold Corp., Chairman of Golden Chalice Resources Inc. and is a director
  of Alamos Gold Corp. and 10 other TSX listed companies. &nbsp;Mr. Hughes has
  brought four mines into production and had a prominent role in the discovery
  of the Golden Giant (Hemlo Mine) in Ontario Canada and was responsible for the
  discovery of the Belmoral Mine and the Sleeping Giant Mine, both in Quebec,
  Canada.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Rohan Hazelton,</font></b><font size="2">&nbsp;33,
  Director, joined our board in July 2005 and was appointed Chairman of the
  Audit Committee. Mr.&nbsp;Hazelton is currently Vice President, Finance, and
  formerly was Corporate Controller for Goldcorp Inc. Prior to Goldcorp's merger
  with Wheaton River Minerals Ltd; he was a key member of Wheaton's management
  team since 2002 during Wheaton's rapid growth and significant increase in
  shareholder value. Mr.&nbsp;Hazelton is a Chartered Accountant and previously
  worked for Deloitte&nbsp;&amp; Touche LLP and Arthur Andersen LLP. Prior to that,
  Mr.&nbsp;Hazelton was a commercial loans officer for Dialog Bank Moscow, Russia.
  Mr.&nbsp;Hazelton holds a B.A. in Math and Economics from Harvard University.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Donald W. Gentry, </font> </b>
  <font size="2">64, Director, joined our board in July 2005 after retiring from
  PolyMet Mining Corporation as its President, Chief Executive Officer, Chairman
  and Director from 1998 to 2003. He is a retired Professor Emeritus of the
  Colorado School of Mines, having served that institution from 1972 to 1998 as
  Professor, Department Head and Dean of Engineering. He has an international
  reputation as a consulting mining engineer, professional educator and mining
  executive. His primary interests center on the financial aspects of project
  evaluation, investment decision analysis, project financing, and corporate
  investment strategies. He previously served as a Director of Santa&nbsp;Fe Pacific
  Gold Corporation, Newmont Mining Corporation, and Newmont Gold Company and
  currently is a Director of Golden Gryphon Explorations (a company which is
  unrelated to Gryphon Gold Corporation). He was elected President of the
  Society for Mining, Metallurgy and Exploration, Inc. in 1993 and the American
  Institute of Mining, Metallurgical and Petroleum Engineers in 1996, and to the
  National Academy of Engineering in 1996. He holds B.S., M.S. and PhD. degrees
  in mining engineering from the University of Illinois, Mackay School of Mines,
  and U niversity of Arizona, respectively.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Anthony Ker, </font> </b>
  <font size="2">51, Director, has served as our Chief Executive Officer since
  September 2006 prior to which he was Executive Vice President, Secretary and
  Treasurer since August 2003. From 1999 to February 2003, Mr.&nbsp;Ker served as
  Director, Treasurer, Secretary and Chief Financial Officer for National Gold
  Corporation, a TSX Venture Exchange listed company that merged into Alamos
  Gold, Inc. (TSX)&nbsp;during the spring of 2003. From 1996 and concurrent with the
  positions at National Gold Corporation, he was General Manager for
  Transcontinental Printing, Inc., British Columbia Division, a Toronto Stock
  Exchange listed company, and the second largest printer in Canada. Prior to
  the Transcontinental Printing, Inc. position, Mr.&nbsp;Ker managed a large coastal
  sawmill for International Forest Products Limited and Weldwood of Canada
  Limited in British Columbia. Mr.&nbsp;Ker holds a Bachelor of Science in Forestry
  from University of British Columbia.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">Michael K. Longinotti</font></b><font size="2">,
  51, was appointed as our Chief Financial Officer effective May 15, 2006. &nbsp;From
  2003 to 2006 Mr. Longinotti has worked with several entrepreneurial companies
  as CFO including Digital Payment Technologies, Knight Signs and Rx Networks.
  &nbsp;From 2000 to 2004 he was CFO of Silent Witness, a NASDAQ and TSX listed
  provider of security equipment and network provider. &nbsp;From 1989 to 2000 he was
  in various positions, including Comptroller and Treasurer at Cominco Ltd. a
  multinational mining and smelting corporation with Cdn$ 3 billion in assets.
  &nbsp;&nbsp;Mr. Longinotti holds a B.S. in Geology and a B.S. in Environmental Science
  from Washington State University and a B.A. in Business Administration from
  the University of Washington and is a member of the Washington State Society
  of Certified Public Accountants. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">&nbsp;None of our executive
  officers or key employees is related by blood, marriage or adoption to any
  other director or executive officer.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">To our knowledge, there is
  no arrangement or understanding between any of our officers and any other
  person pursuant to which the officer was selected to serve as an officer.</font></p>
  <h1 align="center"><a name="_Toc196194155"><font size="2">EXECUTIVE
  COMPENSATION</font></a></h1>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2" style="color: black">The following table sets forth
  compensation paid to each of the individuals who served as our Chief Executive
  Officer and our other most highly compensated executive officers (the &quot;named
  executive officers&quot;) for the fiscal year ended March&nbsp;31, 2007.</font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">On April 4, 2006, the Board authorized
  salary adjustments for directors, officers, and employees. &nbsp;These adjustments
  are indicated in the compensation table below. &nbsp;Further, the Board proposed
  stock grants to certain directors and executives to provide additional
  compensation, such stock grants would be part of a Stock Grant and Options
  Plan to be approved at the next annual general meeting of stockholders.</font></p>
  <p class="MsoNormal" align="center">
  <font size="2" style="color: black">&nbsp;1</font><font size="2">27</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
  <b><font size="2" style="color: black">Summary Compensation Table</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.92%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.08%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.54%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.2%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 10.3%; PADDING-TOP: 0in" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.96%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.44%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.92%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Name and<br>
      Principal Position</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.08%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Year</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.54%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Salary<br>
      $</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.2%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Bonus <br>
      $</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 10.3%; PADDING-TOP: 0in" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Stock<br>
      Awards </font> </p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.96%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Options Awards </font> </p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">$</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Non-Equity Incentive Plan Compensation
      $</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Non-Qualified Deffered Compensation
      Earnings $</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">All Other Compensation</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.44%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Total</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.92%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.08%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.54%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.2%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 10.3%; PADDING-TOP: 0in" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.96%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.44%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 9.92%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Tony Ker, President &amp; CEO</font></td>
      <td style="width: 8.08%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2007</font></td>
      <td style="width: 9.54%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font style="COLOR: black"><font size="2">&nbsp;&nbsp;174,442</font><sup><font size="2">(2)</font></sup></font></td>
      <td style="width: 9.2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,188
      </font> </td>
      <td style="width: 10.3%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,145<sup>(4)</sup>
      </font>
      </td>
      <td style="width: 9.96%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;166,570
      </font> </td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font style="COLOR: black"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,380</font><sup><font size="2">(5)</font></sup></font></td>
      <td style="width: 8.44%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;478,725 </font> </td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.92%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Michael Longinotti, CFO</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.08%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2007</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.54%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;117,175 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.2%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,188
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 10.3%; PADDING-TOP: 0in" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63,954
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.96%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;198,920
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.44%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;398,237 </font> </td>
    </tr>
    <tr>
      <td style="width: 9.92%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Albert Matter, Former Chairman</font></td>
      <td style="width: 8.08%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2007</font></td>
      <td style="width: 9.54%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;179,516<sup>(3)</sup>
      </font>
      </td>
      <td style="width: 9.2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,188
      </font> </td>
      <td style="width: 10.3%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87,145<sup>(4)</sup>
      </font>
      </td>
      <td style="width: 9.96%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;166,570
      </font> </td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,790<sup>(5)</sup>
      </font>
      </td>
      <td style="width: 8.44%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;487,209 </font> </td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.92%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">Allen Gordon, Former President &amp;
      COO</font><sup><font size="2"> (1)</font></sup></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.08%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2007</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.54%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;130,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.2%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 10.3%; PADDING-TOP: 0in" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 9.96%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145,600
      </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 11.52%; PADDING-TOP: 0in" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;112,500<sup>(5)(6)</sup>
      </font>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 8.44%; PADDING-TOP: 0in" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;388,100 </font> </td>
    </tr>
    <tr>
      <td style="width: 9.92%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Steve Craig, VP Exploration</font></td>
      <td style="width: 8.08%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2007</font></td>
      <td style="width: 9.54%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;125,000 </font> </td>
      <td style="width: 9.2%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</font></td>
      <td style="width: 10.3%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,429
      </font> </td>
      <td style="width: 9.96%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,930
      </font> </td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 11.52%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="11%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font style="COLOR: black"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000</font><sup><font size="2">(7)
      </font> </sup>
      </font></td>
      <td style="width: 8.44%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="8%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">&nbsp;&nbsp;213,359 </font> </td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(1)&nbsp; Vacated President and Chief
  Operating Officer role November 30, 2006</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(2)&nbsp; Effective April 2006 annual
  salary adjusted to Cdn$213,000, on January 1, 2007 reduced to Cdn$150,000</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(3)&nbsp; Effective April 2006 annual
  salary adjusted to Cdn$220,600, on January 1, 2007 reduced to Cdn$150,000.</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(4)&nbsp; Grant of 75,000 Restricted Stock
  Units in lieu of reduced salary vesting quarterly commencing April 1, 2007;
  50,000 Restricted Stock Units Vest on July 10, 2008. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -21.3pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(5)&nbsp; Retro pay for fiscal year 2006. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -21.3pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(6)&nbsp; Severance payment of $75,000.</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 22.5pt; TEXT-INDENT: -21.3pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">(7)&nbsp; Relocation payment.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2">&nbsp;</font><b><font size="2" style="color: black">Executive
  Compensation Agreements and Summary of Executive Compensation</font></b></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">&nbsp;</font><b><i><font size="2" style="color: black">Report
  on Executive Compensation</font></i></b></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">&nbsp;During the year ended March 31, 2007, the
  Company's Compensation Committee was responsible for establishing compensation
  policy and administering the compensation programs of our executive officers.</font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">&nbsp;The amount of compensation paid by the
  Company to each of our officers and the terms of those persons' employment is
  determined solely by the Compensation Committee. The Compensation Committee
  evaluates past performance and considers future incentive and retention in
  considering the appropriate compensation for the Company's officers. &nbsp;The
  Company believes that the compensation paid to the Company's directors and
  officers is fair to the Company.</font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">Our Compensation Committee believes that
  the use of direct stock awards is at times appropriate for employees, and in
  the future intends to use direct stock awards to reward outstanding service or
  to attract and retain individuals with exceptional talent and credentials. The
  use of stock options and other awards is intended to strengthen the alignment
  of interests of executive officers and other key employees with those of our
  stockholders.&nbsp;</font></p>
  <p class="MsoNormal" align="justify"><b><i>
  <font size="2" style="color: black">Executive Compensation Agreements</font></i></b></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">&nbsp;Gryphon Gold is a party to employment
  contracts for Tony Ker, Michael Longinotti, Steven Craig and Rajwant Kang.
  &nbsp;Pursuant to those agreements they are entitled to compensation for
  termination of their employment in certain circumstances, including
  termination without cause and change of control. The employment agreements
  provide for the payment of compensation that will be triggered by a
  termination of the executive officer's employment by either Gryphon Gold or
  the executive officer following a change of control of Gryphon Gold, or by
  Gryphon Gold at any time, other than for &quot;cause.&quot; In such event, Messr's Ker,
  Longinotti, and Craig will be entitled to receive an amount equal to one
  year's annual salary plus bonus (equal to the amount of bonus in the prior
  year) earned in the year of change of control, and existing benefits for a
  period of 12&nbsp;months. Mr. Kang will be entitled to receive an amount equal to
  one-half year's annual salary plus bonus (equal to the amount of bonus in the
  prior year) earned in the year of change of control, and existing benefits for
  a period of 6&nbsp;months. &nbsp;The agreement with Tony Ker includes limited
  non-competition and non-solicitation covenants for a period of 12&nbsp;months
  following termination. &nbsp;</font></p>
  <p class="MsoNormal" align="center">
  <font size="2">128</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">Except as described above, and the payment
  of directors' fees, there are no service contracts of any officer of Gryphon
  Gold and there is no arrangement or agreement made or proposed to be made
  between Gryphon Gold and any of its named executive officers pursuant to which
  a payment or other benefit is to be made or given by way of compensation in
  the event of that officer's resignation, retirement or other termination of
  employment, or in the event of a change of control of Gryphon Gold or a change
  in the named executive officer's responsibilities following such change in
  control. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2">&nbsp;</font><b><font size="2" style="color: black">Outstanding
  Equity Awards At Fiscal Year-End</font></b><font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">The following table sets forth the stock
  options granted to our named executive officers as of the fiscal year ended
  March&nbsp;31, 2007. No stock appreciation rights were awarded. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 452.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="603" colSpan="6">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Option Awards</font></td>
      <td style="width: 257.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid black; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in" vAlign="top" width="343" colSpan="4">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Stock Awards</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="top" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="top" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="top" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="top" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="top" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="top" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="top" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="top" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="top" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Name</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="top" width="81" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Number of Securities Underlying
      Unexercised Options (1) (#) Exercisable</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="top" width="92" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Number of Securities Underlying
      Unexercised Options (#) Unexercisable</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="top" width="82" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Equity Incentive Plan Awards: Number
      of Securities Unexercised Unearned Options (#)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="top" width="68" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Option Exercise Price ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="top" width="73" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Option Expiration Date</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="top" width="55" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Number of Shares or Units of Stock
      that have not Vested (#)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="top" width="84" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Market Value of Shares or Units of
      Stock that have not Vested ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="top" width="69" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Equity Incentive Plan Awards: Number
      of Securities Unearned Shares, Units or Other Rights That have not Vested
      (#)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="top" width="75" nowrap>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Equity Incentive Plan Awards: Market
      or Payout Value of Unearned Shares, Units or Other Rights that Have not
      Vested ($)</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Tony Ker</font></b><sup><font size="2" style="color: black">(1)</font></sup></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">325,000 </font> </td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">-- </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.75</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">29-Mar-10</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,336
      </font>
      </td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">President and Chief Executive Officer</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">200,000 </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">4-Apr-12</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">75,000 </font> </td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69,505
      </font>
      </td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25-Feb-12</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Michael Longinotti</font></b><sup><font size="2" style="color: black">(2)</font></sup></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">250,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">18-Apr-12</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Chief Financial Officer</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25-Feb-12</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Albert Matter</font></b><sup><font size="2" style="color: black">(3)</font></sup></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">350,000 </font> </td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.75</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">29-Mar-10</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,336
      </font>
      </td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Former Chairman</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">200,000 </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">4-Apr-12</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">75,000 </font> </td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69,505
      </font>
      </td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25-Feb-12</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Steve Craig</font></b><sup><font size="2" style="color: black">(4)</font></sup></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">54,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">36,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.15</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">5-Jan-11</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,168
      </font>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">VP Exploration</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">36,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">24,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">13-Mar-11</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">50,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">4-Apr-12</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25,000 </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">25-Feb-12</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font style="COLOR: black"><font size="2">Allen Gordon </font> <sup>
      <font size="2">(5)</font></sup></font></b></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">350,000 </font> </td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">-- </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">0.75</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">13-Jun-07</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Former President and Chief Operating
      Officer</font></td>
      <td style="width: 60.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="width: 69pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">225,000 </font> </td>
      <td style="width: 61.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="width: 54.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">13-Jun-07</font></td>
      <td style="width: 41.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 63pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 51.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 56.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Rajwant Kang</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">30,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">45,000</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$1.37</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">4-Apr-11</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Former Controller, Former Secretary,
      and Former Treasurer</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 60.75pt; PADDING-TOP: 0in" vAlign="bottom" width="81">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">37,500</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 69pt; PADDING-TOP: 0in" vAlign="bottom" width="92">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">--</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 61.5pt; PADDING-TOP: 0in" vAlign="bottom" width="82">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51pt; PADDING-TOP: 0in" vAlign="bottom" width="68">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">Cdn$0.80</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 54.75pt; PADDING-TOP: 0in" vAlign="bottom" width="73">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">26-Feb-12</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 41.25pt; PADDING-TOP: 0in" vAlign="bottom" width="55">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 63pt; PADDING-TOP: 0in" vAlign="bottom" width="84">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 51.75pt; PADDING-TOP: 0in" vAlign="bottom" width="69">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 56.25pt; PADDING-TOP: 0in" vAlign="bottom" width="75">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(1)&nbsp;&nbsp;&nbsp;&nbsp; 200,000
  options vest 100% April 4, 2007; 50,000 options vest 100% February 26, 2008.
  &nbsp;Units of stock: 50,000 vest 100% July 10, 2008; 75,000 vest 25% &nbsp;quarterly
  commencing April 1, 2007.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(2)&nbsp;&nbsp;&nbsp;&nbsp; 50,000 options
  vest 100% February 26, 2008.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(3)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;200,000
  options vest 100% April 4, 2007; 50,000 options vest 100% February 26, 2008.
  &nbsp;Units of stock: &nbsp;50,000 vest 100% July 10, 2008; 75,000 vest 25% &nbsp;quarterly
  commencing April 1, 2007.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(4)&nbsp;&nbsp;&nbsp;&nbsp; 36,000 options
  vest 50% July 5, 2007, 50% January 5, 2008: &nbsp;24,000 options vest 50% September
  13, 2007, 50% March 13, 2008: &nbsp;50,000 options vest 100% April 4, 2007: &nbsp;25,000
  options vest 100% February 26, 2008. &nbsp;Units of stock: &nbsp;25,000 vest 50% July
  10, 2007, 50% January 10, 2008. </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(5)&nbsp;&nbsp;&nbsp;&nbsp; Vacated
  President and COO role November 30, 2006; 225,000 vest 100% April 4, 2007. &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.3in; TEXT-ALIGN: justify; margin-left:22.5pt; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">(6) &nbsp;&nbsp;&nbsp;45,000 options vest April 4 2007 &#150;
  15,000, October 4, 2007 &#150; 15,000, April 4 2008 &#150; 15,000; &nbsp;37,500 options to
  vest 100% February 26, 2008. &nbsp;</font></p>
  <p class="MsoNormal" align="center">
  <font size="2" style="color: black">&nbsp;129</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt"><b>
  <font size="2" style="color: black">Retirement, Resignation or Termination
  Plans</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2" style="color: black">&nbsp;We sponsor no plan, whether written or
  verbal, that would provide compensation or benefits of any type to an
  executive upon retirement, or any plan that would provide payment for
  retirement, resignation, or termination as a result of a change in control of
  our Company or as a result of a change in the responsibilities of an executive
  following a change in control of our Company.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
  <b><font size="2" style="color: black">Director Compensation</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 85.5pt; PADDING-TOP: 0in" vAlign="top" width="114">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Name</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 42.75pt; PADDING-TOP: 0in" vAlign="top" width="57">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Fees Earned or Paid in Cash ($)($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 49.5pt; PADDING-TOP: 0in" vAlign="top" width="66">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Stock Awards ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="top" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48.75pt; PADDING-TOP: 0in" vAlign="top" width="65">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Option Awards ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" vAlign="top" width="30">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 78pt; PADDING-TOP: 0in" vAlign="top" width="104">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Non-Equity Incentive Plan Compensation
      ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Non-Qualified Compensation Earnings
      ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">All Other Compensation ($)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48pt; PADDING-TOP: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">Total ($)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 85.5pt; PADDING-TOP: 0in" vAlign="top" width="114">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 42.75pt; PADDING-TOP: 0in" vAlign="top" width="57">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 49.5pt; PADDING-TOP: 0in" vAlign="top" width="66">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="top" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48.75pt; PADDING-TOP: 0in" vAlign="top" width="65">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" vAlign="top" width="30">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 78pt; PADDING-TOP: 0in" vAlign="top" width="104">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48pt; PADDING-TOP: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 85.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="114">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Donald Gentry</font></td>
      <td style="width: 42.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="57">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">6,750</font></td>
      <td style="width: 49.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="66">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">52,287</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(1)</font></sup></td>
      <td style="width: 48.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="65">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">113,250</font></td>
      <td style="width: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="30">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(2)</font></sup></td>
      <td style="width: 78pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="104">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 48pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">172,287</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 85.5pt; PADDING-TOP: 0in" vAlign="top" width="114">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rohan Hazelton</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 42.75pt; PADDING-TOP: 0in" vAlign="top" width="57">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">3,350</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 49.5pt; PADDING-TOP: 0in" vAlign="top" width="66">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">52,287</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 0.25in; PADDING-TOP: 0in" vAlign="top" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(3)</font></sup></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48.75pt; PADDING-TOP: 0in" vAlign="top" width="65">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">113,250</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 22.5pt; PADDING-TOP: 0in" vAlign="top" width="30">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(4)</font></sup></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 78pt; PADDING-TOP: 0in" vAlign="top" width="104">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 80.25pt; PADDING-TOP: 0in" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 75.75pt; PADDING-TOP: 0in" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 48pt; PADDING-TOP: 0in" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">168,887</font></td>
    </tr>
    <tr>
      <td style="width: 85.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="114">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Richard Hughes</font></td>
      <td style="width: 42.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="57">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">2,500</font></td>
      <td style="width: 49.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="66">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">52,287</font></td>
      <td style="width: 0.25in; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="24">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(5)</font></sup></td>
      <td style="width: 48.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="65">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">64,710</font></td>
      <td style="width: 22.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="30">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <sup><font size="2" style="color: black">(6)</font></sup></td>
      <td style="width: 78pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="104">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 80.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="107">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 75.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="101">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 48pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="64">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right; margin-top:0" align="right">
      <font size="2" style="color: black">119,497</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <sup><font size="2" style="color: black">(1)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <sup><font size="2" style="color: black">(2)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  175,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
  &nbsp;Exercise Price Cdn$1.37 per share</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <sup><font size="2" style="color: black">(3)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <sup><font size="2" style="color: black">(4)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  175,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
  &nbsp;Exercise Price Cdn$1.37 per share</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <sup><font size="2" style="color: black">(5)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <sup><font size="2" style="color: black">(6)</font></sup><font size="2" style="color: black">&nbsp;&nbsp;
  100,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
  &nbsp;Exercise Price Cdn$1.37 per share</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;</font><b><i><font size="2" style="color: black">Compensation
  of Directors</font></i></b></p>
  <p class="MsoNormal" style="TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;Beginning January 2007, independent board
  members who are not employed by us in any capacity other than as a director
  will be compensated for their services as follows: </font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A grant of 25,000 Restricted Stock Units that vest at a rate of 6,250 units
  each calendar quarter during 2007 and 50,000 units that will vest July 10,
  2008. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  No cash compensation for attendance of any meeting. </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.5in; margin-left:1in; margin-right:0in; margin-top:0in" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold. </font> </p>
  <p class="MsoNormal" align="center">
  <font size="2" style="color: black">130</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;Beginning January 2007, non-independent
  board members will be compensated for their services as follows: &nbsp;<br>
  &nbsp;&nbsp;&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A grant of 50,000 Restricted Stock Units that will vest July 10, 2008. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  No cash compensation for attendance of any meeting. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">Beginning in July 2005 and until January
  2007, independent board members who were not employed by us in any capacity
  other than as a director were compensated for their services as follows: </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  For any Board or Committee meeting not requiring travel, such as a telephone
  conference call &#151; a meeting fee of $250. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  For any fully constituted meeting of the Board or a Committee requiring travel
  of over four hours in aggregate &#151; a meeting fee of $1,000. </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold. </font> </p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">&nbsp;</font><b><i><font size="2" style="color: black">Director
  Compensation Agreements</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">Mr.&nbsp;Ranta is a party to a consulting
  agreement under which he is paid on a per diem basis and pursuant to which he
  is entitled to compensation for termination of his agreement in certain
  circumstances, including termination without cause and change of control. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">Except as described above, and the payment
  of directors' fees, there are no service contracts of any director of Gryphon
  Gold and there is no arrangement or agreement made or proposed to be made
  between Gryphon Gold and any of its directors pursuant to which a payment or
  other benefit is to be made or given by way of compensation in the event of
  that officer's resignation, retirement or other termination of employment, or
  in the event of a change of control of Gryphon Gold or a change in the
  director's responsibilities following such change in control. &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <b><font size="2" style="color: black">&nbsp;</font><a name="_Toc195437404"><font size="2">SECURITY
  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</font></a></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The following tables set
  forth information as of December 31, 2007 regarding the ownership of our
  common stock by:</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  each person who is known by us to own more than 5% of our shares of common
  stock;&nbsp;and</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  each named executive officer, each director and all of our directors and
  executive officers as a group.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;The number of shares beneficially owned
  and the percentage of shares beneficially owned are based on 61,465,395 shares
  of common stock outstanding as of December 31, 2007<b>.</b> </font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="color: black">For the purposes of the information
  provided below, shares subject to options and warrants that are exercisable
  within 60&nbsp;days following December 31, 2007 are deemed to be outstanding and
  beneficially owned by the holder for the purpose of computing the number of
  shares and percentage ownership of that holder but are not deemed to be
  outstanding for the purpose of computing the percentage ownership of any other
  person. Except as indicated in the footnotes to these tables, and as affected
  by applicable community property laws, all persons listed have sole voting and
  investment power for all shares shown as beneficially owned by them.</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">&nbsp;131</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <b><i><font size="2" style="color: black">Principal Stockholders</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 501.75pt; PADDING-TOP: 0in" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">&nbsp;</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 204pt; PADDING-TOP: 0in" vAlign="top" width="272" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 54.45pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">As of December 31, 2007
      </font> </u></b>
      </td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 501.75pt; PADDING-TOP: 0in" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Name and Address of Beneficial
      Owner(1)</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><u><font size="2" style="color: black">Shares</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 93pt; PADDING-TOP: 0in" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><u><font size="2" style="color: black">Percent</font></u></b></td>
    </tr>
    <tr>
      <td style="width: 501.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 93pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 501.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Standard Bank plc</font></b></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">3,426,336</font></td>
      <td style="width: 93pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">5.57%</font></td>
    </tr>
    <tr>
      <td style="width: 501.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">25 Dowgate Hill, Cannon Bridge House</font></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">London, United Kingdom EC4R&nbsp;2SB</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 93pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 501.75pt; PADDING-TOP: 0in" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 93pt; PADDING-TOP: 0in" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 501.75pt; PADDING-TOP: 0in" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Geologic Resource Fund</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 96pt; PADDING-TOP: 0in" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">7,000,000(2)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 93pt; PADDING-TOP: 0in" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">10.77%(2)</font></td>
    </tr>
    <tr>
      <td style="width: 501.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="width: 93pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 501.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="669">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Gerry W. Baughman and Fabiola
      Baughman</font></b></td>
      <td style="width: 96pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="128">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">6,384,374(3)</font></td>
      <td style="width: 93pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="124">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">9.99%(3)</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
  <font size="2" style="color: black">__________</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: left; margin-left:0.5in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">(1)&nbsp;&nbsp; Beneficial ownership is
  determined in accordance with the rules of the United States Securities and
  Exchange Commission and includes voting and investment power with respect to
  shares. Unless otherwise indicated, the persons named in this table have sole
  voting and sole investment control with respect to all shares beneficially
  owned. Figures shown are on a non-diluted basis.</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">(2)&nbsp;&nbsp; Geologic Resource Fund LP
  of 535 Boylston Street, Boston MA currently holds 980,000 shares and 980,000
  shares upon exercise of warrants and Geologic Resource Fund LTD of Harbour
  Centre, Noah Church Street, George Town, Grand Cayman holds 2,520,000 shares
  and 2,520,000 shares upon exercise of warrants. &nbsp;George Ireland (Chief
  Investment Officer for both funds) holds sole voting power. </font> </p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="text-indent: -0.25in; margin-left: 0.25in; margin-right: 0in; margin-top: 0in; margin-bottom: 0pt" align="justify">
  <font size="2" style="color: black">(3)&nbsp;&nbsp; 6,384,374 common shares
  beneficially owned by the Baughmans, as joint tenants with rights of
  survivorship, is comprised of 4,500,000 shares of Common Stock of the Issuer
  and 1,884,374 shares of Common Stock of the Issuer that are issuable upon
  conversion of a $5,000,000, convertible note, subject to a cap on conversion
  at 9.99% of the issued and outstanding.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font><b><i><font size="2" style="color: black">Security
  Ownership of Management</font></i></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 201.75pt; PADDING-TOP: 0in" vAlign="top" width="269" colSpan="2">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 20.9pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><u><font size="2" style="color: black">As of December 31, 2007</font></u></b></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Name and Address of Beneficial
      Owner(1)</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 4.95pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <b><u><font size="2" style="color: black">Shares</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-INDENT: 17.65pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Percent</font></u></b></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Albert Matter</font></b></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">2,678,780(2)</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">4.32%(2)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Former Director&nbsp;&nbsp;<br>
      Suite&nbsp;810, 1130&nbsp;West Pender Street<br>
      Vancouver, BC V6E 4A4</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Anthony Ker</font></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">1,717,500(3)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">2.77%(3)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Director, President, Chief Executive
      Officer<br>
      Suite&nbsp;810, 1130&nbsp;West Pender Street<br>
      Vancouver, BC V6E 4A4</font></p>
      </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Michael Longinotti</font></b></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">483,000(4)</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">0.78%(4)</font></td>
    </tr>
    <tr>
      <td style="width: 70%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Chief Financial Officer<br>
      Suite&nbsp;810, 1130&nbsp;West Pender Street<br>
      Vancouver, BC V6E 4A4</font></p>
      </td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">&nbsp;</font></td>
      <td style="width: 15%; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 70%; PADDING-TOP: 0in" vAlign="top" width="70%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">All directors and executive officers
      as a group (6&nbsp;persons)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">7,029,280(5)</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 15%; PADDING-TOP: 0in" vAlign="top" width="15%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2" style="color: black">11.02%(5)</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
  <font size="2" style="color: black">__________</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(1)&nbsp;&nbsp; Beneficial ownership is
  determined in accordance with the rules of the SEC and includes voting and
  investment power with respect to shares. Unless otherwise indicated, the
  persons named in this table have sole voting and sole investment control with
  respect to all shares beneficially owned.</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(2)&nbsp;&nbsp; Includes vested options
  exercisable to acquire 600,000&nbsp;shares of common stock and 140,280 restricted
  stock units</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(3)&nbsp;&nbsp; Includes vested options
  exercisable to acquire 575,000&nbsp;shares of common stock and 68,750 restricted
  stock units. &nbsp;Tony Ker was appointed Chief Executive Officer September 12,<sup>
  </sup>2006 and appointed President January 10, 2007. &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">(4)&nbsp;&nbsp; Includes vested options
  exercisable to acquire 300,000&nbsp;shares of common stock. </font> </p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in; margin-bottom:0pt" align="justify">
  <font size="2" style="color: black">&nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-INDENT: -0.25in; margin-left:0.25in; margin-right:0in; margin-top:0in" align="justify">
  <font size="2" style="color: black">(5)&nbsp;&nbsp; Includes vested options
  exercisable to acquire 2,337,500 shares of common stock and 377,780 restricted
  stock units. &nbsp;</font></p>
  <p class="MsoNormal" style="TEXT-ALIGN: center" align="left">
  <font size="2" style="color: black">132</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">We have no knowledge of any arrangements,
  including any pledge by any person of our securities, the operation of which
  may at a subsequent date result in a change in our control.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;We are not, to the best of our knowledge,
  directly or indirectly owned or controlled by another corporation or foreign
  government.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;As of April 16, 2008, we had
  approximately 1783 shareholders of record of our common stock.</font></p>
  <h1 align="center"><a name="_Toc196194157"><font size="2">ORGANIZATION WITHIN
  LAST FIVE YEARS</font></a></h1>
  <p class="MsoNormal"><b><font size="2">Director Independence</font></b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company's Board of
  Directors has determined that Richard W. Hughes, Rohan Hazelton, and Donald W.
  Gentry are independent directors of the Company based on the definition of
  independence under the rules of the American Stock Exchange and the Toronto
  Stock Exchange.</font></p>
  <h1 align="center"><a name="_Toc196194158"><font size="2">CERTAIN
  RELATIONSHIPS AND RELATED TRANSACTIONS</font></a></h1>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2" style="color: black">Except for the transactions described
  below, none of our directors, senior officers or principal shareholders, nor
  any associate or affiliate of the foregoing have any interest, direct or
  indirect, in any transaction, from April&nbsp;23, 2003 (date of inception) to the
  date of this prospectus, or in any proposed transactions, in which such person
  had or is to have a direct or indirect material interest.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">Purchases
  of Securities</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;During and subsequent to the fiscal year
  ending March 31, 2007, officers, directors and 10% shareholders of Gryphon
  Gold purchased securities of Gryphon Gold on the following terms:&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 230.25pt; PADDING-TOP: 0in" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">&nbsp;</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Officer, Director, 10%
      Shareholder</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 183pt; PADDING-TOP: 0in" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">&nbsp;</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Type of Security</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 153.75pt; PADDING-TOP: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">Price of</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Security</font></u></b></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><font size="2" style="color: black">&nbsp;</font></b></p>
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <b><u><font size="2" style="color: black">Date of Purchase</font></u></b></td>
    </tr>
    <tr>
      <td style="width: 230.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Michael Longinotti</font></td>
      <td style="width: 183pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">100,000 units </font> <sup>
      <font size="2">(1)</font></sup></font></td>
      <td style="width: 153.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.35 per unit</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">June 10, 2006</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 230.25pt; PADDING-TOP: 0in" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rajwant Kang</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 183pt; PADDING-TOP: 0in" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">4,800 units </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 153.75pt; PADDING-TOP: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $2.07 per unit</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">April 27, 2006</font></td>
    </tr>
    <tr>
      <td style="width: 230.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rajwant Kang</font></td>
      <td style="width: 183pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">5,000 units </font> </td>
      <td style="width: 153.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.65 per unit</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">May 31, 2006</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 230.25pt; PADDING-TOP: 0in" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rajwant Kang</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 183pt; PADDING-TOP: 0in" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">29,000 units </font> <sup>
      <font size="2">(1)</font></sup></font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 153.75pt; PADDING-TOP: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.35 per unit</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">June 10, 2006</font></td>
    </tr>
    <tr>
      <td style="width: 230.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rajwant Kang</font></td>
      <td style="width: 183pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">9,000 units </font> </td>
      <td style="width: 153.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.46 per unit</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">July 21, 2006</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 230.25pt; PADDING-TOP: 0in" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Rajwant Kang</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 183pt; PADDING-TOP: 0in" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">6,000 units </font> </td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 153.75pt; PADDING-TOP: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.20 per unit</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Oct 5, 2006</font></td>
    </tr>
    <tr>
      <td style="width: 230.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Anthony Ker</font></td>
      <td style="width: 183pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">25,000 units</font></td>
      <td style="width: 153.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $1.85 per unit</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">May 8, 2006</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 230.25pt; PADDING-TOP: 0in" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Donald Gentry</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 183pt; PADDING-TOP: 0in" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">37,500 units</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 153.75pt; PADDING-TOP: 0in" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">$0.75 per unit</font></td>
      <td style="PADDING-RIGHT: 0.1in; PADDING-LEFT: 0.1in; PADDING-BOTTOM: 0in; WIDTH: 112.5pt; PADDING-TOP: 0in" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">April 17, 2006</font></td>
    </tr>
    <tr>
      <td style="width: 230.25pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="307">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Geologic Resource Fund</font></td>
      <td style="width: 183pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="244">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font style="COLOR: black"><font size="2">3,500,000 units </font> <sup>
      <font size="2">(2)</font></sup></font></td>
      <td style="width: 153.75pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="205">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Cdn $0.90 per unit</font></td>
      <td style="width: 112.5pt; padding-left: 0.1in; padding-right: 0.1in; padding-top: 0in; padding-bottom: 0in; background: #edebd3" vAlign="top" width="150">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; margin-top:0" align="left">
      <font size="2" style="color: black">Feb 9, 2007</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">__________</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: justify" align="left">
  <font size="2" style="color: black">&nbsp;</font><sup><font size="2">(1)</font></sup><font size="2">&nbsp;&nbsp;&nbsp;
  Each unit consisted of one share of common stock and one-half of one share
  purchase warrant, each whole warrant exercisable to acquire one share of
  common stock at Cdn$1.82.</font></p>
  <p class="MsoNormal" align="justify"><sup><font size="2">(2)</font></sup><font size="2">&nbsp;&nbsp;&nbsp;
  Each unit consisted of one share of common stsock and one of one share
  purchase warrant, each whole warrant exercisable to acquire one share of
  common stock at Cdn$1.10 until first anniversary date (Feb 8, 2008) and
  exercisable at Cdn$1.35 from Feb 9, 2008 to Feb 9, 2009.</font></p>
  <p class="MsoNormal" align="center"><font size="2">133</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">Other than compensatory arrangements
  described under &quot;Executive Compensation&quot; and the transactions described above,
  we have had no other transactions, directly or indirectly, during the past
  fiscal year with our directors, senior officers or principal shareholders, or
  any of their associates or affiliates in which they had or have a direct or
  indirect material interest.</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt">
  <font size="2" style="color: black">&nbsp;</font><b><font size="2" style="color: black">Director
  Independence</font></b></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 13pt" align="justify">
  <font size="2" style="color: black">&nbsp;The Company's Board of Directors has
  determined that the following directors are independent based on the standards
  for director independence for the American Stock Exchange:<br>
  &nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp; Richard Hughes;</font></p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp; Don Gentry; and </font> </p>
  <p class="MsoNormal" style="MARGIN: 0in 0in 0pt 1in; TEXT-INDENT: -0.5in; LINE-HEIGHT: 13pt; TEXT-ALIGN: left" align="left">
  <font size="2" style="color: black">&#149;&nbsp;&nbsp; Rohan Hazelton.</font></p>
  <h1 align="center"><a name="_Toc196194159"><font size="2">MATERIAL CHANGES</font></a></h1>
  <p class="MsoNormal"><font size="2">None.</font></p>
  <h1 align="center"><a name="_Toc195442067"><font size="2">INCORPORATION OF
  CERTAIN INFORMATION BY REFERENCE</font></a></h1>
  <p class="MsoNormal"><font size="2">Not applicable.</font></p>
  <h1 align="center"><a name="_Toc195442068"><font size="2">THE SEC'S POSITION
  ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">The Company's Bylaws and
  Articles of Incorporation (the &quot;Certificate of Incorporation&quot;) provide that we
  shall, to the full extent permitted by the Nevada General Business Corporation
  Law, as amended from time to time (the &quot;Nevada Corporate Law&quot;), indemnify all
  of our directors and officers. Section&nbsp;78.7502 of the Nevada Corporate Law
  provides in part that a corporation shall have the power to indemnify any
  person who was or is a party or is threatened to be made a party to any
  threatened, pending or completed action, suit or proceeding (other than an
  action by or in the right of the corporation) by reason of the fact that such
  person is or was a director, officer, employee or agent of another corporation
  or other enterprise, against expenses (including attorneys' fees), judgments,
  fines and amounts paid in settlement actually and reasonably incurred by him
  in connection with such action, suit or proceeding if he acted in good faith
  and in a manner he reasonably believed to be in or not opposed to the best
  interests of the corporation, and with respect to any criminal action or
  proceeding, had no reasonable cause to believe his conduct was unlawful. &nbsp;</font></p>
  <p class="MsoNormal" align="justify"><font size="2">Similar indemnity is
  authorized for such persons against expenses (including attorneys' fees)
  actually and reasonably incurred in defense or settlement of any threatened,
  pending or completed action or suit by or in the right of the corporation, if
  such person acted in good faith and in a manner he reasonably believed to be
  in or not opposed to the best interests of the corporation, and provided
  further that (unless a court of competent jurisdiction otherwise provides)
  such person shall not have been adjudged liable to the corporation. Any such
  indemnification may be made only as authorized in each specific case upon a
  determination by the stockholders or disinterested directors that
  indemnification is proper because the indemnitee has met the applicable
  standard of conduct. Under our Certificate of Incorporation, the indemnitee is
  presumed to be entitled to indemnification and we have the burden of proof to
  overcome that presumption. Where an officer or a director is successful on the
  merits or otherwise in the defense of any action referred to above, we must
  indemnify him against the expenses which such offer or director actually or
  reasonably incurred. Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the foregoing provisions, or
  otherwise, the registrant has been advised that in the opinion of the
  Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">To the extent that
  indemnification for liabilities arising under the Securities Act may be
  permitted for our directors, officers and controlling persons, we have been
  advised that in the opinion of the SEC such indemnification is against public
  policy as expressed in the Securities Act and is, therefore, unenforceable.</font></p>
  <p class="MsoNormal" align="center"><font size="2">134</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <h1 align="center"><a name="_Toc196194162"><font size="2">TRANSFER AGENT AND
  REGISTRAR</font></a></h1>
  <p class="MsoNormal" align="justify"><font size="2">The registrar and transfer
  agent for our shares of common stock will be Computershare Trust Company, Inc.
  at its offices in Vancouver, Canada. </font> </p>
  <h1 align="center"><a name="_Toc196194163"><font size="2">LEGAL MATTERS</font></a><font size="2">
  </font> </h1>
  <p class="MsoNormal" align="justify"><font size="2">The validity of the
  securities offered hereby will be passed upon for Gryphon Gold Corporation by
  Woodburn and Wedge LLP. </font> </p>
  <h1 align="center"><a name="_Toc196194164"><font size="2">WHERE YOU CAN FIND
  MORE INFORMATION</font></a><font size="2">
  </font> </h1>
  <p class="MsoNormal" align="justify"><font size="2">We are subject to the
  informational requirements of the Exchange Act and, accordingly, file current
  and periodic reports, proxy statements and other information with the SEC. We
  have also filed a registration statement on Form SB-2 under the Securities
  Act, as amended, in connection with this offering. This prospectus, which is
  part of the registration statement, does not contain all of the information
  contained in the registration statement. For further information with respect
  to us and the shares of common stock offered hereby, reference is made to such
  registration statement, including the exhibits thereto, which may be read,
  without charge, and copied at the public reference facilities maintained by
  the SEC at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain
  information on the operation of the public reference room by calling the SEC
  at 1-800-SEC-0330. The SEC maintains a site on the World Wide Web at http://www.sec.gov
  that contains current and periodic reports, proxy statements and other
  information regarding registrants that filed electronically with the SEC.
  Statements contained in this prospectus as to the intent of any contract or
  other document referred to are not necessarily complete, and in each instance
  reference is made to the copy of such contract or other document filed as an
  exhibit to this registration statement, each such statement being qualified in
  all respects by such reference.</font></p>
  <h1 align="center"><a name="_Toc196194165"><font size="2">DEFINITIONS</font></a><font size="2">
  </font> </h1>
  <p class="MsoNormal" align="justify"><font size="2">Following are definitions
  of certain technical terms used in this prospectus. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Au.</font></b><font size="2"> The chemical symbol for gold. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Aeromagnetic.</font></b><font size="2"> Detection of changes in the Earth's
  magnetic field with survey instruments mounted in an aircraft. Provides an
  interpretation of subsurface geology and indications of the presence of
  certain mineral assemblages which may indicate traces of hydrothermal
  activity. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Alluvium/ alluvial.</font></b><font size="2"> Unconsolidated, to loosely
  consolidated, gravel, silt, sand, clay, etc. deposited in valleys, usually by
  water. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Andesite.</font></b><font size="2"> Igneous (formed from molten material) rock
  that solidified at the Earth's surface and is principally composed of
  plagioclase feldspar, biotite, and hornblende.
  </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Andesite flow.</font></b><font size="2"> A lava flow composed of andesite. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Anomaly.</font></b><font size="2"> Geophysical or geochemical measurements
  that are outside of the normal, or average, range of values. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Argillization.</font></b><font size="2"> The conversion of minerals to clay by
  either hydrothermal alteration, or during the weathering process. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Assay.</font></b><font size="2"> To analyze the proportions of metals in an
  ore; to test an ore or mineral for composition, purity, weight, or other
  properties of commercial interest. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Assay Ton.</font></b><font size="2"> A weight of 29.166+ g, used in assaying
  to represent proportionately the assay value of an ore. Because it bears the
  same ratio to 1 mg that a ton of 2,000 lb bears to the troy ounce, the weight
  in milligrams of precious metal obtained from an assay ton of ore equals the
  number of ounces to the ton. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Basin and Range.</font></b><font size="2"> The geologic province centered on
  Nevada consisting of northerly striking mountain ranges and intervening
  valleys. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">135</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Breccia.</font></b><font size="2"> A rock made of fragments of one or more
  rock types that has formed as a result of movement along faults, or the
  activity of fluids that may carry mineralization. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Chalcedonic.</font></b><font size="2"> Extremely fine-grained quartz. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Chargeability.</font></b><font size="2"> A geophysical measurement of how much
  electricity can be stored in the ground that is commonly used to development
  an estimate of the abundance of metallic sulfide minerals below the surface. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Cretaceous.</font></b><font size="2"> The geologic time that is part of the
  Mesozoic era covering the period from 144 to 66 million years ago. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Crushed and Agglomerated Ore. </font> </b><font size="2">That material which
  has been reduced in size mechanically by crushing, (and which may as a result
  contain a significant portion of very fine particles) which is then, with the
  aid of a binding agent such as cement, reconstituted into larger particles and
  subsequently leached in a heap. The agglomerated ore typically has greater
  strength allowing for higher stacked heaps and may allow better percolation of
  leach solutions if the ore has high clay or fine particle content. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Fault.</font></b><font size="2"> A planar feature produced by breaking of the
  Earth's crust with movement on one, or both, sides of the plane. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Feasibility Study.</font></b><font size="2"> A comprehensive study of a
  deposit in which all geological, engineering, operating, economic and other
  relevant factors are considered in sufficient detail that it could reasonably
  serve as the basis for a final decision by a financial institution to finance
  the development of the deposit for mineral production.</font></p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Geophysics/geophysical.</font></b><font size="2"> Surveys that are conduced to
  measure the Earth's physical properties as a means of identify areas where
  anomalous features may exist. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Gold deposit.</font></b><font size="2"> An accumulation of gold mineralization
  in the Earth's crust, with no reference to size and grade of the deposit. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Gold Heap-leaching.</font></b><font size="2"> A hydrometallurgical process
  whereby gold is recovered from ore by heaping broken ore on sloping
  impermeable pads, repeatedly spraying the heaps with a diluted cyanide
  solution which dissolves the gold content in the ore, collecting the
  gold-laden solutions, and stripping the solution of gold.
  </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Granite.</font></b><font size="2"> An igneous (formed from molten material)
  rock that solidified within the Earth's crust and is principally composed of
  quartz, feldspar, and biotite. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Hydrothermal.</font></b><font size="2"> Hot water that originates within the
  Earth's crust and ascend toward the surface. This water is commonly associated
  with the formation of mineral deposits and hot springs. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Hydrothermal Alteration.</font></b><font size="2"> Changes brought about in
  rock by the exposure to hydrothermal solutions, or mineral laden hot water
  from within the Earth's crust. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Induced Polarization/ IP.</font></b><font size="2"> A geophysical survey
  technique that measures the passage of electrical current sent into the ground
  (see chargeability). </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Lahar.</font></b><font size="2"> A mudflow composed principally of volcanic
  material. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Lithology/lithologic.</font></b><font size="2"> A general term used to define
  specific types of rocks. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Leach.</font></b><font size="2"> The dissolution of soluble constituents from
  a rock or orebody by the natural or artificial action of percolating
  solutions. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Ma.</font></b><font size="2"> In geological terms, a million years. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Marcasite.</font></b><font size="2"> A yellow iron sulphide mineral similar to
  pyrite in physical and chemical properties but which is less stable; and at
  Borealis is an important ore forming mineral containing gold. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">136</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Mesozoic.</font></b><font size="2"> A subdivision of geologic time that covers
  the period from about 245 to 66 million years ago. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Mine.</font></b><font size="2"> An opening or excavation in the ground for the
  purpose of extracting minerals; a pit or excavation from which ores or other
  mineral substances are taken by digging; an opening in the ground made for the
  purpose of taking out minerals; an excavation properly underground for digging
  out some usual product, such as ore, including any deposit of any material
  suitable for excavation and working as a placer mine; collectively, the
  underground passage and workings and the minerals themselves. At Borealis
  there is potential for both surface and underground mining operations. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Mineralizing/mineralized.</font></b><font size="2"> Material added by
  hydrothermal solutions, principally in the formation of ore deposits. Often
  refers to the presence of a mineral of economic interest in a rock. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Miocene.</font></b><font size="2"> This is a subdivision of geologic time that
  covers the period from about 5 to 24 million years ago. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Open Pit Mining.</font></b><font size="2"> The process of excavating an ore
  body from the surface in progressively deeper layered cuts or steps.
  Sufficient waste rock adjacent to the ore body is removed to maintain mining
  access and to maintain the stability of the resulting pit. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Open Pit.</font></b><font size="2"> A surface mine working open to daylight,
  such as a quarry. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  OPT/opt.</font></b><font size="2"> Abbreviation for ounces per ton, generally
  used in this prospectus to refer to the number of ounces of gold per ton. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Ore.</font></b><font size="2"> The naturally occurring material from which a
  mineral or minerals of economic value can be extracted profitably or to
  satisfy social or political objectives. The term is generally but not always
  used to refer to metalliferous material, and is often modified by the names of
  the valuable constituent; e.g., gold ore. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Ounce
  </font> </b><font size="2">or <b>&quot;oz.&quot;.</b> A unit of weight equal to 31.1
  grams. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Oxidization/oxidized.</font></b><font size="2"> The conversion of sulfide
  minerals to oxide minerals, usually through weathering at, or near, the
  Earth's surface. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Pediment.</font></b><font size="2"> A gravel covered bedrock surface that is
  along the margin of a mountain range. The bedrock surface commonly has a
  gentle dip into the valley, outward from the mountain range. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Pipe-like.</font></b><font size="2"> Geologic masses that have two short
  dimensions and one long dimension, and commonly have a near vertical
  orientation. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Propylitic Alteration.</font></b><font size="2"> A type of hydrothermal
  alteration that produces only a modest change in the character of the rock.
  This type of alteration is commonly found at the margins of mineralized areas. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Pyrite.</font></b><font size="2"> A yellow iron sulphide mineral, which at
  Borealis is an important ore forming mineral containing gold.</font></p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Qualified Person.</font></b><font size="2"> The term &quot;qualified person&quot; refers
  to an individual who is an engineer or geoscientist with at least five years
  of experience in mineral exploration, mine development, production activities
  and project assessment, or any combination thereof, including experience
  relevant to the subject matter of the project or report and is a member in
  good standing of a self-regulating organization. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Resistivity.</font></b><font size="2"> A measurement of conductivity of
  electricity through rock. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  &quot;RC&quot;</font></b><font size="2"> or <b>Reverse Circulation.</b> The circulation
  of bit-coolant and cuttings-removal liquids, drilling fluid, mud, air, or gas
  down the borehole outside the drill rods and upward inside the drill rods.
  Often used to describe an advanced drilling and sampling method that takes a
  discrete sample from a drill interval with the objective of maintaining sample
  integrity. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Reserve.</font></b><font size="2"> Measurement of size and grade of a mineral
  deposit that infers parameters have been applied to assess the potential for
  economic development. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">137</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Resource.</font></b><font size="2"> The measurement of size and grade of a
  mineral deposit, without any inferred economic parameters. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Run of Mine Ore.</font></b><font size="2"> Material which was fragmented by
  blasting only, and then stacked on the heaps without being further reduced in
  size by crushing or other beneficiation processes. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Stratigraphic.</font></b><font size="2"> The relationship of layered rocks to
  each other. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Sediments.</font></b><font size="2"> Material that has been deposited on the
  surface of the Earth through geologic means, usually transported and deposited
  by water. This material may eventually be cemented into rock. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Silicification.</font></b><font size="2"> The process by which quartz is added
  to rock by hydrothermal solutions. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Strike.</font></b><font size="2"> The course or bearing of the outcrop of an
  inclined bed, vein, or fault plane on a level surface; the direction of a
  horizontal line perpendicular to the direction of the dip. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Structural Zone.</font></b><font size="2"> Area that commonly contain several
  faults and fractured rock. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Sulfide.</font></b><font size="2"> Minerals that contain metals combined with
  sulfur. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  TCV.</font></b><font size="2"> Tertiary Coal Valley formation, a local
  sedimentary rock unit which in may areas at the Borealis </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><font size="2">
  Property covers rocks hosting gold mineralization. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Tertiary.</font></b><font size="2"> A geologic time period ranging from
  approximately 66 to 26 million years before the present. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Tons.</font></b><font size="2"> A unit of weight measurement. In this
  prospectus it means dry short tons (2,000 pounds). </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Unconformable.</font></b><font size="2"> Two groups of sedimentary rocks that
  are separated by a break in the depositional cycle and commonly have different
  orientations. </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Unpatented mining claims.</font></b><font size="2"> Land which has been staked
  and recorded in appropriate mining registries and in respect of which the
  owner has the right to explore for and exploit the minerals contained in such
  land and to conduct mining operations thereon. In this prospectus, unpatented
  mining claims refers to lode claims (and not placer claims). </font> </p>
  <p class="MsoNormal" style="text-indent: 22.5pt" align="justify"><b><font size="2">
  Volcanic Rock.</font></b><font size="2"> A group of igneous rocks that
  consolidated from molten material at the surface of the earth. </font> </p>
  <p align="center">
  <font size="2" style="font-family: Times New Roman">
  <br style="page-break-before: always" clear="all">
  138</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: 22.5pt; text-align: left" align="left">
  <font size="2">&nbsp;</font></p>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
  <b><font size="5">PROSPECTUS </font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center">
  <font size="2">&nbsp;</font></p>
  <p class="MsoNormal" style="text-align: center" align="center">
  <b>
  <font size="5">GRYPHON GOLD CORPORATION </font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center">
  <img border="0" src="dcgryp2.jpg" width="407" height="112"></p>
  <div align="center">
    <table class="MsoNormalTable" style="width: 30%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="30%" border="0">
      <tr>
        <td style="width: 100%; border: 1pt solid windowtext; padding: 0in" width="100%">
        <p class="MsoNormal" style="text-align: center; margin-left: 22.5pt; margin-right: 22.5pt" align="center">
        <b><font size="2">9,048,530 Shares of <br>
        Common Stock </font> </b></td>
      </tr>
    </table>
  </div>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">&nbsp;</font></b></p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">April 30, 2008 </font> </b></p>
  <p class="MsoNormal" style="text-align: left" align="left">
  <font size="2">&nbsp;</font></p>
  <div class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
    <font style="FONT-SIZE: 12pt">
    <hr align="center" width="100%" color="black" noShade SIZE="5"></font>
  </div>
</div>
<div class="Section6">
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">PART II </font> </b>
  </p>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">INFORMATION NOT REQUIRED IN PROSPECTUS </font> </b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 80%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <b><font size="2">ITEM 13 &#150; OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr style="height: 14.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 80%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in; HEIGHT: 14.25pt" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
      <b><font size="2">Amount</font></b></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 80%; height: 11.25pt; padding: 0in; background: #edebd3" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: left" align="left">
      <font size="2">Securities and Exchange Commission Registration Fee</font></td>
      <td style="width: 20%; height: 11.25pt; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: right" align="right">
      <font size="2">$147</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 80%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: left" align="left">
      <font size="2">Legal Fees and Expenses</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: right" align="right">
      <font size="2">$15,000</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 80%; height: 11.25pt; padding: 0in; background: #edebd3" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: left" align="left">
      <font size="2">Accounting Fees and Expenses</font></td>
      <td style="width: 20%; height: 11.25pt; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: right" align="right">
      <font size="2">$5,000</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 80%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: left" align="left">
      <font size="2">Printing and Engraving Expenses</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 20%; PADDING-TOP: 0in; HEIGHT: 11.25pt" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: right" align="right">
      <font size="2">$2,000</font></td>
    </tr>
    <tr style="height: 11.25pt">
      <td style="width: 80%; height: 11.25pt; padding: 0in; background: #edebd3" width="80%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: left" align="left">
      <font size="2">Miscellaneous Expenses</font></td>
      <td style="width: 20%; height: 11.25pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in; background: #edebd3" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11.25pt; TEXT-ALIGN: right" align="right">
      <font size="2">$1,000</font></td>
    </tr>
    <tr style="height: 12pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 80%; PADDING-TOP: 0in; HEIGHT: 12pt" width="80%">
      <p class="MsoNormal" style="line-height: 11.25pt; text-align: left; margin-left: 22.5pt" align="left">
      <b><font size="2">Total</font></b></td>
      <td style="width: 20%; height: 12pt; border: medium none; padding: 0in" width="20%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right" align="right">
      <font size="2">$23,147</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  ITEM 14 &#150; INDEMNIFICATION OF DIRECTORS AND OFFICERS </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">The Company's Bylaws and
  Articles of Incorporation (the &quot;Certificate of Incorporation&quot;) provide that we
  shall, to the full extent permitted by the Nevada General Business Corporation
  Law, as amended from time to time (the &quot;Nevada Corporate Law&quot;), indemnify all
  of our directors and officers. Section 78.7502 of the Nevada Corporate Law
  provides in part that a corporation shall have the power to indemnify any
  person who was or is a party or is threatened to be made a party to any
  threatened, pending or completed action, suit or proceeding (other than an
  action by or in the right of the corporation) by reason of the fact that such
  person is or was a director, officer, employee or agent of another corporation
  or other enterprise, against expenses (including attorneys' fees), judgments,
  fines and amounts paid in settlement actually and reasonably incurred by him
  in connection with such action, suit or proceeding if he acted in good faith
  and in a manner he reasonably believed to be in or not opposed to the best
  interests of the corporation, and with respect to any criminal action or
  proceeding, had no reasonable cause to believe his conduct was unlawful. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">Similar indemnity is
  authorized for such persons against expenses (including attorneys' fees)
  actually and reasonably incurred in defense or settlement of any threatened,
  pending or completed action or suit by or in the right of the corporation, if
  such person acted in good faith and in a manner he reasonably believed to be
  in or not opposed to the best interests of the corporation, and provided
  further that (unless a court of competent jurisdiction otherwise provides)
  such person shall not have been adjudged liable to the corporation. Any such
  indemnification may be made only as authorized in each specific case upon a
  determination by the stockholders or disinterested directors that
  indemnification is proper because the indemnitee has met the applicable
  standard of conduct. Under our Certificate of Incorporation, the indemnitee is
  presumed to be entitled to indemnification and we have the burden of proof to
  overcome that presumption. Where an officer or a director is successful on the
  merits or otherwise in the defense of any action referred to above, we must
  indemnify him against the expenses which such offer or director actually or
  reasonably incurred. Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the foregoing provisions, or
  otherwise, the registrant has been advised that in the opinion of the
  Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue. </font> </p>
  <p class="MsoNormal" style="text-align: justify" align="left"><b><font size="2">
  ITEM 15 &#150; RECENT SALES OF UNREGISTERED SECURITIES </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Since our inception we
  have offered and sold the following securities in unregistered transactions
  pursuant to exemptions under the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On or about May 15, 2003,
  we issued 3,000,000 shares of common stock to our founding shareholders at
  $0.10 per share. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">II-1</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On or about June 15, 2003,
  we issued 1,885,000 shares of common stock at $0.15 per share to our
  directors. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On or about August 15,
  2003, we issued 1,902,500 shares of common stock at $0.20 per share and
  537,500 shares of common stock at $0.225 per share payable by installment
  promissory notes. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On or about September 16,
  2003, we issued 270,000 shares of common stock at $0.15 per share to a
  director, 1,400,000 shares of out common stock at $0.20 per share, and an
  additional 100,000 shares of our common stock at $0.225 per share payable by
  installment promissory notes. We offered and sold shares outside the United
  States to non-U.S. persons in off-shore transactions pursuant to the exemption
  from registration available under Regulation S of the Securities Act and in
  the United States in private transactions not involving a public offering
  pursuant to exemptions available under Rule 506 of Regulation D and Section
  4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On or about December 17,
  2003, we issued 95,000 shares of common stock at $0.15 per share to a
  director, 3,663,500 shares of common stock at $.20 per share and 122,500
  shares of common stock at $0.225 per share payable by installment promissory
  notes. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On or about March 8, 2004,
  we issued 1,250,000 shares of common stock at $0.15 per share to our directors
  and 150,000 shares of common stock at $0.20 per share. We offered and sold
  shares outside the United States to non-U.S. persons in off-shore transactions
  pursuant to the exemption from registration available under Regulation S of
  the Securities Act and in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On September 7, 2004, we
  reserved for issuance and later sold 500,000 shares of common stock to Tom
  Sitar, our chief financial officer at $0.35 per share under the terms of his
  employment agreement. The shares were issued in a private transaction not
  involving a public offering pursuant to exemptions available under Section
  4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On September 28, 2004, we
  sold 778,500 shares of common stock at $0.65 per share and subsequently issued
  389,250 share purchase warrants to each purchaser exercisable to acquire one
  share of common stock at $0.90 per share until the earlier of two years from
  the date of issuance or twelve months after our shares of common stock are
  listed for trading on a recognized exchange. We offered and sold units outside
  the United States to non-U.S. persons in off-shore transactions pursuant to
  the exemption from registration available under Regulation S of the Securities
  Act. We offered and sold units solely to accredited investors in the United
  States in private transactions not involving a public offering pursuant to
  exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On January 26, 2005, we
  sold 1,410,077 units at $0.65 per unit. Each unit consisted of one share of
  common stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On March 28, 2005, we sold
  4,627,385 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">II-2</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On or about March 29,
  2005, we granted options exercisable to acquire 2,000,000 shares of common
  stock at $0.75 per share to officers, directors, employees and a consultant in
  compensatory transactions not involving a public offering pursuant to
  exemptions available under Rule 701 of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On April 1, 2005, we sold
  1,300,000 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On April 25, 2005, we sold
  4,221,154 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On June 22, 2005, we sold
  509,254 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On August 3, 2005, we
  granted options exercisable to acquire 300,000 shares of common stock at $0.75
  per share to two new independent directors in compensatory transactions not
  involving a public offering pursuant to exemptions available under Rule 701 of
  the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On March 24, 2006, we
  completed a private placement of units. We issued 5,475,000 units at a price
  of Cdn$1.25, for gross proceeds of $5,854,144. Each unit consisted of one
  share of common stock and one half of one Series B share purchase warrant. The
  net proceeds of this placement are also expected to be applied to fund the
  exploration and development of the Borealis property. The private placement
  was not underwritten. We paid cash fees of $327,250 and issued 280,500
  warrants to agents and the total cost of the private placement, including
  agent fees was $720,875. We offered and sold shares outside the United States
  to non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act and in the
  United States in private transactions not involving a public offering pursuant
  to exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller. Mr. Longinotti was appointed as new Chief Financial Officer to the
  Company, effective May 15, 2006, and the Company has agreed to enter into a
  formal employment agreement with him in due course. Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006. Mr. Longinotti's employment
  commenced April 18, 2006. Mr. Rajwant Kang is the Corporate Controller to the
  Company. In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006. We offered and sold these securities outside the United States
  to non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property. We offered and
  sold shares outside the United States to non-U.S. persons in off-shore
  transactions pursuant to the exclusion from registration available under
  Regulation S of the Securities Act and in the United States in private
  transactions not involving a public offering pursuant to exemptions available
  under Rule 506 of Regulation D and Section 4(2) of the Securities Act. </font> </p>
  <p class="MsoNormal" align="center"><font size="2">II-3</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">On March 15, 2007, we
  entered into a Advisory Services Agreement with Roman Friedrich &amp; Company Ltd.
  (RFC) Under the terms of the Advisory Services Agreement, commencing March 15,
  2007, in exchange for RFC's financial advisory services, we agreed to
  compensate RFC by paying a retainer fee of Cdn$7,500 per month and issuing
  7,500 common shares per month, payable on each monthly anniversary. As of
  November 14, 2007, we have issued 55,000 shares to RFC. We offered and sold
  these shares in the United States in a private transaction not involving a
  public offering pursuant to the exemption available under Section 4(2) of the
  Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2">On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC (&quot;Nevada
  Eagle&quot;), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs. We offered
  and sold these securities in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.</font></p>
  <p class="MsoNormal" align="justify"><font size="2">On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  &quot;First Anniversary&quot;) and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. We offered and sold shares outside the United States to
  non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act and in the
  United States in private transactions not involving a public offering pursuant
  to exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act. </font> </p>
  <p class="MsoNormal" align="justify"><font size="2" style="color: black">On
  December 14, 2007 we completed a private placement of 4,486,500 units at
  Cdn$0.80 for gross proceeds of approximately Cdn$3,589,200. &nbsp;The private
  placement closed in three tranches on November 22, &nbsp;November 27 and December
  14, 2007. &nbsp;Each unit consisted of one common share and one series I warrant.
  &nbsp;Each series I warrant entitles the holder to purchase a common share at a
  price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
  &nbsp;We paid qualified registered dealers a 7% cash commission in the amount of
  Cdn$71,624 and issued compensation warrants (series J) to acquire 89,530
  common shares (at a price of Cdn$0.80 per share for a period of 9 months from
  closing) in respect of the 1,204,000 million units placed by them (14,000 of
  the compensation warrants were later rejected and cancelled by one of the
  registered dealers). We have a right to force warrant holders to exercise
  warrants, if the price of our common stock remains equal to or greater than,
  Cdn$1.85 per common share, for a period of twenty consecutive days. &nbsp;The
  shares, warrants and underlying shares were not qualified by prospectus, have
  not been registered under U.S. securities laws, and are subject to resale
  restrictions. We granted registration rights to the investors in this private
  placement and will use commercially reasonable efforts to prepare and file
  with the SEC, within 120 days of closing, a registration statement under the
  Securities Act and to cause such statement to be declared effective. The
  proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property.</font></p>
  <p class="MsoNormal" align="center"><font size="2">II-4</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" align="justify"><font size="2">The shares, warrants and
  warrant shares of the private placement were not registered under the
  Securities Act, or the laws of any state, and are subject to resale
  restrictions and may not be offered or sold in the United States absent
  registration or an applicable exemption from the registration requirements.
  The units, including the shares and warrants comprising the units were placed
  pursuant to exemptions from registration requirements of the Securities Act,
  provided by Section 506 of Regulation D of the Securities Act and by Rule 903
  of Regulation S of the Securities Act, such exemptions being available based
  on information obtained from the investors to the private placement.</font></p>
  <p class="MsoNormal" align="justify"><b><font size="2">ITEM 16 &#150; EXHIBITS </font> </b></p>
  <p class="MsoNormal" align="justify"><font size="2">Other than contracts made
  in the ordinary course of business, the following are the material contracts
  that we have entered into within the two years preceding the date of this
  Registration Statement: </font> </p>
  <p class="MsoNormal" style="text-align: justify; margin-bottom: 0pt" align="left">
  <font size="2">(a) </font> <b><font size="2">EXHIBITS </font></b></p>
  <p class="MsoNormal" style="text-align: left; margin-bottom: 0pt" align="left">
  <b><font size="2">&nbsp;</font></b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Exhibit</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Number</font></b></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1pt solid windowtext; padding: 0in" vAlign="top" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <b><font size="2">Description</font></b></td>
    </tr>
    <tr>
      <td style="width: 9.84%; border: medium none; padding: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; border: medium none; padding: 0in" vAlign="top" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">3.1(1)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Articles of Incorporation of Gryphon Gold Corporation,
      filed April 24, 2003</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">3.2(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Certificate of Amendment to Articles of Incorporation of
      Gryphon Gold Corporation, filed August 9, 2005</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">3.3(1)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Bylaws of Gryphon Gold Corporation</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">3.4(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Articles of Incorporation of Borealis Mining Company, filed
      June 5, 2003</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">3.5(1)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Bylaws of Borealis Mining Company</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">4.1(4)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Specimen Common Stock certificate</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">4.2(3)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Form of Warrant Indenture</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">4.3(4)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Form of Underwriters' Compensation Options</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2"><a href="ggn042908exh51.htm" style="text-decoration: none">5.1</a></font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2"><a href="ggn042908exh51.htm" style="text-decoration: none">Opinion Letter of Woodburn and Wedge LLP</a></font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.1(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Investor Rights Agreement by and among Gryphon Gold
      Corporation and the Stockholders Party Hereto, dated as of May 1, 2003, as
      amended</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.2(1)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Assignment of Borealis Mining Lease, dated January 10,
      2005, between Golden Phoenix Mineral Company and Borealis Mining Company</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.3(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify" align="left">
      <font size="2">Agreement and Consent to Assignment of Borealis Mining
      Lease, entered into as of January 26, 2005, between Richard J. Cavell,
      Hardrock Mining Company, John W. Whitney, Golden Phoenix Minerals, Inc.,
      Borealis Mining Company and Gryphon Gold Corporation</font></td>
    </tr>
    <tr>
      <td style="width: 9.84%; padding: 0in; background: #edebd3" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.4(1)</font></td>
      <td style="width: 1.32%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 88.84%; padding: 0in; background: #edebd3" vAlign="top" width="88%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Escrow Agreement, dated January 10, 2005, between Borealis
      Mining Company, Gryphon Gold Company and Lawyers Title Agency of Arizona
      (Regarding Purchase Agreement dated January 10, 2005)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 9.84%; PADDING-TOP: 0in" vAlign="top" width="9%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1.32%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 88.84%; PADDING-TOP: 0in" vAlign="top" width="88%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <div class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
    <font size="2">
    <p class="MsoNormal">II-5</p>
    </font>
    <font style="FONT-SIZE: 12pt">
    <hr color="#000000" size="5"><p Style='page-break-before:always'><p style="page-break-before: always">
    <p class="MsoNormal" style="margin-bottom: 0pt" align="left">&nbsp;</font></div>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.5(1)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Purchase Agreement dated January 10, 2005, as amended,
      Seller: Golden Phoenix Minerals, Inc., Buyer: Borealis Mining Company and
      Guarantor: Gryphon Gold Corporation</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.6(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Agreement between Golden Phoenix Minerals, Inc. and
      Borealis Mining Company (Borealis Property, Mineral County, Nevada), dated
      July 21, 2003</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.7(1)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Agency Agreement/ Investment Advisory Retainer, between
      Gryphon Gold Corporation and Desjardins Securities Inc., signed March 9,
      2005</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.8(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Service Agreement between Gryphon Gold Corporation and The
      Kottmeier Resolution Group Ltd., dated May 17, 2005</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.9(1)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Office Building Lease dated June 22, 2005, related to
      Lakewood, Colorado office</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.10(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Executive Compensation Agreement, dated October 1, 2003,
      between Gryphon Gold Corporation and Allen Gordon dba Evergreen Mineral
      Ventures LLC</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.11(1) </font> </td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Assignment Assumption Agreement between Gryphon Gold
      Corporation and Allen Gordon</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.12(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Executive Compensation Agreement, dated October 1, 2003,
      between Gryphon Gold Corporation and Albert Matter</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.13(1)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Executive Compensation Agreement, dated February 1, 2004,
      between Gryphon Gold Corporation and Tony Ker</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.14(1)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Executive Compensation Agreement, dated November 1, 2004,
      between Gryphon Gold Corporation and Thomas Sitar</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.15(1)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Executive Compensation Agreement, dated June 1, 2005
      between Gryphon Gold Corporation and Donald Ranta</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.16(1) </font> </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Gryphon Gold Corporation 2004 Stock Incentive Plan</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.17(4) </font> </td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Form of Escrow Agreement</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.18(2) </font> </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Form of Lock Up Agreement &#151; Shareholders</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.19(2) </font> </td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Form of Lock Up Agreement for Executive Officers and
      Directors</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.20(2)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Warrant Agreement dated August 10, 2005, between Gryphon
      Gold Corporation and Computershare Trust Company, Inc. (Golden, Colorado)</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.21(7) </font> </td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Membership Interest Purchase Agreement for Nevada Eagle
      Resources LLC Properties</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">10.22(8) </font> </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Transition Agreement</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">14.1(2)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Code of Business Conduct and Ethics</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">16.1(2)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Letter on Change of Certifying Accountant</font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">21.1(5)</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Table of Subsidiaries</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <a style="color: blue; text-decoration: underline; text-underline: single" href="ggn042908exh231.htm">
      <font size="2" style="text-decoration: none">23.1</font></a></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <a style="color: blue; text-decoration: underline; text-underline: single" href="ggn042908exh231.htm">
      <font size="2" style="text-decoration: none">Consent of Ernst &amp; Young LLP</font></a></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">23.2</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Consent of United States Counsel (Woodburn and Wedge LLP)
      (contained in Exhibit 5.1)</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 10%; PADDING-TOP: 0in" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">
      <a href="ggn042908exh233.htm" style="text-decoration: none">23.3</a></font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 1%; PADDING-TOP: 0in" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 89%; PADDING-TOP: 0in" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">
      <a style="text-decoration: none" href="ggn042908exh233.htm">Consent of Mr. Alan C. Noble, P.E. of Ore Reserves
      Engineering in Lakewood, CO</a></font></td>
    </tr>
    <tr>
      <td style="width: 10%; padding: 0in; background: #edebd3" width="10%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">24.1</font></td>
      <td style="width: 1%; padding: 0in; background: #edebd3" vAlign="top" width="1%">
      <p class="MsoNormal" style="text-align: left; margin-right: 3.75pt" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="width: 89%; padding: 0in; background: #edebd3" width="89%" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">Power of Attorney</font></td>
    </tr>
  </table>
  <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; " align="justify">
  <font size="2">(1) Previously filed on Form SB-2 on August 17, 2005. <br>
  (2) Previously filed on Form SB-2 on October 6, 2005. <br>
  (3) Previously filed on Form SB-2 on October 27, 2005. <br>
  (4) Previously filed on Form SB-2 on November 9, 2005. <br>
  (5) Previously filed on Form 10-KSB on June 20, 2006. <br>
  (6) Previously filed on Form SB-2 on July 21, 2006. <br>
  (7) Previously filed on Form 8-K on July 6, 2007. <br>
  (8) Previously filed on Form 10-QSB on November 14, 2007.<br>
  (9) Previously filed on Form 10-QSB on December 12, 2007. </font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  ITEM 17 &#150; UNDERTAKINGS </font> </b></p>
  <p class="MsoNormal" style="margin-left: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(a) The undersigned Registrant hereby undertakes: </font> </p>
  <p class="MsoNormal" style="margin-left: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(1) To file, during any period in which offers or sales of
  securities are being made, a post-effective amendment to this registration
  statement to: </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(i) Include any prospectus required by Section 10(a)(3) of the
  Securities Act of 1933; </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(ii) Reflect in the prospectus any facts or events which,
  individually or together, represent a fundamental change in the information in
  the registration statement; and notwithstanding the forgoing, any increase or
  decrease in volume of securities offered (if the total dollar value of
  securities offered would not exceed that which was registered) and any
  deviation from the low or high end of the estimated maximum offering range may
  be reflected in the form of prospectuses filed with the Commission pursuant to
  Rule 424(b) if, in the aggregate, the changes in the volume and price
  represent no more than a 20% change in the maximum aggregate offering price
  set forth in the &quot;Calculation of Registration Fee&quot; table in the effective
  registration statement.
  </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(iii) Include any additional or changed material information on
  the plan of distribution; </font> </p>
  <p class="MsoNormal" style="text-indent: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(2) That, for the purpose of determining any liability under
  the Securities Act of 1933, each such post-effective amendment shall be deemed
  to be a new registration statement relating to the securities offered therein,
  and the offering of such securities at that time shall be deemed to be the
  initial bona fide offering thereof. </font> </p>
  <p class="MsoNormal" style="text-indent: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(3) To remove from registration by means of a post-effective
  amendment any of the securities being registered which remain unsold at the
  termination of the offering. </font> </p>
  <p class="MsoNormal" align="center">
  <font size="2">II-6</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-indent: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(4) For determining liability of the undersigned small business
  issuer under the Securities Act to any purchaser in the initial distribution
  of the securities, the undersigned small business issuer undertakes that in a
  primary offering of securities of the undersigned small business issuer
  pursuant to this registration statement, regardless of the underwriting method
  used to sell the securities to the purchaser, if the securities are offered or
  sold to such purchaser by means of any of the following communications, the
  undersigned small business issuer will be a seller to the purchaser and will
  be considered to offer or sell such securities to such purchaser: </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(i) Any preliminary prospectus or prospectus of the undersigned
  small business issuer relating to the offering required to be filed pursuant
  to Rule 424 (&#167;230.424 of this chapter); </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(ii) Any free writing prospectus relating to the offering
  prepared by or on behalf of the undersigned small business issuer or used or
  referred to by the undersigned small business issuer; </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(iii) The portion of any other free writing prospectus relating
  to the offering containing material information about the undersigned small
  business issuer or its securities provided by or on behalf of the undersigned
  small business issuer; and </font> </p>
  <p class="MsoNormal" style="margin-left: 67.5pt; margin-bottom: 0pt" align="justify">
  <font size="2">(iv) Any other communication that is an offer in the offering
  made by the undersigned small business issuer to the purchaser. </font> </p>
  <p class="MsoNormal" style="margin-left: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(b) Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the provisions described
  herein, or otherwise, the registrant has been advised that in the opinion of
  the Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue. </font> </p>
  <p class="MsoNormal" style="margin-left: 45pt; margin-bottom: 0pt" align="justify">
  <font size="2">(c) that, for the purpose of determining liability under the
  Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
  as part of this registration statement relating to the offering, shall be
  deemed to be part of and included in the registration statement as of the date
  it is first used after effectiveness. Provided, however, that no statement
  made in the registration statement or prospectus that is part of the
  registration statement or made in a document incorporated or deemed
  incorporated by reference into the registration statement or prospectus that
  is part of the registration statement will, as to a purchaser with a time of
  contract of sale prior to such first use, supersede or modify any statement
  that was made in the registration statement or prospectus that was part of the
  registration statement or made in any such document immediately prior to such
  date of first use. </font> </p>
  <p class="MsoNormal" style="TEXT-ALIGN: center" align="left">
  <font size="2">II-7</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="text-align: center" align="center"><b>
  <font size="2">SIGNATURES </font>
  </b></p>
  <p class="MsoNormal" style="text-align: justify" align="left"><font size="2">
  In accordance with the requirements of the Securities Act of 1933, as amended,
  the registrant certifies that it has reasonable grounds to believe that it
  meets all the requirements of filing on Form SB-2 and authorized registration
  statement to be signed on its behalf by the undersigned, in the city of
  Vancouver, British Columbia, Canada, on April 30, 2008.</font></p>
  <p class="MsoNormal" style="text-align: left" align="left"><b><font size="2">
  GRYPHON GOLD CORPORATION </font> </b></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse: collapse" cellSpacing="0" cellPadding="0" width="100%" border="0">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Anthony (Tony) D.J. Ker</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Chief Executive Officer and Director</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(Principal Executive Officer)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Michael K. Longinotti</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Chief Financial Officer</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(Principal Financial and Accounting</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Officer)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 100%; PADDING-TOP: 0in" width="100%" colSpan="3" align="justify">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">In accordance with the requirements of the Securities Act
      of 1933, as amended, this registration statement was signed by the
      following persons in the capacities on the dates stated:</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Anthony (Tony) D.J. Ker</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Chief Executive Officer and Director</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr style="height: 19.8pt">
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in; HEIGHT: 19.8pt" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in; HEIGHT: 19.8pt" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(Principal Executive Officer)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in; HEIGHT: 19.8pt" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Michael K. Longinotti</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Chief Financial Officer</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">(Principal Financial and Accounting</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Officer), Attorney in Fact</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Richard W. Hughes</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Director</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Rohan Hazelton</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Director</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">&nbsp;</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left" align="left">
      <font size="2">/s/ Donald W. Gentry</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 34%; PADDING-TOP: 0in" width="34%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">
      <font size="2">Director</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="TEXT-ALIGN: center" align="center">
      <font size="2">April 30, 2008</font></td>
    </tr>
  </table>
  <p class="MsoNormal" align="center"><font size="2">II-8</font></p>
  <hr color="#000000" size="5"><p Style='page-break-before:always'>
  <p class="MsoNormal" style="TEXT-ALIGN: center" align="center"><b>
  <font size="2" style="layout-grid-mode: line">POWER OF ATTORNEY</font></b></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="layout-grid-mode: line">&nbsp;Each person whose signature
  appears below constitutes and appoints each of Tony Ker and Michael Longinotti
  his or her attorney-in-fact and agent, with the full power of substitution and
  resubstitution and full power to act without the other, for them in any and
  all capacities, to sign any and all amendments, including post-effective
  amendments, and any registration statement relating to the same offering as
  this registration that is to be effective upon filing pursuant to Rule 462(b)
  under the Securities Act of 1933, as amended, to this registration statement,
  and to file the same, with exhibits thereto and other documents in connection
  therewith, with the Securities and Exchange Commission, hereby ratifying and
  confirming all that said attorneys-in-fact, or their substitute or
  substitutes, may do or cause to be done by virtue hereof. </font></p>
  <p class="MsoNormal" align="justify">
  <font size="2" style="layout-grid-mode: line">Pursuant to the requirements of
  the Securities Act of 1933, as amended, this registration statement has been
  signed by the following persons in the capacities and on the dates indicated.</font></p>
  <p class="MsoNormal"><font size="2" style="layout-grid-mode: line">&nbsp;</font></p>
  <table class="MsoNormalTable" style="width: 100%; border-collapse:collapse" cellSpacing="0" cellPadding="0" width="100%" border="0" bordercolor="#111111">
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      /s/ Anthony (Tony) D.J. Ker</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.94%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">Chief Executive Officer and Director<br>
      (Principal Executive Officer) </font> </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.32%; PADDING-TOP: 0in" vAlign="top" width="33%" align="center">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; margin-top:0"><font size="2">
      April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.94%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.32%; PADDING-TOP: 0in" vAlign="top" width="33%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      /s/ Michael K. Longinotti</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.94%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">Chief Financial Officer<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal Financial and Accounting
      Officer)</font></td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.32%; PADDING-TOP: 0in" vAlign="top" width="33%" align="center">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; margin-top:0"><font size="2">
      April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.94%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.32%; PADDING-TOP: 0in" vAlign="top" width="33%" align="center">
      <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      /s/ Richard W. Hughes</font></p>
      </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.94%; PADDING-TOP: 0in" vAlign="top" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">Director</font></p>
      </td>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 33.32%; PADDING-TOP: 0in" vAlign="top" width="33%" align="center">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; margin-top:0"><font size="2">
      April 30, 2008</font></td>
    </tr>
    <tr>
      <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; WIDTH: 32.74%; PADDING-TOP: 0in" vAlign="top" width="32%">
      &nbsp;</td>
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      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      /s/ Rohan Hazelton</font></p>
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      <font size="2">Director</font></p>
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      April 30, 2008</font></td>
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      <p class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><font size="2">
      /s/ Donald W. Gentry </font> </p>
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      <td style="padding:0in; WIDTH: 33.94%; " vAlign="top" width="33%">
      <p class="MsoNormal" style="MARGIN-BOTTOM: 0; TEXT-ALIGN: center; margin-top:0" align="center">
      <font size="2">Director</font></p>
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      April 30, 2008</font></td>
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<p class="MsoNormal" align="center"><font size="2">II-9</font></p>
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[{"type": "S-1", "sequence": "1", "filename": "gryphons1_final.htm", "description": "FORM S-1", "secsgml_size_bytes": 2757831}]
{"company-data": {"conformed-name": "GRYPHON GOLD CORP", "cik": "0001262751", "assigned-sic": "1040", "irs-number": "920185596", "state-of-incorporation": "NV", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-150587", "film-number": "08796109"}, "business-address": {"street1": "SUITE 810 - 1130 WEST PENDER STREET", "city": "VANCOUVER", "state": "A1", "zip": "V6E 4A4", "phone": "604-261-2229"}, "mail-address": {"street1": "SUITE 810 - 1130 WEST PENDER STREET", "city": "VANCOUVER", "state": "A1", "zip": "V6E 4A4"}}
Gryphon Gold Corporation: Form S-1 - Prepared by TNT Filings Inc.
As filed with the Securities and Exchange Commission on April
  30, 2008
Registration Statement No.
u
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
GRYPHON GOLD CORPORATION
(Exact name of registrant as specified in its charter)
Nevada
1041
92-0185596
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer Identification No.)
810-1130 West Pender Street
Vancouver, British Columbia, Canada V6E 4A4
(604)-261-2229
(Address, including zip code, and telephone number, including
  area code, of registrant's principal executive offices)
Dorsey & Whitney LLP
Republic Plaza Building, Suite 4700
370 Seventeenth Street
Denver, CO 80202-5647
(303) 629-3400
(Name, address, including zip code, and telephone number,
  including area code, of agent for service)
Copies to:
Kenneth G. Sam, Esq.
Dorsey & Whitney LLP
Republic Plaza Building, Suite 4700
370 Seventeenth Street
Denver, CO 80202-5647
From time to time after the effective date of this
    registration statement
(Approximate date of commencement of proposed sale to public)
If any of the securities being registered on this Form are
    to be offered on a delayed or continuous basis pursuant to Rule 415 under
    the Securities Act of 1933 check the following box:
x
If this Form is filed to register additional securities
    for an offering pursuant to Rule 462(b)  under the Securities Act,
    please check the following box and list the Securities Act registration
    statement number of the earlier registration statement for the same
    offering.
¨
If this Form is a post-effective amendment filed pursuant
    to Rule 462(c) under the Securities Act, check the following box and list
    the Securities Act registration statement number of the earlier effective
    registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant
    to Rule 462(d) under the Securities Act, check the following box and list
    the Securities Act registration statement number of the earlier effective
    registration statement for the same offering.
¨
Indicate by check mark whether the registrant is a large
  accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
  reporting company. (Check one):
Large Accelerated Filer
¨
Accelerated Filer
¨
Non-Accelerated Filer
¨
Smaller Reporting Company
x
CALCULATION OF
  REGISTRATION FEE
Title of each class of securities to be registered
Amount
to be registered
Proposed maximum offering price per unit (1)
Proposed maximum aggregate offering price (1)
Amount of
registration fee
Common Stock to be offered for resale by selling
      shareholders
4,486,500
.41
1,839,465
$73
Common Stock acquirable upon exercise of warrants to be
      offered for resale by selling stockholders (2)
4,562,030
.41
1,870,433
$7
3
TOTAL
9,048,530
.41
3,709,898
$146
(1)          
  Estimated pursuant to Rule 457(c) under the Securities Act of 1933, as
  amended, solely for purposes of calculating amount of registration fee, based
  on Cdn.$0.42, the average of the high and low sales prices of the Registrant's
  common stock on April 28, 2008, as quoted on the Toronto Stock Exchange. 
  Based on a Cdn$ to US$ conversion rate of Cdn$1.0158/US$1.00 as of April 28,
  2008, based on the noon buying rates in New York City for cable transfers
  payable in Canadian Dollars and certified for customs purposes by the Federal
  Reserve Bank of New York.
(2)          
  Consisting of 4,486,500 shares of Common Stock issuable upon exercise of
  Series I warrants and 75,530 shares of Common Stock issuable upon exercise of
  Series J warrants.
The Registrant hereby
  amends this Registration Statement on such date or dates as may be necessary
  to delay its effective date until the Registrant shall file a further
  amendment which specifically states that this Registration Statement shall
  thereafter become effective in accordance with Section 8(a) of the Securities
  Act of 1933, as amended (the "Securities Act"), or until this Registration
  Statement shall become effective on such date as the Commission, acting
  pursuant to said Section 8(a), may determine.
The information contained in this
  prospectus is not complete and may be changed. The Selling Security Holders
  may not sell these securities until the registration statement filed with the
  Securities and Exchange Commission is effective. This prospectus is not an
  offer to sell these shares, and the Selling Security Holders are not
  soliciting an offer to buy these shares in any state where the offer or sale
  is not permitted .
PRELIMINARY PROSPECTUS
Subject To Completion: Dated April 30, 2008
Gryphon Gold Corporation
9,048,530 SHARES OF COMMON STOCK
This prospectus relates to
  the sale, transfer or distribution of up to 9,048,530 shares of the common
  stock, par value $0.001 per share, of Gryphon Gold Corporation by the selling
  shareholders described herein. The price at which the selling shareholders may
  sell the shares will be determined by the prevailing market price for the
  shares or in negotiated transactions. The shares of common stock registered
  for sale:
4,486,500 shares of common stock held by
    selling shareholders;
4,486,500 shares of common stock
    acquirable upon exercise of Series I Warrants at Cdn$1.00 if exercised
    within twelve months of the original issuance and at a price Cdn$1.25 if
    exercised there after but prior to expiry held by selling shareholders; and
75,530 shares of common stock acquirable
    upon the exercise of Series J Brokers' Warrants, issued in connection with
    the placement of the Series J Warrants, at Cdn$0.80 per share for a period
    on nine months from the original issuance held by selling shareholders.
We will not receive any proceeds from the
  sale or distribution of the common stock by the selling shareholders. We may
  receive proceeds from the exercise of the warrants, if any, and will use the
  proceeds from any exercise for general working capital purposes.
Our common stock is quoted on the Toronto
  Stock Exchange ("TSX") under the symbol "GGN" and on the Financial Industry
  Regulatory Authority Over the Counter Bulletin Board ("OTCBB") under the
  symbol "GYPH". On April 28, 2008, the closing sale price for our common stock
  was $0.39 on the OTCBB and $0.41 on the TSX (converted from Cdn$0.42 based on
  the noon buying rates in New York City for cable transfers payable in Canadian
  Dollars and certified for customs purposes by the Federal Reserve Bank of New
  York as of April 28, 2008 of Cdn.$1.0158/US$1.00).
Investing in our common stock involves
  risks.   See "Risk Factors" beginning on page 9.
These securities have not been approved
  or disapproved by the SEC or any state securities commission nor has the SEC
  or any state securities commission passed upon the accuracy or adequacy of
  this prospectus. Any representation to the contrary is a criminal offense.
THE DATE OF THIS PROSPECTUS IS APRIL 30, 2008
TABLE OF CONTENTS
FORWARD-LOOKING STATEMENTS
1
SUMMARY INFORMATION
2
RISK FACTORS
10
RATIO OF EARNINGS TO
      FIXED CHARGES
18
USE OF PROCEEDS
18
SELLING SECURITY
      HOLDERS
18
PLAN OF DISTRIBUTION
22
DESCRIPTION OF
      SECURITIES TO BE REGISTERED
23
INTEREST OF NAMED EXPERTS AND COUNSEL
25
DESCRIPTION OF THE
      BUSINESS
25
DESCRIPTION OF PROPERTY
31
LEGAL PROCEEDINGS
60
MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS
61
FINANCIAL STATEMENTS
64
SELECTED FINANCIAL DATA
117
SUPPLEMENTARY
      FINANCIAL INFORMATION
117
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATION
117
CHANGES IN AND
      DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
125
DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS
126
EXECUTIVE
      COMPENSATION
127
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
131
ORGANIZATION WITHIN
      LAST FIVE YEARS
133
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
133
MATERIAL CHANGES
134
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
134
THE SEC'S POSITION
      ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
134
TRANSFER AGENT AND REGISTRAR
135
LEGAL MATTERS
135
WHERE YOU CAN FIND MORE INFORMATION
135
DEFINITIONS
135
FORWARD-LOOKING
  STATEMENTS
This prospectus and the
  exhibits attached hereto contain "forward-looking statements" within the
  meaning of the Private Securities Litigation Reform Act of 1995. Such forward
  looking statements concern the Company's anticipated results and developments
  in the Company's operations in future periods, planned exploration and
  development of its properties, plans related to its business and other matters
  that may occur in the future. These statements relate to analyses and other
  information that are based on forecasts of future results, estimates of
  amounts not yet determinable and assumptions of management.
Any statements that
  express or involve discussions with respect to predictions, expectations,
  beliefs, plans, projections, objectives, assumptions or future events or
  performance (often, but not always, using words or phrases such as "expects"
  or "does not expect", "is expected", "anticipates" or "does not anticipate",
  "plans", "estimates" or "intends", or stating that certain actions, events or
  results "may", "could", "would", "might" or "will" be taken, occur or be
  achieved) are not statements of historical fact and may be forward-looking
  statements. Forward-looking statements are subject to a variety of known and
  unknown risks, uncertainties and other factors which could cause actual events
  or results to differ from those expressed or implied by the forward-looking
  statements, including, without limitation:
the timing
    and possible outcome of pending regulatory and permitting matters;
the timing
    and outcome of our feasibility study;
the
    parameters and design of our planned initial mining facilities on the
    Borealis Property;
future
    financial or operating performances of Gryphon Gold, its subsidiaries, and
    its projects;
the estimation of mineral resources and
    the realization of mineral reserves, if any, based on mineral resource
    estimates;
the timing of exploration, development,
    and production activities and estimated future production, if any;
estimates related to costs of production,
    capital, operating and exploration expenditures;
requirements for additional capital and
    our ability to raise additional capital;
government regulation of mining
    operations, environmental risks, reclamation and rehabilitation expenses;
title disputes or claims;
limitations of insurance coverage; and
the future price of gold, silver, or other
    minerals.
This list is not
  exhaustive of the factors that may affect our forward-looking statements. Some
  of the important risks and uncertainties that could affect forward-looking
  statements are described further under the sections titled "Risk Factors and
  Uncertainties", "Description of the Business" and "Management's Discussion and
  Analysis" of this prospectus. Should one or more of these risks or
  uncertainties materialize, or should underlying assumptions prove incorrect,
  actual results may vary materially from those anticipated, believed, estimated
  or expected. We caution readers not to place undue reliance on any such
  forward-looking statements, which speak only as of the date made. We disclaim
  any obligation subsequently to revise any forward-looking statements to
  reflect events or circumstances after the date of such statements or to
  reflect the occurrence of anticipated or unanticipated events.
We qualify all the forward-looking statements contained in this prospectus by
  the foregoing cautionary statements.
1
SUMMARY INFORMATION
This summary does not
  contain all of the information you should consider before buying shares of our
  common stock. You should read the entire prospectus carefully, especially the
  "Risk Factors and Uncertainties" section and our consolidated financial
  statements and the related notes appearing at the end of this prospectus,
  before deciding to invest in shares of our common stock.
Financial
  Information And Accounting Principles
In this prospectus all
  references to "$" or "dollars" mean the U.S. dollar, and unless otherwise
  indicated all currency amounts in this prospectus are stated in U.S. dollars.
  All references to "Cdn$" refer to the Canadian dollar. All financial
  statements have been prepared in accordance with accounting principles
  generally accepted in the United States and are reported in U.S. dollars.
Exchange Rate
  Information
The following table sets
  forth, for each of the years indicated, the year end exchange rate, the
  average closing rate and the high and low closing exchange rates of one
  Canadian dollar in exchange for U.S. currency based on the noon buying rates
  in New York City for cable transfers payable in Canadian Dollars and certified
  for customs purposes by the Federal Reserve Bank of New York. On April 28,
  2008, the closing rate was Cdn$1.0158 equals United States $1.00. For the
  purposes of this prospectus, U.S. dollars were converted into Canadian dollars
  at the rate of Cdn$1.0158 = US$1.00, rounded to the nearest thousand dollars,
  as applicable.
Calendar Year Ended
Fiscal Year Ended
December 31
March 31
2007
2006
2005
2007
2006
High
1.1852
0.9100
0.8751
0.9100
0.8850
Low
0.9168
0.8528
0.7853
0.8437
0.7853
Average
1.0742
0.8818
0.8254
0.8787
0.8368
Year End
0.9881
0.8582
0.8598
0.8673
0.8562
Metric Conversion Table
For ease of reference, the following
  conversion factors are provided:
Metric Unit
U.S. Measure
U.S. Measure
Metric Unit
1 hectare
2.471 acres
1 acre
0.4047 hectares
1 metre
3.2881 feet
1 foot
0.3048 metres
1 kilometre
0.621 miles
1 mile
1.609 kilometres
1 gram
0.032 troy oz.
1 troy ounce
31.1 grams
1 kilogram
2.205 pounds
1 pound
0.4541 kilograms
1 tonne
1.102 short tons
1 short ton
0.907 tonnes
1 gram/tonne
0.029 troy ozs./ton
1 troy ounce/ton
34.28 grams/tonne
2
The Offering
This is an offering of up
  to 9,048,530 shares of our common stock by certain selling shareholders.
Shares Offered By the Selling
9,048,530 shares of common stock, $0.001 par value per
      share,
Shareholders
including:
•
4,486,500 shares of common stock held by
selling shareholders;
•
4,486,500 shares of common stock acquirable
upon exercise of Series I Warrants at
Cdn$1.00 if exercised within twelve months of
the original issuance and at a price Cdn$1.25 if
exercised there after but prior to expiry held by
selling shareholders;
•
75,530 shares of common stock acquirable
upon the exercise of Series J Brokers'
Warrants, issued in connection with the
placement of the Series I Warrants, at
Cdn$0.80 per share held by selling
shareholders; and
Offering Price
Determined at the time of sale by the selling shareholders
Common Stock Outstanding
61,735,395 common shares
as of April 28, 2008
Use of Proceeds
We will not receive any of the proceeds of the shares
      offered by
the selling shareholders.
Dividend Policy
We currently intend to retain any future earnings to fund
      the
development and growth of our business. Therefore, we do
      not
currently anticipate paying cash dividends.
Toronto Stock Exchange Symbol
GGN
The number of shares of our common stock that will be outstanding immediately
  after this offering is 61,735,395 shares of common stock outstanding as of
  April 28, 2008. This calculation excludes:
6,252,000 shares of common stock issuable
    upon vested exercise of options outstanding as of April 28, 2008;
141,008 shares of common stock issuable
    upon exercise of pre-IPO warrants at an exercise price of $0.65;
5,000,000 shares of common stock
    acquirable upon exercise of Series E Warrants at Cdn$1.10 for a period up to
    12 months after the issuance date and thereafter at Cdn$1.35 until expiry.
85,050 shares of common stock acquirable
    upon exercise of Series F Warrants at Cdn$0.90 for a period of up to 12
    months after the issuance date;
5,000,000 shares of common stock
    acquirable upon exercise of Series G Warrants at Cdn$1.00 for a period up to
    12 months after the issuance date and thereafter at Cdn$1.25 until expiry;
265,050 shares of common stock acquirable
    upon exercise of Series H Warrants issued to agents at Cdn$0.83 for a period
    up to 9 months after the issuance date;
3
4,304,000 shares
    of common stock acquirable upon exercise of Series I Warrants at Cdn$1.00
    for a period of up to 12 months after the issuance date and thereafter at
    Cdn$1.25 until expiry;
75,530 shares of common stock acquirable
    upon exercise of Series J Warrants issued to agents at Cdn$0.80 for a period
    up to 9 months after the issuance date;
5,000,000 shares of common stock
    acquirable upon conversion of a $5,000,000 convertible note due March 30,
    2010, assuming the current conversion rate of the note of $1.00 per share of
    common stock; and
942,500 shares of common stock available
    for future grant under our Omnibus Incentive Plan as of April 28, 2008.
Summary of Our Business
Gryphon Gold Corporation
  was formed under the laws of the State of Nevada on April 24, 2003.
Our principal business
  office, which also serves as our administrative and financing office, is
  located in Canada at Suite 810, 1130 West Pender Street, Vancouver, British
  Columbia, Canada V6E 4A4, and our telephone number there is 604-261-2229.
We own 100% of the issued
  and outstanding shares of our operating subsidiaries, Borealis Mining Company
  and Gryphon Nevada Eagle Holding Company. Gryphon Nevada Eagle Holding Company
  owns 100% of the membership interests in Nevada Eagle Resources LLC. We have
  no other subsidiaries. Borealis Mining Company was formed under the laws of
  the State of Nevada on June 5, 2003, Gryphon Nevada Eagle Holding Company was
  formed under the laws of the State of Nevada on July 27, 2007, and Nevada
  Eagle Resources LLC was organized under the laws of the State of Nevada on
  April 28, 2005.
In July 2003, through our
  wholly-owned subsidiary Borealis Mining, we initially acquired from Golden
  Phoenix Minerals, Inc. ("Golden Phoenix") an option to earn up to a 70% joint
  venture interest in the mining lease for the Borealis Property (July 2003
  Option and Joint Venture Agreement) by making qualified development
  expenditures on that property.
In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property.
During 2004, we completed
  drilling, technical and engineering work necessary to prepare a Plan of
  Operation in respect of the development of an open pit, heap leach mine on the
  Borealis Property. We submitted the Plan of Operation to the U.S. Forest
  Service on August 27, 2004, and we continue to work on satisfying all the
  requirements of the various approval agencies and completing all necessary
  reviews, including the approval of the Nevada Division of Environmental
  Protection. The principal mine operating permits were granted in 2006. A
  further discussion of operating permits and other governmental regulation
  concerns is described under the caption "Permitting," below.
Following the course
  established by the recommendations in the preliminary scoping study, and based
  on additional geologic field work that was completed in 2004, we retained Ore
  Reserves Engineering, consulting resource modeling engineers, to complete an
  updated resource estimate model in accordance with National Instrument 43-101
  of the Canadian Securities Administrators. In May 2005, Ore Reserves
  Engineering delivered the report titled
Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada.
On January 10, 2005,
  Borealis Mining entered into a purchase agreement with Golden Phoenix which
  gave Borealis Mining the right to purchase the interest of Golden Phoenix in
  the Borealis Property for $1,400,000. Golden Phoenix transferred its interest
  in the Borealis Property to Borealis Mining on January 28, 2005. Borealis
  Mining paid $400,000 of the purchase price to Golden Phoenix upon closing of
  the purchase, and four additional quarterly payments of $250,000 were made to
  Golden Phoenix. With the final payment of $250,000 on January 24, 2006,
  Borealis Mining completed all the required payments under the purchase
  agreement and now has 100% control of the Borealis Property. A portion of the
  Borealis Property is subject to mining leases, as described under the caption
  "Borealis Property," below.
As sole shareholder of
  Borealis Mining, we control all of the lease rights to a portion of the
  Borealis Property, subject to advance royalty, production royalty, and other
  payment obligations imposed by the lease. Our acquisition of the interest of
  Golden Phoenix in the Borealis Property terminated the July 2003 Option and
  Joint Venture Agreement.
In addition to our
  leasehold interest to a portion of the Borealis Property, we also own through
  Borealis Mining numerous unpatented mining claims that make up the balance of
  the Borealis Property, and all of the documentation and samples from years of
  exploration and development programs carried out by the previous operators of
  the Borealis Property, totaling thousands of pages of data including, but not
  limited to, geophysical surveys, mineralogical studies and metallurgical
  testing reports.
4
On July 11, 2005, we
  accepted a joint proposal for a feasibility study from the firms of Samuel
  Engineering, Inc. and Knight Piesold and Company. Samuel Engineering provides
  services including metallurgical process development and design, and Knight
  Piesold provides mining, metallurgical and environmental engineering services.
  Both companies have worked together recently on completing similar studies.
During the period from our
  inception on April 24, 2003 through March 31, 2004, we funded our capital
  needs by raising $2,419,200 in private placements, issuing 14,376,000 shares
  of common stock at prices ranging from $0.10 per share to $0.225 per share.
During our fiscal year
  ended March 31, 2005, we raised $175,000 by issuing 500,000 shares of common
  stock to an executive officer at $0.35 per share under the terms of his
  employment agreement. We raised an additional $4,430,375 by issuing 6,815,962
  units in a series of private placements. Each unit consisted of one share of
  common stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the issue date and nine months following the date on
  which common stock is listed on a public stock exchange (subsequently revised
  to expire on December 22, 2006).
During our fiscal quarter
  ended June 30, 2005, we raised $3,919,765 by issuing 6,030,408 units in a
  series of private placements. Each unit consisted of one share of common stock
  and one-half of one share purchase warrant, each whole warrant exercisable to
  acquire one share of common stock at $0.90 per share until the earlier of two
  years from the issue date and nine months following the date on which common
  stock is listed on a public stock exchange (subsequently revised to expire on
  December 22, 2006.).
On August 11, 2005, our
  Board authorized an increase in our authorized capital to consist of
  150,000,000 shares of common stock, par $0.001, and 15,000,000 shares of
  preferred stock, par $0.001. The increase was approved by shareholders.
On December 22, 2005, we
  completed our initial public offering of 6.9 million units for gross proceeds
  of approximately $ 5,036,497 with net proceeds of $2,794,557 after deducting
  costs of $2,241,940. The units were sold at a price of $0.73 (Cdn$0.85) each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable for a period of 12 months at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol "GGN."
  The offering was underwritten by a syndicate of Canadian underwriters which
  included Desjardins Securities, CIBC World Markets, Border Investment Partners
  and Orion Securities. The units were offered for sale pursuant to a prospectus
  filed in four Canadian provinces (British Columbia, Alberta, Manitoba and
  Ontario). The units were also registered in a registration statement filed
  with the United States Securities and Exchange Commission. The proceeds of the
  offering will be used principally for the completion of the Company's
  feasibility study for its Borealis Property and its exploration program on the
  Borealis Property, as well as for working capital.
On March 24, 2006, we
  closed the private placement of 5,475,000 units for sale at Cdn$1.25 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one half of one Series B purchase
  warrant. The Series B warrants are exercisable until March 23, 2007 at a price
  of Cdn$1.65. The private offering raised gross proceeds of Cdn$6.8 million. We
  paid qualified registered dealers a 7% cash commission and issued compensation
  options to acquire 280,500 common shares at price of Cdn$1.40 until March 23,
  2007 on a portion of the private placement. The shares, warrants and
  underlying shares were not qualified by prospectus and have not been
  registered under U.S. securities laws and are subject to resale restrictions.
  The Company granted registration rights to the investors in this private
  placement and used commercially reasonable efforts to prepare and file with
  the SEC, within 120 days of closing, a registration statement under the
  Securities Act and caused such statement to be declared effective and remain
  effective. The proceeds of this offering have been and will be applied to fund
  the continuation of our exploration and development program on the Borealis
  Property.
In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller. Mr. Longinotti was appointed as new Chief Financial Officer to the
  Company, effective May 15, 2006, and the Company has agreed to enter into a
  formal employment agreement with him in due course. Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006. Mr. Longinotti's employment
  commenced April 18, 2006. Mr. Rajwant Kang is the Corporate Controller to the
  Company. In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006.
On November 30, 2006, our
  board of directors concluded that we would not proceed with near term
  construction and production financing of the Borealis heap leach mine. The
  feed for the proposed mine was remnants from the previously mined open pits,
  and heap and dump material associated with the historical mining operations.
  The decision not to proceed was made due to the impact of certain technical
  corrections to the previously announced Feasibility Study and related NI
  43-101 Technical Report, dated August 15, 2006. The technical corrections
  reduced the anticipated quantity of recoverable gold and silver over the
  project life, and resulted in a marginal projected return on investment. In
  light of the decision not to proceed with development of a mine, in December
  2006, we closed our Denver office and terminated operations and engineering
  staff, including our Chief Operating Officer Mr. Allen Gordon and Mr. Matt
  Bender, our Vice President of Borealis Project Development. Mr. Steven Craig,
  our Vice President of Exploration, was relocated to Nevada. As of December 1,
  2006, our Chief Financial Officer, Mr. Michael Longinotti commenced working on
  a part-time basis. Under this agreement, his time spent in the office was
  reduced by 50% along with his salary.
5
In December 2006, we
  completed the geophysical survey, which commenced in September 2006. The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit. The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit.
On January 11, 2007, we
  announced the results of the revised CIM compliant resource estimate in
  accordance with NI 43-101 which had been compiled by Mr. Alan C. Noble, P.E.
  of Ore Reserves Engineering. The results of the report were independently
  reviewed by AMEC to insure the methodology and assumptions used in the
  calculations were consistent with industry standards. The resource estimate
  includes the results of exploration drilling through February 28, 2006. The
  measured, indicated and inferred gold resource (combined oxide and sulfide
  material) reported in January 2007 is:
On January 11, 2007, we announced the results of the
  revised CIM compliant resource estimate in accordance with NI 43-101 which had
  been compiled by Mr. Alan C. Noble, P.E. of Ore Reserves Engineering, titled
Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada, USA August 15, 2006, revised January 11, 2007
(the "
Technical
  Report
"). The results of the report were independently reviewed by AMEC to
  insure the methodology and assumptions used in the calculations were
  consistent with industry standards. The resource estimate includes the results
  of exploration drilling through November 5, 2006. The measured, indicated and
  inferred gold resource (combined oxide and sulfide material) reported in
  January 2007 is:
Date
Measured*
Indicated*
Inferred*
Tons
Grade
Ozs of
Tons
Grade
Ozs of
Tons
Grade
Ozs of Gold
(000's)
opt
Gold
(000's)
opt
Gold
(000's)
opt
January, 11, 2007
16,360
0.031
503,700
24,879
0.029
709,800
30,973
0.020
609,200
The updated report
  confirmed a total gold resource (measured, indicated and inferred) of
  1,822,700 ounces contained in the Borealis property.
*
Cautionary Note to
  investors concerning estimates of Measured, Indicated and Inferred Mineral
  Resources
: We are a reporting issuer in Canada and are required to discuss
  mineralization estimates in accordance with Canadian reporting standards. The
  terms "proven mineral reserve" and "probable mineral reserve" used in this
  prospectus are in reference to the mining terms defined in the Canadian
  Institute of Mining, Metallurgy and Petroleum Standards, which definitions
  have been adopted by Canadian National Instrument 43-101 – Standards of
  Disclosure for Mineral Projects. The definitions of proven and probable
  reserves used in NI 43-101 differ from the definitions in the United States
  Securities and Exchange Commission's Industry Guide 7. In the United States, a
  mineral reserve is defined as a part of a mineral deposit, which could be
  economically and legally extracted or produced at the time the reserve
  determination is made. Accordingly, information contained in this prospectus
  and the documents incorporated by reference herein containing descriptions of
  our mineral deposits in accordance with NI 43-101 may not be comparable to
  similar information made public by other U.S. companies under the United
  States federal securities laws and the rules and regulations thereunder.
In addition, the terms
  "mineral resource", "measured mineral resource", "indicated mineral resource"
  and "inferred mineral resource" are defined in and required to be disclosed by
  NI 43-101; however, these terms are not defined terms under SEC Industry Guide
  7 and are normally not permitted to be used in reports and registration
  statements filed with the SEC. Investors are cautioned not to assume that any
  part or all of mineral deposits in these categories will ever be converted
  into reserves. "Inferred mineral resources" have a great amount of uncertainty
  as to their existence, and great uncertainty as to their economic and legal
  feasibility. It cannot be assumed that all or any part of an inferred mineral
  resource will ever be upgraded to a higher category. Under Canadian rules,
  estimates of inferred mineral resources may not form the basis of feasibility
  or pre-feasibility studies, except in rare cases. Investors are cautioned not
  to assume that all or any part of an inferred mineral resource exists or is
  economically or legally mineable. Disclosure of "contained ounces" in a
  resource is permitted disclosure under Canadian regulations; however, the SEC
  normally only permits issuers to report mineralization that does not
  constitute "reserves" by SEC standards as in place tonnage and grade without
  reference to unit measures.
In January 2007 we started
  the process of completing a mineral resource estimate covering the entire
  property that will include all drilling results obtained during calendar year
  2007.
The mineral resource estimate is expected to be completed at the end of April
  or in early May 2008.
On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development programs.
6
On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC ("Nevada
  Eagle"), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs beginning January 1, 2008. The remaining wholly-owned
  properties are retained for Gryphon's own exploration effort or additional
  future farm outs.
On August 7, 2007, we
  closed a private placement of 5 million units at a price of Cdn.$0.80 per unit
  for gross proceeds of Cdn.$4.0 million. Each unit will consist of one common
  share and one full purchase warrant. The two year warrants will be exercisable
  at a price of Cdn$1.00 if exercised within twelve months of the closing (the
  "First Anniversary") and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development programs.
On December 14, 2007 we completed a private placement of
  4,486,500 units at Cdn$0.80 for gross proceeds of approximately Cdn$3,589,200.
  The private placement closed in three tranches on November 22, November 27 and
  December 14, 2007. Each unit consisted of one common share and one series I
  warrant. Each series I warrant entitles the holder to purchase a common share
  at a price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
  We paid qualified registered dealers a 7% cash commission in the amount of
  Cdn$71,624 and issued compensation warrants (series J) to acquire 89,530
  common shares (at a price of Cdn$0.80 per share for a period of 9 months from
  closing) in respect of the 1,204,000 million units placed by them (14,000 of
  the compensation warrants were later rejected and cancelled by one of the
  registered dealers). We have a right to force warrant holders to exercise
  warrants, if the price of our common stock remains equal to or greater than,
  Cdn$1.85 per common share, for a period of twenty consecutive days. The
  shares, warrants and underlying shares were not qualified by prospectus, have
  not been registered under U.S. securities laws, and are subject to resale
  restrictions. We granted registration rights to the investors in this private
  placement and will use commercially reasonable efforts to prepare and file
  with the SEC, within 120 days of closing, a registration statement under the
  Securities Act and to cause such statement to be declared effective. The
  proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property.
In the calendar year 2007,
  we continued extension drilling, focused on the expansion of the Graben
  deposit and exploration drilling for a new gold deposit within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments.
  This drilling program consisted of a series of Graben deposit expansion
  drilling and extension drilling north and west of the successful G3 – G13
  fence of holes. The drilling of the Graben deposit alternated with follow up
  exploration drilling in the Central and Western Pediments where 10 holes have
  intersected two distinct hydrothermal systems hidden beneath the pediments.
Corporate Strengths
We believe that we have
  the following business strengths that will enable us to achieve our
  objectives:
Our management team has significant exploration experience in the State of
    Nevada;
7
As
    the Borealis Property was the site of surface mining operations from 1981 to
    1990, we believe the process to receive permits and start operations on
    previously mined operations is less difficult than getting permits for a
    previously undisturbed area. The USDA Forest Service and the Nevada Bureau
    of Mining Regulation and Reclamation have both approved the Plan of
    Operations and Reclamation Plan, allowing us to proceed with the development
    of a heap leach mine assuming sufficient oxide resources are found and
    additional financing is available. We have also received approvals for
    surface exploration and water wells and have successfully progressed through
    the required agency and public review process for those permits.
Our land position is extensive, controlled by 752 unpatented mining claims
    covering approximately 15,500 acres. We believe many surface showings of
    gold mineralization on the Borealis Property may provide opportunities for
    discovery of gold deposits. Our Borealis Property has multiple types of gold
    deposits including oxidized material, partial oxidized material, and
    predominantly sulfide material, which we believe may allow us flexibility in
    our future plans for mine development and expansion, assuming additional
    financing is available.
We cannot be certain that
  any mineral deposits will be discovered in sufficient quantities and grade to
  justify commercial operations. We have no proven or probable reserves. Whether
  a mineral deposit will be commercially viable depends on a number of factors,
  including the particular attributes of the deposit; metal prices, which are
  highly cyclical; the cost to extract and process the mineralized material; and
  government regulations and permitting requirements. We may be unable to
  upgrade our mineralized material to proven and probable reserves in sufficient
  quantities to justify commercial operations and we may not be able to raise
  sufficient capital to develop the Borealis Property.
We have specifically
  focused our activities on Nevada, which was rated the highest jurisdiction in
  the world for mining investment attractiveness by an independent survey.
  Mining is an integral part of Nevada's economy. In 2004, the mining industry
  increased Nevada's output by $5.89 billion including both direct and indirect
  impacts, up from $5.35 billion in 2002. Nevada ranks third in the world in
  gold production, after South Africa and Australia. Located in the State of
  Nevada are well known geological trends such as the Carlin Trend, Battle
  Mountain, Getchell Trend and the Walker Lane Trend. The Borealis Property is
  also located along the Aurora-Bodie trend which crosses the principal Walker
  Lane Trend. Borealis, Bodie, Aurora, and other historical producing districts,
  are aligned along this northeast-southwest belt of significant gold deposits.
  Nevada Eagle's principal properties have a cumulative 900,000 of historical
  (the historical estimates are based on internal reports prepared by prior
  owners prior to February 2001 and have not been prepared in accordance with NI
  43-101 standards and thus their reliability has not been verified) ounces of
  gold.
8
Selected Financial Data
The selected financial
  information presented below as of and for the periods indicated is derived
  from our financial statements contained elsewhere in this prospectus and
  should be read in conjunction with those financial statements.
INCOME STATEMENT
Nine Months Ended
Pro Forma**
DATA
Year Ended
December 31
Consolidated
March 31
(Unaudited)
(Unaudited)
Three
Year Ended
Months
March 31
Ended
2007
2006
2007
2006
2007
June 30
Revenue
$
NIL
$
NIL
$
NIL
$
NIL
$
NIL
$
NIL
Operating Expenses
$
9,059,866
$
5,770,506
$
6,634,010
$
6,734,510
$
-
$
-
Net (Loss)
$
(8,737,141)
$
(5,602,336)
$
(6,463,678)
$
(6,491,678)
$
-
$
-
(Loss) per Common share*
$
(0.21)
$
(0.19)
$
(0.13)
$
(0.16)
$
(0.21)
$
(0.05)
Weighted Average Number of
Common Shares Outstanding*
41,242,535
29,350,317
49,764,662
40,518,405
41,242,535
47,485,585
*
  Basic and diluted.
BALANCE SHEET DATA
At December
At December
At March 31,
At March 31,
31, 2007
31, 2006
2007
2006
(Unaudited)
(Unaudited)
Working Capital (Deficiency)
$
6,525,160
$
8,374,384
$
4,701,031
$
4,307,627
Total Assets
$
9,553,194
$
11,693,218
$
18,823,177
$
7,272,468
Accumulated (Deficit)
$
(17,980,822)
$
(9,243,681)
$
(24,444,500)
$
(15,735,359)
Stockholders' Equity
$
8,716,344
$
10,466,013
$
13,373,371
$
7,272,468
** These unaudited pro
  forma consolidated financial statements of the Company, a TSX listed Company,
  have been prepared for illustrative purposes only, to show the effect of the
  Membership Interest Purchase Agreement dated as of August 21, 2007 between the
  Company and Gerald and Fabiola Baughman whereby Gryphon Gold acquired 100% of
  the members interests in Nevada Eagle Resources LLC, a Nevada limited
  liability company, as well as certain other mineral claims owned by the
  Baughman's (the "Transaction"). Nevada Eagle Resources LLC and the other
  mineral claims acquired are collectively referred to herein as Nevada Eagle.
9
RISK FACTORS
Readers should carefully
  consider the risks and uncertainties described below before deciding whether
  to invest in shares of our common stock.
Our failure to
  successfully address the risks and uncertainties described below would have a
  material adverse effect on our business, financial condition and/or results of
  operations, and the trading price of our common stock may decline and
  investors may lose all or part of their investment. We cannot assure you that
  we will successfully address these risks or other unknown risks that may
  affect our business.
Estimates of mineralized
  material are forward-looking statements inherently subject to error. Although
  resource estimates require a high degree of assurance in the underlying data
  when the estimates are made, unforeseen events and uncontrollable factors can
  have significant adverse or positive impacts on the estimates. Actual results
  will inherently differ from estimates. The unforeseen events and
  uncontrollable factors include: geologic uncertainties including inherent
  sample variability, metal price fluctuations, variations in mining and
  processing parameters, and adverse changes in environmental or mining laws and
  regulations. The timing and effects of variances from estimated values cannot
  be accurately predicted.
Risks Related to Our Operations
Our operations will require future financing.
We are an early stage
  company and currently do not have sufficient capital to fully fund the Plan of
  Operation at the Borealis Property. Currently, we have sufficient cash on hand
  to fund the completion of our current drilling program, permitting and general
  and administrative expenses for approximately 12 months. However, we will
  require substantial additional financing for future development activities, if
  any, or if we encounter unexpected costs or delays.
Failure to obtain
  sufficient financing may result in the delay or indefinite postponement of
  exploration, and, development or production on any or all of the Borealis
  Property and any properties we may acquire in the future or even a loss of our
  property interest. This includes the Borealis Property, as our lease over
  claims covering the principal deposits will expire in 2009 unless we are
  engaged in active mining operations or development (including exploration
  drilling) at that time. We cannot be certain that additional capital or other
  types of financing will be available if needed or that, if available, the
  terms of such financing will be favorable or acceptable to us. Future
  financings may cause dilution to our shareholders.
Risks related to the Borealis Property.
Our primary mineral
  exploration property is the Borealis Property. Even though the Borealis
  Property encompasses several areas with known gold mineralization, unless we
  discover additional deposits at the Borealis Property, future development of
  the property may be uneconomic. We cannot provide any assurance that we will
  establish any reserves or successfully commence mining operations on the
  Borealis Property.
Risks related to Nevada Eagle properties
We acquired approximately
  54 exploration properties with the acquisition of Nevada Eagle Resources LLC.
  Approximately 26 of these properties are leased out to other exploration
  companies. We can not provide any assurance that any reserves or successful
  mining operations will be established on any of these properties. We can not
  give assurance that the existing parties currently performing exploration on
  the leased properties will continue with their exploration efforts. In
  addition, management's expectations of the significance of the Nevada Eagle
  properties; the Nevada Eagle prospects, including resource estimates,
  projections, exploration and value; our planned exploration and drilling
  programs; or our expectations with respect to future property acquisition,
  diversification of our property base and Mr. Baughman's addition to the
  Gryphon Gold management team will prove accurate or increase shareholder
  value.
We cannot assure you that we will
  successfully integrate the Nevada Eagle properties into our portfolio or
  operations or that we will have sufficient capital or resources to
  successfully implement our diversification strategy.
We have no history of producing
  metals from our mineral property and there can be no assurance that we will
  successfully establish mining operations or profitably produce precious
  metals.
We have no history of producing metals
  from the Borealis Property or Nevada Eagle Properties. While our plan is to
  move the Borealis Property into the development stage, production there will
  be subject to completing construction of the mine, processing plants, roads,
  and other related works and infrastructure. As a result, we are subject to all
  of the risks associated with establishing new mining operations and business
  enterprises including:
10
the timing and cost, which can
    be considerable, of the construction of mining and processing facilities;
the ability to find sufficient
    gold resources to support a mining operation;
the availability and costs of
    skilled labor and mining equipment;
the availability and cost of
    appropriate smelting and/or refining arrangements;
compliance with environmental
    and other governmental approval and permit requirements;
the availability of funds to
    finance construction and development activities;
potential opposition from
    non-governmental organizations, environmental groups, local groups or local
    inhabitants which may delay or prevent development activities; and
potential increases in
    construction and operating costs due to changes in the cost of fuel, power,
    materials and supplies.
The costs, timing and
  complexities of mine construction and development may be increased by the
  remote location of the Borealis Property. It is common in new mining
  operations to experience unexpected problems and delays during construction,
  development and mine start-up. In addition, delays in the commencement of
  mineral production often occur. Accordingly, we cannot assure you that our
  activities will result in profitable mining operations or that we will
  successfully establish mining operations or profitably produce metals at any
  of our properties.
Historical production on the Borealis Property may not be
  indicative of the potential for future development.
The Borealis Mine actively
  produced gold in the 1980's, but we currently have no commercial production at
  the Borealis Property and have never recorded any revenues. You should not
  rely on the fact that there were historical mining operations at the Borealis
  Property as an indication that we will ever place the property into commercial
  production. We expect to continue to incur losses unless and until such time,
  if ever, as our property enters into commercial production and generates
  sufficient revenues to fund our continuing operations. The development of new
  mining operations at the Borealis Property will require the commitment of
  substantial resources for operating expenses and capital expenditures, which
  may increase in subsequent years as needed consultants, personnel and
  equipment associated with advancing exploration, development and commercial
  production of our properties are added. The amounts and timing of expenditures
  will depend on the progress of ongoing exploration and development, the
  results of consultants' analysis and recommendations, the rate at which
  operating losses are incurred, the execution of any joint venture agreements
  with strategic partners, our acquisition of additional properties, and other
  factors, many of which are beyond our control. We may not be able to place the
  Borealis Property into production or generate any revenues or achieve
  profitability.
Our exploration
  activities on the Borealis Property may not be commercially successful, which
  could lead us to abandon our plans to develop the property and our investments
  in exploration.
Our long-term success
  depends on our ability to identify additional mineral deposits on the Borealis
  Property, the Nevada Eagle Properties and other properties we may acquire, if
  any, that we can then develop into commercially viable mining operations.
  Mineral exploration is highly speculative in nature, involves many risks and
  is frequently nonproductive. These risks include unusual or unexpected
  geologic formations, and the inability to obtain suitable or adequate
  machinery, equipment or labor. The success of gold exploration is determined
  in part by the following factors:
the identification of
    potential gold mineralization based on surficial analysis;
availability of
    government-granted exploration permits;
the quality of our management
    and our geological and technical expertise; and
the capital available for
    exploration.
Substantial expenditures
  are required to establish proven and probable reserves through drilling and
  analysis, to develop metallurgical processes to extract metal, and to develop
  the mining and processing facilities and infrastructure at any site chosen for
  mining. Whether a mineral deposit will be commercially viable depends on a
  number of factors, which include, without limitation, the particular
  attributes of the deposit, such as size, grade and proximity to
  infrastructure; metal prices, which fluctuate widely; and government
  regulations, including, without limitation, regulations relating to prices,
  taxes, royalties, land tenure, land use, importing and exporting of minerals
  and environmental protection. We may invest significant capital and resources
  in exploration activities and abandon such investments if we are unable to
  identify commercially exploitable mineral reserves. The decision to abandon a
  project may have an adverse effect on the market value of our securities and
  the ability to raise future financing. We cannot assure you that we will
  discover or acquire any mineralized material in sufficient quantities on any
  of our properties to justify commercial operations.
11
Actual capital
  costs, operating costs, production and economic returns may differ
  significantly from those we have anticipated and there are no assurances that
  our development activities will result in profitable mining operations.
We have estimated
  operating and capital costs for the Borealis Property based on information
  available to us and believe that these estimates are accurate. However,
  recently, costs for labor, regulatory compliance, energy, mine and plant
  equipment and materials needed for mine development and construction have
  increased significantly industry-wide. In light of these factors, actual costs
  related to our proposed mine development and construction may exceed our
  estimates.
We do not have an
  operating history upon which we can base estimates of future operating costs
  related to the Borealis Property, and we intend to rely upon the economic
  feasibility of the project and estimates that may be contained therein.
  Studies derive estimates of cash operating costs based upon, among other
  things:
anticipated tonnage, grades
    and metallurgical characteristics of the ore to be mined and processed;
anticipated recovery rates of
    gold and other metals from the ore;
cash operating costs of
    comparable facilities and equipment; and
anticipated climatic
    conditions.
Capital and operating
  costs, production and economic returns, and other estimates contained in
  feasibility studies may differ significantly from actual costs, and there can
  be no assurance that our actual capital and operating costs will not be higher
  than currently anticipated or disclosed.
In addition, our
  calculations of cash costs and cash cost per ounce may differ from similarly
  titled measures of other companies and are not intended to be an indicator of
  projected operating profit.
The figures for our
  reserves and resources are estimates based on interpretation and assumptions
  and may yield less mineral production under actual conditions than is
  currently estimated.
Unless otherwise
  indicated, mineralization figures presented in this prospectus and in our
  filings with securities regulatory authorities, press releases and other
  public statements that may be made from time to time are based upon estimates
  made by independent geologists and our internal geologists. When making
  determinations about whether to advance any of our projects to development, we
  must rely upon such estimated calculations as to the mineral reserves and
  grades of mineralization on our properties. Until ore is actually mined and
  processed, mineral reserves and grades of mineralization must be considered as
  estimates only.
These estimates are
  imprecise and depend upon geological interpretation and statistical inferences
  drawn from drilling and sampling analysis, which may prove to be unreliable.
  We cannot assure you that:
these estimates will be
    accurate;
reserve, resource or other
    mineralization estimates will be accurate; or
this mineralization can be
    mined or processed profitably.
Any material changes in
  mineral reserve estimates and grades of mineralization will affect the
  economic viability of placing a property into production and a property's
  return on capital.
Because we have not made a
  decision with respect to mine construction at our Borealis Property and have
  not made a decision with respect to production, mineralization estimates,
  including reserve and resource estimates, for the Borealis Property may
  require adjustments or downward revisions based upon actual production
  experience if and when a decision is made to proceed with mine construction
  and production. In addition, the grade of ore ultimately mined, if any, may
  differ from that indicated by our technical reports and drill results. There
  can be no assurance that minerals recovered in small scale tests will be
  duplicated in large-scale tests under on-site conditions or in production
  scale.
The resource estimates
  contained in this prospectus have been determined and valued based on assumed
  future prices, cut-off grades and operating costs that may prove to be
  inaccurate. Extended declines in market prices for gold and silver may render
  portions of our mineralization, reserve (if any) and resource estimates
  uneconomic and result in reduced reported mineralization or adversely affect
  the commercial viability of our Borealis Property. Any material reductions in
  estimates of mineralization, or of our ability to extract this mineralization,
  could have a material adverse effect on our results of operations or financial
  condition.
12
Changes in the market price of gold, silver and other metals,
  which in the past has fluctuated widely, will affect the profitability of our
  operations and financial condition.
Our profitability and
  long-term viability depend, in large part, upon the market price of gold and
  other metals and minerals produced from our mineral properties. The market
  price of gold and other metals is volatile and is impacted by numerous factors
  beyond our control, including:
expectations with respect to the rate of inflation;
the relative strength of the U.S. dollar and certain other
    currencies;
interest rates;
global or regional political or economic conditions;
supply and demand for jewelry and industrial products
    containing metals; and
sales by central banks and other holders, speculators and
    producers of gold and other metals in response to any of the above factors.
We cannot predict the
  effect of these factors on metal prices. Gold and silver prices have
  fluctuated during the last several years.
The price of gold has risen steadily for
  the last few years.  Through 2005, gold traded in a fairly narrow price range
  between $410 and $530 per ounce, based on the London PM Fix Price.  In 2006,
  gold traded between approximately $520 and $720 per ounce, based on London PM
  Fix Price.  In 2007, gold traded between approximately $600 and $840 per
  ounce, based on the London PM Fix Price. The price of gold closed at $946.00
  per oounce on April 17, 2008, based on the London PM Fix Price.  In 2005,
  the price of silver per ounce ranged approximately from $6.40 to $9.20, based
  on the London Fix Price.   In 2006, the price of silver ranged from $8.80 to
  $14.90 per ounce, based on the London Fix Price.  In 2007, silver traded
  between approximately $11.70 and 15.80 per ounce, based on the London Fix
  Price.  The price of silver closed at $18.56 on April 17, 2008, based on the
  London Fix Price.
A decrease in the market
  price of gold and other metals could affect the commercial viability of our
  Borealis Property and our anticipated development and production assumptions.
  Lower gold prices could also adversely affect our ability to finance future
  development at the Borealis Property, all of which would have a material
  adverse effect on our financial condition and results of operations. There can
  be no assurance that the market price of gold and other metals will remain at
  current levels or that such prices will improve.
Mining is inherently
  dangerous and subject to conditions or events beyond our control, which could
  have a material adverse effect on our business.
Mining involves various
  types of risks and hazards, including:
environmental hazards;
power outages;
metallurgical and other processing problems;
unusual or unexpected geological formations;
structural cave-ins or slides;
flooding, fire, explosions, cave-ins, landslides and
    rock-bursts;
inability to obtain suitable or adequate machinery,
    equipment, or labor;
metals losses; and
periodic interruptions due to inclement or hazardous weather
    conditions.
These risks could result
  in damage to, or destruction of, mineral properties, production facilities or
  other properties, personal injury, environmental damage, delays in mining,
  increased production costs, monetary losses and possible legal liability. We
  may not be able to obtain insurance to cover these risks at economically
  feasible premiums. Insurance against certain environmental risks, including
  potential liability for pollution or other hazards as a result of the disposal
  of waste products occurring from production, is not generally available to us
  or to other companies within the mining industry. We may suffer a material
  adverse effect on our business if we incur losses related to any significant
  events that are not covered by our insurance policies.
13
We are subject to significant governmental regulations.
Our primary properties,
  operations and exploration and development activities are in Nevada and are
  subject to extensive federal, state, and local laws and regulations governing
  various matters, including:
environmental protection;
management and use of toxic substances and explosives;
management of natural resources;
exploration, development of
    mines, production and post-closure reclamation;
exports controls;
price controls;
regulations concerning
    business dealings with native groups;
labor standards and
    occupational health and safety, including mine safety; and
historic and cultural
    preservation.
Failure to comply with
  applicable laws and regulations may result in civil or criminal fines or
  penalties or enforcement actions, including orders issued by regulatory or
  judicial authorities enjoining or curtailing operations or requiring
  corrective measures, installation of additional equipment or remedial actions,
  any of which could result in us incurring significant expenditures. We may
  also be required to compensate private parties suffering loss or damage by
  reason of a breach of such laws, regulations or permitting requirements. It is
  also possible that future laws and regulations, or a more stringent
  enforcement of current laws and regulations by governmental authorities, could
  cause additional expense, capital expenditures, restrictions on or suspensions
  of our operations and delays in the development of our properties.
Our activities are
  subject to environmental laws and regulations that may increase our costs of
  doing business and restrict our operations.
All of our exploration and
  potential development and production activities are in the United States and
  are subject to regulation by governmental agencies under various environmental
  laws. These laws address emissions into the air, discharges into water,
  management of waste, management of hazardous substances, protection of natural
  resources, antiquities and endangered species and reclamation of lands
  disturbed by mining operations. Environmental legislation in many countries is
  evolving and the trend has been towards stricter standards and enforcement,
  increased fines and penalties for non-compliance, more stringent environmental
  assessments of proposed projects and increasing responsibility for companies
  and their officers, directors and employees. Compliance with environmental
  laws and regulations and future changes in these laws and regulations may
  require significant capital outlays and may cause material changes or delays
  in our operations and future activities. It is possible that future changes in
  these laws or regulations could have a significant adverse impact on our
  Borealis Property, Nevada Eagle Properties or some portion of our business,
  causing us to re-evaluate those activities at that time.
Land reclamation requirements for our Borealis Property may be
  burdensome.
Although variable
  depending on location and the governing authority, land reclamation
  requirements are generally imposed on mineral exploration companies (as well
  as companies with mining operations) in order to minimize long term effects of
  land disturbance.
Reclamation may include
  requirements to:
control dispersion of potentially deleterious effluents; and
reasonably re-establish pre-disturbance land forms and
    vegetation.
In order to carry out
  reclamation obligations imposed on us in connection with our potential
  development activities, we must allocate financial resources that might
  otherwise be spent on further exploration and development programs. We have
  set up a provision for our reclamation obligations at the Borealis Property,
  but this provision may not be adequate. If we are required to carry out
  unanticipated reclamation work, our financial position could be adversely
  affected.
14
We may experience
  difficulty attracting and retaining qualified management to meet the needs of
  our anticipated growth, and the failure to manage our growth effectively could
  have a material adverse effect on our business and financial condition.
We are dependent on the
  services of key executives including Tony Ker, CEO, Michael Longinotti, CFO,
  Steve Craig, VP Exploration, and other highly skilled and experienced
  executives and personnel focused on managing our interests and on-going
  exploration and development programs on our properties. Our management is also
  responsible for the identification of new opportunities for growth and
  funding. Due to our relatively small size, the loss of these persons or our
  inability to attract and retain additional highly skilled employees required
  for our development activities may have a material adverse effect on our
  business or future operations. The failure to hire qualified people for these
  positions could adversely affect planned operations of the Borealis Property
  and Nevada Eagle Properties. We do not maintain key-man life insurance on any
  of our key management employees.
Increased
  competition could adversely affect our ability to attract necessary capital
  funding or acquire suitable producing properties or prospects for mineral
  exploration in the future.
The mining industry is
  intensely competitive. Significant competition exists for the acquisition of
  properties producing, or capable of producing, gold or other metals. We may be
  at a competitive disadvantage in acquiring additional mining properties
  because we must compete with other individuals and companies, many of which
  have greater financial resources, operational experience and technical
  capabilities than us. We may also encounter increasing competition from other
  mining companies in our efforts to hire experienced mining professionals.
  Competition for exploration resources at all levels is currently very intense,
  particularly affecting the availability of manpower, drill rigs, mining
  equipment and production equipment. Increased competition could adversely
  affect our ability to attract necessary capital funding or acquire suitable
  producing properties or prospects for mineral exploration in the future.
We compete with larger, better capitalized competitors in the
  mining industry.
The mining industry is
  competitive in all of its phases, including financing, technical resources,
  personnel and property acquisition. It requires significant capital, technical
  resources, personnel and operational experience to effectively compete in the
  mining industry. Because of the high costs associated with exploration, the
  expertise required to analyze a project's potential and the capital required
  to develop a mine, larger companies with significant resources may have a
  competitive advantage over us. We face strong competition from other mining
  companies, some with greater financial resources, operational experience and
  technical capabilities than us. As a result of this competition, we may be
  unable to maintain or acquire financing, personnel, technical resources or
  attractive mining properties on terms we consider acceptable or at all.
Title to the Borealis Property may be subject to other claims,
  which could affect our property rights and claims.
Although we believe we
  have exercised commercially reasonable due diligence with respect to
  determining title to properties we own or control and the claims that are
  subject to the Borealis mining lease, there is no guarantee that title to such
  properties will not be challenged or impugned. The Borealis Property may be
  subject to prior unrecorded agreements or transfers or native land claims and
  title may be affected by undetected defects. There may be valid challenges to
  the title of the Borealis Property which, if successful, could impair
  development and/or operations. This is particularly the case in respect of
  those portions of the Borealis Property in which we hold our interest solely
  through a lease with the claim holders, as such interest is substantially
  based on contract and has been subject to a number of assignments (as opposed
  to a direct interest in the property).
All of the mineral rights
  to the Borealis Property consist of "unpatented" mining claims created and
  maintained in accordance with the U.S. General Mining Law. Unpatented mining
  claims are unique property interests, and are generally considered to be
  subject to greater title risk than other real property interests because the
  validity of unpatented mining claims is often uncertain. This uncertainty
  arises, in part, out of the complex federal and state laws and regulations
  under the U.S. General Mining Law, including the requirement of a proper
  physical discovery of valuable minerals within the boundaries of each claim
  and proper compliance with physical staking requirements.
In addition, unpatented
  mining claims are always subject to possible challenges by third parties or
  validity contests by the federal government. The validity of an unpatented
  mining or millsite claim, in terms of both its location and its maintenance,
  is dependent on strict compliance with a complex body of U.S. federal and
  state statutory and decisional law. In addition, there are few public records
  that definitively determine the issues of validity and ownership of unpatented
  mining claims.
15
There are differences in U.S. and Canadian practices for
  reporting reserves and resources.
Our reserve and resource
  estimates are not directly comparable to those made in filings subject to SEC
  reporting and disclosure requirements, as we generally report reserves and
  resources in accordance with Canadian practices. These practices are different
  from the practices used to report reserve and resource estimates in reports
  and other materials filed with the SEC. It is Canadian practice to report
  measured, indicated and inferred resources, which are generally not permitted
  in disclosure filed with the SEC. In the United States, mineralization may not
  be classified as a "reserve" unless the determination has been made that the
  mineralization could be economically and legally produced or extracted at the
  time the reserve determination is made. United States investors are cautioned
  not to assume that all or any part of measured or indicated resources will
  ever be converted into reserves. Further, "inferred resources" have a great
  amount of uncertainty as to their existence and as to whether they can be
  mined legally or economically. Disclosure of "contained ounces" is permitted
  disclosure under Canadian regulations; however, the SEC only permits issuers
  to report "resources" as in place tonnage and grade without reference to unit
  measures.
Accordingly, information
  concerning descriptions of mineralization, reserves and resources contained in
  this prospectus, or in the documents incorporated herein by reference, may not
  be comparable to information made public by other United States companies
  subject to the reporting and disclosure requirements of the SEC.
We will be required to locate mineral reserves for our
  long-term success.
Because mines have limited
  lives based on proven and probable mineral reserves, we will have to
  continually replace and expand our mineral reserves, if any, if and when the
  Borealis Property produces gold and other base or precious metals. Our ability
  to maintain or increase its annual production of gold and other base or
  precious metals once the Borealis Property is restarted, if at all, will be
  dependent almost entirely on its ability to bring new mines into production.
We do not insure against all risks which we may be subject to
  in our planned operations.
We currently maintain
  insurance to insure against general commercial liability claims and losses of
  equipment. Our insurance will not cover all the potential risks associated
  with a mining company's operations. We may also be unable to maintain
  insurance to cover these risks at economically feasible premiums. Insurance
  coverage may not continue to be available or may not be adequate to cover any
  resulting liability. Moreover, we expect that insurance against risks such as
  environmental pollution or other hazards as a result of exploration and
  production may be prohibitively expensive to obtain for a company of our size
  and financial means. We might also become subject to liability for pollution
  or other hazards which may not be insured against or which we may elect not to
  insure against because of premium costs or other reasons. Losses from these
  events may cause us to incur significant costs that could negatively affect
  our financial condition and ability to fund our activities on the Borealis
  Property. A significant loss could force us to terminate our operations.
Our directors and officers may have conflicts of interest as a
  result of their relationships with other companies.
Certain of the directors
  and officers of Gryphon Gold have served as officers and directors for other
  companies engaged in natural resource exploration and development and may also
  serve as directors and/or officers of other companies involved in natural
  resource exploration and development. For example, Richard Hughes is President
  of Klondike Gold Corp. and a director of Alamos Gold Inc. Consequently, there
  is a possibility that our directors and/or officers may be in a position of
  conflict in the future.
New legislation, including the
  Sarbanes-Oxley Act of 2002, may make it difficult for us to retain or attract
  officers and directors.
We may be unable to
  attract and retain qualified officers, directors and members of board
  committees required to provide for our effective management as a result of the
  recent and currently proposed changes in the rules and regulations which
  govern publicly-held companies. Sarbanes-Oxley Act of 2002 has resulted in a
  series of rules and regulations by the Securities and Exchange Commission that
  increase responsibilities and liabilities of directors and executive officers.
  We are a small company with a very limited operating history and no revenues
  or profits, which may influence the decisions of potential candidates we may
  recruit as directors or officers. The perceived increased personal risk
  associated with these recent changes may deter qualified individuals from
  accepting these roles.
16
While we believe we
  have adequate internal control over financial reporting, we will be required
  to evaluate our internal controls under Section 404 of the Sarbanes-Oxley Act
  of 2002, and any adverse results from such evaluation could result in a loss
  of investor confidence in our financial reports and have an adverse effect on
  the price of our shares of common stock.
Pursuant to Section 404 of
  the Sarbanes-Oxley Act of 2002, beginning with our annual report on Form
  10-KSB for the fiscal year ended March 31, 2008, we will be required to
  furnish a report by management on our internal controls over financial
  reporting. Such report will contain, among other matters, an assessment of the
  effectiveness of our internal control over financial reporting, including a
  statement as to whether or not our internal control over financial reporting
  is effective. This assessment must include disclosure of any material
  weaknesses in our internal control over financial reporting identified by our
  management. For our annual report on Form 10-KSB for the fiscal year ended
  March 31, 2009, such report must also contain a statement that our auditors
  have issued an attestation report on our management's assessment of such
  internal controls. Public Company Accounting Oversight Board Auditing Standard
  No. 2 provides the professional standards and related performance guidance for
  auditors to attest to, and report on, our management's assessment of the
  effectiveness of internal control over financial reporting under Section 404.
Failure to comply with the
  new rules may make it more difficult for us to obtain certain types of
  insurance, including director and officer liability insurance, and we may be
  forced to accept reduced policy limits and coverage and/or incur substantially
  higher costs to obtain the same or similar coverage. The impact of these
  events could also make it more difficult for us to attract and retain
  qualified persons to serve on our board of directors, on committees of our
  board of directors, or as executive officers.
Risks Related To This Offering
Broker-dealers may
  be discouraged from effecting transactions in our common shares because they
  are considered a penny stock and are subject to the penny stock rules.
Rules 15g-1 through 15g-9
  promulgated under the Exchange Act impose sales practice and disclosure
  requirements on certain brokers-dealers who engage in certain transactions
  involving a "penny stock." Subject to certain exceptions, a penny stock
  generally includes any non-NASDAQ equity security that has a market price of
  less than $5.00 per share. Our common stock is expected to trade below $5.00
  per share immediately upon closing of the offering. The additional sales
  practice and disclosure requirements imposed upon broker-dealers may
  discourage broker-dealers from effecting transactions in our shares, which
  could severely limit the market liquidity of the shares and impede the sale of
  our shares in the secondary market.
A broker-dealer selling
  penny stock to anyone other than an established customer or "accredited
  investor," generally, an individual with net worth in excess of $1,000,000 or
  an annual income exceeding $200,000, or $300,000 together with his or her
  spouse, must make a special suitability determination for the purchaser and
  must receive the purchaser's written consent to the transaction prior to sale,
  unless the broker-dealer or the transaction is otherwise exempt. In addition,
  the penny stock regulations require the broker-dealer to deliver, prior to any
  transaction involving a penny stock, a disclosure schedule prepared by the
  United States Securities and Exchange Commission relating to the penny stock
  market, unless the broker-dealer or the transaction is otherwise exempt. A
  broker-dealer is also required to disclose commissions payable to the
  broker-dealer and the registered representative and current quotations for the
  securities. Finally, a broker-dealer is required to send monthly statements
  disclosing recent price information with respect to the penny stock held in a
  customer's account and information with respect to the limited market in penny
  stocks.
In the event that
  your investment in our shares is for the purpose of deriving dividend income
  or in expectation of an increase in market price of our shares from the
  declaration and payment of dividends, your investment will be compromised
  because we do not intend to pay dividends.
We have never paid a
  dividend to our shareholders, and we intend to retain our cash for the
  continued development of our business. We do not intend to pay cash dividends
  on our common stock in the foreseeable future. As a result, your return on
  investment will be solely determined by your ability to sell your shares in a
  secondary market.
17
RATIO OF EARNINGS TO
  FIXED CHARGES
Not applicable.
USE OF PROCEEDS
We will not receive any
  proceeds from the sale or distribution of the common stock by the selling
  shareholders. We may receive proceeds from the exercise of the Series I
  Warrants or the Series J Warrants upon exercise of these warrants, if any, and
  will use the proceeds from any exercise for general working capital purposes.
SELLING
SECURITY HOLDERS
This prospectus covers the
  offering of up to 9,048,530 shares of our common stock by selling
  shareholders—this includes shares of our common stock acquirable upon warrants
  exercisable within 60 days of April 30, 2008.
The shares issued to the
  selling shareholders are "restricted" shares under applicable federal and
  state securities laws and are being registered to give the selling
  shareholders the opportunity to sell their shares. The registration of such
  shares does not necessarily mean, however, that any of these shares will be
  offered or sold by the selling shareholders. The selling shareholders may from
  time to time offer and sell all or a portion of their shares in the
  over-the-counter market, in negotiated transactions, or otherwise, at market
  prices prevailing at the time of sale or at negotiated prices.
The registered shares may
  be sold directly or through brokers or dealers, or in a distribution by one or
  more underwriters on a firm commitment or best efforts basis. To the extent
  required, the names of any agent or broker-dealer and applicable commissions
  or discounts and any other required information with respect to any particular
  offer will be set forth in an accompanying prospectus supplement. See "Plan of
  Distribution".
Each of the selling
  shareholders reserves the sole right to accept or reject, in whole or in part,
  any proposed purchase of the registered shares to be made directly or through
  agents. The selling shareholders and any agents or broker-dealers that
  participate with the selling shareholders in the distribution of their
  registered shares may be deemed to be "underwriters" within the meaning of the
  Securities Act, and any commissions received by them and any profit on the
  resale of the registered shares may be deemed to be underwriting commissions
  or discounts under the Securities Act.
We will receive no
  proceeds from the sale of the registered shares. We have agreed to bear the
  expenses of registration of the shares, other than commissions and discounts
  of agents or broker-dealers and transfer taxes, if any.
Selling Shareholder
  Information
The following is a list of
  the selling shareholders who own or have the right to acquire an aggregate of
  9,048,530 shares of our common stock covered in this prospectus. Certain
  selling shareholders have the right to acquire shares of our common stock upon
  warrants sold in our private placements. See "Transactions with Selling
  Shareholders".
At April 28, 2008 we had 61,735,395 shares of common stock issued and
  outstanding.
18
Name
Before Offering
After Offering
Total Number of Shares Beneficially Owned
(1)
Percentage of Shares Owned
(1)
Number of Shares Offered
(2)
Shares Owned After Offering
(3)
Percentage of Shares owned After Offering
(3)
Andrus Voitk
(4)
PO Box 2312, RR#1, Corner Brook, NL, A2H 2N2
284,000
**
248,000
36,000
**
Michael Bertrand
(5)
601-218 W 43
rd
Avenue, Vancouver, BC  V6M 2E1
105,000
**
100,000
5,000
**
Laurie Bertrand
(6)
601-218 W 43
rd
Avenue, Vancouver, BC  V6M 2E1
105,000
**
100,000
5,000
**
708178 Alberta Ltd
(7)
7545 Elkton Drive SW, Calgary, AB  T3H 3X3
30,000
**
30,000
0
0%
Gord Welch
(8)
7545 Elkton Drive SW, Calgary, AB  T3H 3X3
30,000
**
30,000
0
0%
Roytor & Co.
(9)
RBC Dexia Investor Services, Institutional & Investor Services,Securities
      Cage/Vault Department, Attn: Free Desk, Royal Bank Plaza, 200 Bay St.,
      South Tower, SL Level
Toronto, ON  M5J 2J5
10,100,000
15.3%
5,200,000
4,900,000
2.7%
Roytor & Co.
(10)
RBC Dexia Investor Services, Institutional & Investor Services,Securities
      Cage/Vault Department, Attn: Free Desk, Royal Bank Plaza, 200 Bay St.,
      South Tower, SL Level
Toronto, ON  M5J 2J5
1,050,000
1.7%
800,000
250,000
**
Mahmood Kassam
(11)
82 Ava Crescent, Richmond Hill, ONT., Canada, L4B 2X6
248,500
**
150,000
98,500
**
Casey Early Opportunity Resource Fund LLC
(12)
166 South Main Street #2, Stowe, VT 05672 USA
50,000
**
50,000
0
0%
Judith Munday
(13)
#305-4567 Hazel St., Burnaby, BC, V5H 4V4 (Buzz Code: 1012)
25,000
**
25,000
0
0%
Genny Sturhahn
(14)
#206 4400 Dominion St., Burnaby, BC, V5G 4G3
35,000
**
35,000
0
0%
19
Munday Home Sales Ltd.
(15)
#206 4400 Dominion St., Burnaby, BC, V5G 4G3
1,410,000
2.3%
1,410,000
0
0%
Otis Brandon Munday
(16)
9740 210 St., Langley, BC, V1M 2P7
30,000
**
30,000
0
0%
Douglas Johnson
(17)
#508, 1440 Creekside Drive, Vancouver, BC V6J 5B6
500,000
**
400,000
100,000
**
Richard Lehmann
(18)
General Delivery, Homer, Alaska
219,010
**
200,000
19,010
**
Don Bossert
(19)
3307 McCall Court, Edmonton, AB T6R 3V3
35,000
**
25,000
10,000
**
Rohan Hazelton
(20)
5685 White Pine Lane, North Vancouver, BC V7R 4S1
95,000
**
40,000
45,000
**
Rick Machial
(21)
33248 123
rd
Street RR1
Oliver, BC  V0H 1T0
174,300
**
100,000
74,300
**
Canaccord Capital
(22)
2200-609 Granville Street, Vancouver, BC V7Y 1H2
7,000
**
7,000
0
0%
Md Management Ltd.
(23)
164 MacDonald Dr, St. John's, NL, A1A 4B3
8,680
**
8,680
0
0%
Otis Brandon Munday
(24)
9740 210 St., Langley, BC, V1M 2P7
52,500
**
52,500
0
0%
Haywood Securities Inc.
(25)
2000-400 Burrard Street
Vancouver, BC V6C 3A6
33,600
**
2,100
31,500
**
BMO Nesbitt Burns
(26)
P.O. Box 150; 48
th
Floor; 1 First Canadian Place, Toronto,
      ONT., M5X 1H3
5,250
**
5,250
**
0%
TOTAL
9,482,840
14.2%
9,048,530
424,310
**
**-
  Designates of percentage of ownership of less than 1%
(1)
All percentages are based on 61,735,395 shares of
  common stock issued and outstanding on April 28, 2008.  Beneficial
  ownership is calculated by the number of shares of common stock that each
  selling shareholder owns or controls or has the right to acquire within 60
  days of April 20, 2008.
(2)
This table assumes that each shareholder will
  sell all of its shares available for sale during the effectiveness of the
  registration statement that includes this prospectus.  Selling
  shareholders are not required to sell their shares.
(3)
Assumes that all shares registered for resale by
  this prospectus have been issued and sold.
20
(4)
Includes 124,000 shares of common stock and
  124,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 36,000 shares of common stock.
(5)
Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by Canaccord Capital in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities. Equity included in beneficial
  ownership total but not being registered under this statement include 5,000
  shares of common stock.
(6)
Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by Canaccord Capital in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities. Equity included in beneficial
  ownership total but not being registered under this statement include 5,000
  shares of common stock.
(7)
Includes 30,000 shares of common stock and 30,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by Haywood Securities in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities.   Gord Welch and Rick
  Thomas in their capacity as President and Secretary exercises sole voting
  control and dispositive power over these securities.
(8)
Includes 30,000 shares of common stock and 30,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by Haywood Securities in
  trust for the named individual, who exercises sole voting control and
  dispositive power over these securities.
(9)
Includes 2,600,000 shares of common stock and
  2,600,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  These shares are held by Roytor & Co
  in trust for Top Gold AG MVK.  Mr. Martin Frick in his capacity as the
  investment advisor with Luxor Asset Management Trust rep exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 3,200,000 shares of common stock and 1,700,000 common stock acquirable
  upon the exercise of warrants.
(10)
Includes 400,000 shares of common stock and
  400,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  These shares are held by Roytor & Co
  in trust for Golden Dhow Fund.  Mr. Martin Frick in his capacity as the
  investment advisor with Luxor Asset Management Trust rep exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 125,000 shares of common stock and 125,000 common stock acquirable
  upon the exercise of warrants.
(11)
Includes 75,000 shares of common stock and 75,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by Nesbitt Burns in trust
  for  the named individual, who exercises sole voting control and
  dispositive power over these securities.  Equity included in beneficial
  ownership total but not being registered under this statement include 98,500
  shares of common stock.
(12)
Includes 25,000 shares of common stock and 25,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  Olivier Garret and David Gallant in their
  capacity as individuals with voting power within the LLC exercises sole voting
  control and dispositive power over these securites.
(13)
Includes 12,500 shares of common stock and 12,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  The named individual exercises sole voting
  control and dispositive power over these securities.
(14)
Includes 17,500 shares of common stock and 17,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  The named individual exercises sole voting
  control and dispositive power over these securities.
(15)
Includes705,000 shares of common stock and
  705,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  Maxwell Munday in his capacity as
  President exercises sole voting control and dispositive power over these
  securities.
(16)
Includes 15,000 shares of common stock and 15,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  The named individual exercises sole voting
  control and dispositive power over these securities.
(17)
Includes 200,000 shares of common stock and
  200,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 100,000 shares of common stock.
(18)
Includes 100,000 shares of common stock and
  100,000 shares of common stock acquirable upon exercise of Series I Warrants
  within 60 days of April 30, 2008.  The named individual exercises sole
  voting control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 19,010 shares of common stock.
(19)
Includes 12,500 shares of common stock and 12,500
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  The named individual exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 10,000 shares of common stock.
(20)
Includes 20,000 shares of common stock and 20,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  The named individual exercises sole voting
  control and dispositive power over these securities. Equity included in
  beneficial ownership total but not being registered under this statement
  include 45,000 shares of common stock.  Rohan Hazelton is currently a
  member on the Board of Directors of Gryphon Gold.
(21)
Includes 50,000 shares of common stock and 50,000
  shares of common stock acquirable upon exercise of Series I Warrants within 60
  days of April 30, 2008.  These shares are held by RBC Dominion Securities
  in trust for the named individual, who exercises sole voting control and
  dispositive power over these securities.  Equity included in beneficial
  ownership total but not being registered under this statement include 74,300
  shares of common stock.
(22)
Includes 7,000 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of  April 30,
  2008.  Ken MacPherson in his capacity as Senior Vice President of Trading 
  Canaccord Capital exercises sole voting control and dispositive power over
  these securities.
(23)
Includes 8,680 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of  April 30,
  2008.
21
(24)
Includes 52,500 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of  April 30,
  2008.  The named individual exercises sole voting control and dispositive
  power over these securities.
(25)
Includes 2,100 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of  April 30,
  2008. Marilyn Dryhurst  in her capacity as Manager of Securities Cage and
  Settlements for Haywood Securities Inc. exercises sole voting control and
  dispositive power over these securities.   Equity included in
  beneficial ownership total but not being registered under this statement
  include 31,500 of common stock acquirable upon the exercise of warrants.
(26)
Includes 5,250 shares of common stock acquirable
  upon exercise of Series J Brokers' Warrants within 60 days of  April 30,
  2008. Jim Chouzouris  in his capacity as Associate Investment Advisor for
  BMO Nesbitt Burns exercises sole voting control and dispositive power over
  these securities
Transactions With Selling Shareholders
On December 14, 2007, we
  closed the third and final tranche of our private placement of units as
  announced on November 12, 2007 and November 14, 2007. The first tranche closed
  on November 22, 2007 and consisted of 3.254 million units for gross aggregate
  proceeds of Cdn.$2.603 million. The second tranche closed on November 27, 2007
  and consisted of 1.050 million units for gross aggregate proceeds of Cdn.$840,000.
  The third tranche consisted of 182,500 units for gross aggregate proceeds of
  Cdn.$146,000. An aggregate of 4,486,500 units were issued for gross proceeds
  of Cdn.$3.589 million. Each unit consisted of one common share of the Company
  and one full Series I common share purchase warrant subject to adjustment.
  Each full Series I common share purchase warrant entitles the holder thereof
  to purchase one share of common stock of the Company, for a period of 24
  months commencing from the date of closing at a price per common share of
  Cdn$1.00 if exercised on or before the date that is twelve months from the
  date of closing and at a price per Warrant Share of Cdn$1.25 if exercised
  after the first twelve months from the date of closing, but prior to expiry.
The
  units were offered for sale directly by us and by registered dealers. In
  relation to the private placement of the units, we paid qualified registered
  dealers a cash commission in the amount of Cdn.$71,624.00 and issued
  compensation options to acquire 89,530 common shares (exercisable at a price
  of C$0.80 for a period of up to 9 months from closing) (14,000 of the
  compensation warrants were later rejected and cancelled by one of the
  registered dealers).
The securities of the
  private placement were not registered under the Securities Act, or the laws of
  any state, and are subject to resale restrictions and may not be offered or
  sold in the United States absent registration or an applicable exemption from
  the registration requirements. The units, including the common shares and
  common share purchase warrants comprising the units were placed pursuant to
  exemptions from registration requirements of the Securities Act provided by
  Section 506 of Regulation D of the Securities Act and by Rule 903 of
  Regulation S of the Securities Act, such exemptions being available based on
  information obtained from the investors to the private placement.
PLAN OF DISTRIBUTION
We
  are registering the shares of common stock on behalf of the selling
  shareholders. When we refer to selling shareholders, we intend to include
  donees and pledgees selling shares received from a named selling shareholder
  after the date of this prospectus.  All costs, expenses and fees in connection
  with this registration of the shares offered under this registration statement
  will be borne by us.  Brokerage commissions and similar selling expenses, if
  any, attributable to the sale of shares will be borne by the selling
  shareholders.  Sales of shares may be effected by the selling shareholders
  from time to time in one or more types of transactions (which may include
  block transactions) on the over-the-counter market, in negotiated
  transactions, through put or call options transactions relating to the shares,
  through short sales of shares, or a combination of such methods of sale, at
  market prices prevailing at the time of sale, or at negotiated prices.  Such
  transactions may or may not involve brokers or dealers. The selling
  shareholders have advised us that they have not entered into any agreements,
  understandings or arrangements with any underwriters or broker-dealers
  regarding the sale of their securities, nor is there an underwriter or
  coordinating broker acting in connection with the proposed sale of shares by
  the selling shareholders.
The selling shareholders
  may effect such transactions by selling shares directly to purchasers or
  through broker-dealers, which may act as agents or principals. Such
  broker-dealers may receive compensation in the form of discounts, concessions,
  or commissions from the selling shareholders and/or purchasers of shares for
  whom such broker-dealers may act as agents or to whom they sell as principal,
  or both (which compensation as to a particular broker-dealer might be in
  excess of customary commissions).
The selling shareholders
  and any broker-dealers that act in connection with the sale of shares might be
  deemed to be "underwriters" within the meaning of Section 2(11) of the
  Securities Act, and any commissions received by such broker-dealers and any
  profit on the resale of shares sold by them while acting as principals might
  be deemed to be underwriting discounts or commissions under the Securities
  Act.  The selling shareholders may agree to indemnify any agent, dealer or
  broker-dealer that participates in transactions involving sales of the shares
  against some liabilities arising under the Securities Act.
22
Because the selling
  shareholders may be deemed to be "underwriters" within the meaning of Section
  2(11) of the Securities Act, the selling shareholders will be subject to the
  prospectus delivery requirements of the Securities Act.  We have informed the
  selling shareholders that the anti-manipulative provisions of Regulation M
  promulgated under the Exchange Act may apply to their sales in the market.
In the event that the
  registration statement is no longer effective, the selling shareholders may
  resell all or a portion of the shares in open market transactions in reliance
  upon Rule 144 under the Securities Act, provided they meet the criteria and
  conform to the requirements of such Rule, including the minimum one year
  holding period.
Upon being notified by any
  selling shareholder that any material arrangement has been entered into with a
  broker-dealer for the sale of shares through a block trade, special offering,
  exchange distribution or secondary distribution or a purchase by a broker or
  dealer, we will file a supplement to this prospectus, if required, under Rule
  424(b) of the Act, disclosing:
the name of each selling shareholder(s) and of the
    participating broker-dealer(s),
the number of shares involved,
the price at which the shares were sold,
the commissions paid or discounts or concessions allowed to
    the broker-dealer(s), where applicable,
that the broker-dealer(s) did not conduct any investigation
    to verify information set out or incorporated by reference in this
    prospectus; and
other facts material to the transaction.
DESCRIPTION OF
  SECURITIES
TO BE REGISTERED
Our authorized capital
  stock of Gryphon Gold consists of one hundred fifty million (150,000,000)
  shares of common stock, par value $0.001 per share and fifteen million
  (15,000,000) shares of Preferred Stock, par value $0.001 per share. No other
  class or series of capital stock is currently authorized under the
  Corporation's articles of incorporation.
Common Stock
We had 61,735,395 shares
  of common stock outstanding as of April 28, 2008.
Holders of common stock
  are entitled to one vote per share on all matters subject to stockholder vote.
  The common stock has no preemptive or other subscription rights. All of the
  presently outstanding shares of common stock are fully paid and non
  assessable. If the corporation is liquidated or dissolved, holders of shares
  of common stock will be entitled to share ratably in assets remaining after
  satisfaction of liabilities and subject to the rights, if any, of the holders
  of our preferred stock.
The holders of the common
  stock are entitled to receive dividends when and as declared by the Board of
  Directors, out of funds legally available therefore. The corporation has not
  paid cash dividends with respect to its common stock in the past. No share of
  common stock of the corporation which is fully paid is liable to calls or
  assessment by the corporation.
Preferred Stock
Our articles of
  incorporation authorize our board of directors to issue, by resolution and
  without any action by our stockholders, one or more series of preferred stock
  and to establish the designations, dividend rights, dividend rate, conversion
  rights, voting rights, terms of redemption, liquidation preference, sinking
  fund terms and all other preferences and rights of any series of preferred
  stock, including rights that could adversely affect the voting power of the
  holders of our common stock.
One of the effects of
  undesignated preferred stock may be to enable the board of directors to render
  more difficult or to discourage an attempt to obtain control of us by means of
  a tender offer, proxy contest, merger or otherwise, and thereby to protect the
  continuity of our management. The issuance of shares of preferred stock
  pursuant to the board of directors' authority described above may adversely
  affect the rights of holders of common stock. For example, preferred stock
  issued by us may rank prior to the common stock as to dividend rights,
  liquidation preference or both, may have full or limited voting rights and may
  be convertible into shares of common stock. Accordingly, the issuance of
  shares of preferred stock may discourage bids for the common stock at a
  premium or may otherwise adversely affect the market price of the common
  stock.
23
Nevada Laws
The Nevada Business
  Corporation Law contains a provision governing "acquisition of controlling
  interest."  This law provides generally that any person or entity that
  acquires 20% or more of the outstanding voting shares of a publicly-held
  Nevada corporation in the secondary public or private market may be denied
  voting rights with respect to the acquired shares, unless a majority of the
  disinterested shareholders of the corporation elects to restore such voting
  rights in whole or in part. The control share acquisition act provides that a
  person or entity acquires "control shares" whenever it acquires shares that,
  but for the operation of the control share acquisition act, would bring its
  voting power within any of the following three ranges:
20 to 33 1/3%;
33 1/3 to 50%; or
more than 50%.
A "control share
  acquisition" is generally defined as the direct or indirect acquisition of
  either ownership or voting power associated with issued and outstanding
  control shares.  The shareholders or board of directors of a corporation may
  elect to exempt the stock of the corporation from the provisions of the
  control share acquisition act through adoption of a provision to that effect
  in the articles of incorporation or bylaws of the corporation.  Our articles
  of incorporation and bylaws do not exempt our common stock from the control
  share acquisition act.
The control share
  acquisition act is applicable only to shares of "Issuing Corporations" as
  defined by the Nevada law.  An Issuing Corporation is a Nevada corporation,
  which:
has 200 or more shareholders, with at least 100 of such
    shareholders being both shareholders of record and residents of Nevada; and
does business in Nevada directly or through an affiliated
    corporation.
At this time, we do not
  have 100 shareholders of record resident of Nevada.  Therefore, the provisions
  of the control share acquisition act do not apply to acquisitions of our
  shares and will not until such time as these requirements have been met.  At
  such time as they may apply, the provisions of the control share acquisition
  act may discourage companies or persons interested in acquiring a significant
  interest in or control of us, regardless of whether such acquisition may be in
  the interest of our shareholders.
The
  Nevada "Combination with Interested Shareholders Statute" may also have an
  effect of delaying or making it more difficult to effect a change in control
  of us.  This statute prevents an "interested shareholder" and a resident
  domestic Nevada corporation from entering into a "combination," unless certain
  conditions are met.  The statute defines "combination" to include any merger
  or consolidation with an "interested shareholder," or any sale, lease,
  exchange, mortgage, pledge, transfer or other disposition, in one transaction
  or a series of transactions with an "interested shareholder" having:
an aggregate market value equal to 5 percent or more of the
    aggregate market value of the assets of the corporation;
an aggregate market value equal to 5 percent or more of the
    aggregate market value of all outstanding shares of the corporation; or
representing 10 percent or more of the earning power or net
    income of the corporation.
An "interested
  shareholder" means the beneficial owner of 10 percent or more of the voting
  shares of a resident domestic corporation, or an affiliate or associate
  thereof.  A corporation affected by the statute may not engage in a
  "combination" within three years after the interested shareholder acquires its
  shares unless the combination or purchase is approved by the board of
  directors before the interested shareholder acquired such shares. If approval
  is not obtained, then after the expiration of the three-year period, the
  business combination may be consummated with the approval of the board of
  directors or a majority of the voting power held by disinterested
  shareholders, or if the consideration to be paid by the interested shareholder
  is at least equal to the highest of:
the highest price per share paid by the interested
    shareholder within the three years immediately preceding the date of the
    announcement of the combination or in the transaction in which he became an
    interested shareholder, whichever is higher;
24
the market value per common share on the date of announcement
    of the combination or the date the interested shareholder acquired the
    shares, whichever is higher; or
if higher for the holders of preferred stock, the highest
    liquidation value of the preferred stock.
INTEREST OF NAMED
  EXPERTS AND COUNSEL
None.
DESCRIPTION OF THE
  BUSINESS
Name and
  Incorporation
Gryphon Gold Corporation
  was formed under the laws of the State of Nevada on April 24, 2003.
Our principal business
  office, which also serves as our administration and financing office is
  located in Canada at Suite 810, 1130 West Pender Street, Vancouver, British
  Columbia, Canada V6E 4A4, and our telephone number there is 604-261-2229.
We own 100% of the issued
  and outstanding shares of our operating subsidiaries, Borealis Mining Company
  and Gryphon Nevada Eagle Holding Company.  Gryphon Nevada Eagle Holding
  Company owns 100% of the membership interests in Nevada Eagle Resources LLC.
   We have no other subsidiaries. Borealis Mining Company was formed under the
  laws of the State of Nevada on June 5, 2003, Gryphon Nevada Eagle Holding
  Company was formed under the laws of the State of Nevada on July 27, 2007, and
  Nevada Eagle Resources LLC was organized under the laws of the State of Nevada
  on April 28, 2005.
History and
  Background of Company
We were established as a
  private company in April 2003 by Albert Matter and Allen Gordon to acquire and
  develop gold properties in the United States.  Our objective is to establish a
  producing gold company through the development and extraction of gold
  deposits.
In July 2003, through our
  wholly-owned subsidiary Borealis Mining, we acquired from Golden Phoenix an
  option to earn up to a 70% joint venture interest in the mining lease for the
  Borealis Property (July 2003 Option and Joint Venture Agreement) by making
  qualified development expenditures on that property.
In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property.
During 2004, we completed
  drilling, technical and engineering work necessary to prepare a Plan of
  Operation in respect of the development of an open pit,  heap leach mine on
  the Borealis Property. We submitted the Plan of Operation to the U.S. Forest
  Service on August 27, 2004, and we continue to work on satisfying all the
  requirements of the various approval agencies and completing all necessary
  reviews, including the approval of the Nevada Division of Environmental
  Protection. The principal mine operating permits were granted in 2006.  A
  further discussion of operating permits and other governmental regulation
  concerns is described under the caption "Permitting," below.
Following the course
  established by the recommendations in the preliminary scoping study, and based
  on additional geologic field work that was completed in 2004, we retained Ore
  Reserves Engineering, consulting resource modeling engineers, to complete an
  updated resource estimate model in accordance with National Instrument 43-101
  of the Canadian Securities Administrators. In May 2005, Ore Reserves
  Engineering delivered the report titled
Technical
Report on the
  Mineral Resources of the Borealis Gold Project Located in
Mineral
  County, Nevada.
On January 10, 2005,
  Borealis Mining entered into a purchase agreement with Golden Phoenix which
  gave Borealis Mining the right to purchase the interest of Golden Phoenix in
  the Borealis Property for $1,400,000. Golden Phoenix transferred its interest
  in the Borealis Property to Borealis Mining on January 28, 2005. Borealis
  Mining paid $400,000 of the purchase price to Golden Phoenix upon closing of
  the purchase, and four additional quarterly payments of $250,000 were made to
  Golden Phoenix.  With the final payment of $250,000 on January 24, 2006,
  Borealis Mining  completed all the required payments under the purchase
  agreement and now has 100% control of the Borealis Property.  A portion of the
  Borealis Property is subject to mining leases, as described under the caption
  "Borealis Property," below.
As sole shareholder of
  Borealis Mining, we control all of the lease rights to a portion of the
  Borealis Property, subject to advance royalty, production royalty, and other
  payment obligations imposed by the lease. Our acquisition of the interest of
  Golden Phoenix in the Borealis Property terminated the July 2003 Option and
  Joint Venture Agreement.
25
In addition to our
  leasehold interest to a portion of the Borealis Property, we also own through
  Borealis Mining numerous unpatented mining claims that make up the balance of
  the Borealis Property, and all of the documentation and samples from years of
  exploration and development programs carried out by the previous operators of
  the Borealis Property, totaling thousands of pages of data including, but not
  limited to, geophysical surveys, mineralogical studies and metallurgical
  testing reports.
On July 11, 2005, we
  accepted a joint proposal for a feasibility study from the firms of Samuel
  Engineering, Inc. and Knight Piesold and Company. Samuel Engineering provides
  services including metallurgical process development and design, and Knight
  Piesold provides mining, metallurgical and environmental engineering services.
  Both companies have worked together recently on completing similar studies.
During the period from our
  inception on April 24, 2003 through March 31, 2004, we funded our capital
  needs by raising $2,419,200 in private placements, issuing 14,376,000 shares
  of common stock at prices ranging from $0.10 per share to $0.225 per share.
During our fiscal year
  ended March 31, 2005, we raised $175,000 by issuing 500,000 shares of common
  stock to an executive officer at $0.35 per share under the terms of his
  employment agreement. We raised an additional $4,430,375 by issuing
  6,815,962 units in a series of private placements. Each unit consisted of one
  share of common stock and one-half of one share purchase warrant, each whole
  warrant exercisable to acquire one share of common stock at $0.90 per share
  until the earlier of two years from the issue date and nine months following
  the date on which common stock is listed on a public stock exchange
  (subsequently revised to expire on December 22, 2006).
During our fiscal quarter
  ended June 30, 2005, we raised $3,919,765 by issuing 6,030,408 units in a
  series of private placements. Each unit consisted of one share of common stock
  and one-half of one share purchase warrant, each whole warrant exercisable to
  acquire one share of common stock at $0.90 per share until the earlier of two
  years from the issue date and nine months following the date on which common
  stock is listed on a public stock exchange (subsequently revised to expire on
  December 22, 2006.).
On August 11, 2005, our
  Board authorized an increase in our authorized capital to consist of
  150,000,000 shares of common stock, par $0.001, and 15,000,000 shares of
  preferred stock, par $0.001.  The increase was approved by shareholders.
On December 22, 2005, we
  completed our initial public offering of 6.9 million units for gross proceeds
  of approximately $ 5,036,497 with net proceeds of $2,794,557 after deducting
  costs of $2,241,940. The units were sold at a price of $0.73 (Cdn$0.85) each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable for a period of 12 months at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol "GGN."
   The offering was underwritten by a syndicate of Canadian underwriters which
  included Desjardins Securities, CIBC World Markets, Bolder Investment Partners
  and Orion Securities.  The units were offered for sale pursuant to a
  prospectus filed in four Canadian provinces (British Columbia, Alberta,
  Manitoba and Ontario). The units were also registered in a registration
  statement filed with the United States Securities and Exchange Commission.
   The proceeds of the offering will be used principally for the completion of
  the Company's feasibility study for its Borealis Property and its exploration
  program on the Borealis Property, as well as for working capital.
On March 24, 2006, we
  closed the private placement of 5,475,000 units for sale at Cdn$1.25 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one half of one Series B purchase
  warrant. The Series B warrants are exercisable until March 23, 2007 at a price
  of Cdn$1.65.  The private offering raised gross proceeds of Cdn$6.8 million.
   We paid qualified registered dealers a 7% cash commission and issued
  compensation options to acquire 280,500 common shares at price of Cdn$1.40
  until March 23, 2007 on a portion of the private placement.  The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions.  The Company granted registration rights to the investors in
  this private placement and used commercially reasonable efforts to prepare and
  file with the SEC, within 120 days of closing, a registration statement under
  the Securities Act and caused such statement to be declared effective and
  remain effective.  The proceeds of this offering have been and will be applied
  to fund the continuation of our exploration and development program on the
  Borealis Property.
In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller.  Mr. Longinotti was appointed as new Chief Financial Officer to
  the Company, effective May 15, 2006, and the Company has agreed to enter into
  a formal employment agreement with him in due course.  Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006.  Mr. Longinotti's employment
  commenced April 18, 2006.  Mr. Rajwant Kang is the Corporate Controller to the
  Company.  In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006.
26
On November 30, 2006, our
  board of directors concluded that we would not proceed with near term
  construction and production financing of the Borealis heap leach mine.  The
  feed for the proposed mine was remnants from the previously mined open pits,
  and heap and dump material associated with the historical mining operations.
   The decision not to proceed was made due to the impact of certain technical
  corrections to the previously announced Feasibility Study and related NI
  43-101 Technical Report, dated August 15, 2006.  The technical corrections
  reduced the anticipated quantity of recoverable gold and silver over the
  project life, and resulted in a marginal projected return on investment.  In
  light of the decision not to proceed with development of a mine, in December
  2006, we closed our Denver office and terminated operations and engineering
  staff, including our Chief Operating Officer Mr. Allen Gordon and Mr. Matt
  Bender, our Vice President of Borealis Project Development.  Mr. Steven Craig,
  our Vice President of Exploration, was relocated to Nevada.  As of December 1,
  2006, our Chief Financial Officer, Mr. Michael Longinotti commenced working on
  a part-time basis.  Under this agreement, his time spent in the office was
  reduced by 50% along with his salary.
In December 2006, we
  completed the geophysical survey, which commenced in September 2006.  The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit.  The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit.
On January 11, 2007, we announced the results of the
  revised CIM compliant resource estimate in accordance with NI 43-101 which had
  been compiled by Mr. Alan C. Noble, P.E. of Ore Reserves Engineering, entitled
Technical Report on the
  Mineral Resources of the Borealis Gold Project Located in Mineral County,
  Nevada, USA, August 15, 2006 Revised January 11, 2007
, the "
Technical
  Report
". The results of the report were independently reviewed by AMEC to
  insure the methodology and assumptions used in the calculations were
  consistent with industry standards. The resource estimate includes the results
  of exploration drilling through November 5, 2006. The measured, indicated and
  inferred gold resource reported in January 2007 is:
On January 11, 2007, we
  announced the results of the revised CIM compliant resource estimate in
  accordance with NI 43-101 which had been compiled by Mr. Alan C. Noble, P.E.
  of Ore Reserves Engineering.  The results of the report were independently
  reviewed by AMEC to insure the methodology and assumptions used in the
  calculations were consistent with industry standards.  The resource estimate
  includes the results of exploration drilling through February 28, 2006.  The
  measured, indicated and inferred gold resource reported in January 2007 is:
Date
Measured
Indicated
Inferred
Tons
(000's)
Grade
opt
Ozs of Gold
Tons
(000's)
Grade
opt
Ozs of Gold
Tons
(000's)
Grade
opt
Ozs of Gold
January, 11, 2007
16,360
0.031
503,700
24,879
0.029
709,800
30,973
0.020
609,200
The updated report
  confirmed a total gold resource (measured, indicated and inferred) of
  1,822,700 ounces contained in the Borealis property.
The terms "proven mineral
  reserve" and "probable mineral reserve" used in this prospectus are in
  reference to the mining terms defined in the Canadian Institute of Mining,
  Metallurgy and Petroleum Standards, which definitions have been adopted by
  Canadian National Instrument 43-101 – Standards of Disclosure for Mineral
  Projects.  The definitions of proven and probable reserves used in NI 43-101
  differ from the definitions in the United States Securities and Exchange
  Commission's Industry Guide 7.  In the United States, a mineral reserve is
  defined as a part of a mineral deposit, which could be economically and
  legally extracted or produced at the time the reserve determination is made.
   Accordingly, information contained in this prospectus and the documents
  incorporated by reference herein containing descriptions of our mineral
  deposits in accordance with NI 43-101 may not be comparable to similar
  information made public by other U.S. companies under the United States
  federal securities laws and the rules and regulations thereunder.
In January 2007 we started
  the process of completing a mineral resource estimate covering the entire
  property that will include all drilling results obtained during calendar year
  2007.
The mineral resource estimate is expected to be completed at the end of April
  or in early May 2008.
On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million.  Each unit consisted of one common
  share and one full purchase warrant.  The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry.  We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and used commercially reasonable efforts to prepare and
  file with the SEC, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.
27
On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle, under which we agreed to
  purchase all of the outstanding limited liability company interests of Nevada
  Eagle.  Upon closing of the membership interest purchase agreement on August
  21, 2007, we acquired Nevada Eagle from the sellers for the following
  consideration:
(a)     2,500,000 in
  cash;
(b)     four million
  five hundred thousand (4,500,000) shares of our common stock; and
(c)     a 5%
  convertible note in the principal amount of $5,000,000.
The convertible note, due
  March 30, 2010, bears interest at the annual rate of 5% and is convertible at
  the option of the holder into common shares at an initial conversion price of
  $1.00 per share during first the twelve month period following the closing
  date, $1.25 per share during the second twelve month period following the
  closing date, $1.50 per share thereafter and $1.75 per share if converted on
  March 30, 2010. The interest payments are due on a semi-annual basis beginning
  on January 1, 2008. In addition to the purchase consideration, the Baughmans
  were entitled to all revenues of Nevada Eagle (payable in cash, stock, or
  other consideration) calculated to be received and received on the assets and
  properties of Nevada Eagle from January 1, 2007 through midnight on December
  31, 2007.
In addition, we granted
  the sellers registration rights under which we agreed to file (within the
  later of (i) 90 days of the closing date or (ii) any date in which we are
  required to file a registration statement for a third-party in connection with
  a financing or acquisition, but no later than 120 days of the closing date) a
  resale registration statement to register the common shares issuable at
  closing and issuable upon exercise of the convertible note under the
  Securities Act of 1933, as amended. Such registration rights were filed.
Under the terms of the
  purchase agreement, the closing of the acquisition was subject to closing
  conditions, including:
(a)          
  A Lock-up Agreement, dated August 21, 2007, under which the Sellers agreed
  that for a period of three months following the Closing Date not to sell
  Common Shares issued or issuable under the Purchase Agreement and Convertible
  Note and, thereafter, to limit the sale of such Common Shares to 20% of the
  aggregate Common Shares issued under the Purchase Agreement and Convertible
  Note each quarter (with unsold Common Shares aggregating each quarter
  thereafter);
(b)          
  An Employment Agreement between us and Mr. Baughman for a term of one year,
  renewable by the parties, to serve as our Vice President of Corporate
  Development;
(c)          
   A Non-Competition Agreement under which the Sellers have agreed not to
  compete with the Registrant for the latter of (i) twelve (12) months following
  the Closing Date (the "Restricted Period"), or (ii) twelve (12) months
  following the termination of the Company's employment of Gerald Baughman. 
  The scope of the non-competition obligation relates to the business of
  acquiring and/or holding base metal and precious metal mineral assets located
  in the state of Nevada within the Area of Interest and to properties that have
  been examined by the Registrant or Mr. Baughman during the course of his
  employment by the Registrant, in any manner or capacity.  "Area of
  Interest" is defined as any property owned by the Registrant, Nevada Eagle, or
  any affiliate of the Registrant or Nevada Eagle on the latter of (i) Closing
  Date or (ii) the termination date of Gerald Baughman's employment by the
  Registrant, if any, together with any adjacent areas within one kilometer of
  the exterior boundary of such properties;
On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  "First Anniversary") and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing).  The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and used commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. Such registration has been completed. The proceeds of
  this offering will be applied to fund the continuation of our exploration and
  development programs.
28
On December 14, 2007 we
  completed a private placement of 4,486,500 units at Cdn$0.80 for gross
  proceeds of approximately Cdn$3,589,200.  The private placement closed in
  three tranches on November 22,  November 27 and December 14, 2007.  Each unit
  consisted of one common share and one series I warrant.  Each series I warrant
  entitles the holder to purchase a common share at a price of Cdn$1.00 per
  share during the first 12 months after closing and Cdn$1.25 per share during
  the second 12 months after closing and until expiry.  We paid qualified
  registered dealers a 7% cash commission in the amount of Cdn$71,624 and issued
  compensation warrants (series J) to acquire 89,530 common shares (at a price
  of Cdn$0.80 per share for a period of 9 months from closing) in respect of the
  1,204,000 million units placed by them (14,000 of the compensation warrants
  were later rejected and cancelled by one of the registered dealers). We have a
  right to force warrant holders to exercise warrants, if the price of our
  common stock remains equal to or greater than, Cdn$1.85 per common share, for
  a period of twenty consecutive days.  The shares, warrants and underlying
  shares were not qualified by prospectus, have not been registered under U.S.
  securities laws, and are subject to resale restrictions. We granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.
In the calendar year 2007,
  we continued extension drilling, focused on the expansion of the Graben
  deposit and exploration drilling for a new gold deposit within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments.
   This drilling program consisted of a series of Graben deposit expansion
  drilling and extension drilling north and west of the successful G3 – G13
  fence of holes.  The drilling of the Graben deposit alternated with follow up
  exploration drilling in the Central and Western Pediments where 10 holes have
  intersected two distinct hydrothermal systems hidden beneath the pediments.
Business Objectives
We are in the business of
  acquiring, exploring, and developing gold properties in the United States,
  emphasizing the state of Nevada. Our objective is to increase value of our
  shares through the exploration, development and extraction of gold deposits,
  beginning with our Borealis Property. The development and extraction may be
  performed by us or may be performed by potential partners.  We will also
  consider the acquisition and exploration of other potential gold bearing
  properties within Nevada or areas that have a similar political risk profile.
   The Plan of Operations that has been approved by the U.S. Forest Service does
  not present an economic analysis, and we have not placed any information in
  the Plan of Operations regarding capital expenditures, operating costs, ore
  grade, anticipated revenues, or projected cash flows. The Plan of Operation
  was based on the general economic concepts as presented in the Preliminary
  scoping study.
Corporate Strengths
We believe that we have
  the following business strengths that will enable us to achieve our
  objectives:
Our management team has significant exploration experience in
    Nevada;
As the Borealis Property was the site of surface mining
    operations from 1981 to 1990, we believe the process to receive permits and
    start operations on previously mined operations is less difficult than
    getting permits for a previously undisturbed area. The USDA Forest Service
    and the Nevada Bureau of Mining Regulation and Reclamation have both
    approved the Plan of Operations and Reclamation Plan, allowing us to proceed
    with the development of a heap leach mine assuming sufficient oxide
    resources are found and additional financing is available. We have also
    received approvals for surface exploration and water wells and have
    successfully progressed through the required agency and public review
    process for those permits. .
Our land position is extensive, controlled by 752 unpatented
    mining claims covering approximately 15,500 acres. We believe many surface
    showings of gold mineralization on the property may provide opportunities
    for discovery of gold deposits. Our property has multiple types of gold
    deposits including oxidized material, partial oxidized material, and
    predominantly sulfide material; which we believe may allow us flexibility in
    our future plans for mine development and expansion, assuming additional
    financing is available.
We cannot be certain that
  any mineral deposits will be discovered in sufficient quantities and grade to
  justify commercial operations. We have no proven or probable reserves. Whether
  a mineral deposit will be commercially viable depends on a number of factors,
  including the particular attributes of the deposit; metal prices, which are
  highly cyclical; the cost to extract and process the mineralized material; and
  government regulations and permitting requirements. We may be unable to
  upgrade our mineralized material to proven and probable reserves in sufficient
  quantities to justify commercial operations and we may not be able to raise
  sufficient capital to develop the Borealis Property.
29
We have specifically
  focused our activities on Nevada, which was rated the highest jurisdiction in
  the world for mining investment attractiveness by an independent survey.
  Mining is an integral part of Nevada's economy. In 2004, the mining industry
  increased Nevada's output by $5.89 billion including both direct and indirect
  impacts, up from $5.35 billion in 2002. Nevada ranks third in the world in
  gold production, after South Africa and Australia. Located in the State of
  Nevada are well known geological trends such as the Carlin Trend, Battle
  Mountain, Getchell Trend and the Walker Lane Trend. The Borealis Property is
  also located along the Aurora-Bodie trend which crosses the principal Walker
  Lane Trend as shown in the illustration below. Borealis, Bodie, Aurora, and
  other historical producing districts, are aligned along this
  northeast-southwest belt of significant gold deposits.  Nevada Eagle's
  principal properties have a cumulative 900,000 of historical (the historical
  estimates are based on internal reports prepared by prior owners prior to
  February 2001 and were not been prepared in accordance with NI 43-101
  standards and thus their reliability has not been verified) ounces of gold.
(Source: Gryphon Gold, 2005)
Gold Industry
Gold Uses
.
Gold
  has two main categories of use: fabrication and investment. Fabricated gold
  has a variety of end uses, including jewelry, electronics, dentistry,
  industrial and decorative uses, medals, medallions and official coins. Gold
  investors buy gold bullion, official coins and jewelry.
Gold Supply
.
The
  supply of gold consists of a combination of production from mining and the
  draw-down of existing stocks of gold held by governments, financial
  institutions, industrial organizations and private individuals. In recent
  years, mine production has accounted for 60% to 70% of the annual supply of
  gold.
Gold Prices and Market Statistics
The following table
  presents the annual high, low and average afternoon fixing prices for gold
  over the past ten years, expressed in U.S. dollars per ounce on the London
  Bullion Market.
30
Year
High
Low
Average
11997
$
362
$
283
$
331
11998
$
313
$
273
$
294
11999
$
326
$
253
$
279
22000
$
313
$
264
$
279
22001
$
293
$
256
$
271
22002
$
349
$
278
$
310
22003
$
416
$
320
$
363
22004
$
454
$
375
$
410
22005
$
536
$
411
$
444
22006
$
726
$
521
$
604
22007
$
841
$
608
$
681
Source: Kitco and Reuters
The
  price of gold has risen steadily for the last few years.  Through 2005, gold
  traded in a fairly narrow price range between approximately $410 and $530 per
  ounce, based on the London PM Fix Price.  In 2006, gold traded between
  approximately $520 and $720 per ounce, based on London PM Fix Price.  In
  2007, gold traded between approximately $600 and $840 per ounce, based on the
  London PM Fix Price. The price of gold closed at $946.00 per ounce on April
  17, 2008, based on the London PM Fix Price.  In 2005, the price of silver
  per ounce ranged approximately from $6.40 to $9.20, based on the London Fix
  Price.   In 2006, the price of silver ranged from $8.80 to $14.90 per ounce,
  based on the London Fix Price.  In 2007, silver traded between
  approximately $11.70 and 15.80 per ounce, based on the London Fix Price.  The
  price of silver closed at $18.56 on April 17, 2008, based on the London Fix
  Price.
DESCRIPTION OF
  PROPERTY
Executive Offices
We lease our principal
  executive office at Suite 810, 1130 West Pender Street, Vancouver, BC V6E 4A4.
  We do not currently maintain any investments in real estate, real estate
  mortgages or securities of persons primarily engaged in real estate
  activities, nor do we expect to do so in the foreseeable future.
Borealis Property
Unless stated otherwise,
  information of a technical or scientific nature related to the Borealis
  Property is summarized or extracted from the "Technical Report on the Mineral
  Resources of the Borealis Gold Project Located in Mineral County, Nevada, USA"
  dated August 15, 2006 and revised January 11, 2007, prepared by Mr. Alan C.
  Noble, P.E. of Ore Reserves Engineering in Lakewood, CO, a "Qualified Person",
  as defined in National Instrument 43-101 of the Canadian Securities
  Administrators. Mr. Noble is independent from us. The Technical Report was
  prepared in accordance with the requirements of National Instrument 43-101.
  Management's plans, expectations and forecasts related to our Borealis
  Property are based on assumptions, qualifications and procedures which are set
  out only in the full Technical Report. For a complete description of
  assumptions, qualifications and procedures associated with the following
  information, reference should be made to the full text of the Technical Report
  which will be available for review on the System for Electronic Document
  Analysis and Retrieval (SEDAR) at  website: www.sedar.com and on the Company's
  website at www.gryphongold.com.
The Borealis Property in Nevada is our
  principal asset, which we hold through our subsidiary, Borealis Mining Company
  ("Borealis Mining"). In the 1980's previous operators of the Borealis Property
  mined approximately 600,000 ounces of gold from near-surface oxide deposits.
  In this prospectus, the previously mined area is referred to as the "Borealis
  site", the "previously disturbed area" or the "previously mined area", while
  our references to the Borealis Property refer to the entire property we own or
  lease through Borealis Mining.
Echo Bay Mines Limited ceased active
  mining operations in 1991. Full site reclamation was completed in 1994.
  Reclamation bonds were released and Echo Bay relinquished its lease in 1996.
31
At Borealis, there is one
  large hydrothermal system, containing at least 14 known gold deposits, some of
  which are contiguous. There has been historical production from 8 of these
  deposits. As there are several other showings of gold mineralization across
  the property, there is an opportunity to identify additional gold deposits.
Borealis Property Description
  and Location
The Borealis Property is
  located in Mineral County in southwest Nevada, 12 miles northeast of the
  California border. The Borealis Property covers approximately 14,900 acres.
  The approximate center of the property is at longitude 118° 45' 34" North and
  latitude 38° 22' 55" West. The figure below shows the location and access to
  the Borealis Property.
(Source: Gryphon Gold, 2005)
The
  Borealis Property is comprised of 859 unpatented mining claims of
  approximately 20 acres each, totaling about 17,200 acres (or approximately 27
  square miles), and one unpatented millsite claim of approximately 5 acres. Of
  the 859 unpatented mining claims, 122 claims are owned by others but leased to
  Borealis Mining, and 737 of the claims were staked by Golden Phoenix or
  Gryphon Gold and transferred to Borealis Mining.  The above claims include a
  total of 112 claims staked during 2006.
Our rights, through
  Borealis Mining as the owner or lessee of the claims, allow us to explore,
  develop and mine the Borealis Property, subject to the prior procurement of
  required operating permits and approvals, compliance with the terms and
  conditions of the mining lease, and compliance with applicable federal, state,
  and local laws, regulations and ordinances. We believe that all of our claims
  are in good standing.
The 122 leased claims are
  owned by John W. Whitney, Hardrock Mining Company and Richard J. Cavell, whom
  we refer to as the "Borealis Owners." Borealis Mining leases the claims from
  the Borealis Owners under a Mining Lease dated January 24, 1997 and amended as
  of February 24, 1997. The mining lease was assigned to Borealis Mining by the
  prior lessee, Golden Phoenix. The mining lease contains an "area of interest"
  provision, such that any new mining claims located or acquired by Borealis
  Mining within the area of interest after the date of the mining lease shall
  automatically become subject to the provisions of the mining lease.
The term of the mining
  lease extends to January 24, 2009 and continues indefinitely thereafter for so
  long as any mining, development (including exploration drilling) or processing
  is being conducted on the leased property on a continuous basis.
32
The remainder of the
  Borealis Property consists of 737 unpatented mining claims and one unpatented
  millsite claim staked by Golden Phoenix, Gryphon Gold or Borealis Mining.
  Claims staked by Golden Phoenix were transferred to Borealis Mining in
  conjunction with our January 28, 2005 purchase of all of Golden Phoenix's
  interest in the Borealis Property. A total of 263  claims of the total 737
   claims held by Gryphon Gold are contiguous with the claim holdings, are
  located outside of the area of interest, and are not subject to any of the
  provisions of the lease.
All of the mining claims
  (including the owned and leased claims) are unpatented, such that paramount
  ownership of the land is in the United States of America. Claim maintenance
  payments and related documents must be filed annually with the Bureau of Land
  Management (BLM) and with Mineral County, Nevada to keep the claims from
  terminating by operation of law. Borealis Mining is responsible for those
  actions. At present, the estimated annual BLM maintenance fees are $125 per
  claim, or $109,375 per year for all of the Borealis Property claims
  (859 unpatented mining claims plus one millsite claim).
Royalty Obligations
The leased portion of the
  Borealis Property is currently subject to advance royalty payments of
  approximately $9,485 per month, payable to the Borealis Owners. These advance
  royalty payments are subject to annual adjustments based on changes in the
  United States Consumer Price Index.
The terms of the mining lease require the payment of a net
  smelter returns production royalty by Borealis Mining to the Borealis Owners
  in respect of the sale of gold (and other minerals) extracted from those
  claims within the area of interest specified in the mining lease. The royalty
  rate for gold is determined by dividing the monthly average market gold price
  by 100, with the result expressed as a percentage. The royalty amount is
  determined by multiplying that percentage by the amount of monthly gold
  production from the claims in the "area of interest" and by the monthly
  average market gold price, after deducting all smelting and refining charges,
  various taxes and certain other expenses. For example, using an assumed
  monthly average market gold price of $400, the royalty rate would be 4%. Using
  an assumed monthly production of 5,000 ounces of gold from the leased claims,
  the monthly royalty amount would be 5,000 ounces times $400 per ounce, less
  allowable deductions, multiplied by 4%.
At present, there is no
  royalty payable to the United States or the State of Nevada on production from
  unpatented mining claims, although legislative attempts to impose a royalty
  have occurred in recent years.
Accessibility, Climate, Local
  Resources, Infrastructure and Physiography
Primary access to the
  Borealis Property is gained from an all weather county gravel road located
  about two miles south of Hawthorne from State Highway 359. Hawthorne is about
  133 highway miles southeast of Reno. The Borealis Property is about 16 road
  miles from Hawthorne.
The elevation on the
  property ranges from 7,200 ft to 8,200 ft above sea level. This relatively
  high elevation produces moderate summers with high temperatures in the 90°F
  (32°C) range. Winters can be cold and windy with temperatures dropping to 0°F
  (-18°C). Average annual precipitation is approximately 10 inches, part of
  which occurs as up to 60 inches of snowfall. Historically, the Borealis
  Property was operated throughout the year with only limited weather related
  interruptions.
Topography ranges from
  moderate and hilly terrain with rocky knolls and peaks, to steep and
  mountainous terrain in the higher elevations.
The vegetation throughout
  the project area is categorized into several main community types: pinyon/juniper
  woodland, sagebrush, ephemeral drainages and areas disturbed by mining and
  reclaimed. Predominate species include pinyon pine, Utah juniper, greasewood,
  a variety of sagebrush species, crested wheat grass and fourwing saltbush.
There is a power line
  crossing the Borealis Property within 2 miles of the center of the potential
  operations, which we will evaluate for the power source during our potential
  future engineering feasibility work. Water is available from two water basins
  located approximately 5 miles and 7 miles south of the planned mine site,
  respectively. Water for historical mining operations was supplied from the
  basin 5 miles away from the site. We have obtained permits from the Nevada
  Division of Water Resources to access water from each of these basins. We
  believe that each of these basins, individually, would provide a sufficient
  water supply for our potential operations.
The Borealis site has been
  reclaimed by the prior operator to early 1990's standards. The pits and the
  project boundary are fenced for public safety. Currently, access to the pits
  and leach heap areas is gained through a locked gate. No buildings or power
  lines or other mining related facilities located on the surface remain. All
  currently existing roads in the project area are two — track roads with most
  located within the limits of the old haul roads that have been reclaimed.
33
The nearest available
  services for both mine development work and mine operations are in the small
  town of Hawthorne, via a wide well-maintained gravel road. Hawthorne has
  substantial housing available, adequate fuel supplies and sufficient
  infrastructure to meet basic supply requirements. Material required for
  property development and mine operations are generally available from
  suppliers located in Reno, Nevada.
History of the District and Borealis
  Property
The original Ramona mining district, now known as the Borealis
  mining district, produced less than 1,000 ounces of gold prior to 1981. In
  1978 the Borealis gold deposit was discovered by S. W. Ivosevic (1979), a
  geologist working for Houston International Minerals Company (a subsidiary of
  Houston Oil and Minerals Corporation). The property was acquired from the
  Whitney Partnership, which later became the Borealis Owners, following
  Houston's examination of the submitted property. Initial discovery of
  ore-grade gold mineralization in the Borealis district and subsequent rapid
  development resulted in production beginning in October 1981 as an open pit
  mining and heap leaching operation. Tenneco Minerals acquired the assets of
  Houston International Minerals in late 1981, and continued production from the
  Borealis mine. Subsequently, several other gold deposits were discovered and
  mined by open pit methods along the generally northeast-striking Borealis
  trend, and also several small deposits were discovered further to the
  northwest in the Cerro Duro area. Tenneco's exploration in early 1986
  discovered the Freedom Flats deposit beneath thin alluvial cover on the
  pediment southwest of the Borealis mine. In October 1986, Echo Bay Mines
  acquired the assets of Tenneco Minerals.
With the completion of
  mining of the readily available oxide ore in the Freedom Flats deposit and
  other deposits in the district, active mining was terminated in January 1990,
  and leaching operations ended in late 1990. Echo Bay left behind a number of
  oxidized and sulfide-bearing gold mineral resources. All eight open pit
  operations are reported to have produced 10.7 million tons of ore averaging
  0.059 ounces of gold per ton (opt Au). Gold recovered from the material placed
  on heaps was approximately 500,000 ounces, plus an estimated 1.5 million
  ounces of silver. Reclamation of the closed mine began immediately and
  continued for several years. Echo Bay decided not to continue with its own
  exploration, and the property was farmed out as a joint venture in 1990-91 to
  Billiton Minerals, which drilled 28 reverse circulation (RC) exploration holes
  on outlying targets for a total of 8,120 ft. Billiton stopped its farm-in on
  the property with no retained interest.
Subsequently Santa Fe Pacific Mining, Inc.
  entered into a joint venture with Echo Bay in 1992-93, compiled data,
  constructed a digital drill-hole database and drilled 32 deep RC and deep core
  holes, including a number of holes into the Graben deposit. Echo Bay completed
  all reclamation requirements in 1994 and then terminated its lease agreement
  with the Borealis Owners in 1996.
In 1996 J.D. Welsh &
  Associates, Inc. negotiated an option-to-lease agreement for a portion of the
  Borealis Property from the Borealis Owners. Prior to 1996, J.D. Welsh had
  performed contract reclamation work for Echo Bay and was responsible for
  monitoring the drain-down of the leach heaps. Upon signing the lease, J.D.
  Welsh immediately joint ventured the project with Cambior Exploration U.S.A.,
  Inc. Cambior performed a major data compilation program and several gradient
  IP surveys. In 1998 Cambior drilled 10 holes which succeeded in extending one
  existing deposit and in identifying new zones of gold mineralization.
During the Cambior joint
  venture period, in late 1997, Golden Phoenix entered an agreement to purchase
  a portion of J.D. Welsh's interest in the mining lease. J.D. Welsh
  subsequently sold its remaining interest in the mining lease to a third party,
  which in turn sold it to Golden Phoenix, resulting in Golden Phoenix
  controlling a 100% interest in the mining lease beginning in 2000. Golden
  Phoenix personnel reviewed project data, compiled and updated a digital
  drill-hole database (previous computer-based resource modeling databases),
  compiled exploration information and developed concepts, maintained the
  property during the years of low gold prices, and developed new mineral
  resource estimates for the entire property.
In July 2003 Borealis
  Mining acquired an option to earn an interest in a joint venture in a portion
  of the Borealis Property and in January 2005 Borealis Mining acquired full
  interest in the mining lease and mining claims comprising the Borealis
  Property. See, "Description and Development of the Business: History and
  Background of the Company," above.
We have expended
  considerable effort consolidating the available historical data and flat files
  since acquiring our interest in the Borealis Property. This data has been
  scanned, and converted into a searchable electronic form. The electronic
  database has formed the basis of re-interpretation of the district geologic
  setting, and helped to form the foundation for a new understanding of the
  district's potential. We acquired this data from Golden Phoenix in May 2003.
34
Historical Gold Production
The Borealis Property is
  not currently a producing mine. Historical data is presented for general
  information and is not indicative of existing grades or expected production.
  We have no probable or proven reserves on any of our properties. We cannot be
  assured that minerals will be discovered in sufficient quantities to justify
  commercial operations.
Photograph of Borealis district.
View to the east, with Freedom Flat pit in foreground.
The photograph shows the site as it was circa 1991.
(Source: Gryphon Gold, 2005)
Several gold deposits have been
  previously defined through drilling on the Borealis Property by prior owners.
  Some gold deposits have been partially mined. Reports on past production vary.
  The past gold production from pits on the Borealis Property, as reported by
  prior owners is tabulated below. The total of past gold production was
  approximately 10.6 million tons of ore averaging 0.057 ounces per ton
  (opt) gold. Mine production resulting from limited operations in 1990 is not
  included. Although no complete historical silver production records still
  exist at this time, the average silver content of ore mined from all eight
  pits appears in the range of five ounces of silver for each ounce of gold. We
  are determining the potential viability of silver recovery as our feasibility
  study and more detailed mine planning progress.
35
Reported past Borealis
  production, 1981-1990
(1)
Crushed and Agglomerated Ore(2)
Tons
Grade
(opt Au)
Contained Gold
(oz)
Borealis
1,488,900
0.103
153,360
Freedom Flats
1,280,000
0.153
195,800
Jaime's/Cerro Duro/Purdy
517,900
0.108
55,900
East Ridge
795,000
0.059
46,900
Gold View
264,000
0.047
12,400
Total
4,345,800
0.107
464,360
Run of Mine Ore(3)
East Ridge
2,605,000
0.021
54,700
Polaris (Deep Ore Flats)
250,000
0.038
9,500
Gold View
396,000
0.009
3,500
Northeast Ridge
3,000,000
0.025
75,000
Total
6,251,000
0.023
142,700
Grand Total
10,596,800
0.057
607,060
__________
(1)     The numbers
  presented in this table are based on limited production records. A later
  report in 1991 published by the Geologic Society of Nevada reports that
  production totaled 10.7 million tons with an average grade of 0.059 opt.
(2)     Crushed and
  agglomerated ore is that material which has been reduced in size by crushing,
  and as a result may contain a significant portion of very fine particles which
  is then, with the aid of a binding agent such as cement, reconstituted into
  larger particles and subsequently leached in a heap. The agglomerated ore
  typically has greater strength allowing for higher stacked heaps and may allow
  better percolation of leach solutions if the ore has high clay content.
(3)     Run of mine
  ore is that material which was fragmented by blasting only, and then stacked
  on the heaps without being further reduced in size by crushing or other
  beneficiation processes.
Borealis Property Background
In October 2003, we
  engaged a mining consultant to develop a preliminary scoping study for the
  redevelopment of the Borealis Property.
Following our
  consideration of the preliminary scoping study, and based on additional
  geologic field work, we retained Ore Reserves Engineering, consulting resource
  modeling engineers, to complete an updated resource estimate model in
  accordance with National Instrument 43-101. In May 2005, Ore Reserves
  Engineering delivered a report titled the
Technical Report on the Mineral
  Resources of the Borealis Gold
Project Located in Mineral County,
  Nevada
. A second report by Ore Reserves Engineering entitled
Technical
  Report on the Mineral Resources of the Borealis Gold Project Located in
  Mineral County, Nevada, USA
dated August 15, 2006 and revised January 11,
  2007 was completed (the "Technical Report").
The Technical Report
  states that the preferred course of action for Gryphon Gold is to continue
  with the three phased business plan contained in the preliminary scoping
  study, resulting in mine development if such development is technically
  warranted and commercially feasible.
Recommendations included
  in the Technical Report, revised January 11, 2007 state that the analysis of
  the geologic and drill hole data has identified a significant in-place
  resource that requires further expansion prior to defining surface mineable
  reserves.
We are undertaking a
  systematic district-scale exploration program designed to discover and
  delineate large gold deposits within the greater Borealis property, outside of
  the known mineral deposits, which should focus along known mineralized trends
  that project into untested gravel-covered areas with coincident geophysical
  anomalies.
36
The principal steps to the current
  exploration plans related to the Borealis Property include:
•              
  maintaining all previously obtained permits;
•              
  completing the permitting process;
•              
  continuing our drilling program, database enhancement and geophysical surveys
  on the previously disturbed area of the Borealis Property, also referred to as
  the "Borealis site";
•              
  implementing a systematic metallurgical testing program for gold bearing
  samples collected;
•              
  continuing drilling in the area known as the Graben to test the extent and
  further define the quality of known sulfide gold mineralization; and
•              
  continuing the exploration program for the areas of the Borealis Property
  outside the Borealis site.
We are actively working on
  completion of all the above steps. In addition and in accordance with the
  recommendations contained in the Technical Report, we are undertaking an
  exploration program on areas of the Borealis Property outside the Borealis
  Site, subject to receiving required permits. We are actively drilling the
  Graben zone, and are, or will be testing other high-potential targets
  contained in the Central and Western Pediment Prospect areas and the Rainbow
  Ridge and Tough Hills area..  We will evaluate whether the construction of
  mine facilities on the Borealis site is warranted by project economics upon
  the identification of additional gold resources. If we determine to proceed
  with mine construction, we will be required to obtain additional capital. See
  "Management's Discussion and Analysis — Liquidity and Capital Resources" and
  "Risk Factors and Uncertainties".
Geological Setting
Regional Geology
The Borealis mining
  district lies within the northwest-trending Walker Lane mineral belt of the
  western Basin and Range province, which hosts numerous gold and silver
  deposits. Mesozoic metamorphic rocks in the region are intruded by Cretaceous
  granitic plutons. In the Wassuk range the Mesozoic basement is principally
  granodiorite with metamorphic rock inclusions. Overlying these rocks are minor
  occurrences of Tertiary rhyolitic tuffs and more extensive andesite flows.
  Near some fault zones, the granitic basement rocks exposed in the eastern part
  of the district are locally weakly altered and limonite stained.
The oldest exposed
  Tertiary rocks are rhyolitic tuffs in small isolated outcrops which may be
  erosional remnants of a more extensive unit. The rhyolitic tuffs may be
  correlative with regionally extensive Oligocene rhyolitic ignimbrites found in
  the Yerington area to the north and within the northern Wassuk Range. On the
  west side of the Wassuk Range, a thick sequence of older Miocene andesitic
  volcanic rocks unconformably overlies and is in fault contact with the
  granitic and metamorphic rocks, which generally occur east of the Borealis
  district. The age of the andesites is poorly constrained due to limited
  regional dating, but an age of 19 to 15 Ma is suggested ("Ma" refers to
  million years before present). In the Aurora district, 10 miles southwest of
  the Borealis district, andesitic agglomerates and flows dated at 15.4 to
  13.5 Ma overlie Mesozoic basement rocks and host gold-silver mineralization.
  Based on these data, the andesites in the Borealis region can be considered as
  19 to 13.5 Ma.
The Borealis district lies
  within the northeast-trending Bodie-Aurora-Borealis mineral belt; the Aurora
  district, with 1.9 million ounces of past gold production, lies 10 miles
  southwest of Borealis and the Bodie district, with 1.5 million ounces of gold
  production, lies 19 miles southwest in California. All three mining districts
  are hosted by Miocene volcanics. The intersection of northwesterly and
  west-northwesterly trending Walker Lane structures with the northeasterly
  trending structures of the Aurora-Borealis zone probably provided the
  structural preparation conducive to extensive hydrothermal alteration and
  mineralization at Borealis.
37
Local Geology
The Borealis District
  comprises widespread high-sulfidation, acid-sulfate alteration, gold-silver
  mineralization that was the focus of recent and historical mining operations.
    The district trends N70-75W, for seven miles, from Bullion-Delta targets,
  west-northwest to Purdy Peak. The eastern boundary of the district is west of
  Mesozoic intrusive rocks, and Pre-Mesozoic sequences. The western limit of the
  district is unknown and unexplored.
The Borealis district
  represents a tectonic setting in which stress was accommodated via left
  lateral wrench tectonic system that was in an opposite sense relative to the
  Walker Lane Fault Zone (right lateral displacement).  Local domains of reverse
  polarity are not uncommon in large transcurrent strike-slip fault systems.
Gold-silver
  mineralization, silicified fault breccias, zones of silicification, and
  associated alteration is structurally controlled within a left lateral wrench
  tectonic system.
The most important
  structural trends defined in the district are:
•              
  Principal displacement zone: Cerro Duro Fracture Zone (CDFZ), striking
  approximately N70-75W, brittle fracture system,
•              
  Transtensional zone: Freedom Flats-Borealis-East Pit-Northeast Pit (FFBENE),
  striking approximately N50E,
•              
  Antithetic, right lateral, strike slip zones, trending approximately
  North-South,
•              
  Reverse fault systems trending northwest.
Faults, fault breccias,
  linear zones of silicification and silicified sheeted joints dip steeply,
  vertical to 60 degrees.  These zones dip predominately westerly, i.e.
  northwesterly, southwesterly, with subordinate northeast dips.  Strucutral
  zones are laterally discontinuous exhibiting en-echelon patterns and complex
  sets of conjugate internal joint arrays.
In general, volcanic
  sequences dip from 20 to 60 degrees westerly. Primary bedding and flow
  foliation, adjacent to the eastern most volcanic-granite dip northerly at 20
  to 40 degrees.  An early "andesite phase" was likely extruded during a
  "earlier" tectonic system relative to subsequent interbedded andesite
  autobreccias and flows.
Preliminary structural
  analysis suggests, (1) radial patterns around tectonic-volcanic centers, (2)
  volcanic sequences exhibit open fold geometries (less than 45 degrees),
   gently folded along northwest trending fold axis, and vertically (both normal
  and reverse) displaced along northwest and northeast trending fold axial
  planes.
Five distinct styles of
  silicification occur in the district:
•              
  Pervasive micro-granular quartz,
+
chalcedony-opal, devoid of pyrite, associated with weak (to moderate)
  leaching, and bleaching of host rocks, i.e. low temperature clays.
•              
  Fine-medium grained granular quartz structurally controlled along faults and
  breccia zones, (a) with pyrite, (b) devoid of pyrite.  Associated moderate
  leaching and bleaching, i.e. low to medium temperature clays.
•              
  Medium-grained granular quartz, structurally controlled along faults and
  breccia zones with pyrite, and zones of late stage vuggy-vapor phase acid
  leaching.  Host lithologies, particularly volcaniclastic breccias exhibit a
  range in clast replacement, i.e. silica absorption, from weak to moderate.
   Groundmass is replaced by medium-grained granular quartz.  Medium temperature
  clay alteration occurs as peripheral halos.
•              
  Medium to coarse-grained quartz with pyrite, structurally controlled, with
  associated fault breccias and zones of intense silicification, moderate to
  total replacement of original host lithologies and occasionally replacing
  preexisting silicified fault breccia zones.  Associated alunite, barite, with
  peripheral zones of moderate to intense medium to intense moderate to high
  temperatures clay alteration.
•              
  Quartz sericite pyrite alteration occurs in the granodiorite basement, up to
  500 feet from the contact with the volcanic stratigraphy, in fault zones, in
  zones of stockwork fracturing spatially associated with fault-contact between
  the basement and volcanic stratigraphy.  An addition, as dilational zones, as
  "pods" in the granodiorite, occurring as granular white quartz.
Mineral Deposits
The gold deposits
  contained within the larger, district scale, Borealis hydrothermal system are
  recognized as high-sulfidation type systems with high-grade gold
  mineralization occurring along steeply dipping structures and lower grade gold
  mineralization both surrounding the high-grade and commonly controlled by more
  permeable volcanic rocks in relatively flat-lying zones. The gold deposits,
  some with minor amounts of silver mineralization are hosted by Miocene
  andesitic flows, laharic breccias, and volcaniclastic tuffs, which all strike
  northeasterly and dip shallowly to the northwest. Pediment gravels cover the
  altered-mineralized volcanic rocks at lower elevations along the mountain
  front and there is potential for discovery of more blind deposits, similar to
  the Graben deposit.
The surface "footprints"
  of the high-grade pods or pipe-like bodies, found to date are rather small and
  they can be easily missed with patterns of too widely spaced geophysical
  surveys and drill holes. Most of the drilling on the property by prior owners,
  including the Graben deposit, is vertical, and therefore did not adequately
  sample the steep higher-grade zones. Drill-hole orientation may have
  underestimated the grades within the district. The coarse gold component can
  best be captured with very careful sampling of drill cuttings and core and
  collecting large samples.
38
Several drill holes to the
  west of Freedom Flats and Borealis encountered gold within the alluvium
  stratigraphically above known deposits. These holes trace a gold-bearing zone
  that in plan appears to outline a paleochannel of a stream or gently sloping
  hillside that may have had its origin in the eroding Borealis deposit. The
  zone is at least 2,500 feet long, up to 500 feet wide, and several tens up to
  100 feet thick. At this point it is unknown if this is a true placer deposit,
  an alluvial deposit of broken ore, or some combination of both. Additional
  drilling and beneficiation tests are needed to determine if an economic gold
  deposit exists.
Exploration
Since the late 1970's,
  considerable exploration has been completed at the Borealis Property with the
  primary objective of finding near surface deposits with oxide type gold
  mineralization. Exploration work has consisted of field mapping, surface
  sampling, geochemical surveys, geophysical surveys, and shallow exploration
  drilling. Only limited drilling and geological field work has been completed
  in areas covered by pediment gravels, even though Freedom Flats was an
  unknown, blind deposit, without surface expression when discovered.
Many geophysical surveys
  have been conducted by others in the Borealis district since 1978. In
  addition, regional magnetics and gravity maps and information are available
  through governmental sources. The most useful geophysical data from the
  exploration programs has been induced polarization (IP) (chargeability),
  aeromagnetics, and, to a lesser degree, resistivity.
Areas with known
  occurrences of gold mineralization, which have been defined by historical
  exploration drilling, and have had historical mine production include: East
  Ridge and Gold View, Northeast Ridge, Freedom Flats, Borealis, and Deep Ore
  Flats (also known as Polaris). All of these deposits still have gold
  mineralization remaining in place, contiguous with the portions of each
  individual deposit which has been mined.
Discovery potential on the
  Borealis Property includes oxidized gold mineralization adjacent to existing
  pits, new oxide gold deposits at shallow depth within the large land position,
  gold associated with sulfide minerals below and adjacent to the existing pits,
  in possible feeder zones below surface mined ore and deeper gold-bearing
  sulfide mineralization elsewhere on the property. Both oxidized and
  sulfide-bearing gold deposits exhibit lithologic and structural controls for
  the locations and morphologies of the gold deposits.
The following areas have
  not been subject to historic mine production, but have been subject to
  historical exploration that has identified gold mineralization.
Borealis Extension
The Borealis Extension deposit occurs at shallow to
  intermediate depth beneath the northern and western parts of the former
  Borealis pit. Most of the mineralization begins at 110 to 375 ft below the
  surface. Generally the top of this target occurs at or slightly below the
  7,000-ft elevation. The primary target is defined by 16 contiguous drill holes
  completed by previous operators that have potential ore-grade intercepts and
  that penetrate beneath the 7,000-ft elevation. Thickness of low-grade
  mineralized intercepts ranges from 15 to 560 ft with nine holes having from
  155 to 560 ft of +0.01 opt of gold; average thickness of the zone is 236 ft.
   We have drilled an additional 16 holes into the deposit.  The drilling
  results were generally marginal.  Further evaluation work is in progress.
Graben Deposit
The Graben deposit is
  currently defined with approximately 90 RC holes and 19 core holes. Drilling
  has defined a zone of gold mineralization, using an 0.01 opt Au boundary, that
  extends at least 2,000 ft in a north-south direction and between 400 and 900
  ft east-west, and up to 600 ft thick. The top of the deposit is generally 500
  feet below the surface. Near its southern margin the axis of the deposit is
  within 800 ft of the Freedom Flats deposit and along one portion of the
  southeastern margin low-grade mineralization may connect with the Freedom
  Flats mineralization through an east-west trending splay. Drilling data
  appears to confirm mineralization at the southern margin of the deposit is
  closed off.Drill hole GGC-G-14 drilled to test the west margin of the deposit
  and indicates the mineralized zone may extend to the west. Much of the eastern
  margin is poorly  defined by drilling. During 2006 we completed a fence of
  drill holes that essentially closes off the northern extension of the
  mineralization.
Exploration drilling in
  the Graben continued during fiscal 2008 as one of the major focuses of our
  exploration program. Possible future drilling will include both in-fill areas
  of prospective high grade gold zones and step out from the Graben zone
  primarily in the west and east directions in order to delineate more gold
  mineralization.
39
North Graben Prospect
The North Graben prospect is defined by the projection of known
  mineralization, verified by drilling sampling and coincident with a large
  intense aeromagnetic low and a broad chargeability (IP) high. The North Graben
  lies on trend of the north-northeast-elongate Graben mineralized zone. In
  1989, Echo Bay had completed a district-wide helicopter
  magnetic/electromagnetic survey, which identified a large, intense type
  aeromagnetic low in the North Graben area. This coincident magnetic
  low/chargeability high is now interpreted as being caused by an intensive and
  extensive hydrothermal alteration-mineralization system.
In  2006 and 2007 we
  completed six holes into the North Graben geophysical anomaly. Five of the six
  holes intercepted a deep hydrothermal system as indicated by several zones of
  silicification and pyritization up to 20%. None of the holes contained
  significant amounts of gold, but were geochemically anomalous in gold and
  silver. Additional drilling is planned.
Cambior conducted a
  gradient IP survey in 1997, which identifies a deep-source broad chargeability
  anomaly that extends northerly from the northern margin of the Freedom Flats
  deposit, covers only part of the Graben zone and most of the North Graben
  area, and extends to the limit of the surveyed area. This anomaly is
  interpreted to be caused by high-sulfide mineralization. The North Graben
  prospect thus represents the possible extension of known mineralization of the
  Graben zone.
Rainbow Ridge and Tough Hills Prospects
Previous exploration
  drilling the Rainbow Ridge and Tough Hills Prospect areas targeted shallow
  oxide mineralization, generally less than 500 feet deep.  In 2006 we completed
  four gradient IP/ resistivity survey blocks covering a total area of one
  square mile.  Results from these surveys indicate a broad deep seated north,
  north-east trending chargeability anomaly and a prominent, shallow north west
  trending chargeability anomaly.  Drill targeting and permitting for drill
  access are underway.
Central Pediment Prospect
Between November 2006 and
  May 2007 we completed eight holes in the Central Pediment.  Drilling in the
  Lucky Boy zone in the western margin of the Central Pediment has identified a
  thick, highly favorable gold bearing horizon.  The horizon extends laterally
  more than 2,250 feet.  Drill hole GGC-CP-2 demonstrated a hydrothermally
  altered zone as great as 1,300 feet thick.  Zonge Geosciences Inc. completed
  IP/resistivity and CSAMT surveys within the Lucky Boy zone.  The survey
  results support other geological evidences that the Lucky Boy zone may contain
  a major gold bearing hydrothermal system. Permits for additional drilling have
  been attained and drilling is planned during 2008.
Western Pediment Prospect
Three drill holes
  (GGC-WP-1, through GGC-WP-3) were completed in the Flat Lands zone of the
  Western Pediment.  These holes targeted mineralization south west along the
  Vuggy Hills trend.  These holes encountered favorable alteration but were lost
  before reaching the intended target depth.  Additional drilling along the
  Vuggy Hills trend is not planned in calendar 2008.
Sunset Wash Prospect
The Sunset Wash prospect
  consists of a gravel-covered pediment underlain by extensive hydrothermal
  alteration in the western portion of the Borealis district. Sixteen holes
  drilled by Echo Bay Mines indicate that intense alteration occurs within a
  loosely defined west-southwest belt that extends westerly from the Jaime's
  Ridge/Cerro Duro deposits. At the western limit of the west-southwest belt,
  Cambior's IP survey and drilling results can be interpreted to indicate that
  the alteration system projects toward the southeast into the pediment along a
  mineralized northwest-oriented fault. Cambior conducted a gradient array
  induced polarization (IP) survey over the Sunset Wash area effectively
  outlining a 1,000 by 5,000 ft chargeability anomaly. The anomaly corresponds
  exceptionally well to alteration and sulfide mineralization identified by Echo
  Bay's drill-hole results. Two structures appear to be mapped by the
  chargeability anomaly; one is a 5,000-ft long west-southwest-trending
  structure and the other is a smaller, northwest-trending structure that cuts
  off the W-SW structure at its western limit. Alteration types and intensity
  identified by the drilling, combined with the strong IP chargeability high and
  the aeromagnetic low, strongly suggest that the robust hydrothermal system at
  Sunset Wash is analogous to the mineralized systems at Graben and Freedom
  Flats.
Cambior drilled three
  holes to test portions of the Sunset Wash geophysical anomaly and to offset
  other preexisting drill holes with significant alteration.  The westernmost of
  Cambior's three holes encountered the most encouraging alteration and best
  gold mineralization suggesting that this drillhole is near the most
  prospective area. This drill-hole intercepted altered rock from bedrock
  surface to total depth, including an extremely thick zone of chalcedonic
  replacement in the lower two-thirds of the hole.
An additional four holes (GGC-WP-4
  through WP 7) were drilled in the Sunset Wash target in 2007 with encouraging
  geologic and geochemical results. Follow up geophysical work by Zonge
  Geosciences Inc. with CSAMT surveys confirmed the presence and direction of
  the potential mineralized zone. Additional drilling during 2008 is planned.
40
Bullion Ridge/Boundary Ridge
The northeast-trending
  alteration zone extending along Boundary Ridge into Bullion Ridge contains
  intense silicification that is surrounded by argillization, with abundant
  anomalous gold. Widely spaced shallow holes completed by previous operators
  have tested several of the alteration/anomalous gold zones defining discrete
  zones of mineralized material. We plan to conduct additional drilling into
  this target in 2008 following new permitting with the USFS.
Mineralization
Overview
Finely disseminated gold
  mineralization found in the Borealis epithermal system was associated with
  pyrite and other gold bearing sulfide minerals such as marcasite when
  initially deposited by the gold rich hydrothermal fluids. In some portions of
  the deposits, over time through natural oxidation, the pyrite was transformed
  to limonite releasing the gold particles. Through this geologic process, the
  mineral character of the deposit was altered, and gold was exposed so that
  conventional hydrometallurgical processes (e.g. gold heap leaching) could be
  effectively applied to recover the gold. Gold still bound in pyrite or
  pyrite-silica which was not as readily oxidized in the geologic process, is
  not as easily recovered by a simple heap leach operations and may require some
  type of more advanced milling operation. Limited evidence suggests that in
  certain deposits such as the Borealis and Freedom Flats deposits, that some
  coarse gold exists, probably in the higher-grade zones.
Oxide Gold Mineralization
Oxide gold mineralization
  is generally more amenable to direct cyanidation processes such as heap
  leaching as compared to sulfide gold mineralization.
Oxide deposits in the
  district have goethite, hematite, and jarosite as the supergene oxidation
  products after iron sulfides, and the limonite type depends primarily on
  original sulfide mineralogy and abundance. Iron oxide minerals occur as thin
  fracture coatings, fillings, earthy masses, as well as disseminations
  throughout the rock. The degree of supergene oxidation, mineral constituents,
  and form and occurrence of the oxide minerals in the host rock are significant
  factors in determining metallurgical performance and ultimate gold recovery.
  As demonstrated in previous operations, this type of gold bearing material is
  amenable to conventional heap leaching methodology.
Depth of oxidation is
  variable throughout the district and is dependent on alteration type,
  structure, and rock type. Oxidation ranges from approximately 250 ft in
  argillic and propylitic altered rocks to over 600 ft in fractured silicified
  rocks. A transition zone from oxides to sulfides with depth is common with a
  mixing of oxide and sulfide minerals.
Except for the Graben
  deposit, all of the known gold deposits are at least partially oxidized.
  Typically the upper portion of a deposit is totally oxidized and the lower
  portions unoxidized. In places, such as the Ridge deposits, there is an
  extensive transition zone of partially oxidized sulfide bearing gold
  mineralization. Oxidation has been observed to at least 1,000 ft below the
  surface. Therefore, we believe that if additional gold deposits are found
  under gravel cover, some portion of them may be oxidized.
Sulfide Gold Mineralization
Sulfide gold
  mineralization is generally less amenable to conventional direct cyanidation
  metallurgical processes, and may require more advanced processes such as
  milling, flotation and oxidation prior to cyanidation.
Sulfide deposits in the
  district are mostly contained within quartz-pyrite alteration with the
  sulfides consisting mostly of pyrite with minor marcasite, and lesser
  arsenopyrite and cinnabar. Many trace minerals of copper, antimony, arsenic,
  mercury and silver have also been identified. Pyrite content ranges from 5 to
  20 volume percent with local areas of nearly massive sulfides in the
  quartz-pyrite zone and it occurs with grain sizes up to 1mm. At Borealis,
  euhedral pyrite grains are commonly rimmed and partially replaced with a later
  stage of anhedral pyrite overgrowths. Study of this phenomenon in other
  epithermal districts in Nevada has shown that gold occurs only in the late
  overgrowths. Mineralogical studies of Borealis samples suggest that this may
  also be true at Borealis, but are not fully conclusive.
The Graben deposit is the
  best example found to date of the size and quality of sulfide deposits within
  the district. In addition sulfide mineral resources occur in the bottoms of
  most of the pits, but the most significant mineral resource in a pit
  environment is found beneath the Freedom Flats pit. Potential targets below
  most pits would include the feeder structures, many of which would be expected
  to have high-grade sulfide gold mineralization. Drilling of the Graben deposit
  has defined a total mineral resource of approximately 20 million tons with an
  average grade of 0.044 ounces of gold per ton containing about 880,000 ounces
  of gold within the deposit, using a 0.01 opt cutoff grade, as stated in the
  Technical Report. The high-grade zones within the Graben deposit are estimated
  to contain 780,000 tons of measured and indicated resource and 220,000 tons of
  inferred resource with an average grade of 0.29 ounces of gold per ton. While
  the larger deposit is a target for additional exploration, the higher-grade
  zones represent an attractive deposit for development at most gold prices.
41
Drilling
We have conducted and are currently
  continuing a drilling program on the Borealis site. Set out below is a summary
  of the drilling work conducted on the Borealis Property by prior owners and by
  us.
Historical Drill Hole Database
The drill-hole database
  used for the main Borealis project study area contains 1,747 drill holes with
  a total drilled length of 510,712 ft, including 1,626 which intersected gold
  mineralization. These holes were drilled by various prior operators.
  Drill-hole types include diamond core holes, reverse circulation (RC) holes
  and rotary holes. Only a few core holes have down-hole survey information.
  Mineralized zones covered by these drill holes include the Freedom Flats,
  Graben, Borealis, Polaris, East Ridge and Northeast Ridge. Except for Graben,
  all have been partially mined by previous operators of the project; the
  Borealis and Deep Ore Flats (also known as Polaris) pits have been back-filled
  with waste from the Freedom Flats pit. There are an additional 487 drill holes
  with a total drilled length of 103,562 ft scattered throughout the district,
  and mostly in the Cerro Duro, Jamie's Ridge, and Purdy Peak area, at
  approximately three miles distant northwest of the main Borealis mine area.
  The total existing drilling for the entire Borealis Property, therefore, is
  2,234 holes with a total drilled length of 614,274 ft. None of these
  historical holes were drilled by us.
Drill hole sampling length
  is generally 5 ft for the RC holes, but varies for the core holes based on
  geological intervals. Sampling length is up to 25 ft for some of the early
  rotary holes. Gold assays in parts per billion (ppb) and troy ounces per short
  ton (opt) are provided for most of the sampling intervals. Silver assays in
  parts per million (ppm) and opt are also provided for some of the sampling
  intervals. Silver grade was not modeled in this study.
Drilling of Existing Heaps and Dumps
In May 2004 we completed a
  drilling program on the five Borealis site heaps and parts of the Freedom
  Flats and Borealis site dumps. This program consisted of 32 holes totaling
  2,478.5 ft. Dump holes were drilled deep enough to penetrate the soil horizon
  below the dump, while holes on the heaps were drilled to an estimated 10-15 ft
  above the heap's liner.
Current Drilling Program
Our drill hole database
  used for resource modeling and mine planning is comprised of more than 2,400
  drill holes within the Central Borealis Area.  These holes have been drilled
  during the period from 1978 through early November 2006.  The average depth of
  the holes is about 300 ft, but the bulk of the holes are less than 200 ft with
  a limited number of holes in certain locations reaching depths of 1,500 to
  2,000 ft testing deeper mineralized zones.  The average assay interval is
  about 5 ft.  The majority of the drill holes contained in the database were
  completed by others, with Gryphon completing approximately 90 in 2005 and 84
  in 2006 in areas contiguous with known deposits.  The database is summarized
  in the table shown:
Mineralized Zone
Number Holes Penetrating Zone
(1)
Total Intervals Sampled
Sample Intervals Not Assayed
Sample Intervals Assayed
Total Assayed Footage
(ft)
Average Assay Length
(ft)
Average Gold Grade
(opt Au)
Graben
64
2,773
131
2,642
13,127
5.0
0.055
Freedom Flats
(2)
147
6,323
225
6,098
30,486
5.0
0.064
Borealis
(2)
337
6,045
125
5,920
30,003
5.1
0.037
Deep Ore Flats (2)
181
2,544
46
2,498
12,520
5.0
0.013
Crocodile Ridge (2)
39
560
3
557
2,785
5.0
0.006
Alluvium
260
1,688
176
1,512
7,560
5.0
0.006
Middle Ridge (2)
73
1,507
26
1,481
7,405
5.0
0.008
Northeast Ridge (2)
221
6,160
119
6,041
30,260
5.0
0.017
East Ridge (2)
211
5,203
119
5,084
25,512
5.0
0.019
Purdy's Peak
39
726
5
721
3,610
5.0
0.017
Cerro Duro (2)
105
1,363
19
1,344
6,446
4.8
0.058
Jaime's Ridge (2)
42
910
3
907
4,530
5.0
0.039
Total in the Primary Mineralized Zones -
35,802
997
34,805
174,244
5.0
0.033
Total Outside Areas
-
71,953
3,749
68,204
344,946
5.1
0.001
Footnotes
1-Drill holes may intersect more than one zone, therefore
      the number of holes by zone is not additive
2-Includes some drilling that is part of the mineralized
      zone, but that has been mined out.
42
The tables below shows the results of exploration drilling for
  holes completed and assayed after the completion of the Technical Report was
  published or were included in the Technical Report because the drill results
  were in an area of exploration not considered in the Technical Report.
Gryphon Gold Corporation
Compendium of April 2006 to December 2007 Drill Holes
From
To
Interval
Gold
Hole No.
(feet)
(feet)
(feet)
(opt)
Area: Graben
G-27
545
560
15
0.080
1,075
1,135
60
0.010
G-28
490
1,135
640
0.033
including
585
595
10
0.204
and
625
645
20
0.117
and
1090
1110
20
0.126
G-29
600
790
185
0.190
including
625
790
165
0.212
G-30
705
730
25
0.015
765
795
30
0.019
870
925
55
0.057
G-31
580
850
270
0.043
including
610
640
30
0.125
945
1150
205
0.033
G-32
540
700
160
0.082
including
570
605
35
0.113
and
660
700
40
0.135
and
880
1035
155
0.06
G-33
no significant assays
0
Nil
G-34
no significant assays
0
Nil
G-35
no significant assays
0
Nil
G-36
880
925
45
0.003
G-37
no significant assays
0
Nil
G-38 (lost)
0
0
0
Nil
G-38A
485
495
10
0.032
585
760
175
0.041
G-39
835
845
10
0.028
G-40
485
500
15
0.065
605
660
55
0.035
770
810
40
0.015
1210
1230
20
0.012
G-41
415
610
195
Trace Au
G-41A
615
675
60
0.017
780
795
15
0.025
G-42
675
760
95
0.098
including
725
760
35
0.164
850
930
80
0.036
G-43
680
925
245
0.094
including
710
790
80
0.21
G-44
645
730
85
0.061
G-45
710
940
230
Trace Au
G-46
635
895
230
0.053
including
815
825
10
0.214
G-47
925
950
25
0.036
43
G-48
670
760
90
0.025
G-49
905
920
15
0.104
G-50
800
810
10
0.037
G-50A
1005
1120
115
0.013
G-51
605
730
125
0.145
including
640
715
75
0.216
970
1175
205
0.04
G-52
660
810
150
0.07
including
735
765
30
0.15
1005
1225
220
0.06
including
1025
1035
10
0.42
G-53
580
610
30
0.063
745
890
145
0.029
G-54
550
655
105
0.022
690
725
35
0.047
745
785
40
0.039
G-55
565
595
30
0.033
660
890
230
0.114
including
765
870
105
0.201
Area: Northeastern Graben (intervals of favorable
      quartz-pyrite alteration)
G-16
970
1,065
95
Nil
G-17
870
1,120
250
Nil
G-19
900
1,070
170
Nil
G-20
645
970
325
Nil
G-21
915
1,120
205
Nil
G-22
885
990
105
Nil
G-23
630
840
210
Nil
Area: North Graben (intervals of favorable quartz-pyrite
      alteration)
NG-05
870
1,015
145
Nil
NG-06
No significant assays
0
Nil
Area: Western Pediment (intervals of favorable
      quartz-pyrite alteration)
WP-01
410
853
443
detectable gold
WP-02
0
804
804
detectable gold
WP-03
200
1500
1300
detectable gold
including
1460
1470
10
0.011
WP-04
205
300
95
Nil
WP-05
Nil
WP-06
510
1500
990
detectable gold
WP-07
565
1500
935
detectable gold
Area: Central Pediment (intervals of favorable
      quartz-pyrite alteration)
CP-01
410
853
443
detectable gold
CP-02
433
1,845
1,412
detectable gold
CP-03
994
1,319
325
detectable gold
CP-04
1145
1155
10
0.011
CP-05
620
1300
680
detectable gold
CP-06
485
1500
1015
detectable gold
CP-07
250
795
545
detectable gold
CP-08
275
1500
1225
detectable gold
CP-09
500
1500
1000
detectable gold
Terms and Notice:
- The term 'nil' denotes that assay results returned less
      than 20 parts per billion ("ppb") gold.
- The term 'detectable gold' denotes that assay results
      grades less than the cut-off grade of 0.34g/tonne (0.01oz/ton)
- Holes G-12, G-25, G-38 are listed as lost because they
      did not drill to target depths or were abandoned due to poor drilling
      conditions.
- Holes G-15, G-16, G-17 and G-19 through G-23 returned
      quartz pyrite alteration but no detectable gold in assay.
- The mineralization comprises multiple fracture systems.
      The length of the vertical intercepts may or may not represent true
      width/thicknesses.
A new CIM compliant 43-101
  technical report is underway and will include the above drill results. 
  It is expected to be completed near the end of April 2008.
44
Sampling and Analysis
General
The Borealis Mine operated
  from 1981 through 1990 producing approximately 10.7 million tons of ore
  averaging 0.059 ounces of gold per ton from seven open pits. The mined ore
  contained approximately 635,000 ounces of gold of which approximately 500,000
  ounces of gold were recovered through a heap leach operation (please refer to
  footnote to table "Reported Past Borealis Production 1981-1990"). This
  historic production can be considered a bulk sample of the deposits validating
  the database that was used for feasibility studies and construction decisions
  through the 1980s. With over 2,200 drill holes in the database that was
  compiled over a 20-year period by major companies, the amount of information
  on the project is extensive. It is primarily these data that have been used as
  the foundation of the current mineral resource estimate. The bulk of the data
  was collected beginning in 1978, the year of discovery of the initial
  ore-grade mineralization, and was continuously collected through the final
  year of full production. Subsequent owners who conducted exploration programs
  through the 1990s added to the database.
Previous Mining Operations — Sampling,
  Analysis, Quality Control and Security
Specific detailed
  information on sampling methods and approaches by the various mine operators
  is not available to us. However, a report written in 1981 (referred to in the
  Technical Report) noted that the drilling, sampling and analytical procedures
  as well as assay checks were reported as acceptable by industry practice.
Echo Bay Mines performed
  quality checks on their drill cuttings, sampling and assaying methods as part
  of their evaluation of the property prior to and following its purchase from
  Tenneco Minerals, indicating that the original assays were reliable and
  representative. During their exploration and development programs they also
  drilled a number of core hole twins of reverse circulation rotary drill holes
  to compare assay results in the same areas.
Houston Oil and Minerals,
  Tenneco, and Echo Bay Mines are reported to have used standard sample
  preparation and analytical techniques in their exploration and evaluation
  efforts, but detailed descriptions of the procedures have not been found. Most
  of the drill-hole assaying was accomplished by major laboratories that were in
  existence at the time of the drilling programs. Various labs including Monitor
  Geochemical, Union Assaying, Barringer, Chemex, Bondar-Clegg, Metallurgical
  Laboratories, Cone Geochemical, the Borealis Mine lab and others were involved
  in the assaying at different phases of the exploration and mining activity.
We believe that early work
  on the property relied on assay standards that were supplied by the
  laboratories doing the assaying. However, Echo Bay Mines (1986) reported using
  seven internal quality control standards for their Borealis Mine drill-hole
  assaying program. The seven standards ranged in gold concentrations from 170
  ppb to 0.37 opt. Assay labs involved in the standards analyses were Cone
  Geochemical, Chemex, and the Borealis Mine lab, and the precision of the three
  labs was reported as excellent (+/- 1 to 8%) for the higher gold grades
  (0.154-0.373 opt); acceptable (+/- 3 to 14%) for the lower grades (0.029-0.037
  opt); and fair (+/- 4 to 20%) for the geochemical anomaly grades (0.009 opt to
  170 ppb). These data provide an initial estimation of the precision and
  accuracy of gold analyses of Borealis mineralization.
45
During 1986, Echo Bay
  instructed Chemex to analyze duplicate samples for five selected drill holes.
  A comparison was made of (a) 1/2 assay-ton fire assay with a gravimetric
  finish, versus (b) 1/2 assay-ton fire assay with an atomic absorption finish,
  versus (c) hot cyanide leach of a 10-gram sample. The 1/2 assay-ton fire
  assay — gravimetric and the 1/2 assay-ton fire assay — atomic absorption gave
  essentially the same results. However the hot cyanide leach gave results that
  were 5-11 percent higher in one comparison and significantly lower in another,
  prompting Chemex to conclude that cyanide leach assaying was not appropriate
  for Borealis samples. The great majority of the assays in the database are
  based on fire assays.
We have no information relating to the
  sample security arrangements made by the previous operators.
Gryphon Gold Operations — Sampling,
  Analysis, Quality Control and Security
The work we performed to
  evaluate the 32 holes drilled in 2004 on the five previously leached heaps and
  two waste dumps was done by a sonic rig to retrieve a core-like sample. All
  drill holes were drilled vertical, with the sample immediately slid into a
  plastic sleeve that was sealed and marked with the drill hole number and
  footage interval. These plastic sample sleeves were not reopened until they
  reached the analytical lab. A Qualified Person and geologist, Dr. Roger
  Steininger, monitored all of the drill procedures and the handover to the
  analytical lab. A non-blind standard was added as the last sample of each
  hole, which was obvious to the lab since the standard was in a pulp bag,
  although the lab did not know the gold value of the standard.
All samples were submitted
  to American Assays Labs of Sparks, Nevada. Each analytical sample was split in
  a rotary splitter with a one-fifth of the sample removed for assay and the
  remaining four-fifths retained for metallurgical testing.  Each assay sample
  was pulverized and assayed for gold and silver by one assay ton fire assay,
  and a two hour 200 gram cyanide shake assay for dissolvable gold.  As part of
  the quality control program, standards were submitted to American Assay Labs (AAL) with
  each drill hole, several assayed pulps and two standards were submitted to ALS
  Chemex, and three of the duplicates and two standards were submitted to
  ActLabs-Skyline.
For the hard rock drilling
  program, started in 2005 and continuing, reverse circulation drilling services
  were provided by two international drilling contractors, Diversified Drilling
  LLC of Missoula, Montana and Eklund Drilling Company of Reno, Nevada. Drill
  bit size equaled 4 ½ inches in diameter and samples were collected at 5-foot
  intervals (1.5 meters). All drill samples were bagged and sealed at the drill
  site by drill contractor employees, placed in bins, and delivered to a secure
  storage.  American Assay Laboratories in Sparks, Nevada picked up the sample
  bins from secure storage. AAL is ISO/IEC 17025 certified and has successfully
  completed Canadian proficiency testing (CCRMP). Drill cuttings were dried,
  crushed to –10 mesh, rotary split to 1,000 grams, pulverized to –150 mesh,
  split to 350 gram pulps, fire assayed for gold and silver using 1-assay ton
  fire assay with gravimetric finish. Strict QA/QC protocol was followed,
  including the insertion of standards and blanks on a regular basis in the
  assaying process.
In the period between
  April 2006 and November 2007, reverse circulation drilling services were
  provided Eklund Drilling Company of Elko, Nevada. Drill bit size equaled 4 ½
  inches in diameter and samples were collected at 5-foot intervals (1.5
  meters). All drill samples were bagged and sealed at the drill site by the
  drill contractor employees, placed in bins, and delivered to a secure storage.
  Inspectorate America Corporation (IAC) in Sparks, Nevada picked up the sample
  bins from secure storage. IAC is ISO 9001:2000 certified (Certificate number:
  37295) and has successfully completed Canadian proficiency testing (CCRMP).
  Drill cuttings were dried, crushed to –10 mesh, rotary split to 1,000 grams,
  pulverized to –150 mesh, split to 350 gram pulps, fire assayed for gold and
  silver using 1-assay ton fire assay with an AA finish. Assays greater than
  0.10 opt Au were re-assayed by 1-assay ton fire assay with a gravimetric
  finish. Strict QA/QC protocol was followed, including the insertion of
  standards and blanks on a regular basis in the assaying process.
Historical Mining and Metallurgical
  Operations
The historical mining
  operations processed both a run-of-mine ore and an ore that was crushed to a
  nominal 1 1/2-inch product as the primary feed material that was placed on the
  heap for leaching. The fines fraction was agglomerated with cement, mixed with
  the coarse fraction, and leached with sodium cyanide solution. Gold
  mineralization is finely disseminated and/or partially bonded with pyrite, and
  although there are very little ore mineralogy data available, historical
  operating reports suggest that some coarse gold may exist. Gold that is bound
  in pyrite or pyrite-silica is not easily recovered by simple heap leach
  cyanidation, however gold recovery in oxide ores is reported to average about
  80% for the ore treated. There are no reports of carbonaceous refractory
  components within the old heap or dump materials. The previous mine operators
  employed a Merrill Crowe circuit to enhance ease of silver recovery, followed
  by a retort to remove mercury.
46
Laboratory testing
  subsequent to mine shut down in 1990 indicates that gold recoveries of 55 to
  80 percent can be expected from remaining oxide material on the Borealis
  Property by heap leaching.
Based on limited testwork,
  gold bearing sulfide material appears to respond to conventional flotation
  concentration and cyanidation of oxidized concentrates. In the laboratory
  testing, chemical oxidation and bioxidation treatment of the sulfide material
  yield a high level of oxidation and correspondingly high gold recoveries after
  cyanidation of the oxidized material. Aeration of concentrate slurries may be
  a suitable oxidation method for the sulfide material.  A test plan to evaluate
  recovery options for the sulfide ores from the Borealis Project site is
  planned for 2008.
Exploration  and  Development
Our development and
  exploration plans are based on the recommendations contained on the Technical
  Report and are subject to our ability to obtain additional capital to fund
  such plans. These plans are outlined below:
Permitting Process
We will maintain the
  permits we have received that are necessary for mine start up. Maintaining the
  permits necessary for mine start up does not require us to complete a
  feasibility study. The principal permits were issued during calendar 2006,
  while ordinary course permits will be sought prior to the possible mine start
  up.
The following is a summary and status of
  the principal permits and status of each as required for the Borealis Gold
  Project:
•              
  An Approved Plan of Operations from the U.S. Forest Service was received
  during the second quarter of 2006. An Environmental Assessment was completed
  and submitted to the U.S. Forest Service to support the Plan of Operations.
•              
  A Water Pollution Control Permit (WPCP) from the Nevada Division of
  Environmental Protection (NDEP), Bureau of Mining Regulation & Reclamation:
  the WPCP was approved and granted to BMC on January 28, 2006.
•              
  A Reclamation Permit from the NDEP, Bureau of Mining Regulation & Reclamation
  issued in the second quarter of 2006, concurrent with the U.S. Forest Service
  approval of the Plan of Operations.
•              
  A Tentative Permanent Closure Plan to be administered by the Bureau of Mining
  Regulation & Reclamation: this plan was submitted with the WPCP application
  and accepted by NDEP.
•              
  An Air Quality Permit from the NDEP, Bureau of Air Pollution Quality: the
  Bureau issued this permit  on April 28, 2006.
•              
  A Surface Area Disturbance Permit from the NDEP, Bureau of Air Pollution
  Control: approved and granted to BMC on April 3, 2006.
•              
  A Storm Water Permit from the NDEP: the Storm Water Pollution Prevention Plan
  (SWPPP) has been prepared for the project and distributed to NDEP and the U.S.
  Forest Service on February 6, 2006.  NDEP requires that we file a Notification
  of Intent two days before we start operations and that we submit the SWPP
  within six months.
•              
  A Spill Prevention, Control, and Countermeasure Plan, under the jurisdiction
  of the EPA, will be prepared and implemented before starting operations.
•              
  Threatened & Endangered Species Act: a BA/BE (Biological Assessment/Biological
  Evaluation) was submitted with the EA.
47
•              
  Historical Preservation Act (Section 107): consultation with the U.S. Forest
  Service and the State Historical Preservation Officer in conjunction with the
  preparation of the EA, has been completed.  The State Historical Preservation
  Officer has concurred with the findings of the U.S. Forest Service.
•              
  Water Rights: Water Rights for the project have been granted by the Nevada
  Division of Water Resources. These water rights provide for sufficient water
  for the possible heap leach operation as defined by historical operations
  conducted in the 1980's The water right will be held for the period of time
  concurrent with mining operations.
Drilling and Feasibility
We plan to continue our drilling and exploration program with
  the intent of locating additional sulfide and oxide gold resources on the
  Borealis property.  The primary focus of the program will be within the
  previously disturbed area, the Graben zone and in the Central and Western
  Pediment areas.  Once sufficient additional potential resources are
  discovered, we will assess possible methods of beginning production including
  the possible completion of a feasibility study.
Possible Futur
e
Mine Development
If warranted by the
  discovery and possible development of additional gold resources, project
  economics and if we are successful in obtaining adequate additional capital,
  we may propose to build a mine operation on the Borealis site. Our plan will
  be based on the Plan of Operation filed with the U.S. Forest Service and could
  change based on additional information as it is acquired and analyzed in our
  ongoing engineering studies and feasibility study.
The Plan of Operation
  consists of the reopening of a previously reclaimed open pit mining operation.
  The Plan of Operation does not present an economic analysis, and we have not
  placed any information in the Plan of Operation regarding capital
  expenditures, operating costs, ore grade, anticipated revenues, or projected
  cash flows.
Mineralized Material Expansion and
  Exploration Program
We have undertaken a
  systematic district scale exploration program designed to discover and
  delineate large gold deposits within the greater Borealis Property, outside of
  the known mineral deposits, which will focus along known mineralized trends
  that project into untested gravel-covered areas with coincident geophysical
  anomalies. The greatest potential in the district lies beneath a large
  gravel-covered area at the mountain front with several potential blind
  deposits (with no surface expression). The Graben zone is an example of this
  type of deposit, and other high-potential targets include Rainbow Ridge/Tough
  Hills, Sunset Wash, Lucky Boy, and others yet to be named generally within the
  areas referred to as the Central and Western Pediments.  To date we have
  drilled and assayed 206 holes as part of the district wide exploration
  program.
In addition to the
  district exploration program, the Borealis property embraces numerous areas
  with potential for discovery of mineable gold deposits. The defined target
  areas can be grouped into categories based on our expectation for deposit
  expansion or potential for discovery. Our past emphasis was focused on targets
  which are the extensions of previously mined deposits, specifically within the
  previously disturbed areas the East Ridge-Gold View-Northeast Ridge
  mineralized trend, and around the margins of the Borealis, Freedom Flats, and
  Deep Ore Flats/Polaris deposits. Each has the potential to add to the material
  that can be developed as part of the initial mine plan. Our drilling program
  during 2005 and 2006 was completed primarily in areas where resources are
  known to exist. In addition to advancing existing resources to a higher level
  of confidence, this drilling program has further information gathering
  objectives for metallurgical assessment, waste characterization, and
  hydrological analyses that are required in support of our operating permit
  applications, environmental assessment, and engineering design. Results from
  drilling of heap leachable material will be incorporated into the feasibility
  study, should a feasibility study be completed.
Planned activities and
  expenditures include both field and compilation geology, geophysics,
  geochemistry, permitting and claim maintenance, road construction and
  drill-site preparation, reverse circulation (RC) and core drilling, drill-hole
  assaying, sampling protocol studies and assay quality control, preliminary
  metallurgical testing, and database management. We estimate that nearly 50% of
  the budget would be spent directly on drilling (mostly on RC drilling) with
  approximately 20% on geologists, 10% on assaying, and the remainder divided
  among the other items. The budget is expected to be sufficient to discover and
  delineate one or more deposits, but additional funding will be required for
  detailed development drilling and other development activities.
48
The names of deposits and exploration
  targets on the Borealis Property are shown on the map below. The map also
  shows the boundary of the claim holdings that comprise the Borealis Property.
(Source: Gryphon Gold, 2005)
United States Mining Laws
Mining in the State of
  Nevada is subject to federal, state and local law. Three types of laws are of
  particular importance to the Borealis Property: those affecting land ownership
  and mining rights; those regulating mining operations; and those dealing with
  the environment.
The Borealis Property is
  situated on lands owned by the United States (Federal Lands). Borealis Mining,
  as the owner or lessee of the unpatented mining claims, has the right to
  conduct mining operations on the lands subject to the prior procurement of
  required operating permits and approvals, compliance with the terms and
  conditions of the mining lease, and compliance with applicable federal, state,
  and local laws, regulations and ordinances. On Federal Lands, mining rights
  are governed by the General Mining Law of 1872 as amended, 30 U.S.C. §§ 21-161
  (various sections), which allows the location of mining claims on certain
  Federal Lands upon the discovery of a valuable mineral deposit and proper
  compliance with claim location requirements. A valid mining claim provides the
  holder with the right to conduct mining operations for the removal of
  locatable minerals, subject to compliance with the General Mining Law and
  Nevada state law governing the staking and registration of mining claims, as
  well as compliance with various federal, state and local operating and
  environmental laws, regulations and ordinances. Historically, the owner of an
  unpatented mining claim could, upon strict compliance with legal requirements,
  file a patent application to obtain full fee title to the surface and mineral
  rights within the claim; however, continuing Congressional moratoriums have
  precluded new mining claim patent applications since 1993.
The operation of mines is
  governed by both federal and state laws. Part of the Borealis Property is
  situated within the Toiyabe National Forest, and that part is administered by
  the U.S. Forest Service. The rest of the Borealis Property is administered by
  the Bureau of Land Management (BLM). In general, the federal laws that govern
  mining claim location and maintenance and mining operations on Federal Lands,
  including the Borealis Property, are administered by the BLM. The Forest
  Service is concerned with surface land use, disturbances and rights-of-way on
  Federal Lands that it manages. Additional federal laws, such as those
  governing the purchase, transport or storage of explosives, and those
  governing mine safety and health, also apply. Various permits or approvals
  from the BLM and other federal agencies will be needed before any mining
  operations on the Borealis Property can begin.
The State of Nevada
  likewise requires various permits and approvals before mining operations can
  begin, although the state and federal regulatory agencies usually cooperate to
  minimize duplication of permitting efforts. Among other things, a detailed
  reclamation plan must be prepared and approved, with bonding in the amount of
  projected reclamation costs. The bond is used to ensure that proper
  reclamation takes place, and the bond will not be released until that time.
  The bond amount for a large mining operation is significant. Local
  jurisdictions (such as Mineral County) may also impose permitting requirements
  (such as conditional use permits or zoning approvals).
49
Mining activities on the
  Borealis Property are subject also to various environmental laws, both federal
  and state, including but not limited to the federal National Environmental
  Policy Act, the Comprehensive Environmental Response, Compensation and
  Liability Act, the Resource Recovery and Conservation Act, the Clean Water
  Act, the Clean Air Act and the Endangered Species Act, and certain Nevada
  state laws governing the discharge of pollutants and the use and discharge of
  water. Various permits from federal and state agencies are required under many
  of these laws. See, "Permitting Requirements," below. Local laws and
  ordinances may also apply to such activities as waste disposal, road use and
  noise levels.
Permitting
Permit Acquisition and
  Fundamental Environmental Permitting Considerations
In 2004 we initiated a
  plan to obtain the required principal environmental operating permits in
  anticipation of a possible mine start-up.
A staged permit
  acquisition program is in progress. The first permitting stage, started in the
  fall of 2003, has been completed. Permits obtained at that time authorized
  exploration activities needed to prove the mineral resource, condemn the heap
  sites and support infrastructure, and obtain environmental baseline data to
  support the permitting packages. A second stage of application for exploration
  drilling permits was submitted in December 2004 and approval was obtained in
  May 2005. A Plan of Operations for a new mine was submitted in August 2004 to
  the U.S. Forest Service and Nevada State agencies and approval was received in
  the second quarter of 2006. A Water Pollution Control Permit application for
  the reopening and expansion of the mine was submitted to the Nevada Bureau of
  Mining Regulation and Reclamation in January 2005. Future exploration
  activities and mine expansion initiatives will be included in applications for
  subsequent approvals on a case-by-case and as-needed basis.
The approved Plan of
  Operation focuses on the approximately 460 acre area previously disturbed by
  mining operations. Deposits within this boundary, subject to permit
  applications generally, include the oxidized and partially oxidized portions
  of Borealis, Deep Ore Flats (also known as Polaris), East Ridge, Freedom
  Flats, and Northeast Ridge which are amenable to a conventional
  hydrometallurgical gold recovery process such as heap leaching. Also included
  in the Plan of Operations is the option for development of underground access
  to the Graben deposit to be used for exploration and future development
  activities, although no production plan has been submitted for consideration
  in this mineralized zone at this date. Crocodile Ridge, Middle Ridge, and
  other deposits within the study area boundaries of the Borealis Property will
  be added to the permit applications if warranted based on ongoing engineering
  and in-fill drilling results.
Permitting Process
  Overview
The development,
  operation, closure and reclamation of mining projects in the United States
  require numerous notifications, permits, authorizations and public agency
  decisions. This section does not attempt to exhaustively identify all of the
  permits and authorizations that need to be gained, but instead focuses on
  those that are considered to be the main efforts that are on the critical path
  for possible project start-up.
Environmental
  Inventories
There are certain
  environmental evaluations that routinely must be completed in order to provide
  the information against which project impacts are measured. Both the
  U.S. Forest Service and the Nevada Bureau of Mining Regulation and Reclamation
  (BMRR) have requirements to profile existing conditions and to evaluate what
  effects will result from implementing the project plans on those mineral
  resources.
Background information on
  geology, air quality, soils, biology, water resources, social and economic
  conditions, and cultural resources were assembled for us and submitted to the
  appropriate regulatory agency.
Permitting Requirements
U.S. Forest Service
  Requirements
The Bridgeport Ranger
  District of the U.S. Forest Service is the lead agency regulating mining and
  reclamation activities at the Borealis Property. The permitting process with
  the U.S. Forest Service approved our Plan of Operations in the second quarter
  of 2006, pursuant to the requirements of 36 CFR Part 228, Subpart A. Our Plan
  of Operations was filed in August 2004 describing the project plans in a
  step-by-step process. The Plan of Operations describes the development of the
  deposits identified in the Technical Report and recognizes and anticipates the
  effects of market impacts such as reductions or increases in gold price, and
  describes the measures that will be taken to adjust for these changing
  conditions. The emphasis of the Plan of Operations is on defining the spatial
  and temporal aspects, as they will affect the land that is managed by the
  agency. The Plan of Operations also describes the plans to reclaim the site,
  and includes an estimate of the cost to accomplish that reclamation. This cost
  estimate is the first step toward establishing the reclamation surety for the
  site.
50
In order to satisfy the
  reclamation surety requirements of the U.S. Forest Service, we will consider
  obtaining an insurance policy for its benefit. This policy, if obtained on
  terms acceptable to us, would require us to pay into a "commutation" account
  of the insurer the agreed cost of the initial future reclamation work. The
  initial amount covered under the policy will be funded by a deposit into the
  "commutation" account, in an amount to be negotiated. The amount covered by
  the policy is expected to increase as reclamation costs increase due to
  expanded mining related disturbances. This additional policy coverage is
  expected to be funded from mining revenue once the mine is in operation. Once
  funded, the account will be available to pay for concurrent and final
  reclamation expenses as they are incurred. The policy is expected to provide
  us a mechanism to manage the overall cost of reclamation for a known cost for
  the entire life of mine and provide financial assurance required by the
  U.S. Forest Service. We would propose to acquire the policy once the plan of
  operations and associated reclamation plan are approved by the U.S. Forest
  Service.
The National Environmental
  Policy Act (NEPA) requires that any decision made by a Federal agency must
  consider the environmental effects of that decision. The USFS will decide
  whether or not there is a decision to be made, and whether that decision is
  significant or not. If there is no decision to be made, as in the instance of
  Categorical Exclusions (CE), the project can proceed with notification only.
  CE's are allowed when surface disturbances are limited to less than one mile
  of new road building. If a decision must be made, an environmental impact
  evaluation is completed and from that analysis, a determination of whether the
  environmental impact is significant or not. If the determination is a "finding
  of no significant impact" (FONSI), then the agency is authorized to approve
  the plan based on the Environmental Assessment (EA) findings. If the decision
  is that the impacts are in fact significant, then an Environmental Impact
  Statement (EIS) is required to arrive at the final decision. There is a
  significantly increased time period for review and public comment for an EIS
  versus an EA. Approvals of Gryphon Gold's site exploration activities to date
  were authorized under a CE.
The USFS Bridgeport Ranger
  District (District) determined that preparation of an Environmental Assessment
  (EA) was necessary to comply with the requirements of the National
  Environmental Policy Act (NEPA). The USFS and wemutually agreed to have Knight
  Piesold and Co. (KPCO), a third-party NEPA contractor, prepare the EA.
  Comments from a variety of stakeholders have been solicited. These comments
  have been incorporated into a Modified Plan of Operations, which includes some
  changes from the initial Plan of Operations submitted to account for updated
  operating plans and required mitigation measures to better protect the
  environment.
At the completion of the
  NEPA process and decision, the reclamation surety must be posted with the USFS
  prior to any surface disturbance on site. The reclamation cost estimate
  provided in the Plan of Operations will be reviewed and refined by the agency
  and an acceptable amount agreed upon among the U.S. Forest Service, BMRR and
  us.
Nevada Division of
  Water Resources Requirements
Development of the
  Borealis Property will involve significant water demand in an arid region
  where the water basin has been over-appropriated and for which project water
  rights have been withdrawn. Successful mining and processing will require
  careful control of project water and efficient reclamation of project
  solutions back into the leaching process.
The Nevada Division of
  Water Resources (NDWR) is the responsible agency for granting water rights
  permits. The basin from which water rights could be appropriatedis the same
  basin that was the water supply for the mining activities at Borealis during
  the 1980's and early 1990's. Although this basin appears to be over allocated
  to various users, many of these rights go unused, so it may be possible to
  transfer existing appropriations to the project if necessary.
We believe that water
  rights granted to us by the NDWR are sufficient to conduct planned operations.
  A wellfield to perfect this water supply has not yet been tested or developed.
NDEP Bureau of Mining
  Regulation and Reclamation Requirements
The Nevada Division of
  Environmental Protection, Bureau of Mining Regulation and Reclamation (BMRR) regulates
  mining activities within the state including water pollution control and
  reclamation.
The heap leach and process
  solution ponds are presented in the water pollution control permit application
  that was filed in January 2004. The permit application package includes the
  engineering design report for the heap and ponds, certified by a Nevada
  registered professional engineer. In addition to the engineering report,
  operating plans describing the mineral processing circuit, fluid management
  plan, monitoring plans, emergency response plan, temporary closure plan and
  tentative permanent closure plan were presented. The Water Pollution Control
  Permit was issued on January 28, 2006.
51
BMRR also administers and
  enforces the requirements relating to the reclamation of land subject to
  mining or exploration projects.
A Reclamation Plan that
  contains the identical information as was contained in the Plan of Operations
  was submitted to the BMRR in August 2004. The Reclamation Plan was approved
  during the second quarter of 2006.
We will be required to
  post a reclamation bond from a financial institution or otherwise set aside a
  corresponding amount for the benefit of BMRR. We anticipate that BMRR will
  accept the reclamation bond we post for the benefit of the U.S. Forest
  Service.
Nevada Division of
  Environmental Protection — Bureau of Air Quality Requirements
Prior to the commencement
  of construction activities, an air quality permit will be necessary. The
  Nevada Bureau of Air Quality (BAQ) regulations state that a process flow
  diagram must be generated to communicate the technical aspects of the
  process/activity and determine which class of permit will be required. We have
  prepared the required process flow diagram and submitted our permit
  application. On April 28, 2006 the Class II air quality permit was issued by
  BAQ.
United States Regulatory Matters
General
All of our exploration
  activities in the United States are subject to regulation by governmental
  agencies under various mining and environmental laws. The nature and scope of
  regulation depends on a variety of factors, including the type of activities
  being conducted, the ownership status of land on which the operations are
  located, the nature of the resources affected, the states in which the
  operations are located, the delegation of federal air and water-pollution
  control and other programs to state agencies, and the structure and
  organization of state and local permitting agencies. We believe that we are in
  substantial compliance with all such applicable laws and regulations. While
  these laws and regulations govern how we conduct many aspects of our business,
  we do not believe that they will have a material adverse effect on our
  operations or financial condition. We evaluate our projects in light of the
  cost and impact of regulations on the proposed activity, and evaluate new laws
  and regulations as they develop to determine the impact on, and changes
  necessary to, our operations.
Generally, compliance with
  environmental and related laws and regulations requires us to obtain permits
  issued by regulatory agencies and to file various reports and keep records of
  our operations. Some permits require periodic renewal or review of their
  conditions and may be subject to a public review process during which
  opposition to our proposed operations may be encountered.
U.S. Federal and State
  Environmental Law
Our past and future
  activities in the United States may cause us to be subject to liability under
  various federal and state laws. Proposed mining activities on federal land
  trigger regulations promulgated by the U.S. Forest Service (USFS), the Bureau
  of Land Management (BLM), and potentially other federal agencies, depending on
  the nature and scope of the impacts. For operations on federal public lands
  administered by the BLM that disturb more than five acres, an operator must
  submit a Plan of Operations to BLM. On USFS-administered lands, the USFS
  requires the submission of a notice for all mining operations, regardless of
  size, and a Plan of Operations if the USFS determines that there will be any
  "significant" disturbance of the surface.
The Comprehensive
  Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA),
  imposes strict, joint, and several liability on parties associated with
  releases or threats of releases of hazardous substances. Liable parties
  include, among others, the current owners and operators of facilities at which
  hazardous substances were disposed or released into the environment and past
  owners and operators of properties who owned such properties at the time of
  such disposal or release. This liability could include response costs for
  removing or remediating the release and damages to natural resources. We are
  unaware of any reason why our undeveloped properties would currently give rise
  to any potential CERCLA liability. We cannot predict the likelihood of future
  CERCLA liability with respect to our properties or surrounding areas that have
  been affected by historic mining operations.
Under the Resource
  Conservation and Recovery Act (RCRA) and related state laws, mining companies
  may incur costs for generating, transporting, treating, storing, or disposing
  of hazardous or solid wastes associated with certain mining-related
  activities. RCRA costs may also include corrective action or clean up costs.
52
Mining operations may
  produce air emissions, including fugitive dust and other air pollutants, from
  stationary equipment, such as crushers and storage facilities, and from mobile
  sources such as trucks and heavy construction equipment. All of these sources
  are subject to review, monitoring, permitting, and/or control requirements
  under the federal Clean Air Act and related state air quality laws. Air
  quality permitting rules may impose limitations on our production levels or
  create additional capital expenditures in order to comply with the permitting
  conditions.
Under the federal Clean
  Water Act and delegated state water-quality programs, point-source discharges
  into "Waters of the State" are regulated by the National Pollution Discharge
  Elimination System (NPDES) program. Section 404 of the Clean Water Act
  regulates the discharge of dredge and fill material into "Waters of the United
  States," including wetlands. Stormwater discharges also are regulated and
  permitted under that statute. All of those programs may impose permitting and
  other requirements on our operations.
The National Environmental
  Policy Act (NEPA) requires an assessment of the environmental impacts of
  "major" federal actions. The "federal action" requirement can be satisfied if
  the project involves federal land or if the federal government provides
  financing or permitting approvals. NEPA does not establish any substantive
  standards. It merely requires the analysis of any potential impact. The scope
  of the assessment process depends on the size of the project. An
  "Environmental Assessment" (EA) may be adequate for smaller projects. An
  Environmental Impact Statement (EIS), which is much more detailed and broader
  in scope than an EA, is required for larger projects. NEPA compliance
  requirements for any of our proposed projects could result in additional costs
  or delays.
The Endangered Species Act
  (ESA) is administered by the U.S. Department of Interior's U.S. Fish and
  Wildlife Service. The purpose of the ESA is to conserve and recover listed
  endangered and threatened species and their habitat. Under the ESA,
  "endangered" means that a species is in danger of extinction throughout all or
  a significant portion of its range. "Threatened" means that a species is
  likely to become endangered within the foreseeable future. Under the ESA, it
  is unlawful to "take" a listed species, which can include harassing or harming
  members of such species or significantly modifying their habitat. We conduct
  wildlife and plant inventories as required as part of the environmental
  assessment process prior to initiating exploration projects. We currently are
  unaware of any endangered species issues at any of our projects that would
  have a material adverse effect on our operations. Future identification of
  endangered species or habitat in our project areas may delay or adversely
  affect our operations.
We are committed to
  fulfilling our requirements under applicable environmental laws and
  regulations. These laws and regulations are continually changing and, as a
  general matter, are becoming more restrictive. Our policy is to conduct our
  business in a manner that safeguards public health and mitigates the
  environmental effects of our business activities. To comply with these laws
  and regulations, we have made, and in the future may be required to make,
  capital and operating expenditures.
U.S. Federal and State
  Reclamation Requirements
We are subject to land
  reclamation requirements under state and federal law, which generally are
  implemented through reclamation permits that apply to exploration activities.
  These requirements often mandate concurrent reclamation and require the
  posting of reclamation bonds or other financial assurance sufficient to
  guarantee the cost of reclamation. If reclamation obligations are not met, the
  designated agency could draw on these bonds and letters of credit to fund
  expenditures for reclamation requirements.
Reclamation requirements
  generally include stabilizing, contouring and re-vegetating disturbed lands,
  controlling drainage from portals and waste rock dumps, removing roads and
  structures, neutralizing or removing process solutions, monitoring groundwater
  at the mining site, and maintaining visual aesthetics. We believe that we
  currently are in substantial compliance with and are committed to maintaining
  all of our financial assurance and reclamation obligations pursuant to our
  permits and applicable laws.
Nevada Eagle
  Properties
Nevada Eagle
  Properties General Description
Nevada Eagle has
  interests in approximately 54 prospective gold properties covering over 70
  square miles of gold trends in Nevada. Twenty-four of these properties are in
  the Walker Lane belt and add to Gryphon's inventory of volcanogenic hosted
  gold resources. Seven of the properties are in the Cortez Trend, seven in the
  Austin-Lovelock Trend, two in the Carlin Trend and the balance are unique
  situations throughout Nevada with a few in contiguous states. These properties
  offer Gryphon both production opportunities or royalty income upon production.
  Twenty-six of the properties are 'farmed-out' through lease and option
  agreements that generate a positive cash flow net of carryings costs. The
  remaining wholly-owned properties are retained for Gryphon's own exploration
  effort or additional future farm outs.
53
The following is a summary of the major
  properties in which Nevada Eagle has interests:
Golden Arrow
The Golden Arrow property
  is located approximately 39 miles east of Tonopah within the Golden Arrow
  mining district of southern Nye County, Nevada, U.S.A., at geographic
  co-ordinates 37deg. 59min. North latitude by 116deg. 37min. West longitude.
  Access is excellent; 37 miles east of Tonopah, Nevada on Highway 6, then 12
  miles south on graded dirt road. It is comprised of 196 contiguous unpatented
  lode mining claims covering approximately 4,051 acres.
The property is situated
  regionally within the Walker Lane Structural Belt, a terrain dominated by
  northwesterly-trending transcurrent faulting and hosting numerous precious
  metal deposits across central Nevada, and locally along the western rim of the
  Kawich resurgent caldera. Estimated production from volcanic-hosted epithermal
  gold and silver deposits along this belt exceeds 40 million ounces of gold and
  540 million ounces of silver since 1859.
The property is underlain
  by Oligocene- to Miocene-age sequence of andesitic to rhyolitic volcanic and
  volcaniclastic rocks and spatially- and genetically-related to the tectonism
  and volcanism of the Kawich caldera. Rhyolitic domes and associated phreatic
  diatremes intruded the volcanic stratigraphy, and all lithologies are overlain
  by Pliocene-age basaltic glows prior to and coeval with Basin and Range
  faulting and erosion. Regional northwesterly- and northeasterly-oriented fault
  structures controlled both the deposition of the volcanic units and the
  distribution of siliceous and argillic alteration assemblages associated with
  precious metals-bearing mineralization.
Mineralization within the
  property is typical of a volcanic-hosted, low-sulphidation epithermal
  mineralizing system. Precious metal values are genetically- and
  spatially-associated with multi-episodic quartz-sulphide (/- adularia /-
  carbonate /- sericite /- barite) veins, veinlets and stockwork zones that are
  controlled by normal and oblique strike-slip faults within the
  rhyolitic-latite, volcaniclastic and andesite rock units.
Since 1981 ten successive
  companies, including Homestake Mining Company, Coeur d'Alene Mines and
  Kennecott Exploration Company, have conducted extensive geological,
  geochemical and geophysical surveying, and drilled at least 389 air-track,
  percussion, reverse circulation (RC) and diamond drill holes totaling at least
  137,481 feet. Most of this work has been directed at discovering and
  delineating the near-surface bulk-tonnage potential of two adjacent zones,
  namely Gold Coin/Confidence Mountain and Hidden Hill. Several resource
  estimates, all non-complaint with National Instrument 43-101, have been
  calculated.
From July 2003 to January
  2004, Pacific Ridge Exploration Ltd. Drilled 29 RC drill holes totaling 18,721
  feet in seven separate target areas on the property. The majority of the holes
  tested for strike and down-dip extensions to higher-grade mineralized
  intercepts encountered in earlier drilling. Numerous high-grade intercepts,
  including 5 feet grading 2.435 opt. Au in the Confidence Mountain area, were
  encountered.
Several additional target
  areas have been identified as a result of Pacific Ridge's efforts which have
  the potential to host higher-grade, precious metals-bearing,
  structurally-controlled deposits. Within the drill-indicated disseminated gold
  mineralization, numerous structurally–confined zones containing gold grades
  between one and three ounces per ton have been intercepted.
Seven drill holes listed
  below demonstrate the high grade potential that should be explored.
•              
  DH TGA 97-203 contains 15 feet 1.7 opt Au.
•              
  DH GA 90-121 contains 8 feet grading .95 opt Au.
•              
  DH GA 90-85 contains 10 feet grading .87 opt Au.
•              
  DH GA 90-83 contains 15 feet grading .60 opt Au.
•              
  DH KGA-3 contains 15 feet grading .47 opt Au.
•              
  DH GA 94-159 contains 5 feet grading 2.95 opt Au.
•              
  DH GA 94-166 contains 10 feet grading 1.88 opt Au.
These high-grade gold
  intercepts were encountered in past drilling programs designed to explore for
  bulk tonnage, low-grade deposits.  These intercepts have not been followed up
  systematically to determine the extent of high-grade mineralization.  Also
  three parallel NE trending vein-structures, north of the resources areas have
  not yet been drilled.  These structures have a cumulative strike length of
  over 3 miles.
54
Regent
The Regent property is located approximately 38 miles southeast
  of Fallon within the Rawhide mining district of northern Mineral County,
  Nevada, U.S.A., at geographic co-ordinates 39deg. 2min. North latitude by
  118deg. 25min. West longitude. Access is Excellent; 32 miles east of Fallon,
  Nevada on Highway 50, then 21 miles south on Highway 31, thence west 6 miles
  along a well-maintained road. It is comprised of 110 contiguous unpatented
  lode mining claims covering approximately 2,272 acres.
The property is situated
  regionally along the northeastern margin of the northwest trending Walker Lane
  Structural Belt, a terrain dominated by northwesterly-trending transcurrent
  faulting. The Regent deposits more specifically lie along the northeastern
  margin of the Rawhide volcanic center. Numerous other volcanic hosted precious
  metal deposits are located within this northwest trending zone of complex
  structural disruption:  Goldfield, Tonopah, Comstock Lode, Paradise Peak,
  Silver Peak, Candelaria and Tallapoosa. Estimated production from
  volcanic-hosted epithermal gold and silver deposits along this belt exceeds 40
  million ounces of gold and 540 million ounces of silver since 1859.
The property is underlain
  by a complex pile of mid-Miocene calc-alkaline volcanics, ranging in
  composition from basaltic andesite to latite to rhyolite.  Pyroplastic tuffs
  and minor volcanically-derived epiclastic sediments underlie much of the area
  from the Rawhide deposit to Regent, but the majority of the Regent project
  area is composed of a series of coalescing latitic flow-dome complexes.
Mineralization at Regent
  occurs in quartz veins and in intensely silicified illite and clay altered
  volcanic rocks many of which show intense brecciation. Mineralization can be
  classified (as can most of the Walker Lane) as low to intermediate sulfidation
  epithermal type; in the case of Regent with a very strong structural control.
  Structures that have received the most exploration attention to date are NNE
  with west dips such as the Regent Hill structure and NNW with east dips such
  as the Regent Hill and Antithetic structure. There are strongly ENE structures
  such as the Broadway and Crosstown structure that have been underexplored to
  date.
Since 1984 Kennecott and
  Newmont conducted exploration programs designed to develop low grade open pit
  bulk mineable resources. These programs resulted in the drilling of over 560
  holes totaling at least 263,600 feet of shallow, vertical reverse circulation
  holes drilled within a limited area. Kennecott used these holes to define a
  small low-grade bulk mineable deposit. Both companies encountered significant
  high grade intercepts suggesting that a higher grade bonanza vein resource
  might be present
The Regent property has
  excellent potential for further discovery of multiple ore bodies, on the order
  of 0.5-3 million tons. Collectively the discovery of multiple gold deposits
  would contribute significantly to the established reserve base at Regent.
Also, Kennecott discovered
  several high-grade gold quartz veins but did not pursue high-grade vein
  occurrences. Their exploration program was specifically aimed at finding more
  bulk tonnage disseminated mineralization in the crystal-lithic tuff unit. They
  did not test the vein systems systematically for high grade/underground
  deposits even though they discovered several zones grading above .25 opt Au in
  their drilling programs.
Monte Cristo
The Monte Cristo property
  is located approximately 25 miles west of Tonopah within the Gilbert mining
  district of northern Esmeralda County, Nevada, U.S.A., at geographic
  co-ordinates 38deg. 11min. North latitude by 117deg. 42min. West longitude.
  Access is good; 28 miles west of Tonopah, Nevada on Highway 95, then 9 miles
  north on graded dirt road. It is comprised of 239 contiguous unpatented lode
  mining claims covering approximately 4,731 acres.
The property lies within
  the Walker Lane, a region dominated by right-lateral strike-slip faults. These
  regional faults have created structural complexes of crosscutting faults and
  pullapart/accommodation features in the Monte Cristo Range. Caldera-related
  Tertiary volcanic rocks of varying composition are the dominant lithology in
  the range. Estimated production from volcanic-hosted epithermal gold and
  silver deposits along this belt exceeds 40 million ounces of gold and 540
  million ounces of silver since 1859.
The structural setting of
  the Gilbert district is dominated by the strike-slip faulting typical of the
  Walker Lane. The dominant local structural trends are north-northeast and
  west-northwest. On the Monte Cristo property, a north-northeast to north-south
  striking fault separates older Tertiary rhyolitic pyroclastic flow units,
  rhyolite dikes, and rhyolite domes on the east from younger Tertiary andesitic
  flows and lahars on the west.
55
The mineralization within
  the property is located on an 11 km long north-northeast fault zone in
  Tertiary volcanics which is offset by northwest cross faults. The host rocks
  are Tertiary andesites, the same as the host rocks of the famous Comstock Lode
  at Virginia City, that produced 8 Moz of gold. The gold-silver mineralization
  occurs within parallel shear structures on either side of the north-northeast
  fault. The McLean Lode, a zone of episodic veining, brecciation, and
  silicification with adularia, is hosted in clay altered andesitic rocks. The
  gold is associated with minor pyrite and acanthite. Native gold is seen in the
  centers of quartz veins as well as in silicified zones parallel to the shear
  fabric. The lode is 400m long, 300m down-dip and open, and averages 4.4m wide
  (1-11m), displaced at both ends by northwesterly cross-cutting faults. Both
  the historical RC drilling and core sampling by Gold Summit was used by MDA to
  estimate an inferred mineral resource of 365,000 tonnes at 6.5 g/t gold and 20
  g/t silver using a 3.4 g/t gold equivalent cut-off (69,000 oz gold and 203,000
  oz silver).
Gold mineralization is
  recognized in fine-grained to massive quartz and calcite veins in brecciated
  Tertiary volcanics and sediments and in the Ordovician Palmetto Formation.
  Pyrite, adularia and barite are common gangue minerals. The veins dip 45-85
  degrees to the west.
The western-most vein
  occurs in what is now the McLean Pit. In the mid-1980's 20,000 ounces were
  extracted from an open pit operation. The host rocks are breccias and
  tuffaceous rhyolite with local wallrock silicification and clay alteration.
  Locally weak to moderate opal-alunite alteration is visible around the pit
  area. The average grade was 0.07 opt Au, however, local samples can reach 1.0
  opt Au. The vein and wallrock were mined about 250 feet deep. There was no
  visible structure or vein material at the surface. The hill that existed prior
  to the discovery, however, had features consistent within a high level,
  epithermal system. Trace elements As, Sb, and Hg are anomalous. The extensions
  of the structure down-dip pose an intriguing Midas-type, high-grade target.
  Projections of the structure north and south of the pit have never been found.
To the east of the Mclean
  pit lies the Black Mammoth-New Hope vein system. Numerous segments of the vein
  crop out and values along its 8,000 feet strike length can reach 0.25 opt Au
  and up to 15 opt Ag. The main Gilbert vein (Monte Cristo) with the Gilbert
  Mine located at the southern end, forms a continuous structure for about 3,000
  feet. Values range up to 1.66 opt Au from dump samples at the Gilbert mine.
  The East vein lies approximately 3,000 feet east of the Gilbert vein. Samples
  taken along its 3,000 feet strike length include values as high as 0.53 opt
  Au.
Drilling in the district in the early
  1980's, primarily by Anaconda, tested parts of these structures at relatively
  shallow depths (less than 500 feet). Exploration in the district has been
  sporadic over the past 20 years and has included companies such as Getty, U.S.
  Borax, Inmet, Felmont and Homestake. The McLean mine, a small gold deposit was
  developed on a somewhat broader gold zone associated with the westernmost
  vein. The mine produced approximately 20,000 ounces at a grade of about 0.07
  opt Au. Values from the main part of the structure, however, can exceed 1.0
  opt gold.
The geologic environments of the district
  are diverse and provide numerous ore deposit target types such as gold-bearing
  jasperoids in the sedimentary lithologies of the Palmetto Formation, as well
  as porphyry copper, moly and associated skarn occurrences within and adjacent
  to a Cretaceous granitic intrusive complex.
Redlich
The Redlich property is
  located approximately 42 miles southeast of Hawthorne within the Rock Hill
  mining district of northern Esmeralda County, Nevada, U.S.A., at geographic
  co-ordinates 38deg. 11min. North latitude by 117deg. 59min. West longitude.
  Road access is excellent as the project is bisected by US Highway 95. It is
  comprised of 204 contiguous unpatented lode mining claims covering
  approximately 4,215 acres.
The property is situated
  regionally within the Walker Lane Structural Belt, a terrain dominated by
  northwesterly-trending transcurrent faulting and hosting numerous precious
  metal deposits across west-central Nevada. Redlich is located on the eastern
  flank of the Candelaria Hills.  Road access is excellent as the project
  is bisected by US Highway 95. Redlich is within the Walker Lane mineral belt,
  a northwest-striking structural corridor of volcanic-hosted gold and silver
  deposits including Aurora, Borealis, Rawhide, Bullfrog, Goldfield, Tonopah,
  Paradise Peak and Midway. Estimated production from volcanic-hosted epithermal
  gold and silver deposits along this belt exceeds 40 million ounces of gold and
  540 million ounces of silver since 1859.
The Redlich area is
  underlain by Ordovician through Tertiary sedimentary and volcanic rocks.
  Tertiary age rocks include a 15 to 17 Ma andesite that is overlain by a
  rhyodacitic ash flow tuff.  The andesite is known to host bonanza veins
  and disseminated gold mineralization. Two distinct alluvial units overlie the
  volcanic sequence. Granodiorite dikes and stocks intrude the Palmetto
  Formation.  These intrusive rocks are interpreted as ranging from
  Jurassic to Tertiary based on cross-cutting relations.  Drilling
  indicates the granodiorite hosts gold mineralization. An isolated
  northwest-trending block of Permian Diablo Formation conglomerate overlies the
  Palmetto Formation along a low angle contact. The oldest exposed rocks on the
  project are siltstone, limestone and chert of the Ordovician Palmetto
  Formation.  Drilling indicates this unit hosts bonanza veins.
56
Two styles of gold
  mineralization occur at Redlich.  They include finely-banded quartz
  "bonanza" veins that typically contain gold grades exceeding 0.250 oz Au/t
  over 2 to 15 foot-wide (8.562 g Au/t over 0.6 to 4.6m) zones. Disseminated
  gold mineralization in clay altered or quartz stockwork controlled volcanic
  rocks and granodiorite.  These gold zones tend to be 55 to 210 feet-thick
  (16.7 to 64.0m) with gold grades ranging from 0.010 to 0.056 oz Au/t (0.343 to
  1.918 g Au/t).
Previous exploration by
  Inspiration, FMC and Cordex focused along strike of the Redlich fault and on a
  100 acre (40 hectares) area of Tertiary alluvium containing well-banded quartz
  vein float.  Sampling of well-banded quartz cobbles returned assays up to
  4.0 oz Au/t (137.0 g Au/t) and 20 oz Ag/t (684.9 g Ag/t).  The source of
  these gold-bearing cobbles is unknown and most of this area remains untested
  by drilling.
FMC completed trenching,
  systematic soil sampling, rock sampling, and 8,270 feet (2521.3m) of drilling
  in 18 holes.  Results included 30 feet of 0.031 oz Au/t (9.1m of 1.099 g
  au/t) in hole FMCR-5.
Cordex completed a CSAMT
  survey and 28 rotary drill holes (R-1 through R-28).  Their drilling
  intersected higher-grade quartz vein zones and vertically extensive zones of
  lower-grade, disseminated gold mineralization.  Significant results
  included:
•              
  10 feet of 0.284 oz Au/t (3.1m of 9.726 g Au/t) and 10 feet of 0.170 oz Au/t
  (3.1m of 5.822 g Au/t) in R-1
•              
  60 feet of 0.017 oz Au/t (18.3m of 0.582 g Au/t) in R-2
•              
  10 feet of 0.311 oz Au/t (3.1m of 10.651 g Au/t) in R-6
•              
  90 feet of 0.017 oz Au/t (27.4m of 0.582 g Au/t) in R-19
Since the inception of the
  Miranda Gold / Newcrest joint venture, 65,334 feet (19.918m) of reverse
  circulation drilling in 90 drill holes has been completed.
In late 2004, Newcrest
  completed a phase one drill program consisting of 11,094 feet (3,382.3m) of
  inclined reverse circulation drilling in 19 holes (R-29 through R-47). 
  Results included 5 feet of 1.350 oz Au/t (1.5m of 46.233 g Au/t) in R-43 and
  15 feet of banded epithermal quartz veins grading 0.330 oz Au/t (4.6m of
  11.267 g Au/t) in R-45.  R-33 intersected 190 feet of 0.020 oz Au/t
  (70.1m of 0.684 g Au/t) in clay altered volcanic rocks with quartz stringers. 
  During the summer of 2005, Newcrest completed an additional 16,145 feet of
  reverse circulation drilling in 26 holes (R-48 through R-74).  These
  holes continued testing for high grade quartz-gold vein continuity along
  strike of the Redlich fault zone as well as offsetting mineralization in hole
  R-43.  Results of this program include a thinly-banded quartz vein with 5
  feet grading 1.945 oz Au/t (1.5m of 66.610 g Au/t) in hole R-73.  Bonanza
  gold grades in R-73 represent a deeper and higher grade gold zone.
Miranda Gold geologists
  have constructed a three dimensional computer model illustrating geology and
  drill results generated from the three phases of drilling.  Four inclined
  holes (R-77, R-73, R-1 and R-84) with intercepts 0.250 oz Au/t or greater
  infer the existence of a north 30 degree west-striking and 80 degree
  northeast-dipping "vein" zone.  This "vein" zone appears continuous along
  1,230 feet of strike and remains open to the northwest, southeast and at
  depth.  The southeast projection of this "vein" zone is noteworthy as
  only three holes test a 3,940 foot distance between holes R-84 and R-43.  
  Both holes intersect bonanza gold grades including 5 feet of 0.440 oz Au/t in
  R-84 and 5 feet of 1.350 oz Au/t in R-43.
The three dimensional
  model also outlines a 985 foot east-west by 1,230 foot north-south envelope of
  >0.010 oz Au/t mineralization surrounding the higher-grade "vein" zone. 
  This mineralization remains open to the west, southeast and south.
The potential quantity and
  grade is conceptual in nature as there has been insufficient exploration to
  define a mineral resource.  Miranda Gold and Newcrest are encouraged by
  these results and the exploration potential remains high.
Red Rock
The Red Rock property is
  located approximately 70 miles southwest of Tonopah within the Fish Lake
  Valley mining district of western Esmeralda County, Nevada, U.S.A., at
  geographic co-ordinates 37deg. 51min. North latitude by 118deg. 13min. West
  longitude. Access is excellent; 49 miles west of Tonopah, Nevada on Highway 6,
  then 12 miles south on Highway 264, then 6 miles west on graded dirt road.  It
  is comprised of 177 contiguous unpatented lode mining claims covering
  approximately 3,657 acres.
57
The property is
  situated regionally within the Southwest portion of the Walker Lane Structural
  Belt, a terrain dominated by northwesterly-trending transcurrent faulting and
  hosting numerous precious metal deposits across west-central Nevada. The Red
  Rock property lies near the junction of two major tectonic blocks, the
  Inyo-Mono Block and the Excelsior-Coaldale Block, and has suffered from
  significant faulting and deformation from several events. Estimated production
  from volcanic-hosted epithermal gold and silver deposits along this belt
  exceeds 40 million ounces of gold and 540 million ounces of silver since 1859.
The property is underlain
  by the Lower Cambrian Poleta Formation which consist of carbonate rocks. Above
  the carbonate rocks, sediments dominated by siliceous siltstone, argillite and
  chert of the Ordovician Palmetto Formation occur. Cenozoic rocks consist
  mostly of the mid-late Miocene andesite of Trail Canyon (>11 Ma), bedded
  sedimentary and volcaniclastic rocks correlative with the Esmeralda Formation,
  and late Miocene-Pliocene rhyolite tuffs, flows and dikes.
At least three different
  styles of gold mineralization are recognized on the Red Rock property.
  Epithermal quartz-adularia veins are the principal target, and in the
  Discovery area consist of individual veins <5-10 ft wide. The veins occur in
  at least 3 en-echelon or sub parallel vein sets, in zones perhaps as much as
  20 ft or more wide. The vein mineralogy and geochemistry is fairly simple,
  with very fine-grained free gold-electrum, minor ruby silver, and possibly
  other silver and antimony minerals. The highest grade sample values are: 3.061
  opt Au and 16.80 opt Ag in a 5 ft RC sample; and 2,926 opt Au and 17.57 opt in
  a 6.0 ft core sample. Silver: gold ratios are quite variable, but in most
  high-grade intercepts are ~5:1. Minor Se (to 20 ppm) occurs with the highest
  silver values suggesting trace silver selenides. Base metals, As, and Hg are
  generally low in the quartz-adularia veins.
Since 1982 eight
  successive companies, including Newmont, Amselco, Phelps Dodge, Curran
  Corporation, Cambior, Romarco, Victoria Resource Corporation and Escape Gold,
  have conducted extensive geological, geochemical and geophysical surveying,
  and drilled at least 147 air-track, percussion, reverse circulation (RC) and
  diamond drill holes totaling at least 88,035 feet. Most of this work has been
  directed at discovering and delineating the near-surface bulk-tonnage
  potential and later for discovering high grade epithermal veins.
The Red property, offers
  excellent exploration potential in the form of expanding and refinement of the
  high grade but complex low sulphidation gold mineralized veins in the
  Discovery Zone and in the advancement of the other targets using similar
  exploration models. Emphasis for future exploration would reasonably combine
  identification of prospective structural settings, favorable host assemblages,
  and vertical zoning within the well developed low sulphidation style
  epithermal systems. Five drill holes listed below demonstrate the high grade
  potential that should be explored.
•              
  DH RMR-4 contains 115 feet 1.61 opt Au.
•              
  DH RMR-14 contains 30 feet grading .34 opt Au.
•              
  DH RPC-90-907 contains 25 feet grading 1.98 opt Au.
•              
  DH RPR-89-14 contains 15, 10 & 10 feet grading .91, 1.41 & 1.27 opt Au.
•              
  DH RPR-89-19 contains 15 feet grading .92 opt Au.
These intercepts have not been followed up
  systematically to determine the extent of high-grade mineralization.
Rosebud
The Rosebud property is
  located approximately 48 miles west of Winnemucca within the Rosebud mining
  district of northern Pershing County, Nevada, U.S.A., at geographic
  co-ordinates 40deg. 48min. North latitude by 118deg. 39min West longitude.
  Access is excellent; 46 miles west of Winnemucca, Nevada on Jungo Road,
  (gravel) well-maintained then 7 miles south on dirt road. It is comprised of
  54 contiguous unpatented lode mining claims covering approximately 1,115
  acres.
The property is located in
  the Kamma Mountains near Rosebud Peak, about 5 miles southeast of the Hycroft
  mine operated by Allied Nevada. The ore deposits are located under Dozer Hill,
  which is a rounded promontory of about 200 feet in relief.
The property is underlain
  by Oligocene bimodal volcanic rocks interbedded with pyroclastic and
  water-lain tuff. Jurassic-Triassic metasediments of the Auld Lang Syne Group,
  composed of carbonaceous shales, siltstones, sandstones and limestones, form
  the basement for overlying Tertiary volcanics. From the base upward, the
  volcanic sequence consists mostly of ash flow tuffs and andesitic flows; and a
  fine grained rhyolite flow dome complex.
The Rosebud is a low-sulfidation
  epithermal gold deposit. The mineralization within the property is
  characterized by up to four stages of discontinuous stockwork veins of quartz,
  calcite and clay. Sulphide content ranges from three to five percent as
  pyrite, marcasite, and trace amounts of chalcopyrite and sphalerite.
  Mineralization was indicated by drill intercepts as strong as 178 feet @0.72
  opt Au (Northern Miner, 6-24-91).  One of the better intercepts in the East
  zone, in hole 198C, was 30 feet @ 1.89 opt Au (Mining Record, 7-24-91).
   Mineralization occurs in tabular zones associated with the South Ridge fault
  and cross-cutting high-angle faults.  Quartz-calcite-clay veins cut clay
  altered, silicified, and/or sericitized Tertiary rhyolitic volcanic host
  rocks. Gold and silver minerals include electrum, aurian silver, naumannite,
  and argentite. These veins crosscut bleached, clay-altered and sericitized
  flows and tuffs.
58
The Rosebud district was
  founded in 1906, and minor production occurred during the early years after a
  rush to the site ensued. In 1988, LAC Minerals entered the district by staking
  claims around Dozer Hill, and by forming a joint venture with Equinox
  Resources, which held adjacent ground to the northwest extending beyond the
  Dreamland mine. In 1989, LAC discovered ore on their 3
rd
drill
  hole, intersecting 55 ft of 0.12 opt Au. Equinox purchased LAC's interest in
  1993 and started an exploration decline. Hecla Mining completed the
  underground development after a merger with Equinox in the early 1994. Hecla
  and Santa Fe Pacific Gold formed the Rosebud Mining Company LLC (50/50) in
  late 1995 to develop the mine and truck the ore to the Twin Creeks mine to be
  processed. Hecla operated the mine, and Santa Fe operated the milling and
  exploration. Production commenced in April, 1997. Newmont took over Santa Fe's
  interest in the Rosebud joint venture upon acquisition of Santa Fe in May,
  1997. The Rosebud mine produced 396,842 oz of gold and 2.3 million ounces of
  silver from 1997 to 2000. The average grade of gold over the mine life was
  0.416 opt Au and 2.4 opt for Ag.
Currently Harvest Gold is
  compiling and reviewing all available historical data. All the paper maps and
  cross sections are being converted into digital data using Micromine 3D
  modeling software. The Company is focusing on 3 areas:
(1)    Evaluation of
  historic low and high grade gold mineralization that remains on the property;
(2)    Exploration for near
  surface, high grade gold mineralization similar to that which has been
  discovered on the property in the past; and
(3)    Exploration for
  large bodies of gold-silver mineralization at depth.
A detailed enzyme leach
  soil grid has been completed.  Results clearly indicate the Rosebud ore
  bodies, Northwest Corridor, and Far East zone.  A new target, the Northeast
  zone< is also indicated by the soil results.
The company is currently
  investigating gold and silver zones located at or near the periphery of the
  mined area.  To the northwest of the mine, the "Northwest Corridor" contains
  numerous high grade drill intercepts (described below).  Additional high grade
  intercepts are also reported at the eastern margin of the mine in the "Far
  East" zone.
Numerous drill intercepts
  have been encountered to the northwest of the Rosebud mine in what is called
  the Northwest Corridor.  Drill results in this area include: 10 feet @ 0.357
  opt Au, 3.8 feet @ 0.249 opt Au, 5 feet @ 0.311 opt Au, 12.5 feet @0.169 opt
  Au, 3.1 feet @ 0.635 opt Au, 5.6 feet @ 0.888 opt Au, 7 feet @ 0.334 opt Au,
  12 feet @ 0.522 opt Au, 16 feet @ 0.446 opt Au, and 9 feet @ 0.522 opt Au.
  Most of these intercept occur between 600 and 800 feet down hole.
Outside of the mined area,
  several other gold zones have been intersected by previous operators.  Some of
  the best drill intercepts in these areas are described below. In the Dreamland
  area the best drill intercepts to date have been: 5.9 feet @ 0.819 opt Au
  including 2.9 feet @ 1.394 opt Au at a depth of 1660 feet from surface and 2.2
  feet @ 0.1 opt Au at a depth of 1208 feet. This mineralization is still
  undefined. The Motherload area contains a drill intercept of 15 feet @ 7.34
  opt Ag within a vein. Limited follow up drilling has not defined the geometry
  of the mineralized zone. To the northeast of the mine, alluvium and talus
  cover the South Ridge fault, a major ore-controlling feature. Very limited
  drilling has been undertaken in this target area.  One hole drilled in this
  area in 2000 intersected 145 feet of stockwork veinlets containing drusy
  quartz, marcasite, and anomalous gold within metamorphic rocks that form the
  basement beneath the Tertiary volcanic host rocks at the mine.
In addition to the
  historical gold and silver target areas, Harvest Gold is systematically
  analyzing the potential of the remaining ground to identify new target areas
  that have not previously been recognized. The company is compiling, reviewing,
  and interpreting a large volume of project data generated by previous
  operators. These data include geologic mapping, rock chip geochemistry, soil
  geochemistry, geophysical data, and drilling data.
The Harvest Gold
  geological crew has completed its own detailed soil grid utilizing modern
  geochemical techniques capable of detecting signals from blind or buried
  mineral zones. The Rosebud Mine orebodies are well indicated by strong gold
  responses.  Gold mineralization in the Northwest Corridor and the Far East
  zone is also indicated by enzyme leach gold responses.  A new target zone is
  indicated to the northeast of the mine by enzyme leach gold, silver, and other
  metals.  The Northeast zone anomaly suggests a target of similar proportions
  and orientation to the Rosebud Mine.  This new target has not been drill
  tested.
Other Nevada Eagle  Properties
Nevada Eagle Resources
  controls a total of approximately 45 other exploration properties in Nevada,
  southeastern California and western Utah.  These individual properties range
  in size from one mining claim to 129 mining claims for a grand total of 24,792
  acres.  Target commodity types are mostly gold and gold/silver, but also
  include copper/molybdenum, lead/zinc/copper and barite.  These target metals
  are found in a variety of geologic environments including volcanic-hosted
  epithermal bonanza veins and stock works, sediment hosted replacement and
  stock work deposits, granite-hosted mesothermal quartz veins and porphyry
  related quartz stock works and related deposits.
59
Sixteen properties host
  volcanic hosted gold and gold/silver targets as both discrete quartz veins and
  quartz stock work zones.  These are located in the Walker Lane Belt of western
  Nevada, the Pioche Belt in eastern Nevada and in several unique locations in
  northern and central Nevada. Typical gold assay grades range from low grade,
  open pittable gold values in the 0.03 ounces per ton range upward to plus 1.0
  ounces per ton from underground mineable deposits.  These properties are
  Blackrock, Star City, Bald Peak, Argentite, Brik, Gold Reef, Stateline, Gold
  Springs 1, Gold Springs 2, Cold Springs, Wonder, Florence Canyon, Blue Sphinx,
  Jasperoid Peak, Velvet and Black Velvet.
Twelve properties host
  sediment-hosted gold targets similar to those found on the Carlin Trend. These
  properties are located along the Carlin and Cortez Trends with a few in unique
  locations. The properties include Rock Creek, Scraper Springs, Bullion
  Mountain, Indian Creek, Black Mountain, Grass Valley, Water Canyon, Kobeh,
  Anchor, Gold Point, Horse Thief, Baxter Springs.
Nine properties host
  mesothermal high-grade gold quartz veins and stock works in granitic or
  metamorphic rocks. These are located in southeastern California and western
  Nevada.  Typical gold assays and past production from the veins returned from
  0.25 to 1.5 ounces per ton. These properties are Southern Bell, Buckskin,
  Dale, Suitcase, Troy, Columbia, Cumberland, Ashby, and Argus.
Only three properties host
  lead/zinc/copper replacements in sedimentary rocks.  These are located in
  western Nevada.  Typical assays range from a combined Pb/Zn/Cu ranging of 5 to
  15%.  These are found at Ruby, Four Aces and Mud Springs.
Three properties host
  porphyry-related copper/molybdenum targets, and located in western Nevada in
  the Walker Lane Belt. Past drilling has tested the broader reaches of the
  targets with drill intercepts returning molybdenum values in the 0.1% range
  and copper values in the 0.4% range. These properties are the New Boston, Ace
  and Fri Gold.
One industrial mineral
  property, which hosts a high grade barite deposit is found in central Nevada.
   Past production from the Monitor property indicates that it qualifies for
  redevelopment due to its potential for high quality drilling mud production.
LEGAL PROCEEDINGS
Except as provided below,
  neither we nor any of our property, including the Borealis Property and the
  Nevada Eagle Properties, are currently subject to any material legal
  proceedings or other regulatory proceedings, and to our knowledge no such
  proceedings are contemplated.
On September 16, 2005, our
  subsidiary, Borealis Mining Company, was named as a co-defendant in an ongoing
  civil action pending in the United States District Court for the District of
  Nevada, entitled
United States v. Walker River Irrigation District
(Court Doc. No. In Equity C-125, Subfile C-125-B). The action seeks to
  determine the existence and extent of water rights held by the federal
  government in the Walker River drainage area for use on federally reserved
  lands such as Indian reservations, National Forests, military reservations,
  and the like. The suit does not dispute nor seek to invalidate any existing
  water rights (including ours); rather, it seeks to determine the extent and
  priority of the federal government's water rights. On May 27, 2003, the Court
  stayed all proceedings to allow the United States, the State of Nevada, the
  State of California, the Walker River Paiute Tribe, the Walker River
  Irrigation District, Mono County, California, Lyon County, Nevada, Mineral
  County, Nevada and the Walker Lake Working Group to attempt to mediate a
  settlement. Borealis Mining Company was named as one of several hundred
  co-defendants in this action because it owns water rights within a portion of
  the Walker River drainage area in Nevada, which were granted under a permit on
  September 16, 2005. We, like most private water right owners, do not intend to
  participate in the merits of the lawsuit. We do not believe that this civil
  action, which will determine the extent and priority of federally reserved
  water rights in the area, will have any effect on our potential business
  operations as we currently have permits to access water from two sites for our
  Borealis Property, one of which is not subject to this action and either of
  which, individually, would provide a sufficient water supply for our potential
  operations.
60
MARKET FOR COMMON
  EQUITY AND RELATED SHAREHOLDER MATTERS
Market Information
Our common stock is quoted
  on the Toronto Stock Exchange ("TSX") and the NASD Over-the-Counter Bulletin
  Board.  Our common shares commenced trading on the TSX on December 22, 2005.
   Before trading on the TSX our stock was not publicly traded on any exchange.
   The high and low bid quotations of our common stock on the TSX were as
  follows:
Period
High
Low
2008
First Quarter (TSX)
Cdn$0.79
Cdn$0.40
2007
First Quarter (TSX)
Cdn$1.20
Cdn.$0.75
Second Quarter (TSX)
Cdn$1.13
Cdn$0.78
Third Quarter (TSX)
Cdn$0.95
Cdn$0.62
Fourth Quarter (TSX)
Cdn$0.98
Cdn$0.50
2006
First Quarter (TSX)
Cdn$1.54
Cdn$1.15
Second Quarter (TSX)
Cdn$2.33
Cdn$1.16
Third Quarter (TSX)
Cdn$1.69
Cdn$1.19
Fourth Quarter (TSX)
Cdn$1.43
Cdn$0.72
2005
Fourth Quarter
(1)
(TSX)
Cdn$1.15
Cdn$0.91
(1)  Our shares were initially quoted for
  trading on  December 22, 2005.  There was no quote prior to December 22,
  2005.
On April 28, 2008 the
  closing sale price for our common stock was $0.39 on the OTCBB and $0.41 on
  the TSX  (converted from Cdn$0.42 based on the noon buying rates in New York
  City for cable transfers payable in Canadian Dollars and certified for customs
  purposes by the Federal Reserve Bank of New York as of April 28, 2008 of Cdn.$1.0021/US$1.00).
As of April 28, 2008, we
  had 61,735,395 shares of common stock issued and outstanding, held by
  approximately 1783 registered shareholders.  In many cases, shares are
  registered through intermediaries, making the precise number of shareholders
  difficult to obtain.
Dividend Policy
We anticipate that we will
  retain any earnings to support operations and to finance the growth and
  development of our business. Therefore, we do not expect to pay cash dividends
  in the foreseeable future. Any further determination to pay cash dividends
  will be at the discretion of our board of directors and will be dependent on
  the financial condition, operating results, capital requirements and other
  factors that our board deems relevant. We have never declared a dividend.
Purchases of Equity Securities by the
  Small Business Issuer and Affiliates
There were no purchases of our equity
  securities by us or any of our affiliates during the year ended March 31,
  2007.
Equity Compensation Plans
Securities Authorized for Issuance
On March 29, 2005, our
  board of directors adopted a stock option plan which was approved by our
  shareholders on May 13, 2005.  As of March 31, 2007 we had granted 3,000,000
  stock options, of which 565,000 were forfeited and 107,500 were exercised,
  pursuant to the terms of our 2005 stock option plan with expiry dates to 2011.
    We may only issue up to 3,000,000 shares of common stock under the terms of
  the 2005 stock option plan.
61
On April 4, 2006 (amended
  July 24, 2006), the Board of Directors approved the 2006 Omnibus Incentive
  Plan, which increased the number of reserved shares of common stock for
  issuance to employees, officers, directors, consultants and advisors, from
  3,000,000 to 7,000,000 shares.  The 2006 Omnibus Incentive Plan was
  ratified by the shareholders at the company's annual general meeting on
  September 12, 2006, along with all options previously granted thereunder,
  pending such ratification.
On September 6, 2007, at
  the annual general meeting of the shareholders, the shareholders approved an
  increase in the number of shares of common stock issuable pursuant to the
  grant of stock options under the Omnibus Incentive Plan. After the shareholder
  approved increase, the 2006 Omnibus Incentive Plan authorizes the Company to
  grant 4,500,000 options and 1,000,000 restricted stock units. As of November
  14, 2007 we had granted 3,787,000 stock options, of which 375,000 were
  forfeited, pursuant to the terms of our omnibus incentive plan as described
  below with expiry dates to 2012; 809,500 restricted stock units had been
  granted as of November 14, 2007, of which 92,750 have been forfeited and the
  equivalent of 15,000 were issued in cash pursuant to the terms of our omnibus
  incentive plan.
We have no equity
  compensation plans in place that have not been approved by our shareholders,
  but amendments and proposed plans will be presented to shareholders for
  approval at the annual general meeting.   The table below shows securities
  issued under our equity compensation plans as of April 28, 2008.
Number of securities to be issued
      upon exercise of outstanding options, warrants, and rights
(a)
Weighted-average exercise price of
      outstanding options, warrants, and rights
(b)
Number of securities remaining
      available for future issuance under equity compensation plans (excluding
      securities reflected in column (a))
(c)
Equity compensation plans
      approved by security holders
(1)
6,252,000
$0.91*
625,500
(2)
Equity compensation plans not
      approved by security holders
--
--
--
TOTAL
6,252,000
--
625,500
(1)
Consists of 2,377,500 outstanding options granted from the Stock Option
      Plan, 3,201,500 outstanding options granted from the Omnibus Incentive
      Plan, and 673,000 restricted stock units granted under the Omnibus
      Incentive Plan.
(2)
Consists of 298,500 options and 327,000 restricted stock units remaining
      under the Omnibus Incentive Plan.
* Based on the November 2007 exchange
      rate of Cdn$1.00 equals US$0.9337
Omnibus Incentive Plan
The Plan is administered by the Compensation Committee, and has
  full and final authority with respect to the granting of options there under.
  Options may be granted under the Plan to such directors, officers, employees
  or consultants of Gryphon Gold and its subsidiaries as the Compensation
  Committee may from time to time designate (referred to as a "participant").
  Each option will generally entitle a participant to purchase one share of
  common stock during the term of the option upon payment of the exercise price.
  The exercise price of any options granted under the Plan shall be determined
  by the Compensation Committee and may not be less than the market price of our
  common stock on the date of grant of the options (calculated in accordance
  with the rules of the Toronto Stock Exchange as the volume weighted average
  trading price for the five trading days preceding the date of grant). Gryphon
  Gold may provide financial assistance to eligible persons to purchase shares
  of common stock under the Plan, subject to applicable law and the rules and
  policies of any securities regulatory authority or stock exchange with
  jurisdiction over the Corporation or a trade in its securities. Any financial
  assistance so provided will be repayable with full recourse and the term of
  any such financing shall not exceed the term of the option to which the
  financing applies.
The term of any options
  granted shall be determined by the Compensation Committee at the time of the
  grant but the term of any options granted under the Plan shall not exceed ten
  years. If desired by the Compensation Committee, options granted under the
  Plan may be subject to vesting provisions. Options granted under the Plan are
  not transferable or assignable other than by will or otherwise by operation of
  law. In the event of death or disability of an option holder, options granted
  under the Plan expire one year from the death or disability of the option
  holder.
62
Certain restrictions contained in the Plan
  include:
•             
  the number of shares of common stock which may be issued pursuant to the Plan
  (or any other employee-related plan or options for service) to any one person
  may not exceed 5% of all the common shares issued and outstanding on a
  non-diluted basis from time to time; and
•             
  the number of shares of common stock which may be issued pursuant to the Plan
  (or any other employee-related plan or options for services) to insiders (as
  defined in the rules of the Toronto Stock Exchange to include generally
  directors, senior officers of Gryphon Gold or its subsidiaries or shareholders
  who own more than 10% of our common stock) during any twelve month period may
  not exceed 10% of the common stock issued and outstanding on a non-diluted
  basis from time to time (unless approval of disinterested shareholders has
  been obtained in accordance with the rules of the Toronto Stock Exchange).
•             
  the number of shares of common stock which may be reserved for issuance in
  respect of options granted to insiders pursuant to the Plan (or any other
  employee-related plan or options for service) may not exceed 10% of the common
  stock issued and outstanding on a non-diluted basis from time to time unless
  approval of disinterested shareholders has been obtained in accordance with
  the rules of the Toronto Stock Exchange).
Gryphon Gold's board of
  directors may at any time terminate or amend the Plan in any respect, provided
  however, that the board may not, without the approval of the shareholders,
  amend the Plan or any option granted thereunder in any manner that requires
  shareholder approval under applicable law or the rules and policies of any
  stock exchange or quotation system upon which the common shares are listed or
  quoted.
Sale of Unregistered Securities
All sales of unregistered securities were
  previously reported in the Company's quarterly and current reports filed with
  the Securities and Exchange Commission.
63
FINANCIAL
  STATEMENTS
Consolidated Financial Statements
Gryphon Gold Corporation
(an exploration stage company)
March 31, 2007 and 2006
(Stated in U.S. dollars
REPORT OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRM
To the Shareholders of
Gryphon Gold Corporation
(an exploration stage company)
We have audited the accompanying
  consolidated balance sheets of
Gryphon Gold Corporation
(an exploration
  stage company) as of March 31, 2007 and 2006 and the related consolidated
  statements of operations, stockholders' equity and cash flows for each of the
  years in the three year period ended March 31, 2007 and for the period from
  April 24, 2003 (inception) to March 31, 2007. These financial statements are
  the responsibility of the Company's management. Our responsibility is to
  express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with
  the standards of the Public Company Accounting Oversight Board (United
  States). Those standards require that we plan and perform the audit to obtain
  reasonable assurance about whether the financial statements are free of
  material misstatement. We were not engaged to perform an audit of the
  Company's internal control over financial reporting. Our audits included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances but not
  for the purpose of expressing an opinion on the effectiveness of the Company's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements, assessing
  the accounting principles used and significant estimates made by management
  and evaluating the overall financial statement presentation. We believe that
  our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements
  referred to above present fairly, in all material respects, the consolidated
  financial position of Gryphon Gold Corporation (an exploration stage company)
  at March 31, 2007 and 2006, and the consolidated results of its operations and
  its cash flows for each of the years in the three year period ended March 31
  2007 and for the period from April 24, 2003 (inception) to March 31, 2007, in
  conformity with United States generally accepted accounting principles.
Vancouver, Canada,
/s/ Ernst & Young LLP
May 30, 2007.
Chartered Accountants
64
Gryphon Gold Corporation
(an exploration stage company)
CONSOLIDATED BALANCE SHEETS
(Stated in U.S. dollars)
As at March 31
2007
$
2006
$
ASSETS
Current
Cash
7,150,154
9,390,925
Accounts receivable
65,483
81,250
Prepaid expenses
129,065
110,090
Total current assets
7,344,702
9,582,265
Reclamation deposit
[note 9]
134,759
59,800
Equipment
[note 3]
153,362
152,946
Mineral property costs
[note 4]
1,920,371
1,898,207
9,553,194
11,693,218
LIABILITIES AND STOCKHOLDERS'
      EQUITY
Current
Accounts payable and accrued
      liabilities
786,565
1,197,823
Current portion of capital lease
[note 11]
32,977
10,058
Total current liabilities
819,542
1,207,881
Capital lease
[note 11]
17,308
19,324
Commitments and contingencies
[note 10]
Stockholders' equity
Common stock
47,298
40,295
Additional paid-in capital
26,649,868
19,669,399
Deficit accumulated during the
      exploration stage
(17,980,822)
(9,243,681)
Total stockholders' equity
8,716,344
10,466,013
9,553,194
11,693,218
See
  accompanying notes
65
Gryphon
  Gold Corporation
(an exploration stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Stated in U.S. dollars)
Year ended
March 31,
2007
$
Year ended
March 31,
2006
$
Period from
April 24, 2003
(inception)
to March 31,
2007
$
EXPENSES
Exploration
[note 5]
4,819,692
3,657,010
9,928,107
Management salaries and
      consulting fees
[note 7]
2,632,794
1,145,626
5,243,152
General and administrative
890,596
480,891
1,574,528
Legal and audit
330,005
307,942
960,487
Travel and accommodation
325,024
154,887
689,570
Depreciation
53,368
22,918
85,430
Loss on disposal of equipment
19,722
—
19,722
Foreign exchange (gain) loss
(11,335)
1,232
(17,813)
Interest income
(322,725)
(168,170)
(502,361)
Net and comprehensive loss for the
      period
(8,737,141)
(5,602,336)
(17,980,822)
Basic and diluted loss per share
(0.21)
(0.19)
Basic and diluted weighted average
      number of common shares outstanding
41,242,535
29,350,317
See accompanying notes
66
Gryphon Gold Corporation
(an exploration stage company)
CONSOLIDATED STATEMENTS OF
  STOCKHOLDERS' EQUITY
(Stated in U.S. dollars)
Common Stock
Additional Paid-In
Capital
Deficit Accumulated During the
      Exploration
Stage
Total
Shares
Amount
#
$
$
$
$
Balance, inception April 24, 2003
—
—
—
—
—
Shares issued:
For private placements
[note 6[a]]
21,691,962
21,692
7,002,883
—
7,024,575
Share issue costs
[note 6[a]]
—
—
(156,015)
—
(156,015)
Compensation component of shares
      issued
[note 7]
—
—
226,000
—
226,000
Fair value of agent's warrants
      issued
[note 6[b]]
—
—
45,100
—
45,100
Fair value of options granted to
      a consultant
[note 6[c]]
—
—
34,300
—
34,300
Net loss from inception
—
—
—
(3,641,345)
(3,641,345)
Balance, March 31, 2005
21,691,962
21,692
7,152,268
(3,641,345)
3,532,615
Shares issued:
For private placements
11,505,408
11,505
9,762,424
—
9,773,929
Share issue costs
—
—
(489,013)
—
(489,013)
Initial Public Offering (IPO)
6,900,000
6,900
5,029,597
—
5,036,497
Share issue costs (IPO)
—
—
(2,241,940)
—
(2,241,940)
Fair value of agents' warrants
      issued on private placements
[note 6[b]]
—
—
111,640
—
111,640
Fair value of underwriters'
compensation warrants on IPO
[note 6[b]]
—
—
135,100
—
135,100
Exercise of warrants
197,500
198
194,085
—
194,283
Fair value of options granted to
             consultants
[note 6[c]]
—
—
15,258
—
15,258
Net loss for the period
—
—
—
(5,602,336)
(5,602,336)
67
Balance, March 31, 2006
40,294,870
40,295
19,669,399
(9,243,681)
10,466,013
Shares issued:
For private placements
5,129,000
5,129
3,966,518
—
3,971,647
Share issue costs
—
—
(95,505)
—
(95,505)
Fair value of agents' warrants
      issued on private placements
[note 6[a][b]]
11,397
11,397
Fair value of options granted
[note 6[c]]
—
—
1,314,961
—
1,314,961
Fair value of stock granted
[note 6[d]]
108,000
108
151,138
—
151,246
Exercise of warrants
1,658,275
1,658
1,548,894
—
1,550,552
Exercise of options
107,500
108
83,066
—
83,174
Net loss for the period
—
—
—
(8,737,141)
(8,737,141)
Balance, March 31, 2007
47,297,645
47,298
26,649,868
(17,980,822)
8,716,344
See accompanying notes
68
Gryphon Gold Corporation
(an exploration stage company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in U.S. dollars)
Year ended
March 31,
2007
$
Year ended
March 31,
2006
$
Period from
April 24, 2003
(inception) to
March 31,
2007
$
OPERATING ACTIVITIES
Net loss for the period
(8,737,141)
(5,602,336)
(17,980,822)
Items not involving cash:
Depreciation
53,368
22,918
85,430
Loss on disposal of equipment
19,722
—
19,722
Compensation, shares and fair value of
      options issued for consulting fees
1,466,207
15,258
1,820,140
Changes in non-cash working capital
      items:
Amounts receivable
15,767
(72,515)
(65,483)
Accounts payable and accrued
      liabilities
(411,258)
744,630
786,565
Prepaid expenses
(18,975)
(82,475)
(129,065)
Cash used in operating activities
(7,612,310)
(4,974,520)
(15,463,513)
INVESTING ACTIVITIES
Reclamation deposit
(74,959)
(28,400)
(134,759)
Purchase of equipment
(38,642)
(123,546)
(194,268)
Proceeds from sale of equipment
3,950
—
3,950
Mineral property expenditures
(22,164)
(1,122,881)
(1,920,371)
Cash used in investing activities
(131,815)
(1,274,827)
(2,245,448)
FINANCING ACTIVITIES
Capital lease payments
(17,911)
—
(17,911)
Cash received for shares issued
5,605,373
15,004,689
27,167,137
Share issue costs
(84,108)
(2,484,213)
(2,679,236)
Subscription receivables collected
—
54,360
389,125
Cash provided by financing
      activities
5,503,354
12,574,836
24,859,115
Increase in cash during the period
(2,240,771)
6,325,489
7,150,154
Cash, beginning of period
9,390,925
3,065,436
—
Cash, end of period
7,150,154
9,390,925
7,150,154
See
  accompanying notes
69
1.
  NATURE OF OPERATIONS AND CONTINUANCE OF OPERATIONS
Gryphon Gold Corporation and its
  subsidiary, Borealis Mining Company (collectively, "the Company"), were
  incorporated in the State of Nevada in 2003. The Company is an exploration
  stage company in the process of exploring its mineral properties, and has not
  yet determined whether these properties contain reserves that are economically
  recoverable.
The recoverability of amounts shown for
  mineral property interests in the Company's consolidated balance sheets are
  dependent upon the existence of economically recoverable reserves, the ability
  of the Company to arrange appropriate financing to complete the development of
  its properties, the receipt of necessary permitting and upon achieving future
  profitable production or receiving proceeds from the disposition of the
  properties. The timing of such events occurring, if at all, is not yet
  determinable.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
  POLICIES
Basis of presentation
These consolidated financial statements
  are prepared in accordance with U.S. generally accepted accounting principles
  ("GAAP"). The consolidated financial statements include the accounts of the
  Company and its wholly owned subsidiary. All intercompany transactions and
  balances have been eliminated.
Use of estimates
The preparation of financial statements in
  conformity with U.S. GAAP requires management to make estimates and
  assumptions that affect the reported amounts of assets and liabilities and the
  disclosure of any contingent assets and liabilities as at the date of the
  consolidated financial statements as well as the reported amounts of expenses
  incurred during the period. Significant areas requiring the use of management
  estimates include the determination of potential impairments of asset values,
  the calculation of fair values of options and warrants, and rates for
  depreciation of equipment. Actual results could differ from those estimates.
Financial instruments
The Company's financial instruments
  consist of current assets and current liabilities, the fair value of which
  approximate their carrying values due to their short-term nature. Financial
  risk is the risk arising from fluctuations in foreign currency exchange rates.
  The Company does not use any derivative or hedging instruments to reduce its
  exposure to fluctuations in foreign currency exchange rates or metal prices.
Mineral property acquisition costs
The costs of acquiring mineral properties
  are capitalized and will be amortized over their estimated useful lives
  following the commencement of production or expensed if it is determined that
  the mineral property has no future economic value or the properties are sold
  or abandoned.
Cost includes cash consideration and the
  fair market value of shares issued on the acquisition of mineral properties.
  Properties acquired under option agreements, whereby payments are made at the
  sole discretion of the Company, are recorded in the accounts at such time as
  the payments are made.
The recoverable amounts for mineral
  properties is dependent upon the existence of economically recoverable
  reserves; the acquisition and maintenance of appropriate permits, licenses and
  rights; the ability of the Company to obtain financing to complete the
  exploration and development of the properties; and upon future profitable
  production or alternatively upon the Company's ability to recover its spent
  costs from the sale of its interests. The amounts recorded as mineral
  properties reflect actual costs incurred and are not intended to express
  present or future values.
The capitalized amounts may be written
  down if potential future cash flows, including potential sales proceeds,
  related to the property are estimated to be less than the carrying value of
  the property.  Management of the Company reviews the carrying value of each
  mineral property interest quarterly, and whenever events or changes in
  circumstances indicate that the carrying value may not be recoverable.
   Reductions in the carrying value of each property would be recorded to the
  extent the carrying value of the investment exceeds the estimated future net
  cash flows.
70
Exploration and development costs
Exploration costs are expensed as
  incurred. When it is determined that a mining deposit can be economically and
  legally extracted or produced based on established proven and probable
  reserves, further exploration costs and development costs incurred after such
  determination will be capitalized. The establishment of proven and probable
  reserves is based on results of final feasibility studies which indicate
  whether a property is economically feasible. Upon commencement of commercial
  production, capitalized costs will be transferred to the appropriate asset
  category and amortized over their estimated useful lives. Capitalized costs,
  net of salvage values, relating to a deposit which is abandoned or considered
  uneconomic for the foreseeable future, will be written off.
Foreign currency translation
The U.S. dollar is the functional currency
  of the Company. Transactions involving foreign currencies for items included
  in operations are translated into U.S. dollars using the monthly average
  exchange rate; monetary assets and liabilities are translated at the exchange
  rate prevailing at the balance sheet date and all other balance sheet items
  are translated at the historical rates applicable to the transactions that
  comprise the amounts. Translation gains and losses are included in the
  determination of net income.
Equipment
Equipment is recorded at cost and is
  comprised of office furniture, trucks, computers and lab equipment.  The
  trucks are being amortized on a straight line basis over 2 years; other
  equipment is being amortized on a straight line basis over 5 years.
Income taxes
Income taxes are accounted for using the
  liability method of tax allocation. Under this method deferred income tax
  assets and liabilities are recognized for the tax consequences of temporary
  differences by applying enacted statutory tax rates applicable to future years
  to differences between the financial statement carrying amounts and the tax
  bases of existing assets and liabilities.
The effect on deferred taxes for a change
  in tax rates is recognized in income in the period that includes the
  enactment. In addition, deferred tax assets are recognized to the extent their
  realization is more likely than not.
Stock-based compensation
In December 2004, the Financial Accounting
  Standards Board issued Statement of Financial Accounting Standard ("SFAS")
  123R, "Share-Based Payment", ("SFAS 123 (R)") a revision to SFAS 123.  SFAS
  123(R) requires all share-based payments to be recognized in the financial
  statements based on their values using either a modified-prospective or
  modified-retrospective transition method.
Prior to March 31, 2006, the Company's
  stock-based employee compensation plans were accounted for under the
  recognition and measurement provisions of Accounting Principles Board Opinion
  ("APB") No. 25, "Accounting for Stock Issued to Employees" ("APB 25") and
  related interpretations, as permitted by FASB Statement No. 123, "Accounting
  for Stock-Based Compensation" ("SFAS 123").  The Company did not recognize
  employee stock-based compensation costs in its statement of operations for the
  periods prior to March 31, 2006 as all options granted had an exercise price
  equal to the market value of the underlying common stock on the date of the
  grant.
Effective April 1, 2006, the Company
  adopted the fair value recognition provisions of SFAS No. 123(R), using the
  modified-prospective-transition method.  The Company's total employees are
  relatively few in number and turnover is considered remote, therefore the
  Company currently estimates forfeitures to be 5.5%.  Estimation of forfeitures
  is reviewed on a quarterly basis.  As a result of adopting FAS 123(R), the net
  loss for the year ended March 31, 2007 increased by $1,268,422 comparatively
  unrecognized expense for the prior year would have been $86,045.  Both basic
  and diluted loss per share for the year ended March 31, 2007 increased by
  $0.03.
71
Loss per share
Loss per common share is determined based
  on the weighted average number of common shares outstanding during the year.
  Diluted loss per share is calculated by the treasury stock method. Under the
  treasury stock method, the weighted average number of common shares
  outstanding for the calculation of diluted earnings per share assumes that the
  proceeds to be received on the exercise of dilutive stock options and warrants
  are applied to repurchase common shares at the average market price for the
  period. Stock options and warrants are dilutive when the Company has income
  from continuing operations and when the average market price of the common
  shares during the period exceeds the exercise price of the options and
  warrants.
Asset retirement obligations
The Company records the fair value of an
  asset retirement obligation as a liability in the period in which it incurs a
  legal obligation associated with the retirement of tangible long-lived assets
  that results from the acquisition, construction, development or normal use of
  the assets with a corresponding increase in the carrying amount of the related
  long-lived asset. This amount is then depreciated over the estimated useful
  life of the asset. Over time, the liability is increased to reflect an
  interest element considered in its initial measurement at fair value. The
  amount of the liability will be subject to re-measurement at each reporting
  period. Currently, the Company has a reclamation liability of $5,600 which is
  disclosed further in Note 9.
Recent accounting pronouncements
In June 2006, the FASB issued FASB
  interpretation No. 48 – Accounting for Uncertainty in Income Taxes ("FIN 48").
   FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
  an enterprise's financial statements in accordance with FASB Statement No.
  109, Accounting for Income Taxes.  FIN 48 prescribes a recognition threshold
  and measurement attribute for the financial statement recognition and
  measurement of a tax position taken or expected to be taken in tax return.
   This Interpretation also provides guidance on derecognition, classification,
  interest and penalties, accounting in interim periods, disclosure and
  transition.  This interpretation is effective for fiscal years beginning after
  December 15, 2006.  The adoption of FIN 48 will not have a material impact on
  the Company's consolidated financial statements.
In September 2006, the FASB issued SFAS
  157, Fair Value Measurements ("SFAS 157").  SFAS 157 defines fair value,
  establishes a framework for measuring fair value in GAAP, and expands
  disclosures about fair value measurements.  This Statement applies under other
  accounting pronouncements that require or permit fair value measurements, the
  Board having previously concluded in those pronouncements that fair value is a
  relevant measurement attribute.  Accordingly, this Statement does not require
  any new fair value measurements.  However, the application of this Statement
  will change current practice, effective December 1, 2007.  The adoption of
  SFAS 157 will not have a material impact on the Company's consolidated
  financial statements.
Reclassification
Certain comparative figures have been
  reclassified to conform to the current year presentation.
3. EQUIPMENT
March 31, 2007
Cost
$
Accumulated
Depreciation
$
Net Book Value
$
Office and lab equipment
151,857
46,601
105,256
Trucks under capital lease
71,319
23,213
48,106
Total
223,176
69,814
153,362
March 31, 2006
Cost
$
Accumulated
Depreciation
$
Net Book Value
$
Office and lab equipment
152,504
27,974
124,530
Truck under capital lease
32,504
4,088
28,416
Total
185,008
32,062
152,946
72
4. MINERAL PROPERTY
The Company initially entered into a
  property option agreement dated July 21, 2003 to acquire up to a 70% interest
  in the Borealis property in Nevada, USA from Golden Phoenix Minerals, Inc. for
  cash consideration of $125,000 and the obligation to make qualifying
  expenditures over several years. On January 28, 2005, the Company purchased
  outright the rights to a full 100% interest in the property for $1,400,000. A
  cash payment of $400,000 was made on closing and the Company accrued the
  outstanding liability of $1,000,000.  This amount was paid in four quarterly
  payments of $250,000 over the following 12 months.
Total
$
Mineral property costs,  March 31,
      2004
199,753
Expenditures during the year
1,575,573
Mineral property costs, March 31,
      2005
1,775,326
Expenditures during the year
122,881
Mineral property costs, March 31,
      2006
1,898,207
Expenditures during the year
22,164
Mineral property costs, March 31,
      2007
1,920,371
5. EXPLORATION
Year ended
March 31,
2007
$
Year ended
March 31,
2006
$
Period from
April 24, 2003
(inception) to
March 31,
2007
$
NEVADA, USA
Borealis property
Exploration:
Drilling
2,623,795
1,835,650
4,593,938
Property maintenance
668,260
660,722
1,968,971
Geologic and assay
657,976
414,595
1,223,939
Project management
535,975
260,057
1,144,201
Engineering
295,792
304,774
743,340
Metallurgy
37,894
181,212
253,718
Total exploration
4,819,692
3,657,010
9,928,107
6.
  CAPITAL STOCK
a.   Authorized capital stock
  consists of 150,000,000 common shares with a par value of $0.001 per share and
  15,000,000 preferred shares with a par value of $0.001 per share.
On April 4, 2006, the Board of Directors
  approved, reserving 1,000,000 common shares to be granted as Restricted Stock
  Units.  On July 24, 2006 the plan name was revised to the 2006 Omnibus
  Incentive Plan.
During the quarter ended June 30, 2006,
  the Company completed private placements to an officer and an employee of
  129,000 units at Cdn$1.35, with each unit comprising of one common share and ½
  of one common share 'series D' warrant.  Each whole warrant entitles the
  holder to purchase a common share at a price of Cdn$1.82 per share until June
  10, 2007.  Share issuance costs totaled $3,533 and the Company recorded
  compensation expense of $7,740 in relation to the discount received by the
  participants of the private placement.
73
On February 9, 2007 the Company completed
  a private placement of 5,000,000 units at Cdn$0.90, each unit comprising of
  one common share and one series E warrant.  Each series E warrant entitles the
  holder to purchase a common share at a price of Cdn$1.10 per share in year one
  and Cdn$1.35 per share in year two until February 9, 2009. The Company also
  issued 85,050 compensation warrants with a fair value of $11,397 (Series F
  warrants) to agents and are exercisable until February 9, 2008 at a price of
  Cdn$0.90 per share.  Share issuance costs in addition to the broker warrant
  valuation was $80,575.  The Company has a right to force warrant holders to
  exercise warrants if the common share price of the Company remains equal to or
  greater than Cdn$1.85 per common share for a period of twenty consecutive
  days.
b.  Warrants:
The following table contains information
  with respect to all warrants:
Number of Warrants
Fair Value of Agents' and
Underwriter Warrants
#
$
Warrants outstanding, March 31,
      2004
—
—
Issued for:
Private placements
3,407,981
—
Agent's compensation
141,008
45,100
Exercised
—
—
Warrants outstanding, March 31,
      2005
3,548,989
45,100
Issued for:
Private placements
3,015,204
—
Agent's compensation on private
      placement
130,000
35,100
Initial Public Offering (IPO) – Series
      A
6,900,000
—
Underwriters' compensation on IPO
690,000
135,100
Private placements – Series B
2,737,500
—
Agents' compensation on private
      placement - Series C
280,500
76,540
Exercised
(197,500)
—
Warrants outstanding, March 31,
      2006
17,104,693
291,840
Issued for:
Private placements – Series D
64,500
—
Private Placements – Series E
5,000,000
—
Agent's compensation on private
      placement – Series F
85,050
11,397
Exercised
(1,658,275)
—
Expired
(15,175,410)
—
Warrants outstanding, March 31,
      2007
5,420,558
303,237
The following table summarizes information
  about warrants outstanding and exercisable as at March 31, 2007:
Warrants Outstanding and Exercisable
Average Remaining Life
Warrants
Years
Exercise Price
Expiry date
#
#
130,000
0.1
$0.65
April 1, 2007
64,500
0.2
Cdn$1.82
June 10, 2007
141,008
0.8
$0.65
January 28, 2008
85,050
0.9
Cdn$0.90
February 9, 2008
5,000,000
1.9
Cdn$1.10*
February 9, 2009
5,420,558
1.8
$0.96**
*The warrants are exercisable through
  February 8, 2008  at Cdn$1.10 and exercisable at Cdn$1.35 per unit thereafter.
** Based on the March 31, 2007 exchange rate of Cdn$1.1546 equals US$1.
74
The fair value of agents' and
  underwriters' warrants issued during 2007 and 2006 has been estimated using
  the Black-Scholes Option Pricing Model based on the following assumptions
  respectively: a risk-free interest rate of 3.38% to 5.21% as of the date of
  transaction; expected life of 1 to 3 years depending on their terms; an
  expected volatility of 53% to 70% (based on the average volatility of
  companies in the industry at date of issuance for period equivalent to the
  expected life); and no expectation for the payment of dividends.
c.  Stock options:
In August 2005, two newly appointed
  directors were granted 300,000 options which vest over the following 18 months
  and are exercisable for 5 years at a price of $0.75 per share.
In September 2005, a newly appointed
  officer was granted 100,000 options which vest over the following 24 months
  and are exercisable for 5 years at a price equal to the initial public
  offering price of units of Cdn$0.85 per share.
In November 2005, two employees were
  granted 95,000 options and a consultant was granted 20,000 options. These
  options vest over 18 to 24 months and are exercisable for 5 years at a price
  equal to the initial public offering price of units of Cdn$0.85 per share.
During the quarter ended March 31, 2006,
  the Company granted a total of 420,000 stock options, 245,000 to four
  employees exercisable at prices between Cdn$1.15 - Cdn$1.37 and 175,000 to
  three consultants exercisable at prices between Cdn$1.25 – Cdn$1.37.  These
  options vest over 14 to 24 months and are exercisable for 5 years from the
  date of the grant.
On April 4, 2006 (amended July 24, 2006),
  the Board of Directors approved the 2006 Omnibus Incentive Plan, which
  increased the number of reserved shares of common stock for issuance to
  employees, officers, directors, consultants and advisors, from 3,000,000 to
  7,000,000 shares.  Within the increased number of shares reserved the 2006
  Omnibus Incentive Plan allowed 1,000,000 shares to be granted as restricted
  stock units.  On April 4, 2006, 1,570,000 options were granted to directors,
  officers and a consultant, of which 1,475,000 have been granted under the 2006
  Omnibus Incentive Plan and vest on anniversary date of the grant, 95,000
  options were granted under the previous incentive plan and vest over 24
  months.  On vesting, the options granted are exercisable for 5 years at a
  price of Cdn$1.37 per share.
On April 18, 2006, the Board of Directors
  approved the grant of 290,000 stock options to an officer, employee and a
  consultant.  The options vest over 12 to 30 months and are exercisable, once
  vested, for 5 years at a price of Cdn$1.37 per share.
On May 26, 2006, the Board of Directors
  approved the grant of 30,000 stock options to an outside consulting firm who
  will be providing certain investor relations services to the company.  The
  options vest over the next 24 months and are exercisable for 5 years from the
  date of grant at a price of Cdn$1.60 per share.
On July 24, 2006, the Board of Directors
  approved the grant of 80,000 stock options to two outside consulting firms who
  will be providing certain investor relations and consulting services to the
  company.  The options vest within 12 months and are exercisable for 5 years
  from the date of grant at a price of Cdn$1.29 per share.
The 2006 Omnibus Incentive Plan was
  ratified by the shareholders at the company's annual general meeting on
  September 12, 2006, along with all options previously granted that were
  pending such ratification.
On September 25, 2006, the Board of
  Directors approved the grant of 40,000 stock options to an employee of the
  Company.  The options vest over 4 to 24 months and are exercisable for 5 years
  at a price of Cdn$1.37 per share.
On October 31, 2006, the Company granted
  of 50,000 stock options to an outside consulting firm who are providing
  certain investor relations services to the company.  The options vest over the
  next 15 months and are exercisable for 5 years from the date of grant at a
  price of Cdn$1.34 per share.
On January 10, 2007, the Company granted
  three employees a total of 190,000 options and 50,000 options to a consultant.
   These options vest over a period of 12 months with 50% vesting immediately
  and the balance in 12 months and are exercisable for 5 years at a price of
  Cdn$0.81 per share.
75
On January 28, 2007, the Company granted
  20,000 options to a consultant which are exercisable for 5 years.  The options
  vest within 12 months and are exercisable at a price of Cdn$0.88 per share.
On February 26, 2007, the Company granted
  425,000 options to certain officers of the Company.  These options vest over a
  period of 12 months with 50% vesting immediately and the balance in 12 months
  and are exercisable for 5 years at a price of Cdn$0.80 per share.
The Company recognizes stock-based
  compensation expense over the requisite service period of the individual
  grants, which generally equals the vesting period.  SFAS 123(R) requires
  forfeitures to be estimated at the time of grant and revised, if necessary, in
  subsequent periods if actual forfeitures differ from those estimates.
   Stock-based compensation is expensed on a straight-line basis over the
  requisite service period.
For the years ended March 31, 2007 and
  2006, the Company recorded total stock-based compensation expense related to
  stock options and restricted stock units as follows:
Year Ended March 31, 2007
Year Ended March 31, 2006
Management salaries
1,343,164
—
Consulting fees
123,043
15,258
Total stock-based compensation
1,466,207
15,258
Stock option activity
The following table summarizes the
  Company's stock option activity for the years ended March 31, 2007 and 2006:
Year Ended
March
31, 2007
Weighted Average exercise price
Year Ended
March
31, 2006
Weighted Average exercise price
Outstanding at April 1, 2006
2,879,000
$0.77
2,000,000
$0.75
Granted
2,745,000
$1.06
935,000
$0.84
Exercised
(107,500)
$0.77
—
Forfeited
(234,000)
$1.11
(56,000)
$1.07
Outstanding at March 31, 2007
5,282,500
$0.91
2,879,000
$0.77
Vested and exercisable at March 31,
      2007
3,205,000
$0.81
2,272,000
$0.75
The following table summarizes
  information about stock options outstanding as at March 31, 2007:
Stock Options Outstanding and
      Exercisable
Stock Options
Outstanding
Average Remaining Life
(Years)
Stock Options
Exercisable
Average Remaining Life
of Exercisable (Years)
Weighted Average exercise price
2,262,500
3.0
2,262,500
3.0
$0.75
115,000
3.6
75,000
3.6
Cdn$0.85
90,000
3.8
54,000
3.8
Cdn$1.15
50,000
3.8
50,000
3.8
Cdn$1.25
205,000
4.0
106,000
4.0
Cdn$1.37
1,715,000
5.0
290,000
5.0
Cdn$1.37
30,000
5.2
—
5.2
Cdn$1.60
80,000
4.3
30,000
4.3
Cdn$1.29
50,000
4.6
—
4.6
Cdn$1.34
240,000
4.8
120,000
4.8
Cdn$0.81
20,000
4.8
5,000
4.8
Cdn$0.88
425,000
4.9
212,500
4.9
Cdn$0.80
5,282,500
3,205,000
$0.91*
* Based on the March 31, 2007 exchange
  rate of Cdn$1.1546 equals US$1.
76
Valuation assumptions
Compensation expense recorded in the
  financial statements has been estimated using the Black-Scholes option pricing
  model. The assumptions used in the pricing model include:
2007
2006
Dividend yield
0%
0%
Expected volatility
55%
53% - 70%
Risk free interest rate
4.54% - 5.21%
3.38% - 4.7%
Expected lives
3 years
3 years
The risk-free interest rate is determined based on the rate at
  the time of grant for US government zero-coupon bonds for a 3 year term which
  is a term equal to the estimated life of the option.  Dividend yield is based
  on the stock option's exercise price and expected annual dividend rate at the
  time of grant.  Volatility is derived by measuring the average share price
  fluctuation of three publicly listed companies that operate in the same
  industry.  The period of historical volatility is the same period as the
  expected life of the option being 3 years.
The Black-Scholes
  option-pricing model used by the Company to calculate option values was
  developed to estimate the fair value of freely tradeable, fully transferable
  options without vesting restrictions, which significantly differ from the
  Company's stock option awards.  Options pricing models require the input of
  highly subjective assumptions, including future stock price volatility and
  expected time until exercise, which greatly affect the calculated values.
  Changes in these assumptions can materially affect the fair value estimate and
  therefore it is management's view that the existing models do not necessarily
  provide a single reliable measure of the fair value of the Company's equity
  instruments.
d.  Restricted stock units:
On April 4, 2006, the
  Board of Directors approved the grant of 8,000 restricted stock units ('RSU')
  to an officer of the company. The RSU's will vest over 12 to 24 months from
  the date of grant and once vested will entitle the grantee to 8,000 common
  shares in the Company.
On December 12, 2006, the Board of
  Directors approved the grant of 15,000 restricted stock units ('RSU') to an
  employee of the company.  The RSU's will vest over 12 months from the date of
  grant and once vested will entitle the grantee to 15,000 common shares in the
  Company.
On January 10, 2007, 650,000 restricted
  stock units ('RSU') were granted to employees, officers and directors of the
  Company.  The RSU's will vest within 18 months of granting and once vested
  will entitle the grantee one common share for each RSU.
The Company recognizes stock-based
  compensation is expensed on a straight-line basis over the requisite service
  period of the individual grants, which is generally equals the service period.
   The value of the restricted stock unit is calculated using the closing price
  of the Company's common stock on the date of the grant.
The following table summarizes information
  about restricted stock units outstanding as at March 31, 2007:
RSU's
Granted
RSU's
Vested
Weighted Average
Fair Value at Grant Date
Outstanding at April 1, 2006
—
—
—
Issued April 18, 2006
8,000
8,000
Cdn$1.63
Issued December 12, 2006
15,000
7,500
*
Cdn$0.84
Issued January 10, 2007
650,000
100,000
Cdn$0.82
Outstanding at December 31, 2006
673,000
115,500
$0.71
*
Vested on
  March 31, 2007.  Stock certificate issued on April 1, 2007.
77
All transactions with related parties have
  occurred in the normal course of operations and are measured at their exchange
  amount as determined by management. All material transactions and balances
  with related parties not disclosed elsewhere are described below.
During the year ended March 31, 2007, the
  Company paid consulting fees to non-independent directors and officers in the
  amount of $150,353 [March 31, 2006 - $92,112; March 31, 2005 - $429,946;
  Period from inception to March 31, 2004 - $395,817] for services rendered on
  the exploration of the Borealis property.
8. INCOME TAXES
Deferred income taxes reflect the net tax
  effects of temporary differences between the carrying amounts of assets and
  liabilities for financial reporting purposes and the amounts used for income
  tax purposes. Significant components of the Company's deferred tax balances
  are as follows:
2007
2006
$
$
Deferred tax assets
Net operating loss carryforwards
3,203,058
1,944,038
Mineral property basis
451,485
321,245
Feasibility costs
316,511
167,067
Exploration costs
2,131,024
1,100,391
Stock compensation
543,376
—
Reclamation costs
2,075
—
Equipment
6,588
1,730
Total deferred tax assets
6,654,117
3,534,471
Valuation allowance
(6,651,419)
(3,502,530)
Net deferred tax assets
2,698
31,941
Deferred tax liabilities
Equipment
—
—
Prepaid expenses
(2,698)
(31,941)
Total deferred tax liabilities
(2,698)
(31,941)
—
—
The potential income tax benefits
  relating to the deferred tax assets have not been recognized in the
  consolidated financial statements as their realization did not meet the
  requirements of "more likely than not" under the liability method of tax
  allocation. Accordingly, no deferred tax assets have been recognized as at
  March 31, 2007 and 2006.
The reconciliation of income taxes
  attributable to continuing operations computed at the statutory income tax
  rate of 37.06 % [2006 - 37.06%] is as follows:
2007
2006
$
$
Tax at statutory tax rates
(3,057,999)
(913,588)
State taxes, net of federal benefit
(179,985)
(53,771)
Non-deductible items
9,101
1,030
Change in valuation allowance
3,228,883
966,329
—
—
At March 31, 2007 the Company has
  non-capital losses of approximately $8.6 million [2006 - $5.2 million] in the
  United States available for future deduction from taxable income and which
  expire prior to 2026. The Company has not recognized as an asset any of these
  potential deductions as it cannot be considered more likely than not that they
  will be utilized.
78
9. RECLAMATION DEPOSIT
During the year ended March 31, 2007, the
  Company increased the amount of their performance bond from $59,800 to
  $108,176 by purchasing a further performance bond in the amount of $48,376
  from an insurance company.  The Company earned $5,583 of interest income from
  the purchase of the bond.  The total bond purchase is in support of the
  potential future obligations the Company may incur under a Plan of Operation
  for exploration within the brown-field area of the Borealis property filed
  with the U.S. Forest Service.  The Company also deposited directly $21,000
  with the Bureau of Land Management ("BLM") in support of its potential future
  obligations for reclamation during the Company's exploration activities within
  the BLM area. At March 31, 2007, the Company recorded a reclamation liability
  of $5,600 (March 31, 2006 – $7,000) representing future obligations related to
  its drilling activities completed to March 31, 2007. The Company continues to
  hold the bond in support of potential future obligations under the Plan of
  Operation for exploration filed with the U.S. Forest Service.
10. COMMITMENTS & CONTINGENCIES
a.     A portion of
  the Borealis Property is subject to a mining lease. The Company is required to
  make monthly lease payments of $9,094, adjusted annually based on the Consumer
  Price Index, for the duration of the lease term. In addition, production of
  precious metals from the Borealis Property will be subject to the payment of a
  royalty under the terms of the mining lease. The mining lease expires in 2009,
  but may be renewed by the Company annually thereafter, so long as mining
  activity continues on the Borealis Property. The Company has the option to
  terminate the mining lease at any time prior to expiry in 2009.
b..    The Company rents
  office space in Vancouver, BC on a 3 year term.  The following are rental
  lease commitments in relation to the office lease:
$
2008
35,029
2009
14,595
c.     During December
  2006, the Company closed its Lakewood, Colorado office and terminated certain
  office staff.  Closure costs totalled to $96,964, which included various lease
  buyouts, and are included in general and administration expenses.
d.     On January 18,
  2007, the Company was served with a motion to compel arbitration regarding the
  non-payment of severance to the former Chief Operating Officer.  On April 19,
  2007, a comprehensive settlement agreement was reached that included a
  one-time payment by the Company of $75,000.
11. CAPITAL LEASE
a.     The Company
  entered into a lease, maturing in May 2008, to acquire a second truck.  The
  financing for both trucks are accounted for as capital leases, with the
  present value of the required lease payments recorded as a liability and an
  asset at inception and thereafter lease payments reduce the liability and
  result in interest expense and the asset is depreciated.  The actual combined
  lease payments are $2,371 per month with a residual payment of $12,000 due
  October 2007 and $13,854 due May 2008.
The present value of required payments
  during each fiscal year is as follows:
$
2008
32,977
2009
17,308
79
Unaudited Interim Consolidated Financial
  Statements
Gryphon Gold Corporation
(an exploration stage company)
As of December 31, 2007
(Stated in U.S. dollars)
80
Gryphon Gold Corporation
(an exploration stage company)
CONSOLIDATED BALANCE SHEETS
(Stated in US dollars)
(unaudited)
As at
As at
December 31,
March 31,
2007
2007
$
$
ASSETS
Current
Cash
5,541,213
7,150,154
Accounts receivable
85,415
65,483
Prepaid expenses
157,553
129,065
Total Current Assets
5,784,181
7,344,702
Mineral properties [
note 5
]
12,619,565
1,920,371
Equipment [
note 4
]
158,042
153,362
Other assets [
note 9
]
261,389
134,759
18,823,177
9,553,194
LIABILITIES AND STOCKHOLDERS, EQUITY
Current
Accounts payable and accrued
      liabilities
1,050,614
786,565
Current portion of capital lease [
note
      11
]
32,536
32,977
Total current liabilities
1,083,150
819,543
Convertible promissory note [
note
      12
]
4,366,656
-
Capital lease [
note 11
]
-
17,308
Commitments & contingencies [
note
      10
]
Stockholders' equity
Common stock
61,682
47,298
Additional paid-in capital
37,756,189
26,649,868
Deficit accumulated during the
      exploration stage
(24,444,500)
(17,980,822)
Total stockholders' equity
13,373,371
8,716,344
18,823,177
9,553,194
See accompanying notes
81
Gryphon Gold
  Corporation
(an exploration stage company)
CONSOLIDATED STATEMENT OF OPERATIONS
(Stated in US dollars)
(Unaudited)
Period from
April 24, 2003
Three Months Ended
Nine Months Ended
(inception) to
December 31,
December 31,
December 31,
December 31,
December 31,
2007
2006
2007
2006
2007
$
$
$
$
$
Exploration [
note 6
]
661,007
1,328,514
3,414,405
3,649,732
13,342,512
Management salaries and consulting
      fees
529,729
855,562
1,663,160
1,746,164
6,906,312
General and administrative
254,831
240,219
812,436
721,437
2,386,964
Legal and audit
111,020
106,258
308,877
271,017
1,269,364
Travel and accommodation
68,704
96,678
172,408
282,117
861,978
Depreciation
18,746
14,625
48,983
40,107
134,413
Loss on disposal of equipment
-
19,135
6,552
19,135
26,274
Foreign exchange (gain) loss
3,034
25,776
18,336
4,801
523
Interest income
(40,782)
(66,303)
(170,332)
(242,832)
(672,693)
Interest expense
130,300
-
188,853
-
188,853
Net loss for the period
(1,736,589)
(2,620,464)
(6,463,678)
(6,491,678)
(24,444,500)
Basic and diluted loss per share
$(0.03)
$(0.06)
$(0.13)
$(0.16)
Basic and diluted weighted average
      number of common shares outstanding
58,954,952
41,703,926
49,764,662
40,518,405
See accompanying notes
82
Gryphon Gold
  Corporation
(an exploration stage company)
CONSOLIDATED STATEMENT OF
STOCKHOLDERS EQUITY
(Stated in US dollars)
(Unaudited)
Deficit
accumulated
Additional
during the
Common Stock
paid-in
exploration
Shares
Amount
capital
stage
Total
#
$
$
$
$
Balance, inception April 24 , 2003
Shares issued
For private placements
33,197,370
33,197
16,765,307
--
16,798,504
Share issue costs
--
--
(645,048)
--
(645,048)
Initial Public Offering (IPO)
6,900,000
6,900
5,029,597
--
5,036,497
Share issue costs (IPO)
--
--
(2,241,940)
--
(2,241,940)
Compensation component of shares
      issued
--
--
226,000
--
226,000
Fair value of agent's warrants issued
      [
note 7[b]
]
--
--
156,740
--
156,740
Fair value of underwriters
      compensation warrant on IPO
[note 7[b]]
--
--
135,100
--
135,100
Exercise of warrants
197,500
198
194,085
--
194,283
Fair value of options granted to
consultant [
note 7[c]
]
--
--
49,558
--
49,558
Net loss for the year
--
--
--
(9,243,681)
(9,243,681)
Balance, March 31, 2006
40,294,870
40,295
19,669,399
(9,243,681)
10,466,013
Shares issued
For private placements
5,129,000
5,129
3,966,518
--
3,971,647
Share issue costs
--
--
(95,505)
--
(95,505)
Fair value of agent's warrants
      issued
on private placements [
note
      7[b]
]
--
--
11,397
--
11,397
Fair value of options granted [
note
      7[c]
]
--
--
1,314,961
--
1,314,961
Fair value of vested stock grants [
note
      7[d]
]
108,000
108
151,138
--
151,246
Exercise of warrants
1658,275
1,658
1,548,894
--
1,550,552
Exercise of options
107,500
108
83,066
--
83,174
Net loss for the year
--
--
--
(8,737,141)
(8,737,141)
Balance, March 31, 2007
47,297,645
47,298
26,649,868
(17,980,822)
8,716,344
Shares issued
For private placements
9,486,500
9,487
7,346,341
--
7,355,918
For Mineral Properties
4,500,000
4,500
3,444,918
--
3,449,418
Share issue costs
--
--
(507,537)
--
(507,537)
Fair value of agents' warrants
      issued on
private placements
[note 7[a][b]]
--
--
54,490
--
54,490
Fair value of options granted [
note
      7[c]
]
--
--
361,731
--
361,732
Fair value of vested stock grants [
note
      7[d]
]
267,500
267
321,918
--
322,184
Exercise of warrants
130,000
130
84,370
--
84,500
Net loss for the period
--
--
--
(6,463,678)
(6,463,678)
Balance, December 31, 2007
61,681,645
61,682
37,756,189
(24,444,500)
13,373,371
See accompanying notes
83
Gryphon Gold
  Corporation
(an exploration stage company)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Stated in US dollars)
(Unaudited)
Period from
April 24, 2003
Three Months Ended
Nine Months Ended
(inception) to
December 31,
December 31,
December 31,
December 31,
December 31,
2007
2006
2007
2006
2007
$
$
$
$
$
OPERATING ACTIVITIES
Net Loss for the period
(1,736,589)
(2,620,464)
(6,463,678)
(6,491,678)
(24,444,500)
Items not involving cash:
Depreciation
18,745
14,625
48,982
40,107
134,412
Loss on disposal of equipment
--
19,135
6,552
19,135
26,274
Fair value of options, warrants
and other non-cash compensation
199,422
529,683
683,916
779,747
2,504,056
Non-cash interest expense
65,930
--
94,297
--
94,297
Changes in non-cash working
capital items:
Accounts receivable
(27,859)
5,325
(19,932)
26,674
(85,415)
Accounts payable and accrued
Liabilities
(173,198)
101,677
264,049
(506,431)
1,050,614
Prepaid expenses
(82,496)
(54,536)
(28,487)
(13,883)
(157,553)
Cash used in operating activities
(1,736,045)
(2,004,555)
(5,414,301)
(6,146,329)
(20,877,815)
INVESTING ACTIVITIES
Reclamation deposit
(6,177)
--
(60,877)
(52,100)
(195,636)
Purchase of equipment
(17,154)
(17,802)
(57,374)
(35,173)
(251,642)
Nevada Eagle acquisition and
related non-compete agreement
[note 3]
--
--
(3,068,340)
--
(3,068,340)
Mineral property expenditures
[note 5]
(5,409)
--
(9,119)
(22,164)
(1,929,490)
Mineral property lease payments
      received
24,135
--
29,134
--
29,135
Proceeds from sale of equipment
--
--
2,314
--
6,264
Cash used by investing activities
(4,605)
(17,802)
(3,164,262)
(109,437)
(5,409,709)
FINANCING ACTIVITIES
Capital lease principal payments
(6,079)
(5,437)
(17,749)
(12,318)
(35,660)
Cash received for shares
3,621,211
662,053
7,494,908
1,755,514
34,662,045
Share issue costs
(261,123)
--
(507,537)
(3,533)
(3,186,773)
Subscription receivables collected
--
--
--
--
389,125
Cash provided by financing activities
3,354,009
656,616
6,969,622
1,739,663
31,828,737
Increase (decrease) in cash
during the period
1,613,359
(1,365,741)
(1,608,941)
(4,516,103)
5,541,213
Cash, beginning of period
3,927,854
6,240,563
7,150,154
9,390,925
--
Cash, end of period
5,541,213
4,874,822
5,541,213
4,874,822
5,541,213
See accompanying notes
84
1. NATURE OF OPERATIONS AND CONTINUANCE
  OF OPERATIONS
Gryphon Gold Corporation
  was incorporated in the State of Nevada in 2003 and wholly owns its
  subsidiaries, Borealis Mining Company, Gryphon Nevada Eagle Holding Company
  and Nevada Eagle Resources LLC (collectively, "the Company"). The Company is
  an exploration stage company in the process of exploring its mineral
  properties, and has not yet determined whether these properties contain
  reserves that are economically recoverable.
The recoverability of
  amounts shown for mineral property interests in the Company's consolidated
  balance sheets are dependent upon the existence of economically recoverable
  reserves, the ability of the Company to arrange appropriate financing to
  complete the development of its properties, the receipt of necessary
  permitting and upon achieving future profitable production or receiving
  proceeds from the disposition of the properties. The timing of such events
  occurring, if at all, is not yet determinable.
2. BASIS OF
  PRESENTATION
These
  interim unaudited consolidated financial statements have been prepared by the
  Company in accordance with U.S. generally accepted accounting principles ("GAAP")
  for interim financial statements, applied on a consistent basis. These interim
  financial statements follow the same significant accounting policies and
  methods of application as those disclosed in Note 2 to the Company's audited
  consolidated financial statements as at and for the year ended March 31, 2007
  (the "Annual Financial Statements''), expect for the new revenue recognition
  and intangible asset policies described below related to the Nevada Eagle
  acquisition (see note 3). Accordingly, they do not include all disclosures
  required for annual financial statements. These interim unaudited consolidated
  financial statements and notes thereon should be read in conjunction with the
  Annual Financial Statements.
The
  preparation of these interim unaudited consolidated financial statements and
  the accompanying notes requires management to make estimates and assumptions
  that affect the amounts reported. In the opinion of management, these interim
  unaudited consolidated financial statements reflect all adjustments (which
  include only normal, recurring adjustments) necessary to state fairly the
  results for the periods presented. Actual results could vary from these
  estimates and the operating results for the interim periods presented are not
  necessarily indicative of the results expected for the full year.
In
  June 2006, the FASB issued FASB interpretation No. 48 – Accounting for
  Uncertainty in Income Taxes ("FIN 48").  FIN 48 clarifies the accounting for
  uncertainty in income taxes recognized in an enterprise's financial statements
  in accordance with FASB Statement No. 109, Accounting for Income Taxes.  FIN
  48 prescribes a recognition threshold and measurement attribute for the
  financial statement recognition and measurement of a tax position taken or
  expected to be taken in a tax return.  This Interpretation also provides
  guidance on derecognition, classification, interest and penalties, accounting
  in interim periods, disclosure and transition.  This interpretation is
  effective for fiscal years beginning after December 15, 2006.  Effective April
  1, 2007, the Company adopted FIN 48, which did not have a material impact on
  the Company's interim unaudited consolidated financial statements.
Revenue
  recognition
Mineral lease rentals or option payments are treated as reductions of the cost
  of the property as the payor is accumulating an interest in the mineral
  property; payments in excess of capitalized costs are recognized in income.
   Some agreements provide for payments in the form of stock and other equity
  instruments as well as cash payments.  Stock and other equity instruments are
  recognized based on their fair market value at the time of receipt.
   Fluctuations incurred during the holding period are accounted for as gains or
  losses from held for trading securities.   The leases provide for the receipt
  of royalty payments upon production of the property.  Royalty payments will be
  recognized in the period in which production occurs.  There are no properties
  in the production stage at this time.
Intangible Assets
Identifiable intangible assets include a non-competition agreement.  The
  initial measurement of the non-competition agreements is based on the fair
  value of the consideration paid.  The agreement is being amortized on a
  straight-line basis, over management's estimated useful like of five years.
85
3. ACQUISTION OF
  NEVADA EAGLE RESOUCES LLC
On
  August 21, 2007 Gryphon Gold Corporation closed the acquisition of Nevada
  Eagle Resources LLC, a privately held Nevada limited liability company
  ("Nevada Eagle"), pursuant to a membership interest purchase agreement (the
  "Purchase Agreement"), dated July 4, 2007, by and between the Company, Gerald
  W. Baughman and Fabiola Baughman, as sellers ("Sellers"), and Nevada Eagle.
  Under the Purchase Agreement, the company acquired all of the outstanding
  limited liability company interests of Nevada Eagle from the Sellers (the
  "Acquisition") for the following consideration, paid on August 21, 2007 (the
  "Closing Date"):
(a)
$2,500,000 in
      cash;
(b)
4,500,000 shares of common stock of the Company (the "Common Shares")
      valued at $3,449,418; and
(c)
a
      5% convertible note in the principal amount of $5,000,000 (the
      "Convertible Note") with an issue date of August 21, 2007 and a fair value
      of $3,390,640.
The
  Convertible Note, due March 30, 2010, bears interest at an annual rate of 5%
  and is convertible at the option of the holder into common shares of the
  Registrant at an initial conversion price of $1.00 per share during first the
  twelve-month period following the Closing Date, $1.25 per share during the
  second twelve-month period following the Closing Date, $1.50 per share
  thereafter, and $1.75 per share if converted on March 30, 2010. The interest
  payments are due  beginning on January 1, 2008, and payable thereafter on each
  January 1, and June 1.
In
  addition to the purchase consideration, the Sellers were entitled to all
  revenues of Nevada Eagle (payable in cash, stock, or other consideration)
  calculated to be received and received on the Assets and Properties from
  January 1, 2007 through midnight on December 31, 2007; however, pursuant to a
  letter agreement between the Company and the Sellers, dated August 21, 2007,
  the Sellers' revenue right did not include revenues generated or arising from
  any new agreements entered into by the Company regarding the acquired
  properties (as described below) executed after August 21, 2007.
Gryphon granted the Sellers registration rights under which Gryphon agreed to
  file, within the later of (i) 90 days of the Closing Date or (ii) any date in
  which Gryphon is required to file a registration statement for a third-party
  in connection with a financing or acquisition, but no later than 120 days of
  the Closing Date, a resale registration statement under the Securities Act of
  1933, as amended ("Securities Act"), to register the Common Shares issuable at
  Closing and the common shares of the Company issuable upon exercise of the
  Convertible Note.
Upon
  completion of the Acquisition, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of the Company. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and add to
  Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. These properties offer Gryphon both production
  opportunities or royalty income upon production. Twenty-six of the properties
  are 'farmed-out' through lease and option agreements that generate a positive
  cash flow net of carryings costs. The remaining wholly-owned properties are
  retained for Gryphon Gold's own exploration effort or additional future farm
  outs.
Under
  the terms of the Purchase Agreement, the closing of the Acquisition was
  subject to several closing conditions, including execution of several
  ancillary agreements as follows:
(a)
A
      Lock-up Agreement, dated August 21, 2007, under which the Sellers agree
      that for a period of three months following the Closing Date not to sell
      Common Shares issued or issuable under the Purchase Agreement and
      Convertible Note and, thereafter, to limit the sale of such Common Shares
      to 20% of the aggregate Common Shares issued under the Purchase Agreement
      and Convertible Note each quarter (with unsold Common Shares aggregating
      each quarter thereafter);
(b)
An Employment Agreement between the Registrant and Mr. Baughman for a term
      of one year, renewable by the parties, to serve as Gryphon's Vice
      President of Corporate Development; and
(c)
A
      Non-Competition Agreement under which the Sellers have agreed not to
      compete with the Company for the latter of (i) twelve (12) months
      following the Closing Date (the "Restricted Period"), or (ii) twelve (12)
      months following the termination of the Company's employment of Gerald
      Baughman.  The scope of the non-competition obligation relates to the
      business of acquiring and/or holding base metal and precious metal mineral
      assets located in the state of Nevada within the Area of Interest and to
      properties that have been examined by the Company or Mr. Baughman during
      the course of his employment by the Company, in any manner or capacity. 
      "Area of Interest" is defined as any property owned by the Company, Nevada
      Eagle, or any affiliate of the Company or Nevada Eagle on the latter of (i)
      Closing Date or (ii) the termination date of Gerald Baughman's employment
      by the Company, if any, together with any adjacent areas within one
      kilometre of the exterior boundary of such properties.
86
Consideration
paid for acquisition of Nevada Eagle
Cash at closing
$2,500,000
Cash due diligence costs
and other expenses
568,340
3,068,340
Common shares
3,449,418
Convertible note and value
of conversion feature
4,272,359
$10,790,117
Allocation of Purchase Price
Mineral properties
10,719,209
Non-competition agreement
70,908
$10,790,117
4. EQUIPMENT
December 31, 2007
Accumulated
Cost
Depreciation
Net Book Value
$
$
$
Office and lab equipment
197,986
71,002
126,984
Trucks under capital lease
71,319
40,261
31,058
Total
269,305
111,263
158,042
March 31, 2007
Accumulated
Cost
Depreciation
Net Book Value
$
$
$
Office and lab equipment
151,857
46,601
105,256
Trucks under capital lease
71,319
23,213
48,106
Total
223,176
69,814
153,362
87
5. MINERAL PROPERTIES
The Company initially
  entered into a property option agreement dated July 21, 2003 to acquire up to
  a 70% interest in the Borealis property in Nevada, USA from Golden Phoenix
  Minerals, Inc. for cash consideration of $125,000 and the obligation to make
  qualifying expenditures over several years. On January 28, 2005, the Company
  purchased outright the rights to a full 100% interest in the property for
  $1,400,000. A cash payment of $400,000 was made on closing.  The Company paid
  the full outstanding consideration of $1,000,000, in four quarterly payments
  of $250,000 during the year ended March 31, 2006.
Effective August 21, 2007,
  the Company purchased all the rights and interests of Nevada Eagle, as
  described in footnote 3.  $10,719,209 of the purchase price was allocated to
  the value of the exploration properties acquired.
Total
$
Mineral property costs, March 31, 2005
1,775,326
Expenditures during the year
122,881
Mineral property costs, March 31, 2006
1,898,207
Expenditures during the year
22,164
Mineral property costs, March 31, 2007
1,920,371
Nevada Eagle acquisition
[note 3]
10,719,209
Lease payments received
(29,134)
Expenditures during the period
9,119
Mineral property costs, December 31, 2007
12,619,565
6. EXPLORATION
Period from
April 24, 2003
Three months ended
Nine months ended
(inception) to
December 30,
December 31,
December 30,
December 31,
December 31,
2007
2006
2007
2006
2007
$
$
$
$
$
Borealis property
Exploration :
Property maintenance
194,654
96,035
546,233
527,395
2,515,204
Project management
69,899
215,037
189,772
490,281
1,333,973
Drilling
262,095
764,180
1,990,632
1,872,538
6,584,570
Engineering
15,353
123,777
20,353
275,646
763,693
Geological
106,752
109,950
609,393
445,978
1,833,332
Metallurgy
9,556
19,535
35,324
37,894
289,042
Subtotal Borealis property
658,309
1,328,514
3,391,707
3,649,732
13,319,814
Other Exploration & Development
2,698
-
22,698
-
22,698
Total exploration
661,007
1,328,514
3,414,405
3,649,732
13,342,512
7. CAPITAL STOCK
a.     Authorized
  capital stock consists of 150,000,000 common shares with a par value of $0.001
  per share and 15,000,000 preferred shares with a par value of $0.001 per
  share.
During the quarter ended December 31, 2007, 30,000 (192,500 for the nine
  months ended December 31, 2007) common shares were issued to employees and
  directors of the Company upon vesting of outstanding Restricted Stock Units.
On
  December 31, 2007, the Company issued an additional 22,500 (75,000 for the
  nine months ended December 31, 2007) common shares to a consultant acting as
  financial advisor to the Company in certain transactions.  The issuance is
  based on the consulting agreement, which requires 7,500 common shares to be
  issuable monthly for the term (March 15, 2007 – March 14, 2008) of the
  consulting agreement.  The Company charged to expense $16,342 in the quarter
  attributable ($68,990 for the nine months ended December 31, 2007) to the fair
  value of the common shares.
88
On
  December 14, 2007, the Company completed the final tranche of a private
  placement totalling 4,486,500 units at Cdn$0.80 for gross proceeds of
  C$3,589,200.   Each unit consisted of one common share and one series I
  warrant.  Each series I warrant entitles the holder to purchase a common share
  at a price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
   Cash compensation of C$71,624 and 89,530 compensation warrants (series J)
  were issued to agents and are exercisable at a price of Cdn$0.80 per share and
  expire 9 months after closing (14,000 of the compensation warrants were later
  rejected and cancelled by one of the registered dealers).  The Company has a
  right to force warrant holders to exercise warrants, if the common share price
  of the Company remains equal to or greater than, Cdn$1.85 per common share,
  for a period of twenty consecutive days.
On
  August 21, 2007, the Company issued 4,500,000 common shares as partial
  consideration for the acquisition of Nevada Eagle (see note 3, 'Acquisition of
  Nevada Eagle Resources LLC').
On
  August 3, 2007, the Company completed a private placement of 5,000,000 units
  at Cdn$0.80 for gross proceeds of C$4,000,000.  Each unit consisted of one
  common share and one series G warrant.  Each series G warrant entitles the
  holder to purchase a common share at a price of Cdn$1.00 per share during the
  first 12 months after closing and Cdn$1.25 per share during the second 12
  months after closing and until expiry.  Cash compensation of C$152,040 and
  265,050 compensation warrants (series H) were issued to agents and are
  exercisable at a price of Cdn$0.83 per share and expire 9 months after
  closing. The Company has a right to force warrant holders to exercise
  warrants, if the common share price of the Company remains equal to or greater
  than, Cdn$1.85 per common share, for a period of twenty consecutive days.
As at
  February 14, 2008, the Company has 61,712,895 common shares issued and
  outstanding, which includes common shares, issued to consultants (see note 13,
  'Subsequent Events').
b.  Warrants:
The following table contains information
  with respect to all warrants:
Number of Warrants
Fair Value of Warrants
#
$
Warrants outstanding, March 31, 2004
—
—
Issued for:
Private placements
3,407,981
—
Agents' compensation
141,008
45,100
Exercised
—
—
Warrants outstanding, March 31, 2005
3,548,989
45,100
Issued for:
Private placements
3,015,204
—
Agents' compensation on private
      placement
130,000
35,100
Initial Public Offering (IPO) – Series
      A
6,900,000
—
Underwriters' compensation on IPO
690,000
135,100
Private placements – Series B
2,737,500
—
Agents' compensation on private
      placement – Series C
280,500
76,540
Exercised
(197,500)
—
Warrants outstanding, March 31, 2006
17,104,693
291,840
Issued for:
Private placements – Series D
64,500
—
Private placements – Series E
5,000,000
—
Agents' compensation on private
      placement – Series F
85,050
11,397
Exercised
(1,658,275)
—
Expired
(15,175,410)
—
Warrants outstanding, March 31, 2007
5,420,558
303,237
Issued for:
Private placements – Series G
5,000,000
—
Private placements – Series I
4,486,500
—
Agents' compensation on private
      placement – Series H
265,050
44,040
Agents' compensation on private
      placement – Series J
89,530
10,450
Exercised
(130,000)
—
Expired
(64,500)
—
Warrants outstanding, December 31,
      2007
15,067,138
357,727
89
The following table summarizes information
  about warrants outstanding and exercisable as at December 31, 2007:
Warrants Outstanding and Exercisable
Average Remaining Life
Warrants
Years
Exercise Price
Expiry date
#
#
141,008
0.1
$0.65
January 28, 2008
85,050
0.1
Cdn$0.90
February 9, 2008
5,000,000
1.1
Cdn$1.10*
February 9, 2009
5,000,000
1.6
Cdn$0.80**
August 3, 2009
265,050
0.3
Cdn$0.83
May 3, 2008
3,254,000
1.9
Cdn$1.00***
November 22, 2009
1,050,000
1.9
Cdn$1.00***
November 27, 2009
182,500
1.9
Cdn$1.00***
December 14, 2009
17,780
0.6
Cdn$0.80
August 22, 2008
71,750
0.6
Cdn$0.80
August 27, 2008
15,067,138
1.0
$0.90****
*
The warrants are exercisable through
  February 8, 2008 at Cdn$1.10 and exercisable at Cdn$1.35 per unit thereafter
  until expiry
**
The
  warrants are exercisable through August 3, 2008 at Cdn$0.80 and exercisable at
  Cdn$1.10 per unit thereafter until expiry
***
The
  warrants are exercisable through November 21, 26 and December 13, 2008 at
  Cdn$1.00 and exercisable at Cdn$1.25per unit thereafter until expiry
****
Based on the December 31, 2007 exchange
  rate of Cdn$1 equals US$1.0088.
The
  fair value of agents' and underwriters' warrants issued during 2007 and 2006
  has been estimated using the Black-Scholes Option Pricing Model based on the
  following assumptions: a risk-free interest rate of 3.38% to 5.21% as of the
  date of transaction; expected life of 1 to 3 years depending on their terms;
  an expected volatility of 51% to 70% (based on the average volatility of
  companies in the industry at date of issuance for period equivalent to the
  expected life); and no expectation for the payment of dividends.
c.  Stock options:
On
  October 11, 2007, an investor relations firm was awarded 47,000 stock options.
   The options have vested 100% in this quarter and are exercisable for 5 years
  at a price of Cdn$0.88 per share.
On
  September 6, 2007, a director was awarded 100,000 stock options.  The options
  vest over one year and are exercisable for 5 years at a price of Cdn$0.77 per
  share.
On
  September 13, 2007, an employee was granted 20,000 stock options that vest
  over 2.5 years and are exercisable for 5 years at a price of Cdn$0.81 per
  share.
On
  September 21, 2007, four employees were granted 835,000 stock options that
  vest over two years and are exercisable for 5 years at a price of Cdn$0.90 per
  share.
On
  July 27, 2007, a consultant was awarded 75,000 stock options that vest over 2
  years and are exercisable for 5 years at a price of Cdn$0.91  per share.
On
  May 11, 2007, two employees were granted a total of 60,000 stock options.  The
  options vest over the next 18 months and are exercisable for 5 years at a
  price of Cdn$0.95 per share. 40,000 of these options have been subsequently
  forfeited.
90
The
  Company recognizes stock-based compensation expense over the requisite service
  period of the individual grants, which generally equals the vesting period.  SFAS
  123(R) requires forfeitures to be estimated at the time of grant and revised,
  if necessary, in subsequent periods if actual forfeitures differ from those
  estimates.  The Company's total employees are relatively few in number and
  turnover is considered remote, therefore the Company currently estimates
  forfeitures to be 5.5%.  Estimate of forfeitures is reviewed on a quarterly
  basis.  Stock-based compensation is expensed on a straight-line basis over the
  requisite service period.
The
  Company recorded total stock-based compensation expense related to stock
  options and restricted stock units as follows:
Three
Three
Nine
Nine
months ended
months ended
months ended
months ended
December 31,
December 31,
December 31,
December 30,
2007
2006
2007
2006
$
$
$
$
Management salaries,
exploration expense, &
consulting fees
199,422
529,683
683,916
779,747
Stock option activity
The following table summarizes the
  Company's stock option activity for the nine months ended December 31, 2007:
Number of
Stock
Options
Weighted
Average exercise
price*
Outstanding, beginning of year
5,282,500
$1.02
Granted
1,137,000
$0.90
Exercised
—
—
Forfeited
(630,000)
$1.00
Total outstanding at period end
5,789,500
$1.00
Vested and exercisable at period end
4,417,000
$1.03
* Based on the December 31, 2007
  exchange rate of Cdn$1 equals US$1.0088
The following table summarizes information
  about stock options outstanding as at December 31, 2007:
Average
Stock Options
Average Remaining
Stock Options
Remaining Life
Exercise price
Outstanding
Life
Exercisable
of Exercisable
(Years)
(Years)
1,912,500
2.3
1,912,500
2.3
$0.75
115,000
2.9
115,000
2.9
Cdn$0.85
90,000
3.0
72,000
3.0
Cdn$1.15
50,000
3.0
50,000
3.0
Cdn$1.25
190,000
3.3
158,000
3.3
Cdn$1.37
1,490,000
4.3
1,490,000
4.3
Cdn$1.37
30,000
3.4
30,000
3.4
Cdn$1.60
80,000
3.6
80,000
3.6
Cdn$1.29
50,000
3.8
50,000
3.8
Cdn$1.34
240,000
4.0
145,000
4.0
Cdn$0.81
20,000
4.0
20,000
4.0
Cdn$0.88
425,000
4.2
212,500
4.2
Cdn$0.80
20,000
4.3
10,000
4.3
Cdn$0.95
75,000
4.6
25,000
4.6
Cdn$0.91
100,000
4.6
—
4.6
Cdn$0.77
20,000
4.6
—
4.6
Cdn$0.81
835,000
4.7
—
4.7
Cdn$0.90
47,000
4.8
47,000
4.8
Cdn$0.88
5,789,500
4,417,000
$1.05*
*
Based on the December 31, 2007 exchange rate of Cdn$1 equals
  US$1.0088
91
Valuation assumptions
Compensation expense recorded in the
  financial statements has been estimated using the Black-Scholes option pricing
  model. The assumptions used in the pricing model include:
2008
2007
Dividend yield
0%
0%
Expected volatility
49% - 55%
55% - 59%
Risk free interest rate
4.09% - 4.63%
4.54% - 5.21%
Expected lives
3 years
3 years
The risk-free interest rate is determined
  based on the rate at the time of grant for US government zero-coupon bonds for
  a 3 year term, which is a term equal to the estimated life of the option.
   Dividend yield is based on the stock option's exercise price and expected
  annual dividend rate at the time of grant.  Volatility is derived by measuring
  the average share price fluctuation of three publicly listed companies that
  operate in the same industry.  The period of historical volatility is the same
  period as the expected life of the option being 3 years.
The
  Black-Scholes option-pricing model used by the Company to calculate option
  values was developed to estimate the fair value of freely tradable, fully
  transferable options without vesting restrictions, which significantly differ
  from the Company's stock option awards.  Options pricing models require the
  input of highly subjective assumptions, including future stock price
  volatility and expected time until exercise, which greatly affect the
  calculated values. Changes in these assumptions can materially affect the fair
  value estimate and therefore it is management's view that the existing models
  do not necessarily provide a single reliable measure of the fair value of the
  Company's equity instruments.
d.  Restricted stock units:
On
  May 11, 2007, the Board of Directors approved the grant of 10,000 restricted
  stock units ('RSU') to an employee of the Company which were subsequently
  forfeited on July 31, 2007.
On
  September 5, 2007 the Company entered into a Transition Agreement with an
  employee and director (see note 10(c)). Among other things, the agreement
  provided a grant of 112,500 RSU's that vest over two years; 18,750 RSU's that
  were to vest in January 2008 were forfeited; a grant of 50,000 RSU's was
  forfeited and replaced with a new RSU agreement that provides 2,778 units for
  each full month of service (subject to a maximum of 50,000 RSU's) completed as
  a member of the Board of Directors beginning January 1, 2007 and vest upon
  resignation from the Board of Directors.
On
  November 30, 2007 a consulting Director retired from the company, therefore,
  forfeiting 50,000 RSU's.
The
  following table summarizes information about restricted stock units
  outstanding as at December 31, 2007:
RSU's Granted
RSU's
Vested
Weighted Average Fair
Value at Grant Date
Outstanding at April 1, 2006
—
—
—
Issued April 18, 2006
8,000
8,000
Cdn$1.63
Issued December 12, 2006
15,000
15,000
Cdn$0.84
Issued January 10, 2007
508,750
277,500
Cdn$0.82
Issued September 6, 2007
112,500
—
Cdn$0.77
Issued September 6, 2007
50,000
—
Cdn$0.77
Outstanding at December 31, 2007
694,250
300,500
$0.83
*
*
Based on
  the December 31, 2007 exchange rate of Cdn$1 equals US$1.0088
92
8. RELATED PARTY TRANSACTIONS
All
  transactions with related parties have occurred in the normal course of
  operations and are measured at their exchange amount as determined by
  management. All material transactions and balances with related parties not
  disclosed elsewhere are described below:
During the nine months ended December 31, 2007, the Company paid consulting
  fees to a non-independent director in the amount of $32,425 [December 31, 2006
  - $127,303] for services rendered on the exploration of the Borealis property.
9. OTHER ASSETS
December 31,
March 31,
2007
2007
$
$
Reclamation bond & deposits
195,636
134,759
Non-compete agreement
70,908
–
Accumulated Amortization
(5,155)
–
261,389
134,759
During the nine months ended December 31, 2007, the Company increased the
  amount of their performance bond from $113,759 to $168,459 by purchasing a
  further performance bond totaling $54,700 from an insurance company.  The
  total bond purchase is in support of the potential future obligations the
  Company may incur under a Plan of Operation for exploration within the
  brown-field area of the Borealis property filed with the U.S. Forest Service.
   The Company also holds a deposit with the Bureau of Land Management ("BLM")
  for $27,177 (March 31, 2007 - $21,000), which supports its potential future
  obligations for reclamation during the Company's exploration activities within
  the BLM area. The company increased the amount of this bond by $6,177 in
  December 2007. At December 31, 2007, the Company has recorded an estimated
  reclamation liability of $5,600 (June 30, 2006 – $7,000) representing future
  obligations related to its drilling activities completed to December 31, 2007.
As
  part of the acquisition of Nevada Eagle (footnote 3), the primary interest
  holder entered into a non-compete agreement.  The non-compete agreement is
  being amortized over 5 years.
10. COMMITMENTS & CONTINGENCIES
a.    A portion of the
  Borealis Property is subject to a mining lease. The Company is required to
  make monthly lease payments of $9,485, adjusted annually based on the Consumer
  Price Index, for the duration of the lease term. In addition, production of
  precious metals from the Borealis Property will be subject to the payment of a
  royalty under the terms of the mining lease. The mining lease expires in 2009,
  but may be renewed by the Company annually thereafter, so long as mining
  related activity continues on the Borealis Property. The Company has the
  option to terminate the mining lease at any time prior to expiry in 2009.
b.    The Company rents
  office space in Vancouver, BC for a 3 year term. The following are rental
  lease commitments in relation to the office lease:
$
2008
10,565
2009
17,609
93
c.  In September 2007, the Company
  entered into a Transition Agreement with an individual under which, the
  individual will cease to be an employee and will continue as a director of the
  Company.  The agreement requires the Company to pay $12,500 per month, for 18
  months beginning October 2007, and the individual was granted 112,500
  Restricted Stock Units the will vest at 37,500 each on April 1, 2009, July 1,
  2009 and October 1, 2009.  The agreement provides for certain incidental
  expenses for 18 months beginning October 2007.  The Company recorded a charge
  to expense of $322,464 during the quarter ended September 30, 2007 to accrue
  the cost of the agreement.
d.  Nevada Eagle holds approximately
  23 exploration properties that are not leased out.  Annual claim fees to hold
  these properties are approximately $34,000.
11. CAPITAL LEASE
The
  Company leases two trucks that are both accounted for as capital leases, with
  the present value of the required lease payments recorded as a liability and
  an asset at inception and thereafter lease payments reduce the liability and
  result in interest expense and the asset is depreciated.  The actual combined
  lease payments are $2,371 per month with a residual payment of $12,000 due
  December 2007 (will be paid in January 2008) and $13,854 due May 2008.
The
  present value of required payments during each fiscal year:
$
2008
10,565
2009
17,609
12. CONVERTIBLE PROMISSORY NOTE
Convertible promissory note, with a
      face value of $5,000,000 due March 30, 2010 unsecured, bearing interest at
      5%.  Interest is payable each January 1
st
and June 1
st
.
       Discount accretion for the period from August 21, 2007 (date of issue) to
      December 31, 2007, totalled $94,297.
December 31,
March 31,
2007
2007
$
$
4,366,656
0
Gryphon Gold issued a Convertible Promissory Note to the former owner of
  Nevada Eagle with a face amount of $5,000,000, due March 30, 2010, bearing
  interest at 5% per annum, payable on January 1 and June 1 of each year.  The
  note is convertible at the holder's option into shares for the first 12 months
  after closing at a conversion price of $1 per common share; for the next 12
  months at $1.25 per common share; for the period 24 months from closing to
  March 29, 2010 at $1.50 per common share and on March 30, 2010 at $1.75 per
  common share.  The conversion rate is subject to certain anti-dilution
  adjustments and is also subject to adjustment on payment of cash dividends by
  Gryphon Gold.  Upon an event of default, which includes amongst other things a
  change in control of Gryphon Gold, the holder may demand repayment of the
  principal amount of the debenture or exercise the conversion feature for a
  fixed number of shares. After an event of default, the interest rate on the
  convertible debenture increases to 9%.  The change in control in an event of
  default is considered an embedded derivative however its issue date fair value
  is not considered to be significant, nor is it considered to be significant at
  December 31, 2007.  The conversion feature does not require bifurcation in the
  financial statements because it is not a beneficial conversion feature and a
  cash payment is not required if common shares issued at time of conversion are
  never successfully registered.  The Convertible Promissory Note, including the
  conversion feature and change in control event of default embedded derivative,
  has been recorded at its estimated issue date fair value of $4,272,359 at date
  of issue, in the unaudited consolidated balance sheet. Interest and discount
  accretion of $63,014 and $65,930, for the three months ended December 31,
  2007, has been recorded as interest expense in the unaudited consolidated
  income statements.  The former owner of Nevada Eagle is also an employee of
  the Company (see note 3).
13. SUBSEQUENT EVENTS
On January 10, 2008, 31,250 RSU's vested
  for three directors and one employee and common shares were issued.
94
Combined Financial Statements
Nevada Eagle Resources
December 31, 2006 and 2005
(Stated in U.S. dollars)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
  the Owner of
Nevada Eagle Resources
We have audited the
  accompanying combined balance sheets of
Nevada Eagle Resources
as of
  December 31, 2006 and 2005 and the related combined statements of operations,
  owner's equity and cash flows for the years then ended. These financial
  statements are the responsibility of the Company's management. Our
  responsibility is to express an opinion on these financial statements based on
  our audits.
We conducted our audits in
  accordance with the standards of the Public Company Accounting Oversight Board
  (United States). Those standards require that we plan and perform the audit to
  obtain reasonable assurance about whether the financial statements are free of
  material misstatement. We were not engaged to perform an audit of the
  Company's internal control over financial reporting. Our audits included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances but not
  for the purpose of expressing an opinion on the effectiveness of the Company's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence
  supporting the amounts and disclosures in the financial statements, assessing
  the accounting principles used and significant estimates made by management
  and evaluating the overall financial statement presentation. We believe that
  our audits provide a reasonable basis for our opinion.
In our opinion, the
  financial statements referred to above present fairly, in all material
  respects, the combined financial position of Nevada Eagle Resources at
  December 31, 2006 and 2005, and the combined results of its operations,
  owner's equity and cash flows for each of the years in the two year period
  ended December 31, 2006, in conformity with United States generally accepted
  accounting principles.
Vancouver, Canada,
/s/ Ernst & Young LLP
October 11, 2007
Chartered Accountants
95
Nevada Eagle Resources
COMBINED BALANCE SHEETS
(Stated in U.S. dollars)
As at December 31
2006
2005
$
$
ASSETS
Current
Cash
181,055
89,119
Accounts receivable
55,000
36,500
Held for trading securities
404,450
443,134
Total current assets
640,505
568,753
Fixed assets, net of accumulated depreciation of $22,431
and $13,668, respectively
25,730
34,493
Mineral property costs
57,420
90,386
Total assets
723,655
693,632
LIABILITIES AND OWNER'S EQUITY
Current
Accounts payable and accrued liabilities
2,441
2,225
Total current liabilities
2,441
2,225
Total owner's equity
721,214
691,407
Total liabilities and owner's equity
723,655
693,632
See accompanying notes
Nevada Eagle Resources
COMBINED STATEMENTS OF OPERATIONS
(Stated in U.S. dollars)
Year ended
Year ended
December 31,
December 31,
2006
2005
$
$
REVENUES
1,002,140
561,127
EXPENSES
Mineral claim maintenance
68,233
38,993
Depreciation
8,763
8,764
General and administrative
24,234
22,894
Travel and accommodation
17,277
11,906
Realized (gain) loss on sale of securities
(58,492)
797
Interest income
(1,945)
(664)
Unrealized (gain) loss on securities
98,372
(114,669)
Total expenses
156,442
(31,979)
Net and comprehensive income for the period
845,698
593,106
See accompanying notes
96
Nevada Eagle Resources
COMBINED STATEMENTS OF
OWNER'S EQUITY
(Stated in U.S. dollars)
Balance, December 31, 2004
523,749
Net income for the year ended
December 31, 2005
593,106
Owner contributions
-
Owner draws
(425,448)
Balance, December 31, 2005
691,407
Net income for the year ended
December 31, 2006
845,698
Owner contributions
261,184
Owner draws
(1,077,075)
Balance December, 31, 2006
721,214
See accompanying notes
97
Nevada Eagle Resources
COMBINED STATEMENTS OF CASH FLOWS
(Stated in U.S. dollars)
Year ended
Year ended
December 31,
December 31,
2006
2005
$
$
OPERATING ACTIVITIES
Net income for the year
845,698
593,106
Items not involving cash:
Depreciation
8,763
8,764
Gain on sale of securities
(58,492)
797
Unrealized (gain) loss on held for trading securities
98,372
(114,669)
Held for trading securities
(502,588)
(293,789)
Changes in non-cash working capital items:
Amounts receivable
(18,500)
(36,500)
Accrued liabilities
216
(6,128)
Deferred revenue
-
(50,000)
Cash provided by operating activities
373,469
101,581
INVESTING ACTIVITIES
Purchase of fixed assets
-
(2,471)
Mineral property acquisition outlay
(27,332)
(50,627)
Mineral property cost recovered
60,298
120,362
Proceeds from sale of held for trading securities
501,392
83,745
Cash provided by investing activities
534,358
151,009
FINANCING ACTIVITIES
Contributions
261,184
-
Draws
(1,077,075)
(425,448)
Note receivable
-
50,000
Cash used in financing activities
(815,891)
(375,448)
Decrease in cash during the year
91,936
(122,858)
Cash, beginning of year
89,119
211,977
Cash, end of year
181,055
89,119
See accompanying notes
98
Nevada Eagle Resources
NOTES TO COMBINED FINANCIAL STATEMENTS
(Stated in U.S. dollars)
December 31, 2006
1.
NATURE OF OPERATIONS
Nevada Eagle Resources LLC
  is a single member limited liability company ("the LLC") with a perpetual
  life, formed in the State of Nevada on December 30, 2003. The LLC obtains
  mineral claims and leases or options the development rights to third parties
  who are in the business of exploring the properties. The properties are
  located in Nevada, California and Northern Utah. The single member of the
  limited liability company also maintains ownership of certain additional
  mineral claims. All mineral property activity under the control of the member
  was acquired by Gryphon Gold Corporation on August 21, 2007. These mineral
  activities have been combined in these financial statements and include:
Nevada Eagle Resources, LLC
Monitor Property
Bald Peak Property
Star City Property
Wheeler Peak Property
These
  mineral property activities are collectively referred to as Nevada Eagle
  Resources or the Company.
Nevada Eagle Resources has
  no employees. Services provided by the owner were without compensation.
  Drawings by the owner from Nevada Eagle Resources are presented within equity.
2.
SUMMARY
  OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
These combined financial
  statements are prepared in accordance with U.S. generally accepted accounting
  principles ("GAAP").
Use of estimates
The preparation of
  financial statements in conformity with U.S. GAAP requires management to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities and the disclosure of any contingent assets and liabilities as at
  the date of the consolidated financial statements as well as the reported
  amounts of expenses incurred during the period. Significant areas requiring
  the use of management estimates include the determination of potential
  impairments of asset values and the calculation of fair values of Held for
  trading securities. Actual results could differ from those estimates.
Revenue
  recognition
Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as these
  arrangements represent farmouts where the payor is accumulating an interest in
  the mineral property; payments in excess of capitalized costs are recognized
  in income. Some agreements provide for payments in the form of stock and other
  equity instruments as well as cash payments. Stock and other equity
  instruments are recognized based on their fair market value at the time of
  receipt. Fluctuations incurred during the holding period are accounted for as
  gains or losses from held for trading securities. The leases provide for the
  receipt of royalty payments upon production of the property. Royalty payments
  will be recognized in the period in which production occurs. There are no
  properties in the production stage at this time.
Mineral properties
  represent mineral claims held by Nevada Eagle Resources. The costs of
  acquiring mineral properties are capitalized. If it is determined that the
  mineral property has no future economic value or the properties are sold or
  abandoned the carrying value will be expensed at that time. Cost is equal to
  the consideration paid for the acquisition of mineral properties. The
  capitalized amounts may be written down if potential future net cash flows,
  including potential sales proceeds, related to the property are estimated to
  be less than the carrying value of the property. Management of the Company
  reviews the carrying value of each mineral property interest annually, and
  whenever events or changes in circumstances indicate that the carrying value
  may not be recoverable. Reductions in the carrying value of each property
  would be recorded at the time in which the property is considered impaired
  based on the discounted amount of future net cash flows.
99
Marketable equity securities
Held for trading
  securities consist of marketable equity securities. Held for trading
  securities are stated at fair value, and unrealized holding gains and losses
  are reported in net income. Dividends on marketable equity securities are
  recognized in income when declared. Realized gains and losses are included in
  income.
Cash and cash equivalents
The Company considers all
  highly liquid debt instruments purchased with a maturity of three months or
  less to be cash equivalents.
Accounts receivable
Accounts receivable is
  stated at the estimated realizable value. No allowance for uncollectible
  accounts has been provided as management has determined that the accounts
  receivable balance is collectible.
Equipment and depreciation
Equipment is stated at
  cost. Expenditures for maintenance and repairs are expensed as incurred while
  renewals and betterments in excess of $1,000 are capitalized.
Depreciation is provided
  for in amounts sufficient to relate the cost of depreciable assets to
  operations over their estimated service lives, principally on the
  straight-line method. The estimated useful lives used for calculating
  depreciation for equipment classifications are as follows:
Life
Vehicles
5 Years
Computer equipment
5 Years
Furniture and fixtures
7 Years
The Company does not incur
  federal or state income taxes; instead, LLC earnings are included in the
  member's income tax returns and taxed depending on the member's tax situation.
  Activity related to the claims held directly by the owner is also included in
  the owner's personal income tax return. Accordingly, these combined financial
  statements do not reflect a provision for income taxes.
3.
CASH
As of December 31, 2006
  and 2005, cash and cash equivalents was equal to $181,055 and $89,119,
  respectively. The Company maintains a business checking account with one
  financial institution located in Reno, Nevada and a cash account is maintained
  at a securities brokerage company located in Vancouver, British Columbia. The
  balance in the checking account is insured by the Federal Deposit Insurance
  Corporation (FDIC) up to $100,000 and the balance held by the securities
  broker is insured by the Securities Insurance Protection Corporation (SIPC)
  for up to $100,000. The Company's uninsured balance as of December 31, 2006
  and 2005 totaled $81,281 and $0, respectively.
100
4.
PROPERTY AND EQUIPMENT
Property and equipment, stated at cost as
  of December 31, 2006 and 2005 consisted of the following:
2006
2005
Vehicles
$
43,286
$
43,286
Computer equipment
2,472
2,472
Furniture and fixtures
2,403
2,403
48,161
48,161
Less: accumulated depreciation
(22,431)
(13,668)
$
25,730
$
34,493
Depreciation expense for the years ended December 31, 2006 and 2005 was $8,763
  and $8,764, respectively.
5.
MINERAL PROPERTY COSTS
The Company holds interests in 49
  properties. 26 of those properties have been leased or optioned out to third
  parties.
Total
$
Mineral property costs, December 31, 2004
160,121
Acquisitions during the year
50,627
Costs recovered during the year
(120,362)
Mineral property costs, December 31, 2005
90,386
Acquisitions during the year
27,332
Costs recovered during the year
(60,298)
Mineral property costs, December 31, 2006
57,420
6.
SUBSEQUENT EVENTS
The Company began a
  business sale negotiation with Gryphon Gold Corporation during March of 2007.
  All of the mineral property activities of Nevada Eagle Resources were acquired
  by Gryphon Gold Corporation on August 21, 2007. The prior owner of Nevada
  Eagle Resources became an employee of Gryphon Gold Corporation.
101
Unaudited Interim Combined Financial Statements
Nevada Eagle Resources
June 30, 2007
(Stated in U.S. dollars)
(unaudited)
Nevada Eagle Resources
INTERIM COMBINED BALANCE SHEETS
(Stated in U.S. Dollars)
(unaudited)
As at
As at
As at
June 30,
March 31,
December 31,
2007
2007
2006
$
$
$
ASSETS
Current
Cash
28,495
90,823
181,055
Accounts receivable
-
55,000
55,000
Held for trading securities
477,315
378,024
404,450
Total current assets
505,810
523,847
640,505
Fixed assets, net
21,224
23,477
25,730
Mineral property costs
39,366
42,751
57,420
Total assets
566,400
590,075
723,655
LIABILITIES AND OWNER'S EQUITY
Current
Accounts payable and accrued liabilities
12,896
1,754
2,441
Total current liabilities
12,896
1,754
2,441
Total owner's equity
553,504
588,321
721,214
Total liabilities and owner's equity
566,400
590,075
723,655
See accompanying notes
102
Nevada Eagle Resources
INTERIM COMBINED STATEMENT OF OPERATIONS
(Stated in U.S. Dollars)
(unaudited)
For the
For the
For the six
For the six
For the
For the
quarter
quarter
month
month
quarter
quarter
ended
ended
period ended
period ended
ended
ended
March 31,
March 31,
June 30, 2007
June 30, 2006
June 30, 2007
June 30, 2006
2007
2006
$
$
$
$
$
$
REVENUES
442,696
766,107
189,865
264,271
252,831
501,836
EXPENSES
Mineral claim maintenance
1,733
5,331
847
2,833
886
2,498
Depreciation
4,506
4,382
2,253
2,191
2,253
2,191
General and administrative
9,500
3,126
5,259
1,933
4,241
1,193
Travel and accommodation
3,737
3,755
2,311
2,796
1,426
959
Realized (gain) loss on sale of
securities
9,075
(10,108)
—
(57,979)
9,075
47,871
Interest income
(192)
(1,590)
(119)
(739)
(73)
(851)
Unrealized (gain) loss on
securities
385
84,827
(20,541)
145,172
20,926
(60,345)
Total expenses
28,744
89,723
(9,990)
96,207
38,734
(6,484)
Net and comprehensive
income for the period
413,952
676,384
199,855
168,064
214,097
508,320
See accompanying notes
103
Nevada Eagle Resources
INTERIM COMBINED STATEMENTS OF
OWNER'S EQUITY
(Stated in U.S. Dollars)
(unaudited)
Balance, December 31, 2006
721,214
Net income for the quarter ended March 31, 2007
214,097
Owner contributions
7,944
Owner draws
(354,934)
Balance, March 31, 2007
588,321
Net income for the quarter ended June 30, 2007
199,855
Owner contributions
4,083
Owner draws
(238,755)
Balance, June 30, 2007
553,504
See accompanying notes
104
Nevada Eagle Resources
INTERIM COMBINED STATEMENTS OF CASH FLOWS
(Stated in U.S. Dollars)
(unaudited)
For the
For the
For the six
For the six
quarter
quarter
month
month
For the
For the
ended
ended
period ended
period ended
quarter ended
quarter ended
March 31,
March 31,
June 30, 2007
June 30, 2006
June 30, 2007
June 30, 2006
2007
2006
$
$
$
$
$
$
OPERATING ACTIVITIES
Net income for the period
413,952
676,384
199,855
168,064
214,097
508,320
Items not involving cash:
Depreciation
4,506
4,382
2,253
2,191
2,253
2,191
Gain on sale of securities
9,075
(10,108)
—
(57,979)
9,075
47,871
Unrealized (gain) loss
on held for trading securities
385
84,827
(20,541)
145,172
20,926
(60,345)
Held for trading securities
(132,750)
(411,938)
(78,750)
(147,625)
(54,000)
(264,313)
Changes in non-cash working
capital items:
Amounts receivable
55,000
5,000
55,000
—
—
5,000
Accrued liabilities
10,455
(2,225)
11,142
—
(687)
(2,225)
Cash provided by operating
activities
360,623
346,322
168,959
109,823
191,664
236,499
INVESTING ACTIVITIES
Purchase of fixed assets
—
—
—
—
—
—
Mineral property acquisition
outlay
—
(4,316)
—
(4,316)
—
—
Mineral property cost recovered
18,054
31,374
3,385
26,374
14,669
5,000
Proceeds from sale of held for
trading securities
50,425
335,308
—
92,979
50,425
242,329
Cash provided by investing
activities
68,479
362,366
3,385
115,037
65,094
247,329
FINANCING ACTIVITIES
Contributions
12,027
—
4,083
—
7,944
—
Draws
(593,689)
(446,320)
(238,755)
(208,062)
(354,934)
(238,258)
Cash used in financing
activities
(581,662)
(446,320)
(234,672)
(208,062)
(346,990)
(238,258)
Decrease in cash during the
period
(152,560)
262,368
(62,328)
16,798
(90,232)
245,570
Cash, beginning of period
181,055
89,119
90,823
334,689
181,055
89,119
Cash, end of period
28,495
351,487
28,495
351,487
90,823
334,689
See accompanying notes.
105
Nevada Eagle Resources
NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS
(Stated in U.S. dollars)
(unaudited)
June
  30, 2007
1.
NATURE OF OPERATIONS
Nevada Eagle Resources LLC
  is a single member limited liability company ("the LLC") with a perpetual
  life, formed in the State of Nevada on December 30, 2003. The LLC obtains
  mineral claims and leases or options the development rights to third parties
  who are in the business of exploring the properties. The properties are
  located in Nevada, California and Northern Utah. The single member of the
  limited liability company also maintains ownership of certain additional
  mineral claims. All mineral property activity under the control of the member
  was acquired by Gryphon Gold Corporation on August 21, 2007. These mineral
  activities have been combined in these financial statements and include:
Nevada Eagle Resources, LLC
Monitor Property
Bald Peak Property
Star City Property
Wheeler Peak Property
These mineral property
  activities are collectively referred to as Nevada Eagle Resources or the
  Company.
Nevada Eagle Resources has
  no employees. Services provided by the owner were without compensation.
  Drawings by the owner from Nevada Eagle Resources are presented within equity.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
These combined financial
  statements are prepared in accordance with U.S. generally accepted accounting
  principles ("GAAP").
Use of estimates
The preparation of
  financial statements in conformity with U.S. GAAP requires management to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities and the disclosure of any contingent assets and liabilities as at
  the date of the consolidated financial statements as well as the reported
  amounts of expenses incurred during the period. Significant areas requiring
  the use of management estimates include the determination of potential
  impairments of asset values and the calculation of fair values Held for
  trading securities. Actual results could differ from those estimates.
Revenue recognition
Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as these
  arrangements represent farmouts where the payor is accumulating an interest in
  the mineral property; payments in excess of capitalized costs are recognized
  in income. Some agreements provide for payments in the form of stock and other
  equity instruments as well as cash payments. Stock and other equity
  instruments are recognized based on their fair market value at the time of
  receipt. Fluctuations incurred during the holding period are accounted for as
  gains or losses from held for trading securities. The leases provide for the
  receipt of royalty payments upon production of the property. Royalty payments
  will be recognized in the period in which production occurs. There are no
  properties in the production stage at this time.
106
Nevada Eagle Resources
NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS
(Stated in U.S. dollars)
(unaudited)
June 30, 2007
Mineral property acquisition costs
Mineral properties
  represent mineral claims held by Nevada Eagle Resources. The costs of
  acquiring mineral properties are capitalized. If it is determined that the
  mineral property has no future economic value or the properties are sold or
  abandoned the carrying value will be expensed at that time. Cost is equal to
  the consideration paid for the acquisition of mineral properties. The
  capitalized amounts may be written down if potential future net cash flows,
  including potential sales proceeds, related to the property are estimated to
  be less than the carrying value of the property. Management of the Company
  reviews the carrying value of each mineral property interest annually, and
  whenever events or changes in circumstances indicate that the carrying value
  may not be recoverable. Reductions in the carrying value of each property
  would be recorded at the time in which the property is considered impaired
  based on the discounted amount of future net cash flows.
Marketable equity
  securities
Held for trading
  securities consist of marketable equity securities. Held for trading
  securities are stated at fair value, and unrealized holding gains and losses
  are reported in net income. Dividends on marketable equity securities are
  recognized in income when declared. Realized gains and losses are included in
  income.
Cash and cash
  equivalents
The Company considers all
  highly liquid debt instruments purchased with a maturity of three months or
  less to be cash equivalents.
Accounts receivable
Accounts receivable is
  stated at the estimated realizable value. No allowance for uncollectible
  accounts has been provided as management has determined that the accounts
  receivable balance is collectible.
Equipment and
  depreciation
Equipment is stated at
  cost. Expenditures for maintenance and repairs are expensed as incurred while
  renewals and betterments in excess of $1,000 are capitalized.
Depreciation is provided
  for in amounts sufficient to relate the cost of depreciable assets to
  operations over their estimated service lives, principally on the
  straight-line method. The estimated useful lives used for calculating
  depreciation for equipment classifications are as follows:
Life
Vehicles
5 Years
Computer equipment
5 Years
Furniture and fixtures
7 Years
107
Nevada Eagle Resources
NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS
(Stated in U.S. dollars)
(unaudited)
June 30, 2007
Income taxes
The Company does not incur
  federal or state income taxes; instead, LLC earnings are included in the
  member's income tax returns and taxed depending on the member's tax situation.
  Activity related to the claims held directly by the owner is also included in
  the owner's personal income tax return. Accordingly, these combined financial
  statements do not reflect a provision for income taxes.
3.
CASH
As of June 30, 2007, March
  31, 2007 and December 31, 2006, cash and cash equivalents was equal to
  $28,495, $90,823 and $181,055, respectively. The Company maintains a business
  checking account with one financial institution located in Reno, Nevada and a
  cash account is maintained at a securities brokerage company located in
  Vancouver, British Columbia. The balance in the checking account is insured by
  the Federal Deposit Insurance Corporation (FDIC) up to $100,000 and the
  balance held by the securities broker is insured by the Securities Insurance
  Protection Corporation (SIPC) for up to $100,000. The Company's bank balances
  were fully insured as of June 30, 2007 and March 31, 2007. The uninsured
  balance as of December 31, 2006 totaled $81,281.
4.
PROPERTY AND EQUIPMENT
Property and equipment, stated at cost as
  of June 30, 2007, March 31, 2007 and December 31, 2006 consisted of the
  following:
June 30,
March 31,
December 31,
2007
2007
2006
Vehicles
$
43,286
$
43,286
$
43,286
Computer equipment
2,472
2,472
2,472
Furniture and fixtures
2,403
2,403
2,403
48,161
48,161
48,161
Less: accumulated depreciation
(26,937)
(24,684)
(22,431)
$
21,224
$
23,477
$
25,730
Depreciation expense for the quarters
  ended June 30, 2007 and March 31, 2007 was $$2,253 per quarter. Depreciation
  expense for the year ended December 31, 2006 was $8,763
108
Nevada Eagle Resources
NOTES TO INTERIM COMBINED FINANCIAL STATEMENTS
(Stated in U.S. dollars)
(unaudited)
June
  30, 2007
5.
MINERAL PROPERTY COSTS
The
  Company holds interests in 49 properties. 26 of those properties have been
  leased or optioned out to third parties.
Total
$
Mineral property costs, December 31, 2006
57,420
Acquisitions during the quarter ended March 31, 2007
-
Costs recovered during the quarter ended March 31, 2007
(14,669)
Mineral property costs, March 31, 2007
42,751
Acquisitions during the quarter ended June 30, 2007
-
Costs recovered during the quarter ended June 30, 2007
(3,385)
Mineral property costs, June 30, 2007
39,366
6.
SUBSEQUENT EVENTS
The Company began a
  business sale negotiation with Gryphon Gold Corporation during March of 2007.
  All of the mineral property activities of Nevada Eagle Resources were acquired
  by Gryphon Gold Corporation on August 21, 2007. The prior owner of Nevada
  Eagle Resources became an employee of Gryphon Gold Corporation.
109
Consolidated
Pro Forma
Financial Statements
Gryphon Gold Corporation
(Stated in U.S. dollars)
(unaudited)
110
GRYPHON GOLD CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
As of June 30, 2007
(expressed in United States dollars)
Gryphon Gold
Pro Forma
Corporation
Gryphon Gold
Nevada Eagle
Adjustments
Pro Forma
Corporation
Resources
Total
Note
Consolidated
$
$
$
Reference
$
Current assets
Cash
4,982,886
90,823
(3,055,350)
3a, 3b, 3c, 3d
2,018,359
Accounts receivable
87,252
55,000
(55,000)
87,252
Prepaid expenses
237,413
—
—
237,413
Held for trading securities
—
378,024
(378,024)
3e
—
Total current assets
5,307,551
523,847
(3,488,374)
3e
2,343,024
Deferred acquisition costs
103,813
—
(103,813)
3k
—
Reclamation deposit
144,459
—
—
144,459
Fixed assets
163,345
23,477
(23,477)
3f
163,345
Intangible assets
—
—
70,908
3g
70,908
Mineral property costs
1,920,371
42,751
10,676,458
3h
12,639,580
Total assets
7,639,539
590,075
7,131,702
15,361,316
Current liabilities
Accounts payable and accrued liabilities
807,684
1,754
(1,754)
3i
807,684
Current portion of capital lease payable
—
—
—
3b
—
Note payable
—
—
4,272,359
3b
4,272,359
Interest payable
—
—
—
—
Total current liabilties
807,684
1,754
4,270,605
5,080,043
Capital lease payable, net of current
portion
44,532
—
—
44,532
Total liabilities
852,216
1,754
4,270,605
5,124,575
Common stock
47,522
—
4,500
3j
52,022
Additional paid-in capital
26,947,176
—
3,444,918
3j
30,392,094
Deficit/equity
(20,207,375)
588,321
(588,321)
3d
(20,207,375)
Total equity
6,787,323
588,321
2,861,097
10,236,741
Total liabilities and equity
7,639,539
590,075
7,131,702
15,361,316
See accompanying notes
111
GRYPHON GOLD CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the three months ended June 30, 2007
(expressed in United States dollars)
Gryphon Gold
Pro Forma
Corporation
Gryphon Gold
Nevada Eagle
Adjustments
Pro Forma
Corporation
Resources
Total
Note
Consolidated
$
$
$
References
$
REVENUE
—
252,831
(239,906)
3h
12,925
EXPENSES
Exploration
1,478,472
—
—
1,478,472
Management salaries and consulting fees
438,363
—
43,750
3c
482,113
Mineral claim maintenance
—
886
—
886
Depreciation and amortization
13,847
2,253
1,292
3f
17,392
General and administrative
242,861
2,407
13,750
3c
259,018
Legal and audit
71,297
1,834
7,500
3c
80,631
Travel and accommodation
52,652
1,426
—
54,078
Realized (gain) loss on sale of securities
—
9,075
(3,727)
3e
5,348
Loss on disposal of equipment
—
—
—
—
Foreign exchange (gain) loss
3,200
—
—
3,200
Interest expense
—
—
131,140
3b
131,140
Interest income
(74,139)
(73)
—
(74,212)
Unrealized (gain) loss on securities
—
20,926
(8,951)
3e
11,975
Total expenses
2,226,553
38,734
184,754
2,450,041
Net and comprehensive income for the period
(2,226,553)
214,097
(424,660)
(2,437,116)
Basic and diluted loss per share
$(0.05)
$(0.05)
Basic and diluted weighted average number
of common shares outstanding
47,485,585
4,500,000
3j
51,985,585
See Accompanying Notes
112
GRYPHON GOLD CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended March 31, 2007
(expressed in United States dollars)
Gryphon Gold
Pro Forma
Corporation
Gryphon Gold
Nevada Eagle
Adjustments
Pro Forma
Corporation
Resources
Total
Note
Consolidated
$
$
$
References
$
REVENUE
—
1,002,140
(982,140)
3h
20,000
EXPENSES
Exploration
4,819,692
—
—
4,819,692
Management salaries and consulting fees
2,632,794
—
175,000
3c
2,807,794
Mineral claim maintenance
—
68,233
—
68,233
Depreciation and amortization
53,368
8,763
5,419
3f
67,550
General and administrative
890,596
24,234
55,000
3c
969,830
Legal and audit
330,005
—
30,000
3c
360,005
Travel and accommodation
325,024
17,277
—
342,301
Realized (gain) loss on sale of securities
—
(58,492)
9,668
3e
(48,824)
Loss on disposal of equipment
19,722
—
—
19,722
Foreign exchange (gain) loss
(11,335)
—
—
(11,335)
Interest expense
—
—
515,823
3b
515,823
Interest income
(322,725)
(1,945)
—
(324,670)
Unrealized (gain) loss on securities
—
98,372
(18,610)
3e
79,762
Total expenses
8,737,141
156,442
772,300
9,665,883
Net and comprehensive income for the period
(8,737,141)
845,698
(1,754,440)
(9,645,883)
Basic and diluted loss per share
$(0.21)
$(0.21)
Basic and diluted weighted average number
of common shares outstanding
41,242,535
4,500,000
3j
45,742,535
See Accompanying Notes
.
113
Gryphon Gold Corporation
NOTES TO UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
These unaudited pro forma
  consolidated financial statements of Gryphon Gold Corporation ("Gryphon Gold"
  or the "Company"), a TSX listed Company, have been prepared for illustrative
  purposes only, to show the effect of the Membership Interest Purchase
  Agreement dated as of August 21, 2007 between Gryphon Gold and Gerald and
  Fabiola Baughman whereby Gryphon Gold acquired 100% of the members interests
  in Nevada Eagle Resources LLC, a Nevada limited liability company, as well as
  certain other mineral claims owned by the Baughman's (the "Transaction").
  Nevada Eagle Resources LLC and the other mineral claims acquired are
  collectively referred to herein as Nevada Eagle.
These financial statements
  have been prepared by Gryphon Gold management. The unaudited pro forma
  consolidated financial statements are presented in conformity with United
  States generally accepted accounting principles. The pro forma consolidated
  income statement for the three month period ended June 30, 2007 combines the
  three month period ended June 30, 2007 for Gryphon Gold and the three month
  period ended March 31, 2007 for Nevada Eagle, representing the first quarter
  of each entity's fiscal year. The pro forma consolidated income statement for
  the twelve month period ended March 31, 2007 combines the year ended March 31,
  2007 for Gryphon Gold and December 31, 2006 for Nevada Eagle, the last fiscal
  year for each entity. The pro forma consolidated balance sheet as at June 30,
  2007 combines the June 30, 2007 consolidated balance sheet of Gryphon Gold and
  the March 31, 2007 balance sheet of Nevada Eagle.
The unaudited pro forma
  consolidated income statements have been prepared as if the Transaction was
  completed and became effective as of April 1, 2006. The unaudited pro forma
  consolidated balance sheet has been prepared as if the Transaction was
  completed as at June 30, 2007. Under the Transaction, Gryphon Gold acquired
  all the shares of Nevada Eagle Resources LLC and all the rights and interests
  in certain other mineral claims including all exploration properties and lease
  agreements. Consideration paid by Gryphon Gold at closing was 4,500,000 shares
  of common stock of Gryphon Gold, a 5% $5,000,000 convertible note due March
  30, 2010, and cash of $2,500,000. Assets and liabilities other than the
  exploration properties were distributed to the owners of Nevada Eagle
  immediately prior to closing. At closing, Gerald Baughman, the principal
  interest holder of Nevada Eagle, became an employee of Gryphon Gold and
  entered into a lock up agreement covering the common shares and eligible
  shares under the convertible note, and entered into a non-compete agreement.
The accounting policies
  used in the preparation of these statements are consistent with Gryphon Gold's
  accounting policies. The unaudited pro forma consolidated financial statements
  are not intended to reflect the results of operations or the financial
  position of Gryphon Gold which would have actually resulted had the
  Transaction been effected on the dates indicated.
The unaudited pro forma
  consolidated financial statements have been derived from and should be read in
  conjunction with the audited financial statements of Gryphon Gold for the year
  ended March 31, 2007 and the unaudited interim financial statements of Gryphon
  Gold for the three month period ended June 30, 2007 as well as the audited
  financial statements of Nevada Eagle Resources for the year ended December 31,
  2007 and the unaudited interim financial statements of Nevada Eagle Resources
  for the three month period ended March 31, 2007.
NOTE 2 - BUSINESS ACQUISITION
In the preparation of
  these unaudited pro forma consolidated financial statements, the purchase
  price consideration has been allocated on a preliminary basis to the fair
  value of the assets acquired and liabilities assumed based on management's
  best estimates and taking into account all relevant information available at
  the time these unaudited pro forma consolidated financial statements were
  prepared. The Company will continue to review information and perform further
  analysis with respect to the fair values of assets and liabilities acquired
  prior to finalizing the purchase price allocation. The actual purchase price
  allocation will be based on the fair values of assets and liabilities acquired
  as of the August 21, 2007 closing date and may differ from that presented in
  these pro forma consolidated financial statements.
114
The purchase price has
  been determined by reference to the fair value of the cash, stock and
  convertible debt consideration given up by Gryphon Gold. The preliminary
  allocation of the purchase price paid to the fair values of the assets and
  liabilities acquired is summarized in the table below:
Purchase Price Paid
Cash
$
2,500,000
Stock
3,449,418
Convertible note payable
4,272,359
Legal, consulting and accounting fees
518,585
Claim fees
49,755
Total
$
10,790,117
Net Assets Acquired
Non-compete agreement
$
70,908
Properties
10,719,209
Total
$
10,790,117
NOTE 3 - PRO FORMA ASSUMPTIONS AND
  ADJUSTMENTS
The following assumptions
  and adjustments have been made to the unaudited pro forma consolidated
  financial statements of Gryphon Gold in each of the periods presented to
  reflect the Transaction:
a.) A cash payment of $2,500,000 by Gryphon Gold to the owner
  of Nevada Eagle upon closing has been recorded in the unaudited pro forma
  consolidated balance sheet as at June 30, 2007.
b.) In addition to the initial cash payment of $2,500,000,
  Gryphon Gold issued a Convertible Note payable to the owner of Nevada Eagle in
  the amount of $5,000,000, due March 30, 2010, bearing interest at 5% per
  annum, payable on January 1 and June 1 of each year. The note is convertible
  at the holder's option into shares for the first 12 months after closing at a
  conversion price of $1 per common share; for the next 12 months at $1.25 per
  common share; for the period 24 months from closing to March 29, 2010 at $1.50
  per share and on March 30, 2010 at $1.75 per share. The conversion rate is
  subject to certain anti-dilution adjustments and is also subject to adjustment
  on payment of cash dividends by Gryphon Gold. Upon an event of default, which
  includes amongst other things a change in control of Gryphon Gold, the holder
  may demand repayment of the principal amount of the debenture or exercise the
  conversion feature for a fixed number of shares. After an event of default,
  the interest rate on the convertible debenture increases to 9%. The change in
  control event of default is considered an embedded derivative however its
  issue date fair value is not considered to be significant. The conversion
  feature does not require bifurcation as it is not a beneficial conversion
  feature and, although it is not considered conventional convertible debt under
  EITF 05-2, the application of EITF 00-19 to the conversion feature does not
  necessitate bifurcation. The Convertible Note payable, including the
  conversion feature and change in control event of default embedded derivative,
  has been recorded at its estimated issue date fair value of $4,272,359 in the
  pro forma consolidated balance sheet. Interest and discount accretion of
  $515,823 and $131,140 for the twelve months ended March 31, 2007 and three
  months ended June 30, 2007, respectively, has been recorded as interest
  expense in the pro forma consolidated income statements.
c.) The unaudited pro forma consolidated financial statements
  include estimated costs incurred by Gryphon Gold in order to maintain and run
  the operations of Nevada Eagle. These costs include an increase to management
  salaries and consulting fees as the previous principal interest holder of
  Nevada Eagle became an employee of Gryphon Gold. The salaries adjustment of
  $175,000 per annum is based on the employment agreement that was a condition
  precedent to the completion of the Transaction. The remaining adjustments
  totaling $85,000 per annum pertain to various overhead items including rent
  expense for an office to be based in Reno, Nevada as well as increases to
  legal and accounting fees for purposes of contract review, and increased
  annual reporting requirements.
d.) The net equity of Nevada Eagle has been eliminated in the
  pro forma consolidated balance sheet as a result of the application of
  purchase accounting. The cash balance of Nevada Eagle was distributed to the
  interest holders of Nevada Eagle prior to closing. As a result, the Nevada
  Eagle cash balance has been removed in the pro forma consolidated balance
  sheet.
e.) Held for trading securities owned by Nevada Eagle were
  distributed to the owner prior to closing. As a result, the Nevada Eagle held
  for trading securities balance has been removed in the pro forma consolidated
  balance sheet.
115
f.) Equipment consisting of a vehicle and general office
  equipment were distributed to the owners of Nevada Eagle immediately prior to
  closing. As a result, the Nevada Eagle fixed asset balance has been removed in
  the pro forma consolidated balance sheet. Similarly, fixed asset depreciation
  has been removed from the pro forma consolidated income statements.
g.) Of the total purchase price, $70,908 was allocated to a
  Non-competition Agreement entered into at closing of the transaction which is
  being amortized over five years.
h.) The mineral property claims value has been adjusted to the
  purchase price allocation amount of $10,719,209 based on its fair value.
  Subsequent mineral lease rentals and option payments reduce the carrying value
  of the specific mineral property claims until the value is reduced to zero,
  and thereafter further receipts are recorded as revenue. The cost reduction
  approach applies as the payors accumulate interests in the mineral claims as
  payments are made.
i.) The outstanding accounts payable balance of Nevada Eagle on
  the closing date remains a liability of the vendors and was not acquired by
  Gryphon Gold.
j.) The purchase price included 4,500,000 shares of common
  stock of Gryphon Gold which were valued at $3,449,418 based on closing price
  of Gryphon Gold shares on the date of announcement of the Transaction.
k.) Gryphon Gold incurred due diligence, legal and certain
  other costs totaling $103,813 associated with the Transaction in the first
  quarter of 2007. These expenses were deferred by Gryphon Gold pending the
  closing of the Transaction and have been included in the purchase price
  allocated to the net assets acquired. The remaining transaction costs,
  including claim fees paid on behalf of Nevada Eagle of $464,527 are reflected
  as a reduction from cash in the pro forma consolidated balance sheet.
l.) To the extent any income is generated for tax purposes by
  the acquired assets such income is expected to be offset for tax purposes by
  ongoing exploration expenditures to be incurred by Gryphon Gold. To the extent
  the acquired assets generate loss carryforward benefits, such amounts are not
  considered more likely than not to be realized. As a result, no tax expense or
  recovery has been recorded in the pro forma consolidated statements of income.
116
SELECTED FINANCIAL
  DATA
Not applicable.
SUPPLEMENTARY
  FINANCIAL INFORMATION
Not
  applicable.
MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
You should read the
  following discussion and analysis of our financial condition and results of
  operations together with our financial statements and related notes appearing
  elsewhere in this prospectus.  This discussion and analysis contains
  forward-looking statements that involve risks, uncertainties and assumptions.
   Our actual results may differ materially from those anticipated in these
  forward-looking statements as a result of many factors, including, but not
  limited to, those set forth under "Risk Factors and Uncertainties" and
  elsewhere in this prospectus.
Overview
In May 2005 we initiated a
  drilling program which is continuing.  As of March 31, 2007, approximately 172
  holes and 105,735 feet of RC drilling have been completed.  A majority of the
  holes were in the area of existing mineralization in order to allow us to
  start a feasibility study with the aim of identifying gold reserves and, if
  economically feasible, building a mine.
We are currently
  performing exploration and drilling on the Borealis Property for the purpose
  of identifying additional potential gold resources.  If we are able to
  identify additional potential resources we may prepare a feasibility study on
  the previously mined area of the Borealis Property to further delineate the
  gold mineralization available for the operation of a mine, to upgrade some or
  all of the mineralized material to proven and probable reserves, design the
  open pit mine, heap leach pads and gold recovery plant and to estimate the
  capital and operating costs of the proposed mining scenario. Metallurgical
  test work completed to date indicates the oxide material is amenable to
  conventional heap-leach recovery methods. If we complete a feasibility study
  and, if warranted have made a decision to begin development, we intend to
  develop our Borealis Property and place it into production, assuming adequate
  additional capital is available.
In December, 2005, we
  completed an underwritten initial public offering of 6,900,000 units for gross
  proceeds of Cdn$5.9 million. The units were sold at a price of Cdn$0.85 each
  and consisted of one common share and one Class A warrant. Each Class A
  warrant is exercisable until December 22, 2006 at a price of Cdn$1.15. The
  common shares are listed on the Toronto Stock Exchange under the symbol "GGN".
In March, 2006, we
  completed a private placement of 5,475,000 units for gross proceeds of Cdn$6.8
  million.  The units were sold at a price of Cdn$1.25 each and consisted of one
  common share and one-half of one Series B warrant.  Each whole Series B
  warrant was exercisable until March 23, 2007 at a price of Cdn$1.65.
On June 10, 2006, we
  completed private placements to an officer and employee of 129,000 units for
  gross proceeds of Cdn$174,150. The units were sold at a price of Cdn$1.35 each
  and consist of one common share and one-half of one purchase warrant. Each
  warrant was exercisable until June 10, 2007 at a price of Cdn$1.82.
On June 26, 2006, we
  announced that the USDA Forest Service and the Nevada Bureau of Mining
  Regulation and Reclamation have both approved the Plan of Operations and
  Reclamation Plan, allowing Gryphon Gold to proceed with the development of a
  heap leach mine at the Borealis Gold Project. These approvals, combined with
  the previously approved operating permits from the State of Nevada, represent
  the key regulatory approvals required to place the Borealis gold
  mineralization into production.
In December 2006, we
  completed the geophysical survey, which commenced in September 2006. The
  positive geophysical results obtained from induced polarization (IP) surveys
  identified multiple chargeability and resisitivity anomalies coincident with
  aeromagnetic lows which extended several kilometers (km) to the north and
  northwest of the Graben sulphide deposit. The IP surveys identified two new
  mineralized exploration targets located under the pediments 3.0 km (Central
  Pediments) and 5.3 km (Western Pediment) northwest of the Graben sulphide
  deposit.
On February 9, 2007, we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million.  Each unit consisted of one common
  share and one full purchase warrant.  The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry.  We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property and for general
  working capital.
117
On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC ("Nevada
  Eagle"), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle.  Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states.  Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs.
On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  "First Anniversary") and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing).  The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development programs.
On December 14, 2007, we
  completed a private placement of 4,486,500 units at Cdn$0.80 for gross
  proceeds of approximately Cdn$3,589,200.  The private placement closed in
  three tranches on November 22,  November 27 and December 14, 2007.  Each
  unit consisted of one common share and one series I warrant.  Each series I
  warrant entitles the holder to purchase a common share at a price of Cdn$1.00
  per share during the first 12 months after closing and Cdn$1.25 per share
  during the second 12 months after closing and until expiry.  We paid qualified
  registered dealers a 7% cash commission in the amount of Cdn$71,624 and issued
  compensation warrants (series J) to acquire 89,530 common shares (at a price
  of Cdn$0.80 per share for a period of 9 months from closing) in respect of the
  1,204,000 million units placed by them (14,000 of the compensation warrants
  were later rejected and cancelled by one of the registered dealers). We have a
  right to force warrant holders to exercise warrants, if the price of our
  common stock remains equal to or greater than, Cdn$1.85 per common share, for
  a period of twenty consecutive days.  The shares, warrants and underlying
  shares were not qualified by prospectus, have not been registered under U.S.
  securities laws, and are subject to resale restrictions. We granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  program on the Borealis Property.
During the calendar year 2007, we
  continued extension drilling that focused on the expansion of the Graben
  deposit and exploration drilling for new gold deposits within the two newly
  identified potentially gold-bearing hydrothermal systems in the pediments.
The following activities are planned
  for calendar year  2008:
Complete a CIM compliant 43-101 technical report to
  incorporate all current drill results and begin the process of completing a
  feasibility study for the possible mining of the oxide deposits. Continue
  exploration drilling at both the Central Pediment and Western Pediment, which
  are northwest of the Graben sulphide deposit. Drilling will be guided by the
  results of the geological and geophysical exploration model.
Commence detailed review
  of properties acquired through Nevada Eagle Resources acquisition and compile
  exploration and development schedule.
Complete joint venture and lease
  agreements for the un-leased properties held by Nevada Eagle Resources.
118
Discussion and Analysis
This discussion and
  analysis should be read in conjunction with the accompanying Consolidated
  Financial Statements and related notes. The discussion and analysis of the
  financial condition and results of operations are based upon the consolidated
  financial statements, which have been prepared in accordance with accounting
  principles generally accepted in the United States. The preparation of
  financial statements in conformity with accounting principles generally
  accepted in the United States of America requires the company to make
  estimates and assumptions that affect the reported amounts of assets and
  liabilities, disclosure of any contingent liabilities at the financial
  statement date and reported amounts of revenue and expenses during the
  reporting period. On an on-going basis the company reviews its estimates and
  assumptions. The estimates were based on historical experience and other
  assumptions that the company believes to be reasonable under the
  circumstances. Actual results are likely to differ from those estimates under
  different assumptions or conditions, but the company does not believe such
  differences will materially affect our financial position or results of
  operations. Critical accounting policies, the policies the company believes
  are most important to the presentation of its financial statements and require
  the most difficult, subjective and complex judgments, are outlined below in
  "Critical Accounting Policies," and have not changed significantly.
Critical Accounting
  Policies and Estimates
The preparation of our
  consolidated financial statements is in accordance with accounting principles
  generally accepted in the United States. The following are critical accounting
  policies and estimates which we believe are important to understanding our
  financial results.
Use of estimates
The preparation of
  financial statements requires us to make estimates and assumptions which
  affect the reported amounts of assets and liabilities at the date of the
  financial statements and the revenues and expenses for the period reported. By
  their nature, these estimates are subject to measurement uncertainty and the
  effect on the financial statements of changes in such estimates in future
  periods could be significant. Actual results will likely differ from these
  estimates.
Revenue recognition
Mineral lease rentals or
  option payments are treated as reductions of the cost of the property as the
  payor is accumulating an interest in the mineral property; payments in excess
  of capitalized costs are recognized in income.  Some agreements provide for
  payments in the form of stock and other equity instruments as well as cash
  payments.  Stock and other equity instruments are recognized based on their
  fair market value at the time of receipt.  Fluctuations incurred during the
  holding period are accounted for as gains or losses from held for trading
  securities. The leases provide for the receipt of royalty payments upon
  production of the property.  Royalty payments will be recognized in the period
  in which production occurs.  There are no properties in the production stage
  at this time.
Exploration of mineral
  property interests
We expense exploration
  costs as they are incurred. When we determine that a mining deposit can be
  economically and legally extracted or produced based on established proven and
  probable reserves, development costs incurred after such determination will be
  capitalized. The establishment of proven and probable reserves is based on
  results of final feasibility studies which indicate whether a property is
  economically feasible. Upon commencement of commercial production, we will
  transfer capitalized costs to the appropriate asset category and amortize them
  over their estimated useful lives and/or ounces produced, as appropriate. We
  capitalize the cost of acquiring mineral property interests (including claims
  establishment and maintenance) until we have determined the viability of the
  property. We expense capitalized acquisition costs if we determine that the
  property has no future economic value. We will also write down capitalized
  amounts if estimated future cash flows, including potential sales proceeds,
  related to the mineral property are estimated to be less than the carrying
  value of the property.
Stock-based
  compensation
In December 2004, the
  Financial Accounting Standards Board issued Statement of Financial Accounting
  Standard 123R, Share-Based Payment, ("SFAS 123 (R)") a revision to SFAS 123. 
  SFAS 123(R) requires all share-based payments to be recognized in the
  financial statements based on their values using either a modified-prospective
  or modified-retrospective transition method.
Prior to March 31, 2006,
  the Company's stock-based employee compensation plans were accounted for under
  the recognition and measurement provisions of Accounting Principles Board
  Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees" ("APB 25")
  and related interpretations, as permitted by FASB Statement No. 123,
  "Accounting for Stock-Based Compensation" ("SFAS 123").  The Company did
  not recognize employee stock-based compensation costs in its statement of
  operations for the periods prior to March 31, 2006, as all options granted had
  an exercise price equal to the market value of the underlying common stock on
  the date of the grant.
119
Effective April 1, 2006,
  the Company adopted the fair value recognition provisions of SFAS No. 123(R),
  using the modified-prospective-transition method.  The Company's total
  employees are relatively few in number and turnover is considered remote,
  therefore the Company currently estimates forfeitures to be 5.5%. 
  Estimation of forfeitures will be reviewed on a quarterly basis.
Asset retirement
  obligations
The Company records the
  fair value of an asset retirement obligation as a liability in the period in
  which it incurs a legal obligation associated with the retirement of tangible
  long-lived assets that results from the acquisition, construction, development
  or normal use of the assets with a corresponding increase in the carrying
  amount of the related long-lived asset. This amount is then depreciated over
  the estimated useful life of the asset. Over time, the liability is increased
  to reflect an interest element considered in its initial measurement at fair
  value. The amount of the liability will be subject to re-measurement at each
  reporting period.  As at December 31, 2007, the Company has a reclamation
  liability of $5,600 which is disclosed further in Note 9 of the financial
  statements.
Tax valuation allowance
We have recorded a
  valuation allowance that fully reserves for our deferred tax assets because at
  this time we cannot establish that we will be able to utilize the tax loss
  carryforwards in the future. If in the future we determine that we will be
  able to use all or a portion of our deferred tax assets in the future, based
  on our projections of future taxable income, we will reduce the valuation
  allowance, thereby increasing income in that period.
Foreign currency
  translation
The United States dollar
  is our functional currency. Transactions involving foreign currencies for
  items included in operations are translated into U.S. dollars using average
  exchange rates; monetary assets and liabilities are translated at the exchange
  rate prevailing at the balance sheet date and all other balance sheet items
  are translated at the historical rates applicable to the transactions that
  comprise those amounts. Translation gains and losses are included in our
  determination of net income.
Recent Accounting
  Pronouncements
The United States
  Securities and Exchange Commission recently announced that it would provide
  for a phased-in implementation process for FASB Statement No. 123(R),
  Share-Based Payment ("SFAS 123(R)"). Registrants must adopt SFAS 123(R)'s fair
  value method of accounting for share-based payments to employees no later than
  the beginning of the first annual period beginning after December 15, 2005. We
  adopted SFAS 123(R) effective April 1, 2006.
The Financial Accounting
  Standards Board ratified the consensus of the Emerging Issues Task Force that
  stripping costs incurred during the production phase of a mine are variable
  production costs that should be included in the costs of the inventory
  produced during the period that the stripping costs are incurred. This
  consensus is effective for the first reporting period in fiscal years
  beginning after December 15, 2005, with early adoption permitted. To date the
  Company has not incurred any stripping costs.
In June 2006, the FASB
  issued FASB interpretation No. 48 – Accounting for Uncertainty in Income Taxes
  ("FIN 48").  FIN 48 clarifies the accounting for uncertainty in income taxes
  recognized in an enterprise's financial statements in accordance with FASB
  Statement No. 109, Accounting for Income Taxes.  FIN 48 prescribes a
  recognition threshold and measurement attribute for the financial statement
  recognition and measurement of a tax position taken or expected to be taken in
  tax return.  This Interpretation also provides guidance on derecognition,
  classification, interest and penalties, accounting in interim periods,
  disclosure and transition.  This interpretation is effective for fiscal years
  beginning after December 15, 2006.  The adoption of FIN 48 did not have a
  material impact on the Company's consolidated financial statements.
In September 2006, the
  FASB issued SFAS 157, Fair Value Measurements ("SFAS 157").  SFAS 157 defines
  fair value, establishes a framework for measuring fair value in GAAP, and
  expands disclosures about fair value measurements.  This Statement applies
  under other accounting pronouncements that require or permit fair value
  measurements, the Board having previously concluded in those pronouncements
  that fair value is a relevant measurement attribute.  Accordingly, this
  Statement does not require any new fair value measurements.  However, the
  application of this Statement will change current practice, and is effective
  for the Company's 2009 fiscal year.  The adoption of SFAS 157 will not have a
  material impact on the Company's consolidated financial statements.
120
Results of Operations
We are in an exploration
  stage and currently have no producing mineral properties and thus we had no
  revenues during all reporting periods.
Year ended March 31,
  2007 compared to year ended March 31, 2006
For the year ended March
  31, 2006, we had a net loss of $8,737,141 or $0.21 per share compared to a net
  loss of $5,602,336 or $0.19 per share for the prior year, as spending on our
  exploration activities increased significantly, along with an increase in
  staffing levels and higher corporate administration costs.
Exploration expenses
  during the year ended March 31, 2007 were $4,819,692 or 55% of our total
  expenses compared to $3,657,010 or 65% of total expenses in the prior year.
  The increase in spending was related to continuation of permitting activities,
  exploration drilling program and completing the feasibility study on our
  Borealis property, which commenced May 2005 and was terminated in November
  2006.  During the year we drilled a total of 56 reverse circulation holes
  (totaling 54,530 feet) on the Borealis property, compared to 136 holes drilled
  during the prior year.
Management salaries and
  consulting fees for the year ended March 31, 2007 were $2,632,794 compared to
  $1,145,626 incurred in the prior year as staffing increased and the company
  adopted the fair value recognition provisions of SFAS No. 123(R), "Stock-Based
  Payment", which resulted in additional non-cash compensation expense of
  $1,268,422 to be recognized in the year.  Salaries and consulting fees are
  expected to decrease in future periods as we have reduced staff due to
  postponing the development of our heap leach mine on the Borealis property.
   General and administrative expenses totaled $890,596, compared to $480,891 in
  the prior year.  The increase is due to higher spending on investor relations,
  rent related to our Lakewood and Hawthorne offices, related office support and
  insurance.  We incurred $96,964 in closing costs of our Lakewood, Colorado
  office, this amount was included in general and administrative expenses.
   Legal and audit fees for the period increased to $330,005 from $307,942 for
  the year ended March 31, 2006, this is mainly due to costs associated with
  being a public company that reports in both Canada and the United States and
  is therefore subject to additional reporting and compliance requirements.
   Travel and accommodation expense for the year ended March 31, 2007 was
  $325,024, compared to $154,887 for the prior year.  The increase is due to
  greater corporate travel associated with investor relations and property site
  visits.  Interest income earned on cash deposits was $322,725 for the year
  ended March 31, 2007, compared to $168,170 in the prior year due to higher
  cash balances held on average through the current year versus the prior year.
Year ended March 31,
  2006 compared to year ended March 31, 2005
For the year ended March
  31, 2006 we had a net loss of $5,602,336 million, or $0.19 per share, compared
  to a net loss of $2,525,420 million, or $0.17 per share, as spending on our
  exploration activities increased significantly. The current year period loss
  does not reflect the costs directly related to the completion of our initial
  public offering (IPO) in December 2005 and a private placement in March 2006,
  as those costs are treated as share issue costs and are offset directly
  against the proceeds of the offering.
Exploration expenses
  during the year ended March 31, 2006 were $3,657,010 or 65% of our total
  expenses compared to $1,009,173 or 40% of total expenses in the prior year.
  The increase in spending was all related to continuation of permitting
  activities and the drilling program and feasibility study on our Borealis
  property initiated in May 2005 and ongoing. During the year we drilled a total
  of 136 reverse circulation holes (totaling 60,830 feet) on the Borealis
  property, compared to 32 holes drilled during the prior year.
Management salaries and
  consulting fees were $1,145,626 compared to $1,059,871 expended in the prior
  fiscal year, as staffing increased. Legal and audit fees expensed increased to
  $307,942 from $217,457 spent in fiscal 2005, the increase in costs reflecting
  activity related to exploring financing alternatives and changing our
  reporting to US generally accepted accounting principles (GAAP) from Canadian
  GAAP. Our travel and accommodation expenses were $154,887, up from $125,950
  spent in the prior year, the increase is due to higher staffing and travel
  related to financing activities prior to the IPO and also more frequent travel
  to the Borealis property. Travel costs directly related to the IPO were
  recorded as part of share issue costs in stockholders' equity. General and
  administrative expenses for the year were $480,891 up from $116,219 in the
  prior year. The increase was due to higher spending on investor relations,
  rent with the establishment of our Lakewood office in September, office
  support, insurance and telephone. Interest income earned on cash deposits was
  $168,170 compared to $9,646 in the prior year due to significantly higher cash
  balances in 2006 and the use of interest bearing bank accounts for a full year
  in 2006 compared to only part of the year in 2005.
121
Three months ended
  December 31, 2007 compared to three months ended December 31, 2006
For the three months ended
  December 31, 2007 we had a net loss of $1,736,589 or $0.03 per share compared
  to a net loss of $2,620,464 or $0.06 per share in the same period in the prior
  year, as spending on our exploration activities on the Borealis property
  decreased by $667,507 and management salaries and consulting fees decreased by
  $325,833.
Exploration expenses
  during the three months ended December 31, 2007 were $661,007 or 38% of our
  total expenses compared to $1,328,514 or 51% of total expenses in the prior
  year. During the third quarter ended December 31, 2007 we completed drilling 5
  holes, totaling 5,515 feet (1,681 meters) compared to completing 11 holes
  totaling 13,680 feet (4,169 meters) in prior year's comparable period.
   Drilling costs for quarter ended December 31, 2007 were $262,095 versus
  $764,180 in the prior years comparable quarter.  Drilling costs decreased
  because drilling was temporarily suspended beginning mid-November 2007 (versus
  mid-December 2006) to allow for a larger CSAMT geophysical study to be
  completed over the pediment areas and the permitting activity to be completed
  for the next years drilling program.
Management salaries and
  consulting fees in the quarter ended December 31, 2007 were $529,729 compared
  to $855,562 incurred in the quarter ended December 31, 2006 due to the costs
  incurred in the prior year associated with closing the Denver based
  engineering office.  Total non-cash compensation costs included in the quarter
  ended December 31, 2007 were $199,422 versus $529,683 in the prior year's
  comparable quarter.
General and administrative
  costs for the quarter ended December 31, 2007 was $254,831 compared to
  $240,219 for the quarter ended December 31, 2006, a 6% increase.  Included in
  General and administrative are investor relations costs which increased by
  $206,311, during the comparable periods.  Legal and audit fees for the period
  increased to $111,020 from $106,258 for the three months ended December 31,
  2006, and is mainly due to costs associated with being a public company that
  reports in both Canada and the United States, and registering stock issued
  under private placements. Travel and accommodation expense during the quarter
  ended December 31, 2007 was $68,704, compared to $96,678 expended on travel in
  the prior year's comparable quarter. The decrease is due to cost savings from
  closing the Denver office in the prior year and fewer property site visits.
  Interest income earned on cash deposits was $40,782 for the quarter ended
  December 31, 2007, compared to $66,303 in the prior year quarter due to lower
  average cash balances then the comparable quarter.  Interest expense was
  $130,300 during the quarter ended December 31, 2007 due to the issue of a
  convertible promissory note as partial payment for the purchase of the
  membership interest of Nevada Eagle Resources LLC in August 2007.  $65,930 of
  the total interest was non-cash interest expense.
Nine months ended
  December 31, 2007 compared to nine months ended December 31, 2006
For the nine month period
  ended December 31, 2007 we incurred a net loss of $6,463,678 or $0.13 per
  share compared to a net loss of $6,491,678 or $0.16 per share incurred during
  the same period in the prior year, as costs for most categories of
  expenditures remained consistent year on year.
Exploration expenses
  during the six month period ended December 31, 2007 were $3,414,405 or 53% of
  our net loss compared to $3,649,732 or 56% of our net loss in the prior year.
  During the current fiscal year we have drilled a total of 31 holes at the
  Borealis property, representing 36,405 feet (11,096 meters) compared to 41
  holes representing 39,715 feet (12,105 meters).  Fewer holes were drilled
  during the current year because the drilling program focused on drilling deep
  holes in the Graben and Pediment areas versus drilling shallow holes to add
  oxide resources in the prior year.
Management salaries and
  consulting fees in the nine months ended December 31, 2007 were $1,663,160
  compared to $1,746,164 for the same period in the prior year.  Current year
  costs include $322,464 in one-time costs for a transition agreement covering a
  single employee and director including non-cash costs of $81,235.  The
  majority of the cash costs will be paid out over an 18 month period.  Prior
  years costs include expense for running the Denver engineering office that was
  closed effective December 31, 2006.   Total non-cash compensation costs
  included in the nine months ended December 31, 2007 were $683,916 versus
  $779,747 in the prior year's comparable period.
General and administrative
  expenses were $812,436, versus $721,437 in the prior year's comparable period.
  The increase is due to a $306,641 spending on investor relations.  Legal and
  audit fees for the nine month period increased to $308,877 from $271,017
  incurred in the prior year's comparable period.  Travel and accommodation
  during the nine months ended December 31, 2007 was $172,408, compared to
  $282,117 reported in prior year nine month period ended December 31, 2006. The
  decrease was due to a reduction is site visits and the closure of the Denver
  engineering office in late 2006.
Interest income earned on
  cash deposits was $170,332 for the nine months ended December 31, 2007,
  compared to $242,832 for the nine months ended December 31, 2006, due to lower
  average cash balances during the nine month period.   Interest expense totaled
  $188,853 and arose from the issuance of a convertible promissory note related
  to the purchase of Nevada Eagle Resources LLC on August 21, 2007.  $94,297 of
  the interest expense is non-cash.
122
Liquidity and Capital Resources
Our principal source of
  liquidity is cash that is raised by way of sale of common shares from
  treasury. During the fiscal year ended March 31, 2007 total cash of $3,932,234
  was raised from the sale of stock in private placements.  A further $1,550,553
  was raised through the exercise of warrants to common shares of the company.
At March 31, 2007, we had
  working capital of $6,525,160, and we had current assets consisting of
  $7,150,154 in cash, $65,483 in accounts receivable and $129,065 in prepaid
  expenses.  We had $819,542 in current liabilities at March 31, 2007,
  consisting of $786,565 in accounts payable and accrued liabilities and $32,977
  in current portion of capital leases.
At December 31, 2007, we
  had working capital of $4,701,031.  Current assets consisted of $5,541,213 in
  cash, $85,415 in accounts receivable and $157,553 in prepaid expenses.  We had
  $1,083,150 in current liabilities at December 31, 2007, consisting of
  $1,083,150 in accounts payable and accrued liabilities and $32,536 related to
  the current portion of capital leases. The increase in accounts payable and
  accrued liabilities compared to the balance at March 31, 2007 is related to
  the recognition of the transition agreement that will be paid over 18 months.
Currently, we do have sufficient
  working capital to continue with our operations for the next twelve months.
During the quarter ended
  December 31, 2007, we used cash in operating activities of $1,736,046, which
  included our net loss during the quarter of $1,736,590, offset by depreciation
  of $18,745, non-cash compensation of $199,422, non-cash interest expense of
  $65,930 and changes in non-cash working capital used cash of $283,553.  We
  used cash in investing activities of $4,604, including $6,177 for reclamation
  deposits, $17,153 for equipment purchases, $5,409 in new claim fees and
  $24,135 of cash was received in lease payments on Nevada Eagle properties.
   Financing activities provided cash of $3,354,009, which included $3,360,088
  from the issuance of shares in connection with a private placement, offset by
  capital lease principal payments of $6,079.  Cash increased during the period
  by $1,613,359 to $5,541,213 as at December 31, 2007.
Under the terms of the
  acquisition agreement for Nevada Eagle Resources a cash payment of $2,500,000
  was made on August 21, 2007.  Refer to the section 'Contractual Obligations'
  under this document for a full description of the acquisition and commitment.
On February 9, 2007, we
  closed the private placement of 5,000,000 units for sale at Cdn$0.90 to a
  limited number of accredited investors in Canada and the United States. Each
  unit consisted of one common share and one Series E purchase warrant. The
  Series E warrants are exercisable until February 8, 2008 at a price of
  Cdn$1.10 (first anniversary) and from February 9, 2008 until February 8, 2009
  at a price of Cdn$1.35.  The private offering raised gross proceeds of Cdn$4.5
  million.  We paid qualified registered dealers a 7% cash commission and issued
  compensation Series F warrants to acquire 85,050 common shares at price of
  Cdn$0.90 until February 9, 2008 on a portion of the private placement.  The
  shares, warrants and underlying shares were not qualified by prospectus and
  have not been registered under U.S. securities laws and are subject to resale
  restrictions.  The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
   The proceeds of this offering will be applied to fund the continuation of our
  exploration program on the Borealis Property.
On March 15, 2007, we
  entered into a Advisory Services Agreement with Roman Friedrich & Company Ltd.
  (RFC)  Under the terms of the Advisory Services Agreement, commencing March
  15, 2007, in exchange for RFC's financial advisory services, we agreed to
  compensate RFC by paying a retainer fee of Cdn$7,500 per month and issuing
  7,500 common shares per month, payable on  a quarterly basis commencing June
  2007.   As of November 14, 2007, 55,000 shares were issued to Roman Friedrich.
On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC ("Nevada
  Eagle"), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle.  Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states.  Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs.
123
On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit will consist of one
  common share and one full purchase warrant. The two year warrants will be
  exercisable at a price of Cdn$1.00 if exercised within twelve months of the
  closing (the "First Anniversary") and at a price Cdn$1.25 if exercised after
  the First Anniversary but prior to expiry. We paid qualified registered
  dealers cash commissions in the amount of Cdn$152,040 and issued warrants to
  acquire 265,050 common shares (at a price of Cdn$0.83 for a period of up to 9
  months from closing).  The shares, warrants and underlying shares were not
  qualified by prospectus and have not been registered under U.S. securities
  laws and are subject to resale restrictions. The Company has granted
  registration rights to the investors in this private placement and will use
  commercially reasonable efforts to prepare and file with the SEC, within 120
  days of closing, a registration statement under the Securities Act and to
  cause such statement to be declared effective. The proceeds of this offering
  will be applied to fund the continuation of our exploration and development
  programs.
We completed a private
  placement of 4,486,500 units at Cdn$0.80 for gross proceeds of approximately
  Cdn$3,589,000.  The private placement closed in three tranches on November 22,
   November 27 and December 14, 2007.  Each unit consisted of one common share
  and one series I warrant.  Each series I warrant entitles the holder to
  purchase a common share at a price of Cdn$1.00 per share during the first 12
  months after closing and Cdn$1.25 per share during the second 12 months after
  closing and until expiry.  We paid qualified registered dealers a 7% cash
  commission in the amount of Cdn$71,624 and issued compensation warrants
  (series J) to acquire 89,530 common shares (at a price of Cdn$0.80 per share
  for a period of 9 months from closing) in respect of the 1,204,000 million
  units placed by them (14,000 of the compensation warrants were later rejected
  and cancelled by one of the registered dealers). We have a right to force
  warrant holders to exercise warrants, if the price of our common stock remains
  equal to or greater than, Cdn$1.85 per common share, for a period of twenty
  consecutive days.  The shares, warrants and underlying shares were not
  qualified by prospectus, have not been registered under U.S. securities laws,
  and are subject to resale restrictions. We granted registration rights to the
  investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. The proceeds of this offering will be applied to fund
  the continuation of our exploration and development program on the Borealis
  Property.
Updated share capital as of December 31,
  2007:
Basic Common Stock Issued and
      Outstanding
61,681,645
Warrants, Options and other
      Convertible Securities
21,550,888
Fully Diluted Common Stock
83,232,533
Summary of any product research and
  development that the company will perform for the term of the plan
The Company does not
  anticipate performing any product research and development under its plan of
  operation.
Expected purchase or sale of plant and
  significant equipment
The Company is reviewing alternatives for
  purchase of mine equipment if the development of a mine on the Borealis
  property is warranted by a feasibility study and additional financing is
  obtained.
Significant changes in number of
  employees
We started the year with eleven employees
  but due to closing the Lakewood, Colorado office this number decreased to
  eight in late 2006.  We currently have eight employees.  We do not expect a
  significant change in this number.
Off-Balance Sheet Arrangements
The Company does not have any off-balance
  sheet arrangements that have or are reasonably likely to have a current or
  future effect on our financial condition, changes in financial condition,
  revenues or expenses, results of operations, liquidity, capital expenditures
  or capital resources that is material to investors.
Contractual Obligations
We make advance royalty payments of $9,094
  per month to certain lease holders while exploration is proceeding on the
  Borealis Property. Also, to maintain its existing claims, we make payments
  totaling approximately $130,000 annually. These payments are contingent upon
  us maintaining an interest in the property.
124
As of December 31, 2007, we had the
  following non-cancelable contractual obligations:
Payments Due by Period
(3)
Total
Less than 1
year
2-3 Years
4-5 Years
More than 5
Years
Operating Lease Obligation
(1)
$10,565
$10,565
$0
$0
$0
Capital Lease obligations
(2)
32,536
32,536
0
0
0
Debenture
5,000,000
0
5,000,000
0
0
Total
$5,043,101
$43,101
$5,000,000
$0
$0
(1)
Obligation for the rental of office space in Vancouver BC with an initial 3
  year term, terminating August 2008 and payments of approximately $3,388 per
  month, based on the December 31, 2007 exchange rate of Cdn$0.9913 equals US$1.
(2)
The capitalized leases are for the purchase of two trucks.
(3)
The table does not include employment contracts with certain executive
  management which are described in our 10K-SB filed June 22, 2007 under the
  section heading "Executive Compensation".
Under the terms of the Purchase Agreement we closed with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle, we acquired Nevada Eagle
  from the Baughman's for the following consideration, paid on August 21, 2007:
(a) $2,500,000 in cash;
(b) four million five hundred thousand (4,500,000) shares of
  our common stock; and
(c) a 5% convertible note in the principal amount of
  $5,000,000.
The Convertible Note, due
  March 30, 2010, bears interest at the annual rate of 5% and is convertible at
  the option of the holder into common shares at an initial conversion price of
  $1.00 per common share during first the twelve month period following the
  Closing Date, $1.25 per common share during the second twelve month period
  following the Closing Date, $1.50 per common share thereafter and $1.75 per
  common share if converted on March 10, 2007. The interest payments are due
  each January 1 and June 1, beginning on January 1, 2008. In addition to the
  purchase consideration, the Sellers will be entitled to all revenues of Nevada
  Eagle (payable in cash, stock, or other consideration) calculated to be
  received and received on the assets and properties from January 1, 2007
  through midnight on December 31, 2007.
In addition, we granted
  the Sellers registration rights under which we agreed to file (within the
  later of (i) 90 days of the Closing Date or (ii) any date in which we are
  required to file a registration statement for a third-party in connection with
  a financing or acquisition, but no later than 120 days of the Closing Date) a
  resale registration statement to register the common shares issuable at
  Closing and issuable upon exercise of the Convertible Note under the
  Securities Act of 1933, as amended. We also entered into an Employment
  Agreement with Mr. Baughman for a term of one year, renewable by the parties,
  to serve as our Vice President of Corporate Development.
Certain information contained in this
  "Management Discussion and Analysis" constitutes forward looking information
  and actual results could differ from estimates, expectations or beliefs
  contained in such statements.
CHANGES IN AND
  DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
125
DIRECTORS, EXECUTIVE
  OFFICERS AND CONTROL PERSONS
Our directors hold office
  until the next annual meeting of the stockholders and the election and
  qualification of their successors. Officers are elected annually by the Board
  of Directors and serve at the direction of the Board of Directors.
The following table and information that
  follows sets forth, as of April 28, 2008,
the names, and positions of
  our directors and executive officers:
Name and Municipality of
Residence
Current Office with
Gryphon Gold
Principal Occupation
Last Five Years
Director Since
Anthony (Tony) D. J. Ker
West Vancouver, British Columbia
Director, Chief Executive Officer and
      President
Appointed Chief Executive Officer
      September 2006, Executive Vice President, Gryphon Gold Corporation, 2003
      to present, General Manager, Transcontinental Printing Inc., 1996 to 2004.
May 7, 2004
Richard W. Hughes
North Vancouver, British Columbia
Director
President of Klondike Gold Corp. 1985
      to present.
June 14, 2003
Rohan Hazelton
North Vancouver, British Columbia
Director
Vice President Finance 2006 to
      present, formerly corporate Controller 2004 to 2006 and Mgr. Treasury and
      Finance, 2002 to 2004, Goldcorp Inc. (and Predecessor Wheaton River
      Minerals Ltd.), Auditor, Deloitte & Touche LLP, 1999 to 2002.
July 6, 2005
Donald W. Gentry
Bella Vista, Arkansas
Director
President, Chief Executive Officer,
      Chairman and Director of PolyMet Mining Corporation, 1998 to 2003
July 18, 2005
Michael K. Longinotti
North Vancouver, British Columbia
Chief Financial Officer and Secretary
Chief Financial Officer, appointed May
      15, 2006, Chief Financial officer Digital Payment Technologies February
      2005 to May 2006, CFO Knight Signs Sept 2004 to February 2005, CFO Silent
      Witness, Nov. 2000 to June 2003. 1992 to 2000 Comptroller and then
      Treasurer of Cominco Ltd.
—
The following is a description of the
  business background of the directors and executive officers of the
  Corporation.
126
Richard W. Hughes,
75, Director, is President of Hastings Management Corp., a
  private management company providing administrative and professional services
  to public companies engaged in mineral exploration.  He is also President of
  five companies listed on the Toronto Venture Stock Exchange (TSX): Klondike
  Gold Corp., Klondike Silver Corp., Abitibi Mining Corp., Sedex Mining Corp.,
  Amador Gold Corp., Chairman of Golden Chalice Resources Inc. and is a director
  of Alamos Gold Corp. and 10 other TSX listed companies.  Mr. Hughes has
  brought four mines into production and had a prominent role in the discovery
  of the Golden Giant (Hemlo Mine) in Ontario Canada and was responsible for the
  discovery of the Belmoral Mine and the Sleeping Giant Mine, both in Quebec,
  Canada.
Rohan Hazelton,
33,
  Director, joined our board in July 2005 and was appointed Chairman of the
  Audit Committee. Mr. Hazelton is currently Vice President, Finance, and
  formerly was Corporate Controller for Goldcorp Inc. Prior to Goldcorp's merger
  with Wheaton River Minerals Ltd; he was a key member of Wheaton's management
  team since 2002 during Wheaton's rapid growth and significant increase in
  shareholder value. Mr. Hazelton is a Chartered Accountant and previously
  worked for Deloitte & Touche LLP and Arthur Andersen LLP. Prior to that,
  Mr. Hazelton was a commercial loans officer for Dialog Bank Moscow, Russia.
  Mr. Hazelton holds a B.A. in Math and Economics from Harvard University.
Donald W. Gentry,
64, Director, joined our board in July 2005 after retiring from
  PolyMet Mining Corporation as its President, Chief Executive Officer, Chairman
  and Director from 1998 to 2003. He is a retired Professor Emeritus of the
  Colorado School of Mines, having served that institution from 1972 to 1998 as
  Professor, Department Head and Dean of Engineering. He has an international
  reputation as a consulting mining engineer, professional educator and mining
  executive. His primary interests center on the financial aspects of project
  evaluation, investment decision analysis, project financing, and corporate
  investment strategies. He previously served as a Director of Santa Fe Pacific
  Gold Corporation, Newmont Mining Corporation, and Newmont Gold Company and
  currently is a Director of Golden Gryphon Explorations (a company which is
  unrelated to Gryphon Gold Corporation). He was elected President of the
  Society for Mining, Metallurgy and Exploration, Inc. in 1993 and the American
  Institute of Mining, Metallurgical and Petroleum Engineers in 1996, and to the
  National Academy of Engineering in 1996. He holds B.S., M.S. and PhD. degrees
  in mining engineering from the University of Illinois, Mackay School of Mines,
  and U niversity of Arizona, respectively.
Anthony Ker,
51, Director, has served as our Chief Executive Officer since
  September 2006 prior to which he was Executive Vice President, Secretary and
  Treasurer since August 2003. From 1999 to February 2003, Mr. Ker served as
  Director, Treasurer, Secretary and Chief Financial Officer for National Gold
  Corporation, a TSX Venture Exchange listed company that merged into Alamos
  Gold, Inc. (TSX) during the spring of 2003. From 1996 and concurrent with the
  positions at National Gold Corporation, he was General Manager for
  Transcontinental Printing, Inc., British Columbia Division, a Toronto Stock
  Exchange listed company, and the second largest printer in Canada. Prior to
  the Transcontinental Printing, Inc. position, Mr. Ker managed a large coastal
  sawmill for International Forest Products Limited and Weldwood of Canada
  Limited in British Columbia. Mr. Ker holds a Bachelor of Science in Forestry
  from University of British Columbia.
Michael K. Longinotti
,
  51, was appointed as our Chief Financial Officer effective May 15, 2006.  From
  2003 to 2006 Mr. Longinotti has worked with several entrepreneurial companies
  as CFO including Digital Payment Technologies, Knight Signs and Rx Networks.
   From 2000 to 2004 he was CFO of Silent Witness, a NASDAQ and TSX listed
  provider of security equipment and network provider.  From 1989 to 2000 he was
  in various positions, including Comptroller and Treasurer at Cominco Ltd. a
  multinational mining and smelting corporation with Cdn$ 3 billion in assets.
    Mr. Longinotti holds a B.S. in Geology and a B.S. in Environmental Science
  from Washington State University and a B.A. in Business Administration from
  the University of Washington and is a member of the Washington State Society
  of Certified Public Accountants.
None of our executive
  officers or key employees is related by blood, marriage or adoption to any
  other director or executive officer.
To our knowledge, there is
  no arrangement or understanding between any of our officers and any other
  person pursuant to which the officer was selected to serve as an officer.
EXECUTIVE
  COMPENSATION
The following table sets forth
  compensation paid to each of the individuals who served as our Chief Executive
  Officer and our other most highly compensated executive officers (the "named
  executive officers") for the fiscal year ended March 31, 2007.
On April 4, 2006, the Board authorized
  salary adjustments for directors, officers, and employees.  These adjustments
  are indicated in the compensation table below.  Further, the Board proposed
  stock grants to certain directors and executives to provide additional
  compensation, such stock grants would be part of a Stock Grant and Options
  Plan to be approved at the next annual general meeting of stockholders.
1
27
Summary Compensation Table
Name and
Principal Position
Year
Salary
$
Bonus
$
Stock
Awards
$
Options Awards
$
Non-Equity Incentive Plan Compensation
      $
Non-Qualified Deffered Compensation
      Earnings $
All Other Compensation
Total
Tony Ker, President & CEO
2007
174,442
(2)
18,188
87,145
(4)
166,570
32,380
(5)
478,725
Michael Longinotti, CFO
2007
117,175
18,188
63,954
198,920
398,237
Albert Matter, Former Chairman
2007
179,516
(3)
18,188
87,145
(4)
166,570
35,790
(5)
487,209
Allen Gordon, Former President &
      COO
(1)
2007
130,000
-
145,600
112,500
(5)(6)
388,100
Steve Craig, VP Exploration
2007
125,000
-
17,429
50,930
20,000
(7)
213,359
(1)  Vacated President and Chief
  Operating Officer role November 30, 2006
(2)  Effective April 2006 annual
  salary adjusted to Cdn$213,000, on January 1, 2007 reduced to Cdn$150,000
(3)  Effective April 2006 annual
  salary adjusted to Cdn$220,600, on January 1, 2007 reduced to Cdn$150,000.
(4)  Grant of 75,000 Restricted Stock
  Units in lieu of reduced salary vesting quarterly commencing April 1, 2007;
  50,000 Restricted Stock Units Vest on July 10, 2008.
(5)  Retro pay for fiscal year 2006.
(6)  Severance payment of $75,000.
(7)  Relocation payment.
Executive
  Compensation Agreements and Summary of Executive Compensation
Report
  on Executive Compensation
During the year ended March 31, 2007, the
  Company's Compensation Committee was responsible for establishing compensation
  policy and administering the compensation programs of our executive officers.
The amount of compensation paid by the
  Company to each of our officers and the terms of those persons' employment is
  determined solely by the Compensation Committee. The Compensation Committee
  evaluates past performance and considers future incentive and retention in
  considering the appropriate compensation for the Company's officers.  The
  Company believes that the compensation paid to the Company's directors and
  officers is fair to the Company.
Our Compensation Committee believes that
  the use of direct stock awards is at times appropriate for employees, and in
  the future intends to use direct stock awards to reward outstanding service or
  to attract and retain individuals with exceptional talent and credentials. The
  use of stock options and other awards is intended to strengthen the alignment
  of interests of executive officers and other key employees with those of our
  stockholders.
Executive Compensation Agreements
Gryphon Gold is a party to employment
  contracts for Tony Ker, Michael Longinotti, Steven Craig and Rajwant Kang.
   Pursuant to those agreements they are entitled to compensation for
  termination of their employment in certain circumstances, including
  termination without cause and change of control. The employment agreements
  provide for the payment of compensation that will be triggered by a
  termination of the executive officer's employment by either Gryphon Gold or
  the executive officer following a change of control of Gryphon Gold, or by
  Gryphon Gold at any time, other than for "cause." In such event, Messr's Ker,
  Longinotti, and Craig will be entitled to receive an amount equal to one
  year's annual salary plus bonus (equal to the amount of bonus in the prior
  year) earned in the year of change of control, and existing benefits for a
  period of 12 months. Mr. Kang will be entitled to receive an amount equal to
  one-half year's annual salary plus bonus (equal to the amount of bonus in the
  prior year) earned in the year of change of control, and existing benefits for
  a period of 6 months.  The agreement with Tony Ker includes limited
  non-competition and non-solicitation covenants for a period of 12 months
  following termination.
128
Except as described above, and the payment
  of directors' fees, there are no service contracts of any officer of Gryphon
  Gold and there is no arrangement or agreement made or proposed to be made
  between Gryphon Gold and any of its named executive officers pursuant to which
  a payment or other benefit is to be made or given by way of compensation in
  the event of that officer's resignation, retirement or other termination of
  employment, or in the event of a change of control of Gryphon Gold or a change
  in the named executive officer's responsibilities following such change in
  control.
Outstanding
  Equity Awards At Fiscal Year-End
The following table sets forth the stock
  options granted to our named executive officers as of the fiscal year ended
  March 31, 2007. No stock appreciation rights were awarded.
Option Awards
Stock Awards
Name
Number of Securities Underlying
      Unexercised Options (1) (#) Exercisable
Number of Securities Underlying
      Unexercised Options (#) Unexercisable
Equity Incentive Plan Awards: Number
      of Securities Unexercised Unearned Options (#)
Option Exercise Price ($)
Option Expiration Date
Number of Shares or Units of Stock
      that have not Vested (#)
Market Value of Shares or Units of
      Stock that have not Vested ($)
Equity Incentive Plan Awards: Number
      of Securities Unearned Shares, Units or Other Rights That have not Vested
      (#)
Equity Incentive Plan Awards: Market
      or Payout Value of Unearned Shares, Units or Other Rights that Have not
      Vested ($)
Tony Ker
(1)
325,000
--
0.75
29-Mar-10
50,000
46,336
President and Chief Executive Officer
--
200,000
Cdn$1.37
4-Apr-12
75,000
69,505
50,000
50,000
Cdn$0.80
25-Feb-12
Michael Longinotti
(2)
250,000
--
Cdn$1.37
18-Apr-12
Chief Financial Officer
50,000
50,000
Cdn$0.80
25-Feb-12
Albert Matter
(3)
350,000
--
0.75
29-Mar-10
50,000
46,336
Former Chairman
--
200,000
Cdn$1.37
4-Apr-12
75,000
69,505
50,000
50,000
Cdn$0.80
25-Feb-12
Steve Craig
(4)
54,000
36,000
Cdn$1.15
5-Jan-11
25,000
23,168
VP Exploration
36,000
24,000
Cdn$1.37
13-Mar-11
--
50,000
Cdn$1.37
4-Apr-12
25,000
25,000
Cdn$0.80
25-Feb-12
Allen Gordon
(5)
350,000
--
0.75
13-Jun-07
Former President and Chief Operating
      Officer
--
225,000
Cdn$1.37
13-Jun-07
Rajwant Kang
30,000
45,000
Cdn$1.37
4-Apr-11
Former Controller, Former Secretary,
      and Former Treasurer
37,500
--
Cdn$0.80
26-Feb-12
(1)     200,000
  options vest 100% April 4, 2007; 50,000 options vest 100% February 26, 2008.
   Units of stock: 50,000 vest 100% July 10, 2008; 75,000 vest 25%  quarterly
  commencing April 1, 2007.
(2)     50,000 options
  vest 100% February 26, 2008.
(3)      200,000
  options vest 100% April 4, 2007; 50,000 options vest 100% February 26, 2008.
   Units of stock:  50,000 vest 100% July 10, 2008; 75,000 vest 25%  quarterly
  commencing April 1, 2007.
(4)     36,000 options
  vest 50% July 5, 2007, 50% January 5, 2008:  24,000 options vest 50% September
  13, 2007, 50% March 13, 2008:  50,000 options vest 100% April 4, 2007:  25,000
  options vest 100% February 26, 2008.  Units of stock:  25,000 vest 50% July
  10, 2007, 50% January 10, 2008.
(5)     Vacated
  President and COO role November 30, 2006; 225,000 vest 100% April 4, 2007.
(6)    45,000 options vest April 4 2007 –
  15,000, October 4, 2007 – 15,000, April 4 2008 – 15,000;  37,500 options to
  vest 100% February 26, 2008.
129
Retirement, Resignation or Termination
  Plans
We sponsor no plan, whether written or
  verbal, that would provide compensation or benefits of any type to an
  executive upon retirement, or any plan that would provide payment for
  retirement, resignation, or termination as a result of a change in control of
  our Company or as a result of a change in the responsibilities of an executive
  following a change in control of our Company.
Director Compensation
Name
Fees Earned or Paid in Cash ($)($)
Stock Awards ($)
Option Awards ($)
Non-Equity Incentive Plan Compensation
      ($)
Non-Qualified Compensation Earnings
      ($)
All Other Compensation ($)
Total ($)
Donald Gentry
6,750
52,287
(1)
113,250
(2)
172,287
Rohan Hazelton
3,350
52,287
(3)
113,250
(4)
168,887
Richard Hughes
2,500
52,287
(5)
64,710
(6)
119,497
(1)
50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.
(2)
175,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
   Exercise Price Cdn$1.37 per share
(3)
50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.
(4)
175,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
   Exercise Price Cdn$1.37 per share
(5)
50,000 Restricted Stock Units Vest on July 10, 2008; 25,000 Restricted Stock
  Units Vest on a quarterly basis commencing April 10, 2007.
(6)
100,000 Stock Options 100% Vests on April 4, 2007, Expire April 4, 2012.
   Exercise Price Cdn$1.37 per share
Compensation
  of Directors
Beginning January 2007, independent board
  members who are not employed by us in any capacity other than as a director
  will be compensated for their services as follows:
•            
  A grant of 25,000 Restricted Stock Units that vest at a rate of 6,250 units
  each calendar quarter during 2007 and 50,000 units that will vest July 10,
  2008.
•             
  No cash compensation for attendance of any meeting.
•             
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold.
130
Beginning January 2007, non-independent
  board members will be compensated for their services as follows:
•             
  A grant of 50,000 Restricted Stock Units that will vest July 10, 2008.
•             
  No cash compensation for attendance of any meeting.
•             
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold.
Beginning in July 2005 and until January
  2007, independent board members who were not employed by us in any capacity
  other than as a director were compensated for their services as follows:
•             
  For any Board or Committee meeting not requiring travel, such as a telephone
  conference call — a meeting fee of $250.
•             
  For any fully constituted meeting of the Board or a Committee requiring travel
  of over four hours in aggregate — a meeting fee of $1,000.
•             
  Any expenses, travel, administrative, telephone or other costs associated with
  a Board member's fulfilling his or her duties as a Board member will be
  reimbursed by Gryphon Gold.
Director
  Compensation Agreements
Mr. Ranta is a party to a consulting
  agreement under which he is paid on a per diem basis and pursuant to which he
  is entitled to compensation for termination of his agreement in certain
  circumstances, including termination without cause and change of control.
Except as described above, and the payment
  of directors' fees, there are no service contracts of any director of Gryphon
  Gold and there is no arrangement or agreement made or proposed to be made
  between Gryphon Gold and any of its directors pursuant to which a payment or
  other benefit is to be made or given by way of compensation in the event of
  that officer's resignation, retirement or other termination of employment, or
  in the event of a change of control of Gryphon Gold or a change in the
  director's responsibilities following such change in control.
SECURITY
  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following tables set
  forth information as of December 31, 2007 regarding the ownership of our
  common stock by:
•              
  each person who is known by us to own more than 5% of our shares of common
  stock; and
•              
  each named executive officer, each director and all of our directors and
  executive officers as a group.
The number of shares beneficially owned
  and the percentage of shares beneficially owned are based on 61,465,395 shares
  of common stock outstanding as of December 31, 2007
.
For the purposes of the information
  provided below, shares subject to options and warrants that are exercisable
  within 60 days following December 31, 2007 are deemed to be outstanding and
  beneficially owned by the holder for the purpose of computing the number of
  shares and percentage ownership of that holder but are not deemed to be
  outstanding for the purpose of computing the percentage ownership of any other
  person. Except as indicated in the footnotes to these tables, and as affected
  by applicable community property laws, all persons listed have sole voting and
  investment power for all shares shown as beneficially owned by them.
131
Principal Stockholders
As of December 31, 2007
Name and Address of Beneficial
      Owner(1)
Shares
Percent
Standard Bank plc
3,426,336
5.57%
25 Dowgate Hill, Cannon Bridge House
London, United Kingdom EC4R 2SB
Geologic Resource Fund
7,000,000(2)
10.77%(2)
Gerry W. Baughman and Fabiola
      Baughman
6,384,374(3)
9.99%(3)
__________
(1)   Beneficial ownership is
  determined in accordance with the rules of the United States Securities and
  Exchange Commission and includes voting and investment power with respect to
  shares. Unless otherwise indicated, the persons named in this table have sole
  voting and sole investment control with respect to all shares beneficially
  owned. Figures shown are on a non-diluted basis.
(2)   Geologic Resource Fund LP
  of 535 Boylston Street, Boston MA currently holds 980,000 shares and 980,000
  shares upon exercise of warrants and Geologic Resource Fund LTD of Harbour
  Centre, Noah Church Street, George Town, Grand Cayman holds 2,520,000 shares
  and 2,520,000 shares upon exercise of warrants.  George Ireland (Chief
  Investment Officer for both funds) holds sole voting power.
(3)   6,384,374 common shares
  beneficially owned by the Baughmans, as joint tenants with rights of
  survivorship, is comprised of 4,500,000 shares of Common Stock of the Issuer
  and 1,884,374 shares of Common Stock of the Issuer that are issuable upon
  conversion of a $5,000,000, convertible note, subject to a cap on conversion
  at 9.99% of the issued and outstanding.
Security
  Ownership of Management
As of December 31, 2007
Name and Address of Beneficial
      Owner(1)
Shares
Percent
Albert Matter
2,678,780(2)
4.32%(2)
Former Director
Suite 810, 1130 West Pender Street
Vancouver, BC V6E 4A4
Anthony Ker
1,717,500(3)
2.77%(3)
Director, President, Chief Executive
      Officer
Suite 810, 1130 West Pender Street
Vancouver, BC V6E 4A4
Michael Longinotti
483,000(4)
0.78%(4)
Chief Financial Officer
Suite 810, 1130 West Pender Street
Vancouver, BC V6E 4A4
All directors and executive officers
      as a group (6 persons)
7,029,280(5)
11.02%(5)
__________
(1)   Beneficial ownership is
  determined in accordance with the rules of the SEC and includes voting and
  investment power with respect to shares. Unless otherwise indicated, the
  persons named in this table have sole voting and sole investment control with
  respect to all shares beneficially owned.
(2)   Includes vested options
  exercisable to acquire 600,000 shares of common stock and 140,280 restricted
  stock units
(3)   Includes vested options
  exercisable to acquire 575,000 shares of common stock and 68,750 restricted
  stock units.  Tony Ker was appointed Chief Executive Officer September 12,
2006 and appointed President January 10, 2007.
(4)   Includes vested options
  exercisable to acquire 300,000 shares of common stock.
(5)   Includes vested options
  exercisable to acquire 2,337,500 shares of common stock and 377,780 restricted
  stock units.
132
We have no knowledge of any arrangements,
  including any pledge by any person of our securities, the operation of which
  may at a subsequent date result in a change in our control.
We are not, to the best of our knowledge,
  directly or indirectly owned or controlled by another corporation or foreign
  government.
As of April 16, 2008, we had
  approximately 1783 shareholders of record of our common stock.
ORGANIZATION WITHIN
  LAST FIVE YEARS
Director Independence
The Company's Board of
  Directors has determined that Richard W. Hughes, Rohan Hazelton, and Donald W.
  Gentry are independent directors of the Company based on the definition of
  independence under the rules of the American Stock Exchange and the Toronto
  Stock Exchange.
CERTAIN
  RELATIONSHIPS AND RELATED TRANSACTIONS
Except for the transactions described
  below, none of our directors, senior officers or principal shareholders, nor
  any associate or affiliate of the foregoing have any interest, direct or
  indirect, in any transaction, from April 23, 2003 (date of inception) to the
  date of this prospectus, or in any proposed transactions, in which such person
  had or is to have a direct or indirect material interest.
Purchases
  of Securities
During and subsequent to the fiscal year
  ending March 31, 2007, officers, directors and 10% shareholders of Gryphon
  Gold purchased securities of Gryphon Gold on the following terms:
Officer, Director, 10%
      Shareholder
Type of Security
Price of
Security
Date of Purchase
Michael Longinotti
100,000 units
(1)
Cdn $1.35 per unit
June 10, 2006
Rajwant Kang
4,800 units
Cdn $2.07 per unit
April 27, 2006
Rajwant Kang
5,000 units
Cdn $1.65 per unit
May 31, 2006
Rajwant Kang
29,000 units
(1)
Cdn $1.35 per unit
June 10, 2006
Rajwant Kang
9,000 units
Cdn $1.46 per unit
July 21, 2006
Rajwant Kang
6,000 units
Cdn $1.20 per unit
Oct 5, 2006
Anthony Ker
25,000 units
Cdn $1.85 per unit
May 8, 2006
Donald Gentry
37,500 units
$0.75 per unit
April 17, 2006
Geologic Resource Fund
3,500,000 units
(2)
Cdn $0.90 per unit
Feb 9, 2007
__________
(1)
Each unit consisted of one share of common stock and one-half of one share
  purchase warrant, each whole warrant exercisable to acquire one share of
  common stock at Cdn$1.82.
(2)
Each unit consisted of one share of common stsock and one of one share
  purchase warrant, each whole warrant exercisable to acquire one share of
  common stock at Cdn$1.10 until first anniversary date (Feb 8, 2008) and
  exercisable at Cdn$1.35 from Feb 9, 2008 to Feb 9, 2009.
133
Other than compensatory arrangements
  described under "Executive Compensation" and the transactions described above,
  we have had no other transactions, directly or indirectly, during the past
  fiscal year with our directors, senior officers or principal shareholders, or
  any of their associates or affiliates in which they had or have a direct or
  indirect material interest.
Director
  Independence
The Company's Board of Directors has
  determined that the following directors are independent based on the standards
  for director independence for the American Stock Exchange:
•   Richard Hughes;
•   Don Gentry; and
•   Rohan Hazelton.
MATERIAL CHANGES
None.
INCORPORATION OF
  CERTAIN INFORMATION BY REFERENCE
Not applicable.
THE SEC'S POSITION
  ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
The Company's Bylaws and
  Articles of Incorporation (the "Certificate of Incorporation") provide that we
  shall, to the full extent permitted by the Nevada General Business Corporation
  Law, as amended from time to time (the "Nevada Corporate Law"), indemnify all
  of our directors and officers. Section 78.7502 of the Nevada Corporate Law
  provides in part that a corporation shall have the power to indemnify any
  person who was or is a party or is threatened to be made a party to any
  threatened, pending or completed action, suit or proceeding (other than an
  action by or in the right of the corporation) by reason of the fact that such
  person is or was a director, officer, employee or agent of another corporation
  or other enterprise, against expenses (including attorneys' fees), judgments,
  fines and amounts paid in settlement actually and reasonably incurred by him
  in connection with such action, suit or proceeding if he acted in good faith
  and in a manner he reasonably believed to be in or not opposed to the best
  interests of the corporation, and with respect to any criminal action or
  proceeding, had no reasonable cause to believe his conduct was unlawful.
Similar indemnity is
  authorized for such persons against expenses (including attorneys' fees)
  actually and reasonably incurred in defense or settlement of any threatened,
  pending or completed action or suit by or in the right of the corporation, if
  such person acted in good faith and in a manner he reasonably believed to be
  in or not opposed to the best interests of the corporation, and provided
  further that (unless a court of competent jurisdiction otherwise provides)
  such person shall not have been adjudged liable to the corporation. Any such
  indemnification may be made only as authorized in each specific case upon a
  determination by the stockholders or disinterested directors that
  indemnification is proper because the indemnitee has met the applicable
  standard of conduct. Under our Certificate of Incorporation, the indemnitee is
  presumed to be entitled to indemnification and we have the burden of proof to
  overcome that presumption. Where an officer or a director is successful on the
  merits or otherwise in the defense of any action referred to above, we must
  indemnify him against the expenses which such offer or director actually or
  reasonably incurred. Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the foregoing provisions, or
  otherwise, the registrant has been advised that in the opinion of the
  Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue.
To the extent that
  indemnification for liabilities arising under the Securities Act may be
  permitted for our directors, officers and controlling persons, we have been
  advised that in the opinion of the SEC such indemnification is against public
  policy as expressed in the Securities Act and is, therefore, unenforceable.
134
TRANSFER AGENT AND
  REGISTRAR
The registrar and transfer
  agent for our shares of common stock will be Computershare Trust Company, Inc.
  at its offices in Vancouver, Canada.
LEGAL MATTERS
The validity of the
  securities offered hereby will be passed upon for Gryphon Gold Corporation by
  Woodburn and Wedge LLP.
WHERE YOU CAN FIND
  MORE INFORMATION
We are subject to the
  informational requirements of the Exchange Act and, accordingly, file current
  and periodic reports, proxy statements and other information with the SEC. We
  have also filed a registration statement on Form SB-2 under the Securities
  Act, as amended, in connection with this offering. This prospectus, which is
  part of the registration statement, does not contain all of the information
  contained in the registration statement. For further information with respect
  to us and the shares of common stock offered hereby, reference is made to such
  registration statement, including the exhibits thereto, which may be read,
  without charge, and copied at the public reference facilities maintained by
  the SEC at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain
  information on the operation of the public reference room by calling the SEC
  at 1-800-SEC-0330. The SEC maintains a site on the World Wide Web at http://www.sec.gov
  that contains current and periodic reports, proxy statements and other
  information regarding registrants that filed electronically with the SEC.
  Statements contained in this prospectus as to the intent of any contract or
  other document referred to are not necessarily complete, and in each instance
  reference is made to the copy of such contract or other document filed as an
  exhibit to this registration statement, each such statement being qualified in
  all respects by such reference.
DEFINITIONS
Following are definitions
  of certain technical terms used in this prospectus.
Au.
The chemical symbol for gold.
Aeromagnetic.
Detection of changes in the Earth's
  magnetic field with survey instruments mounted in an aircraft. Provides an
  interpretation of subsurface geology and indications of the presence of
  certain mineral assemblages which may indicate traces of hydrothermal
  activity.
Alluvium/ alluvial.
Unconsolidated, to loosely
  consolidated, gravel, silt, sand, clay, etc. deposited in valleys, usually by
  water.
Andesite.
Igneous (formed from molten material) rock
  that solidified at the Earth's surface and is principally composed of
  plagioclase feldspar, biotite, and hornblende.
Andesite flow.
A lava flow composed of andesite.
Anomaly.
Geophysical or geochemical measurements
  that are outside of the normal, or average, range of values.
Argillization.
The conversion of minerals to clay by
  either hydrothermal alteration, or during the weathering process.
Assay.
To analyze the proportions of metals in an
  ore; to test an ore or mineral for composition, purity, weight, or other
  properties of commercial interest.
Assay Ton.
A weight of 29.166+ g, used in assaying
  to represent proportionately the assay value of an ore. Because it bears the
  same ratio to 1 mg that a ton of 2,000 lb bears to the troy ounce, the weight
  in milligrams of precious metal obtained from an assay ton of ore equals the
  number of ounces to the ton.
Basin and Range.
The geologic province centered on
  Nevada consisting of northerly striking mountain ranges and intervening
  valleys.
135
Breccia.
A rock made of fragments of one or more
  rock types that has formed as a result of movement along faults, or the
  activity of fluids that may carry mineralization.
Chalcedonic.
Extremely fine-grained quartz.
Chargeability.
A geophysical measurement of how much
  electricity can be stored in the ground that is commonly used to development
  an estimate of the abundance of metallic sulfide minerals below the surface.
Cretaceous.
The geologic time that is part of the
  Mesozoic era covering the period from 144 to 66 million years ago.
Crushed and Agglomerated Ore.
That material which
  has been reduced in size mechanically by crushing, (and which may as a result
  contain a significant portion of very fine particles) which is then, with the
  aid of a binding agent such as cement, reconstituted into larger particles and
  subsequently leached in a heap. The agglomerated ore typically has greater
  strength allowing for higher stacked heaps and may allow better percolation of
  leach solutions if the ore has high clay or fine particle content.
Fault.
A planar feature produced by breaking of the
  Earth's crust with movement on one, or both, sides of the plane.
Feasibility Study.
A comprehensive study of a
  deposit in which all geological, engineering, operating, economic and other
  relevant factors are considered in sufficient detail that it could reasonably
  serve as the basis for a final decision by a financial institution to finance
  the development of the deposit for mineral production.
Geophysics/geophysical.
Surveys that are conduced to
  measure the Earth's physical properties as a means of identify areas where
  anomalous features may exist.
Gold deposit.
An accumulation of gold mineralization
  in the Earth's crust, with no reference to size and grade of the deposit.
Gold Heap-leaching.
A hydrometallurgical process
  whereby gold is recovered from ore by heaping broken ore on sloping
  impermeable pads, repeatedly spraying the heaps with a diluted cyanide
  solution which dissolves the gold content in the ore, collecting the
  gold-laden solutions, and stripping the solution of gold.
Granite.
An igneous (formed from molten material)
  rock that solidified within the Earth's crust and is principally composed of
  quartz, feldspar, and biotite.
Hydrothermal.
Hot water that originates within the
  Earth's crust and ascend toward the surface. This water is commonly associated
  with the formation of mineral deposits and hot springs.
Hydrothermal Alteration.
Changes brought about in
  rock by the exposure to hydrothermal solutions, or mineral laden hot water
  from within the Earth's crust.
Induced Polarization/ IP.
A geophysical survey
  technique that measures the passage of electrical current sent into the ground
  (see chargeability).
Lahar.
A mudflow composed principally of volcanic
  material.
Lithology/lithologic.
A general term used to define
  specific types of rocks.
Leach.
The dissolution of soluble constituents from
  a rock or orebody by the natural or artificial action of percolating
  solutions.
Ma.
In geological terms, a million years.
Marcasite.
A yellow iron sulphide mineral similar to
  pyrite in physical and chemical properties but which is less stable; and at
  Borealis is an important ore forming mineral containing gold.
136
Mesozoic.
A subdivision of geologic time that covers
  the period from about 245 to 66 million years ago.
Mine.
An opening or excavation in the ground for the
  purpose of extracting minerals; a pit or excavation from which ores or other
  mineral substances are taken by digging; an opening in the ground made for the
  purpose of taking out minerals; an excavation properly underground for digging
  out some usual product, such as ore, including any deposit of any material
  suitable for excavation and working as a placer mine; collectively, the
  underground passage and workings and the minerals themselves. At Borealis
  there is potential for both surface and underground mining operations.
Mineralizing/mineralized.
Material added by
  hydrothermal solutions, principally in the formation of ore deposits. Often
  refers to the presence of a mineral of economic interest in a rock.
Miocene.
This is a subdivision of geologic time that
  covers the period from about 5 to 24 million years ago.
Open Pit Mining.
The process of excavating an ore
  body from the surface in progressively deeper layered cuts or steps.
  Sufficient waste rock adjacent to the ore body is removed to maintain mining
  access and to maintain the stability of the resulting pit.
Open Pit.
A surface mine working open to daylight,
  such as a quarry.
OPT/opt.
Abbreviation for ounces per ton, generally
  used in this prospectus to refer to the number of ounces of gold per ton.
Ore.
The naturally occurring material from which a
  mineral or minerals of economic value can be extracted profitably or to
  satisfy social or political objectives. The term is generally but not always
  used to refer to metalliferous material, and is often modified by the names of
  the valuable constituent; e.g., gold ore.
Ounce
or
"oz.".
A unit of weight equal to 31.1
  grams.
Oxidization/oxidized.
The conversion of sulfide
  minerals to oxide minerals, usually through weathering at, or near, the
  Earth's surface.
Pediment.
A gravel covered bedrock surface that is
  along the margin of a mountain range. The bedrock surface commonly has a
  gentle dip into the valley, outward from the mountain range.
Pipe-like.
Geologic masses that have two short
  dimensions and one long dimension, and commonly have a near vertical
  orientation.
Propylitic Alteration.
A type of hydrothermal
  alteration that produces only a modest change in the character of the rock.
  This type of alteration is commonly found at the margins of mineralized areas.
Pyrite.
A yellow iron sulphide mineral, which at
  Borealis is an important ore forming mineral containing gold.
Qualified Person.
The term "qualified person" refers
  to an individual who is an engineer or geoscientist with at least five years
  of experience in mineral exploration, mine development, production activities
  and project assessment, or any combination thereof, including experience
  relevant to the subject matter of the project or report and is a member in
  good standing of a self-regulating organization.
Resistivity.
A measurement of conductivity of
  electricity through rock.
"RC"
or
Reverse Circulation.
The circulation
  of bit-coolant and cuttings-removal liquids, drilling fluid, mud, air, or gas
  down the borehole outside the drill rods and upward inside the drill rods.
  Often used to describe an advanced drilling and sampling method that takes a
  discrete sample from a drill interval with the objective of maintaining sample
  integrity.
Reserve.
Measurement of size and grade of a mineral
  deposit that infers parameters have been applied to assess the potential for
  economic development.
137
Resource.
The measurement of size and grade of a
  mineral deposit, without any inferred economic parameters.
Run of Mine Ore.
Material which was fragmented by
  blasting only, and then stacked on the heaps without being further reduced in
  size by crushing or other beneficiation processes.
Stratigraphic.
The relationship of layered rocks to
  each other.
Sediments.
Material that has been deposited on the
  surface of the Earth through geologic means, usually transported and deposited
  by water. This material may eventually be cemented into rock.
Silicification.
The process by which quartz is added
  to rock by hydrothermal solutions.
Strike.
The course or bearing of the outcrop of an
  inclined bed, vein, or fault plane on a level surface; the direction of a
  horizontal line perpendicular to the direction of the dip.
Structural Zone.
Area that commonly contain several
  faults and fractured rock.
Sulfide.
Minerals that contain metals combined with
  sulfur.
TCV.
Tertiary Coal Valley formation, a local
  sedimentary rock unit which in may areas at the Borealis
Property covers rocks hosting gold mineralization.
Tertiary.
A geologic time period ranging from
  approximately 66 to 26 million years before the present.
Tons.
A unit of weight measurement. In this
  prospectus it means dry short tons (2,000 pounds).
Unconformable.
Two groups of sedimentary rocks that
  are separated by a break in the depositional cycle and commonly have different
  orientations.
Unpatented mining claims.
Land which has been staked
  and recorded in appropriate mining registries and in respect of which the
  owner has the right to explore for and exploit the minerals contained in such
  land and to conduct mining operations thereon. In this prospectus, unpatented
  mining claims refers to lode claims (and not placer claims).
Volcanic Rock.
A group of igneous rocks that
  consolidated from molten material at the surface of the earth.
138
PROSPECTUS
GRYPHON GOLD CORPORATION
9,048,530 Shares of
Common Stock
April 30, 2008
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13 – OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
Amount
Securities and Exchange Commission Registration Fee
$147
Legal Fees and Expenses
$15,000
Accounting Fees and Expenses
$5,000
Printing and Engraving Expenses
$2,000
Miscellaneous Expenses
$1,000
Total
$23,147
ITEM 14 – INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Company's Bylaws and
  Articles of Incorporation (the "Certificate of Incorporation") provide that we
  shall, to the full extent permitted by the Nevada General Business Corporation
  Law, as amended from time to time (the "Nevada Corporate Law"), indemnify all
  of our directors and officers. Section 78.7502 of the Nevada Corporate Law
  provides in part that a corporation shall have the power to indemnify any
  person who was or is a party or is threatened to be made a party to any
  threatened, pending or completed action, suit or proceeding (other than an
  action by or in the right of the corporation) by reason of the fact that such
  person is or was a director, officer, employee or agent of another corporation
  or other enterprise, against expenses (including attorneys' fees), judgments,
  fines and amounts paid in settlement actually and reasonably incurred by him
  in connection with such action, suit or proceeding if he acted in good faith
  and in a manner he reasonably believed to be in or not opposed to the best
  interests of the corporation, and with respect to any criminal action or
  proceeding, had no reasonable cause to believe his conduct was unlawful.
Similar indemnity is
  authorized for such persons against expenses (including attorneys' fees)
  actually and reasonably incurred in defense or settlement of any threatened,
  pending or completed action or suit by or in the right of the corporation, if
  such person acted in good faith and in a manner he reasonably believed to be
  in or not opposed to the best interests of the corporation, and provided
  further that (unless a court of competent jurisdiction otherwise provides)
  such person shall not have been adjudged liable to the corporation. Any such
  indemnification may be made only as authorized in each specific case upon a
  determination by the stockholders or disinterested directors that
  indemnification is proper because the indemnitee has met the applicable
  standard of conduct. Under our Certificate of Incorporation, the indemnitee is
  presumed to be entitled to indemnification and we have the burden of proof to
  overcome that presumption. Where an officer or a director is successful on the
  merits or otherwise in the defense of any action referred to above, we must
  indemnify him against the expenses which such offer or director actually or
  reasonably incurred. Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the foregoing provisions, or
  otherwise, the registrant has been advised that in the opinion of the
  Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue.
ITEM 15 – RECENT SALES OF UNREGISTERED SECURITIES
Since our inception we
  have offered and sold the following securities in unregistered transactions
  pursuant to exemptions under the Securities Act.
On or about May 15, 2003,
  we issued 3,000,000 shares of common stock to our founding shareholders at
  $0.10 per share. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act.
II-1
On or about June 15, 2003,
  we issued 1,885,000 shares of common stock at $0.15 per share to our
  directors. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act.
On or about August 15,
  2003, we issued 1,902,500 shares of common stock at $0.20 per share and
  537,500 shares of common stock at $0.225 per share payable by installment
  promissory notes. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act.
On or about September 16,
  2003, we issued 270,000 shares of common stock at $0.15 per share to a
  director, 1,400,000 shares of out common stock at $0.20 per share, and an
  additional 100,000 shares of our common stock at $0.225 per share payable by
  installment promissory notes. We offered and sold shares outside the United
  States to non-U.S. persons in off-shore transactions pursuant to the exemption
  from registration available under Regulation S of the Securities Act and in
  the United States in private transactions not involving a public offering
  pursuant to exemptions available under Rule 506 of Regulation D and Section
  4(2) of the Securities Act.
On or about December 17,
  2003, we issued 95,000 shares of common stock at $0.15 per share to a
  director, 3,663,500 shares of common stock at $.20 per share and 122,500
  shares of common stock at $0.225 per share payable by installment promissory
  notes. We offered and sold shares outside the United States to non-U.S.
  persons in off-shore transactions pursuant to the exemption from registration
  available under Regulation S of the Securities Act and in the United States in
  private transactions not involving a public offering pursuant to exemptions
  available under Rule 506 of Regulation D and Section 4(2) of the Securities
  Act.
On or about March 8, 2004,
  we issued 1,250,000 shares of common stock at $0.15 per share to our directors
  and 150,000 shares of common stock at $0.20 per share. We offered and sold
  shares outside the United States to non-U.S. persons in off-shore transactions
  pursuant to the exemption from registration available under Regulation S of
  the Securities Act and in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On September 7, 2004, we
  reserved for issuance and later sold 500,000 shares of common stock to Tom
  Sitar, our chief financial officer at $0.35 per share under the terms of his
  employment agreement. The shares were issued in a private transaction not
  involving a public offering pursuant to exemptions available under Section
  4(2) of the Securities Act.
On September 28, 2004, we
  sold 778,500 shares of common stock at $0.65 per share and subsequently issued
  389,250 share purchase warrants to each purchaser exercisable to acquire one
  share of common stock at $0.90 per share until the earlier of two years from
  the date of issuance or twelve months after our shares of common stock are
  listed for trading on a recognized exchange. We offered and sold units outside
  the United States to non-U.S. persons in off-shore transactions pursuant to
  the exemption from registration available under Regulation S of the Securities
  Act. We offered and sold units solely to accredited investors in the United
  States in private transactions not involving a public offering pursuant to
  exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act.
On January 26, 2005, we
  sold 1,410,077 units at $0.65 per unit. Each unit consisted of one share of
  common stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On March 28, 2005, we sold
  4,627,385 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
II-2
On or about March 29,
  2005, we granted options exercisable to acquire 2,000,000 shares of common
  stock at $0.75 per share to officers, directors, employees and a consultant in
  compensatory transactions not involving a public offering pursuant to
  exemptions available under Rule 701 of the Securities Act.
On April 1, 2005, we sold
  1,300,000 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On April 25, 2005, we sold
  4,221,154 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On June 22, 2005, we sold
  509,254 units at $0.65 per unit. Each unit consisted of one share of common
  stock and one-half of one share purchase warrant, each whole warrant
  exercisable to acquire one share of common stock at $0.90 per share until the
  earlier of two years from the date of issuance or twelve months after our
  shares of common stock are listed for trading on a recognized exchange. We
  offered and sold units outside the United States to non-U.S. persons in
  off-shore transactions pursuant to the exemption from registration available
  under Regulation S of the Securities Act. We offered and sold units solely to
  accredited investors in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On August 3, 2005, we
  granted options exercisable to acquire 300,000 shares of common stock at $0.75
  per share to two new independent directors in compensatory transactions not
  involving a public offering pursuant to exemptions available under Rule 701 of
  the Securities Act.
On March 24, 2006, we
  completed a private placement of units. We issued 5,475,000 units at a price
  of Cdn$1.25, for gross proceeds of $5,854,144. Each unit consisted of one
  share of common stock and one half of one Series B share purchase warrant. The
  net proceeds of this placement are also expected to be applied to fund the
  exploration and development of the Borealis property. The private placement
  was not underwritten. We paid cash fees of $327,250 and issued 280,500
  warrants to agents and the total cost of the private placement, including
  agent fees was $720,875. We offered and sold shares outside the United States
  to non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act and in the
  United States in private transactions not involving a public offering pursuant
  to exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act.
In June 2006, we closed a
  private placement with our new Chief Financial Officer and our Corporate
  Controller. Mr. Longinotti was appointed as new Chief Financial Officer to the
  Company, effective May 15, 2006, and the Company has agreed to enter into a
  formal employment agreement with him in due course. Mr. Longinotti received
  through a private placement as compensation: 100,000 Units of the Company at a
  price of Cdn$1.35; with each Unit consisting of one (1) share of the Company's
  common stock with a par value of $0.001 and one-half (1/2) of one (1) share
  purchase Series D Warrant. The common stock was issued May 26, 2006, and the
  Series D warrants were issued June 10, 2006. Mr. Longinotti's employment
  commenced April 18, 2006. Mr. Rajwant Kang is the Corporate Controller to the
  Company. In June of this year, as part of a private placement, Mr. Kang was
  issued 29,000 Units of the Company at a price of Cdn$1.35; with each Unit
  consisting of one (1) share of the Company's common stock with a par value of
  $0.001 and one-half (1/2) of one (1) share purchase Series D Warrant. The
  common stock was issued June 2, 2006, and the Series D warrants were issued
  June 10, 2006. We offered and sold these securities outside the United States
  to non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act.
On February 9, 2007 we
  completed a private placement of 5.0 million units at a price of Cdn$0.90 per
  unit for gross proceeds of Cdn$4.5 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.10 if exercised within twelve months of the closing and at a
  price of Cdn$1.35 if exercised after the First Anniversary but prior to
  expiry. We paid qualified registered dealers a 7% cash commission in the
  amount of Cdn$77,175 and issued compensation options to acquire 85,050 common
  shares (at a price of Cdn$0.90 per share for a period of 12 months from
  closing) in respect of the 1.225 million units placed by them. The shares,
  warrants and underlying shares were not qualified by prospectus and have not
  been registered under U.S. securities laws and are subject to resale
  restrictions. The Company has granted registration rights to the investors in
  this private placement and will use commercially reasonable efforts to prepare
  and file with the SEC, within 120 days of closing, a registration statement
  under the Securities Act and to cause such statement to be declared effective.
  The proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property. We offered and
  sold shares outside the United States to non-U.S. persons in off-shore
  transactions pursuant to the exclusion from registration available under
  Regulation S of the Securities Act and in the United States in private
  transactions not involving a public offering pursuant to exemptions available
  under Rule 506 of Regulation D and Section 4(2) of the Securities Act.
II-3
On March 15, 2007, we
  entered into a Advisory Services Agreement with Roman Friedrich & Company Ltd.
  (RFC) Under the terms of the Advisory Services Agreement, commencing March 15,
  2007, in exchange for RFC's financial advisory services, we agreed to
  compensate RFC by paying a retainer fee of Cdn$7,500 per month and issuing
  7,500 common shares per month, payable on each monthly anniversary. As of
  November 14, 2007, we have issued 55,000 shares to RFC. We offered and sold
  these shares in the United States in a private transaction not involving a
  public offering pursuant to the exemption available under Section 4(2) of the
  Securities Act.
On July 4, 2007, we
  entered into a membership interest purchase agreement with Gerald W. Baughman
  and Fabiola Baughman, as sellers, and Nevada Eagle Resources LLC ("Nevada
  Eagle"), under which we agreed to purchase all of the outstanding limited
  liability company interests of Nevada Eagle. Upon completion of the
  acquisition on August 21, 2007, Nevada Eagle became a wholly-owned subsidiary
  of Gryphon Nevada Eagle Holding Company, a Nevada corporation, which is a
  wholly-owned subsidiary of Gryphon. Nevada Eagle has interests in 54
  prospective gold properties covering over 70 square miles of gold trends in
  Nevada. Twenty-four of these properties are in the Walker Lane belt and added
  to Gryphon's inventory of volcanogenic hosted gold resources. Seven of the
  properties are in the Cortez Trend, seven in the Austin-Lovelock Trend, two in
  the Carlin Trend and the balance are unique situations throughout Nevada with
  a few in contiguous states. Twenty-six of the properties are 'farmed-out'
  through lease and option agreements that generate a positive cash flow net of
  carryings costs. The remaining wholly-owned properties are retained for
  Gryphon's own exploration effort or additional future farm outs. We offered
  and sold these securities in the United States in private transactions not
  involving a public offering pursuant to exemptions available under Rule 506 of
  Regulation D and Section 4(2) of the Securities Act.
On August 7, 2007, we
  closed a private placement of 5.0 million units at a price of Cdn.$0.80 per
  unit for gross proceeds of Cdn.$4.0 million. Each unit consisted of one common
  share and one full purchase warrant. The two year warrants are exercisable at
  a price of Cdn$1.00 if exercised within twelve months of the closing (the
  "First Anniversary") and at a price Cdn$1.25 if exercised after the First
  Anniversary but prior to expiry. We paid qualified registered dealers cash
  commissions in the amount of Cdn$152,040 and issued warrants to acquire
  265,050 common shares (at a price of Cdn$0.83 for a period of up to 9 months
  from closing). The shares, warrants and underlying shares were not qualified
  by prospectus and have not been registered under U.S. securities laws and are
  subject to resale restrictions. The Company has granted registration rights to
  the investors in this private placement and will use commercially reasonable
  efforts to prepare and file with the SEC, within 120 days of closing, a
  registration statement under the Securities Act and to cause such statement to
  be declared effective. We offered and sold shares outside the United States to
  non-U.S. persons in off-shore transactions pursuant to the exclusion from
  registration available under Regulation S of the Securities Act and in the
  United States in private transactions not involving a public offering pursuant
  to exemptions available under Rule 506 of Regulation D and Section 4(2) of the
  Securities Act.
On
  December 14, 2007 we completed a private placement of 4,486,500 units at
  Cdn$0.80 for gross proceeds of approximately Cdn$3,589,200.  The private
  placement closed in three tranches on November 22,  November 27 and December
  14, 2007.  Each unit consisted of one common share and one series I warrant.
   Each series I warrant entitles the holder to purchase a common share at a
  price of Cdn$1.00 per share during the first 12 months after closing and
  Cdn$1.25 per share during the second 12 months after closing and until expiry.
   We paid qualified registered dealers a 7% cash commission in the amount of
  Cdn$71,624 and issued compensation warrants (series J) to acquire 89,530
  common shares (at a price of Cdn$0.80 per share for a period of 9 months from
  closing) in respect of the 1,204,000 million units placed by them (14,000 of
  the compensation warrants were later rejected and cancelled by one of the
  registered dealers). We have a right to force warrant holders to exercise
  warrants, if the price of our common stock remains equal to or greater than,
  Cdn$1.85 per common share, for a period of twenty consecutive days.  The
  shares, warrants and underlying shares were not qualified by prospectus, have
  not been registered under U.S. securities laws, and are subject to resale
  restrictions. We granted registration rights to the investors in this private
  placement and will use commercially reasonable efforts to prepare and file
  with the SEC, within 120 days of closing, a registration statement under the
  Securities Act and to cause such statement to be declared effective. The
  proceeds of this offering will be applied to fund the continuation of our
  exploration and development program on the Borealis Property.
II-4
The shares, warrants and
  warrant shares of the private placement were not registered under the
  Securities Act, or the laws of any state, and are subject to resale
  restrictions and may not be offered or sold in the United States absent
  registration or an applicable exemption from the registration requirements.
  The units, including the shares and warrants comprising the units were placed
  pursuant to exemptions from registration requirements of the Securities Act,
  provided by Section 506 of Regulation D of the Securities Act and by Rule 903
  of Regulation S of the Securities Act, such exemptions being available based
  on information obtained from the investors to the private placement.
ITEM 16 – EXHIBITS
Other than contracts made
  in the ordinary course of business, the following are the material contracts
  that we have entered into within the two years preceding the date of this
  Registration Statement:
(a)
EXHIBITS
Exhibit
Number
Description
3.1(1)
Articles of Incorporation of Gryphon Gold Corporation,
      filed April 24, 2003
3.2(1)
Certificate of Amendment to Articles of Incorporation of
      Gryphon Gold Corporation, filed August 9, 2005
3.3(1)
Bylaws of Gryphon Gold Corporation
3.4(1)
Articles of Incorporation of Borealis Mining Company, filed
      June 5, 2003
3.5(1)
Bylaws of Borealis Mining Company
4.1(4)
Specimen Common Stock certificate
4.2(3)
Form of Warrant Indenture
4.3(4)
Form of Underwriters' Compensation Options
5.1
Opinion Letter of Woodburn and Wedge LLP
10.1(1)
Investor Rights Agreement by and among Gryphon Gold
      Corporation and the Stockholders Party Hereto, dated as of May 1, 2003, as
      amended
10.2(1)
Assignment of Borealis Mining Lease, dated January 10,
      2005, between Golden Phoenix Mineral Company and Borealis Mining Company
10.3(1)
Agreement and Consent to Assignment of Borealis Mining
      Lease, entered into as of January 26, 2005, between Richard J. Cavell,
      Hardrock Mining Company, John W. Whitney, Golden Phoenix Minerals, Inc.,
      Borealis Mining Company and Gryphon Gold Corporation
10.4(1)
Escrow Agreement, dated January 10, 2005, between Borealis
      Mining Company, Gryphon Gold Company and Lawyers Title Agency of Arizona
      (Regarding Purchase Agreement dated January 10, 2005)
II-5
10.5(1)
Purchase Agreement dated January 10, 2005, as amended,
      Seller: Golden Phoenix Minerals, Inc., Buyer: Borealis Mining Company and
      Guarantor: Gryphon Gold Corporation
10.6(1)
Agreement between Golden Phoenix Minerals, Inc. and
      Borealis Mining Company (Borealis Property, Mineral County, Nevada), dated
      July 21, 2003
10.7(1)
Agency Agreement/ Investment Advisory Retainer, between
      Gryphon Gold Corporation and Desjardins Securities Inc., signed March 9,
      2005
10.8(1)
Service Agreement between Gryphon Gold Corporation and The
      Kottmeier Resolution Group Ltd., dated May 17, 2005
10.9(1)
Office Building Lease dated June 22, 2005, related to
      Lakewood, Colorado office
10.10(1)
Executive Compensation Agreement, dated October 1, 2003,
      between Gryphon Gold Corporation and Allen Gordon dba Evergreen Mineral
      Ventures LLC
10.11(1)
Assignment Assumption Agreement between Gryphon Gold
      Corporation and Allen Gordon
10.12(1)
Executive Compensation Agreement, dated October 1, 2003,
      between Gryphon Gold Corporation and Albert Matter
10.13(1)
Executive Compensation Agreement, dated February 1, 2004,
      between Gryphon Gold Corporation and Tony Ker
10.14(1)
Executive Compensation Agreement, dated November 1, 2004,
      between Gryphon Gold Corporation and Thomas Sitar
10.15(1)
Executive Compensation Agreement, dated June 1, 2005
      between Gryphon Gold Corporation and Donald Ranta
10.16(1)
Gryphon Gold Corporation 2004 Stock Incentive Plan
10.17(4)
Form of Escrow Agreement
10.18(2)
Form of Lock Up Agreement — Shareholders
10.19(2)
Form of Lock Up Agreement for Executive Officers and
      Directors
10.20(2)
Warrant Agreement dated August 10, 2005, between Gryphon
      Gold Corporation and Computershare Trust Company, Inc. (Golden, Colorado)
10.21(7)
Membership Interest Purchase Agreement for Nevada Eagle
      Resources LLC Properties
10.22(8)
Transition Agreement
14.1(2)
Code of Business Conduct and Ethics
16.1(2)
Letter on Change of Certifying Accountant
21.1(5)
Table of Subsidiaries
23.1
Consent of Ernst & Young LLP
23.2
Consent of United States Counsel (Woodburn and Wedge LLP)
      (contained in Exhibit 5.1)
23.3
Consent of Mr. Alan C. Noble, P.E. of Ore Reserves
      Engineering in Lakewood, CO
24.1
Power of Attorney
(1) Previously filed on Form SB-2 on August 17, 2005.
(2) Previously filed on Form SB-2 on October 6, 2005.
(3) Previously filed on Form SB-2 on October 27, 2005.
(4) Previously filed on Form SB-2 on November 9, 2005.
(5) Previously filed on Form 10-KSB on June 20, 2006.
(6) Previously filed on Form SB-2 on July 21, 2006.
(7) Previously filed on Form 8-K on July 6, 2007.
(8) Previously filed on Form 10-QSB on November 14, 2007.
(9) Previously filed on Form 10-QSB on December 12, 2007.
ITEM 17 – UNDERTAKINGS
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales of
  securities are being made, a post-effective amendment to this registration
  statement to:
(i) Include any prospectus required by Section 10(a)(3) of the
  Securities Act of 1933;
(ii) Reflect in the prospectus any facts or events which,
  individually or together, represent a fundamental change in the information in
  the registration statement; and notwithstanding the forgoing, any increase or
  decrease in volume of securities offered (if the total dollar value of
  securities offered would not exceed that which was registered) and any
  deviation from the low or high end of the estimated maximum offering range may
  be reflected in the form of prospectuses filed with the Commission pursuant to
  Rule 424(b) if, in the aggregate, the changes in the volume and price
  represent no more than a 20% change in the maximum aggregate offering price
  set forth in the "Calculation of Registration Fee" table in the effective
  registration statement.
(iii) Include any additional or changed material information on
  the plan of distribution;
(2) That, for the purpose of determining any liability under
  the Securities Act of 1933, each such post-effective amendment shall be deemed
  to be a new registration statement relating to the securities offered therein,
  and the offering of such securities at that time shall be deemed to be the
  initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
  amendment any of the securities being registered which remain unsold at the
  termination of the offering.
II-6
(4) For determining liability of the undersigned small business
  issuer under the Securities Act to any purchaser in the initial distribution
  of the securities, the undersigned small business issuer undertakes that in a
  primary offering of securities of the undersigned small business issuer
  pursuant to this registration statement, regardless of the underwriting method
  used to sell the securities to the purchaser, if the securities are offered or
  sold to such purchaser by means of any of the following communications, the
  undersigned small business issuer will be a seller to the purchaser and will
  be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned
  small business issuer relating to the offering required to be filed pursuant
  to Rule 424 (§230.424 of this chapter);
(ii) Any free writing prospectus relating to the offering
  prepared by or on behalf of the undersigned small business issuer or used or
  referred to by the undersigned small business issuer;
(iii) The portion of any other free writing prospectus relating
  to the offering containing material information about the undersigned small
  business issuer or its securities provided by or on behalf of the undersigned
  small business issuer; and
(iv) Any other communication that is an offer in the offering
  made by the undersigned small business issuer to the purchaser.
(b) Insofar as indemnification for liabilities arising under
  the Securities Act of 1933 may be permitted to directors, officers and
  controlling persons of the registrant pursuant to the provisions described
  herein, or otherwise, the registrant has been advised that in the opinion of
  the Securities and Exchange Commission such indemnification is against public
  policy as expressed in the Act and is, therefore, unenforceable. In the event
  that a claim for indemnification against such liabilities (other than the
  payment by the registrant of expenses incurred or paid by a director, officer
  or controlling person of the registrant in the successful defense of any
  action, suit or proceeding) is asserted by such director, officer or
  controlling person in connection with the securities being registered, the
  registrant will, unless in the opinion of its counsel the matter has been
  settled by controlling precedent, submit to a court of appropriate
  jurisdiction the question whether such indemnification by it is against public
  policy as expressed in the Act and will be governed by the final adjudication
  of such issue.
(c) that, for the purpose of determining liability under the
  Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b)
  as part of this registration statement relating to the offering, shall be
  deemed to be part of and included in the registration statement as of the date
  it is first used after effectiveness. Provided, however, that no statement
  made in the registration statement or prospectus that is part of the
  registration statement or made in a document incorporated or deemed
  incorporated by reference into the registration statement or prospectus that
  is part of the registration statement will, as to a purchaser with a time of
  contract of sale prior to such first use, supersede or modify any statement
  that was made in the registration statement or prospectus that was part of the
  registration statement or made in any such document immediately prior to such
  date of first use.
II-7
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, as amended,
  the registrant certifies that it has reasonable grounds to believe that it
  meets all the requirements of filing on Form SB-2 and authorized registration
  statement to be signed on its behalf by the undersigned, in the city of
  Vancouver, British Columbia, Canada, on April 30, 2008.
GRYPHON GOLD CORPORATION
/s/ Anthony (Tony) D.J. Ker
Chief Executive Officer and Director
(Principal Executive Officer)
April 30, 2008
/s/ Michael K. Longinotti
Chief Financial Officer
(Principal Financial and Accounting
April 30, 2008
Officer)
In accordance with the requirements of the Securities Act
      of 1933, as amended, this registration statement was signed by the
      following persons in the capacities on the dates stated:
/s/ Anthony (Tony) D.J. Ker
Chief Executive Officer and Director
April 30, 2008
(Principal Executive Officer)
/s/ Michael K. Longinotti
Chief Financial Officer
April 30, 2008
(Principal Financial and Accounting
Officer), Attorney in Fact
/s/ Richard W. Hughes
Director
April 30, 2008
/s/ Rohan Hazelton
Director
April 30, 2008
/s/ Donald W. Gentry
Director
April 30, 2008
II-8
POWER OF ATTORNEY
Each person whose signature
  appears below constitutes and appoints each of Tony Ker and Michael Longinotti
  his or her attorney-in-fact and agent, with the full power of substitution and
  resubstitution and full power to act without the other, for them in any and
  all capacities, to sign any and all amendments, including post-effective
  amendments, and any registration statement relating to the same offering as
  this registration that is to be effective upon filing pursuant to Rule 462(b)
  under the Securities Act of 1933, as amended, to this registration statement,
  and to file the same, with exhibits thereto and other documents in connection
  therewith, with the Securities and Exchange Commission, hereby ratifying and
  confirming all that said attorneys-in-fact, or their substitute or
  substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of
  the Securities Act of 1933, as amended, this registration statement has been
  signed by the following persons in the capacities and on the dates indicated.
/s/ Anthony (Tony) D.J. Ker
Chief Executive Officer and Director
(Principal Executive Officer)
April 30, 2008
/s/ Michael K. Longinotti
Chief Financial Officer
(Principal Financial and Accounting
      Officer)
April 30, 2008
/s/ Richard W. Hughes
Director
April 30, 2008
/s/ Rohan Hazelton
Director
April 30, 2008
/s/ Donald W. Gentry
Director
April 30, 2008
II-9