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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>UNITED STATES</FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>SECURITIES AND EXCHANGE COMMISSION</FONT></B></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Washington, D.C. 20549</FONT><BR>
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<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>FORM S-1</FONT></B></TD></TR></TABLE></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT></B></P>
<P align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>BRAEDEN VALLEY MINES, INC.</FONT></U></B></P>
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     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE></P>
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     <TD noWrap align=center width="31%"><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Nevada</FONT></U></B>&nbsp; </TD>
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     <TD noWrap align=center width="37%"><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>1000</FONT></U></B>&nbsp; </TD>
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     <TD noWrap align=center width="26%"><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>26-3257291</FONT></U></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(State or other jurisdiction</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Primary Standard</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="26%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(IRS Employer</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of incorporation or</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Industrial Classification</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="26%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Identification No.)</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>organization)</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Code Number)</FONT>&nbsp; </TD>
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<P align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>318 North Carson Street Suite 208, Carson City, Nevada 89701</FONT></U></B></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Address including zip code, of registrant&#146;s principal executive offices)</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>W. Scott Lawler, Esq., Lawler &amp; Associates, 11622 El Camino Real, Suite 100, San Diego, CA 92130 888-675-0888 (phone); 866-506-8877 (fax)</FONT></B></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Name, address, including zip code, and telephone number, including area code, of agent for service)</FONT></P>
<P align=center><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>As soon as practicable after the effective date of the Registration Statement </FONT></U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Approximate date of commencement of proposed sale to the public)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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: [X]</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>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 effective registration statement for the same offering. [ ]</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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. See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b2 of the Exchange Act.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Large accelerated filer [ ]</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-accelerated filer [ ] (Do not check if a smaller reporting company)</FONT></P>
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     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accelerated filer [ ]</FONT><BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Smaller reporting company [X]</FONT></TD></TR></TABLE></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></P>
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     <TD noWrap align=right width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SEC 870 (02-08)</FONT>&nbsp; </TD>
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     <TD noWrap align=left width="81%" colSpan=9><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Persons who are to respond to the collection of information contained in this form are not required to</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=left width="13%">&nbsp; </TD>
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     <TD noWrap align=left width="62%" colSpan=7><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>respond unless the form displays a currently valid OMB control number.</FONT></B>&nbsp; </TD>
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     <TD width="96%" colSpan=11>&nbsp; </TD></TR>
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     <TD align=center width="96%" colSpan=11><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>CALCULATION OF REGISTRATION FEE</FONT></B> </TD></TR>
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     <TD width="96%" colSpan=11>&nbsp; </TD></TR>
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     <TD noWrap align=center width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Title of each</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Proposed</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>class of</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Dollar</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>maximum</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>securities to</FONT></B>&nbsp; </TD>
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     <TD noWrap align=left width="4%">&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amount to</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Number of</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>offering</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amount of</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>be</FONT></B>&nbsp; </TD>
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     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>be</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shares to be</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>price per</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>registration</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>registered</FONT></B>&nbsp; </TD>
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     <TD noWrap align=left width="4%">&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>registered</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>registered</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>unit</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>fee</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="19%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common stock</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#c00000 size=2>$750,000.00</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>15,000,000</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#c00000 size=2>$0.05</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#c00000 size=2>(1)</FONT></SUP>&nbsp; </TD>
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     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$29.48</FONT>&nbsp; </TD></TR>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.</FONT></P>
<P align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1) </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>As of the date hereof, there is no established public market for the common stock being registered. Accordingly, and in accordance with Item 505 of Regulation S-K requirements certain factor(s) must be considered and utilized in determining the offering price. The offering price of $0.10 per share was determined arbitrarily by the selling shareholder. The offering price is not based upon the net worth, total asset value, or any other objective measure of value based on accounting measurements of&nbsp;Braeden Valley&nbsp;Mines, Inc. (&#147;we&#148;, &#147;us&#148;, &#147;our&#148; or similar terms). Should a market develop or occur for our securities, the market price may be far less than the offering price. If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is declared effective. This prospectus is not an offer to sell these securities, and we are not soliciting offers to buy these securities, in any state where the offer or sale is not permitted.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Subject to Completion, Dated January ____, 2009</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>PROSPECTUS</FONT></B></TD></TR></TABLE></P>
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     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>Braeden Valley Mines, Inc.</FONT></B><BR>
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<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>15,000,000 Shares of Common Stock</FONT></B></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The selling shareholder named in this prospectus is offering a total of 15,000,000 shares of common stock of Braeden Valley Mines, Inc. at a fixed price of $0.05 per share.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We will not receive any of the proceeds from the sale of these shares. The shares were acquired by the selling shareholder directly from us in a private offering of our common stock that was exempt from registration under the securities laws. The selling shareholder has arbitrarily set an offering price for these securities of $0.05 per share and an offering period of twelve (12) months from the date of this prospectus. The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. Should a market develop or occur for our securities, the market price may be far less than the offering price. If and when our common stock is listed on the Over-the-Counter Bulletin Board, the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares. See &#147;Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters&#148; for more information about the selling shareholder.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Our common stock is presently not traded on any market or securities exchange. The offering price may not reflect the market price of our shares after the offering.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>__________</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>This investment involves a high degree of risk. You should purchase shares only if you can afford a complete loss. See &#147;Risk Factors&#148; beginning on page 7.</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of the prospectus. Any representation to the contrary is a criminal offense.</FONT></B></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>_________</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The information in this prospectus is not complete and may be changed. We 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 securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</FONT></P>
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     <TD noWrap align=center width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shares Offered by</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Proceeds to</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Selling</FONT></B>&nbsp; </TD>
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     <TD noWrap align=left width="24%">&nbsp; </TD>
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     <TD noWrap align=center width="24%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Selling Agent</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Selling</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=center width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shareholders</FONT></B>&nbsp; </TD>
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     <TD noWrap align=center width="24%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Price To Public</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Commissions</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="18%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shareholders</FONT></B>&nbsp; </TD></TR>
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     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Per Share</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$0.05</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Not applicable</FONT>&nbsp; </TD>
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     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$750,000</FONT>&nbsp; </TD></TR>
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     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Minimum Purchase</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Not applicable</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Not applicable</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Not applicable</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="25%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="18%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total Offering</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$0.05</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Not applicable</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$750,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="25%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="18%">
<HR noShade SIZE=1>
</TD></TR></TABLE></DIV><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proceeds to the selling shareholder do not include offering costs, including filing fees, printing costs, legal fees, accounting fees, and transfer agent fees estimated at $25,000. Braeden Valley Mines, Inc. will pay these expenses.</FONT></P>
<P align=center>
<TABLE>
<TR>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>This Prospectus is dated January ___, 2009.</FONT></TD></TR></TABLE></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT></P>
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	<TD align=center width=99% colspan=3>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">TABLE OF CONTENTS</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left width=87% nowrap>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Page</FONT></B>&nbsp;
	</TD>
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<TR>
	<TD>
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	<TD>&nbsp;
	</TD>
	<TD>
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART I</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">6</FONT></U></B>&nbsp;
	</TD>
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	<TD>&nbsp;
	</TD>
	<TD>
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PROSPECTUS SUMMARY</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">6</FONT></U></B>&nbsp;
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	<TD>&nbsp;
	</TD>
	<TD>
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">THE OFFERING</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">6</FONT></U>&nbsp;
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	<TD>&nbsp;
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	<TD>
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">RISK FACTORS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">7</FONT></U></B>&nbsp;
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</TR>
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	<TD>&nbsp;
	</TD>
	<TD>
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">RISKS RELATED TO OUR COMPANY AND OUR INDUSTRY</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">7</FONT></U>&nbsp;
	</TD>
</TR>
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">RISKS RELATED TO OUR FINANCIAL CONDITION AND BUSINESS MODEL</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11</FONT></U>&nbsp;
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	<TD>&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">RISKS RELATED TO THIS OFFERING AND OUR STOCK</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11</FONT></U>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">13</FONT></U></B>&nbsp;
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</TR>
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DILUTION</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">14</FONT></U></B>&nbsp;
	</TD>
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PLAN OF DISTRIBUTION</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">14</FONT></U></B>&nbsp;
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</TR>
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<HR noshade size=1>
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">USE OF PROCEEDS TO ISSUER</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">16</FONT></U></B>&nbsp;
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<HR noshade size=1>
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">BUSINESS OF THE ISSUER</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">16</FONT></U></B>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">GLOSSARY OF MINING TERMS</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">16</FONT></U>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">GENERAL OVERVIEW</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">21</FONT></U>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Property Acquisitions Details</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">21</FONT></U></I>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Land Status, Topography, Location and
Access</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">22</FONT></U></I>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Mining Claims</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">22</FONT></U></I>&nbsp;
	</TD>
</TR>
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Geology of the Mineral Claims</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">22</FONT></U></I>&nbsp;
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	<TD>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Exploration History and Previous Operations</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">23</FONT></U></I>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Proposed Work Program</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">23</FONT></U></I>&nbsp;
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	<TD>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Cost Estimates of Exploration Programs</FONT></U></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<I><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">23</FONT></U></I>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">COMPLIANCE WITH GOVERNMENT REGULATION</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT></U>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">EMPLOYEES</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT></U>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">24</FONT></U></B>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">RESULTS OF OPERATIONS</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">25</FONT></U>&nbsp;
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	<TD align=left width=87% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">LIQUIDITY AND CAPITAL RESOURCES</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">25</FONT></U>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">26</FONT></U></B>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">REMUNERATION OF DIRECTORS AND OFFICERS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">27</FONT></U></B>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">27</FONT></U></B>&nbsp;
	</TD>
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">28</FONT></U></B>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECURITIES BEING OFFERED</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">28</FONT></U></B>&nbsp;
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	<TD>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">TRANSFER AGENT AND REGISTRAR</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">28</FONT></U></B>&nbsp;
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	<TD align=left width=87% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SEC POSITION ON INDEMNIFICATION</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">29</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EXPERTS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=10% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">29</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">AVAILABLE INFORMATION</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">29</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">REPORTS TO STOCKHOLDERS</FONT></U></B>&nbsp;
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	<TD width=2%>
&nbsp;	</TD>
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">30</FONT></U></B>&nbsp;
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&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">31</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART II - INFORMATION NOT REQUIRED IN PROSPECTUS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">44</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 1. INDEMNIFICATION OF DIRECTORS AND OFFICERS</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">44</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 2. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</FONT></U></B>&nbsp;
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&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">44</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 3. UNDERTAKINGS</FONT></U></B>&nbsp;
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&nbsp;	</TD>
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">45</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 4. UNREGISTERED SECURITIES ISSUED OR SOLD WITHIN ONE YEAR</FONT></U></B>&nbsp;
	</TD>
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&nbsp;	</TD>
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">46</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 5. INDEX TO EXHIBITS</FONT></U></B>&nbsp;
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&nbsp;	</TD>
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">46</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 6. DESCRIPTION OF EXHIBITS</FONT></U></B>&nbsp;
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&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">46</FONT></U></B>&nbsp;
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<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></U></B>&nbsp;
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	<TD width=2%>
&nbsp;	</TD>
	<TD align=left width=11% nowrap>
<B><U><FONT color="#0000ff" size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">47</FONT></U></B>&nbsp;
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<B><U><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART I</FONT></U></B><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INFORMATION REQUIRED IN PROSPECTUS</FONT></B><BR>
<BR>
<B><U><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PROSPECTUS SUMMARY</FONT></U></B></TD></TR></TABLE>
</P>
<P align="center">
<TABLE><TR><TD align="center" nowrap>
<B><FONT size=5 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Braeden Valley Mines, Inc.</FONT></B></TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Braeden Valley Mines, Inc. (&#147;we&#148;, &#147;us&#148;, &#147;our&#148; or the &#147;Company&#148;) was organized under the laws of the State of Nevada on August 11, 2008 to
explore mineral properties in North America.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We were formed to engage in the exploration of mineral properties for gold. We have acquired an option to purchase an interest in four (4) unpatented lode mining claims situated in
the Northern Tuscarora Mountains of Elko County, Nevada. We refer to these mining claims as the &#147;New Dawn Property&#148; or &#147;New Dawn&#148;.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are an exploration stage company and we have not realized any revenues to date. We do not have sufficient capital to enable us to commence and complete our exploration program. We
will require financing in order to conduct the exploration program described in the section entitled, "Business of the Issuer." Our auditors have issued a going concern opinion, raising substantial doubt about our financial prospects and our ability
to continue as a going concern.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are not a "blank check company," as we do not intend to participate in a reverse acquisition or merger transaction. Securities laws define a &#147;blank check company&#148; as a
development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our offices are located at 318 North Carson Street, Suite 208, Carson City, Nevada 89701.</FONT></P>
<P align="left">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">THE OFFERING</FONT></B></P>
<P align="left">
<TABLE><TR><TD nowrap>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Securities offered</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Selling shareholder</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Offering price</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares outstanding prior to the offering</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares to be outstanding after the offering</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Use of proceeds</FONT></TD></TR></TABLE>
</P>
<P align="left">
<TABLE><TR><TD nowrap>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">15,000,000 shares of common stock</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">One (1)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0.05 per share</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">30,000,000 shares of common stock</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">30,000,000 shares of common stock</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We will not receive any proceeds from the sale of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">common stock by the selling shareholder.</FONT></TD></TR></TABLE>
</P>
<P align="left">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 6</FONT></P>

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<B><U><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">RISK FACTORS</FONT></U></B></P>
<P align="left">
<B><I><FONT size=2 face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">INVESTING IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK. IN ADDITION TO THE OTHER INFORMATION CONTAINED IN THIS PRIVATE PLACEMENT MEMORANDUM, PROSPECTIVE
PURCHASERS OF THE SECURITIES OFFERED HEREBY SHOULD CONSIDER CAREFULLY THE FOLLOWING FACTORS IN EVALUATING US AND OUR BUSINESS.</FONT></I></B></P>
<P align="left">
<B><I><FONT size=2 face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">IF ANY OF THE FOLLOWING RISKS OCCUR, OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION COULD BE SERIOUSLY HARMED. THE RISKS AND UNCERTAINTIES DESCRIBED BELOW
ARE NOT THE ONLY ONES WE FACE. ADDITIONAL RISKS AND UNCERTAINTIES, INCLUDING THOSE THAT WE DO NOT KNOW ABOUT OR THAT WE CURRENTLY DEEM IMMATERIAL, ALSO MAY ADVERSELY AFFECT OUR BUSINESS. THE TRADING PRICE OF OUR SHARES OF COMMON STOCK COULD DECLINE
DUE TO ANY OF THESE RISKS, AND YOU MAY LOSE ALL OR PART OF YOUR INVESTMENT.</FONT></I></B></P>
<P align="left">
<B><I><FONT size=2 face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">THE SECURITIES WE ARE OFFERING THROUGH THIS REGISTRATION STATEMENT ARE SPECULATIVE BY NATURE AND INVOLVE AN EXTREMELY HIGH DEGREE OF RISK AND SHOULD BE PURCHASED ONLY
BY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. WE ALSO CAUTION PROSPECTIVE INVESTORS THAT THE FOLLOWING RISK FACTORS, AMONG OTHERS, COULD CAUSE OUR ACTUAL FUTURE OPERATING RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD
LOOKING STATEMENTS, ORAL OR WRITTEN, MADE BY OR ON BEHALF OF US. IN ASSESSING THESE RISKS, WE SUGGEST THAT YOU ALSO REFER TO OTHER INFORMATION CONTAINED IN THIS REGISTRATION STATEMENT, INCLUDING OUR FINANCIAL STATEMENTS AND RELATED
NOTES.</FONT></I></B></P>
<P align="left">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">RISKS RELATED TO US AND OUR INDUSTRY</FONT></B></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE HAVE NEVER EARNED A PROFIT AND THERE IS NO GUARANTEE THAT WE WILL EVER EARN A PROFIT.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">From our inception on August 11, 2008 to the period ended on December 31, 2008, we have not generated any revenue. We do not currently have any revenue producing operations. We are
not currently operating profitably, and it should be anticipated that we will operate at a loss at least until such time when the production stage is achieved, if production is, in fact, ever achieved.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE WERE RECENTLY FORMED, AND WE HAVE NOT PROVEN THAT WE CAN GENERATE A PROFIT. IF WE FAIL TO GENERATE INCOME AND ACHIEVE PROFITABILITY, AN INVESTMENT IN OUR SECURITIES MAY
BE WORTHLESS.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have no operating history and have not proved we can operate successfully. We face all of the risks inherent in a new business. If we fail, your investment in our common stock will
become worthless. From inception on August 11, 2008 to the period ended on December 31, 2008, we incurred a net loss of &#36;10,291 and did not earn any revenue. We do not currently have any revenue producing operations. The purchase of the
securities offered hereby must therefore be regarded as the placing of funds at a high risk in a new or "start-up" venture with all the unforeseen costs, expenses, problems, and difficulties to which such ventures are subject.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE HAVE NO OPERATING HISTORY. THERE CAN BE NO ASSURANCE THAT WE WILL BE SUCCESSFUL IN OUR GOLD OR OTHER MINERAL EXPLORATION ACTIVITIES.</FONT></I></P>
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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have no history of operations. As a result of our brief operating history, there can be no assurance that that we will be successful exploring for gold or other minerals. Our
success to date in entering into ventures to acquire interests in exploration blocks is not indicative that we will be successful in entering into any further ventures. Any future significant growth in our mineral exploration activities will place
additional demands on our Executive Officer, and any increased scope of our operations will present challenges due to our current limited management resources. Our future performance will depend upon our management and their ability to locate and
negotiate additional exploration opportunities in which we can participate. There can be no assurance that we will be successful in these efforts. Our inability to locate additional opportunities, to hire additional management and other personnel,
or to enhance our management systems, could have a material adverse effect on our results of operations. There can be no assurance that our operations will be profitable.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">THERE IS A HIGH RISK OUR BUSINESS WILL FAIL BECAUSE NONE OF OUR OFFICERS AND DIRECTORS, HAVE FORMAL TRAINING SPECIFIC TO THE TECHNICALITIES OF MINERAL
EXPLORATION.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None of our Officers or Directors has formal training as a geologist or in the technical aspects of management of a mineral exploration company. They lack technical training and
experience with exploring for, starting, and operating a mine. With no direct training or experience in these areas, they may not be fully aware of the specific requirements related to working within this industry. Their decisions and choices may
not take into account standard engineering or managerial approaches mineral exploration companies commonly use. Consequently, our operations, earnings, and ultimate financial success could suffer irreparable harm due to management's lack of
experience in this industry.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE ARE CONTROLLED BY OUR EXECUTIVE OFFICERS AND DIRECTORS, AND, AS SUCH, YOU MAY HAVE NO EFFECTIVE VOICE IN OUR MANAGEMENT.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Upon the completion of this offering, our sole officer, Mr. G. Leigh Lyons, and our directors Mr. Lyons, Mr. Braulio Vasquez Davis and Mr. Hilario Vanegas Guiterrez, will beneficially
own 50% of our issued and outstanding common stock. Our officers and directors will therefore exercise control over all matters requiring shareholder approval, including the possible election of additional directors and approval of significant
corporate transactions. If you purchase shares of our common stock, you may have no effective voice in our management.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE ARE SOLELY GOVEREND BY MESSRS. LYONS, VASQUEZ AND VANEGAS OUR ONLY EXECUTIVE OFFICERS AND DIRECTORS, AND, AS SUCH, THERE MAY BE SIGNIFICANT RISK TO US FROM A CORPORATE
GOVERNANCE PERSPECTIVE.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Leigh Lyons is our only Executive Officer. Mr. Lyons, along with Messrs. B. Alejandro Vasquez and Hilario Vanegas Guiterrez are the only members of our Board of Directors, and will be
relied upon to make decisions such as the approval of related party transactions, the compensation of Executive Officers, and the oversight of the accounting function. Because we only have one (1) Executive Officer, there may be limited segregation
of executive duties, and thus, there may not be effective disclosure and accounting controls to comply with applicable laws and regulations, which could result in fines, penalties and assessments against us. In addition, Messrs. Lyons, Vasquez and
Vanegas will exercise full control over all matters that require the approval of a Board of Directors.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Messrs. Lyons, Vasquez and Vanegas will exercise control over all matters requiring shareholder approval including the election of directors and the approval of significant corporate
transactions. We have not voluntarily implemented various corporate governance measures, in the absence of which, shareholders may have more limited protections against the transactions implemented by Messrs. Lyons, Vasquez and Vanegas, conflicts of
interest and similar matters.</FONT></P>
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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have not adopted corporate governance measures such as an audit or other independent committees as we presently do not have any independent directors. Shareholders should bear in
mind our current lack of corporate governance measures in formulating their investment decisions.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">BECAUSE OUR EXECUTIVE OFFICER HAS OTHER BUSINESS INTERESTS, HE MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS OPERATIONS, WHICH MAY CAUSE
OUR BUSINESS TO FAIL.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">It is possible that the demands on Mr. Lyons, our sole Executive Officer, from other obligations could increase with the result that he would no longer be able to devote sufficient
time to the management of our business. In addition, Mr. Lyons may not possess sufficient time to manage our business if the demands of managing our business increased substantially.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">THE IMPRECISION OF MINERAL DEPOSIT ESTIMATES MAY PROVE ANY RESOURCE CALCULATIONS THAT WE MAKE TO BE UNRELIABLE.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Mineral deposit estimates and related databases are expressions of judgment based on knowledge, mining experience, and analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information becomes available. By their nature, mineral deposit estimates are imprecise and depend upon statistical inferences, which may ultimately prove unreliable. Mineral deposit
estimates included here, if any, have not been adjusted in consideration of these risks and, therefore, no assurances can be given that any mineral deposit estimate will ultimately be reclassified as reserves. If our exploration program locates a
mineral deposit, there can be no assurances that any of such deposits will ever be classified as reserves.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">WE ARE SENSITIVE TO FLUCTUATIONS IN THE PRICE OF GOLD AND OTHER MINERALS, WHICH IS BEYOND OUR CONTROL. THE PRICE OF GOLD AND OTHER MINERALS IS VOLATILE AND PRICE CHANGES ARE
BEYOND OUR CONTROL.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The price of gold and other minerals can fluctuate. The prices of gold and other minerals have been and will continue to be affected by numerous factors beyond our control. Factors
that affect the price of gold and other minerals include the demand from consumers for products that use gold and other minerals, economic conditions, over supply from secondary sources and costs of production. Price volatility and downward price
pressure, which can lead to lower prices, could have a material adverse effect on the costs or the viability of our projects.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">MINERAL EXPLORATION AND PROSPECTING IS HIGHLY COMPETITIVE AND SPECULATIVE BUSINESS AND WE MAY NOT BE SUCCESSFUL IN SEEKING AVAILABLE OPPORTUNITIES.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The process of mineral exploration and prospecting is a highly competitive and speculative business. In seeking available opportunities, we will compete with a number of other
companies, including established, multi-national companies that have more experience and resources than us. We compete with other exploration companies looking for gold and other mineral deposits. Because we may not have the financial and managerial
resources to compete with other companies, we may not be successful in our efforts to acquire projects of value, which, ultimately, become productive. However, while we compete with other exploration companies, there is no competition for the
exploration or removal of mineral from our claims.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">COMPLIANCE WITH ENVIRONMENTAL CONSIDERATIONS AND PERMITTING COULD HAVE A MATERIAL ADVERSE EFFECT ON THE COSTS OR THE VIABILITY OF OUR PROJECTS. THE HISTORICAL TREND TOWARD
STRICTER ENVIRONMENTAL REGULATION MAY CONTINUE, AND, AS SUCH, REPRESENTS AN UNKNOWN FACTOR IN OUR PLANNING PROCESSES.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">All mining is regulated by the government agencies. Compliance with such regulation has a material effect on the economics of our operations and the timing of project development. Our
primary regulatory costs have been related</FONT></P>
<P align="right">
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>to obtaining licenses and permits from government agencies before the commencement of mining activities. An environmental impact study that must be obtained on each property in order to obtain governmental approval to mine on the properties is also a part of the overall operating costs of a mining company.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The possibility of more stringent regulations exists in the areas of worker health and safety, the dispositions of wastes, the decommissioning and reclamation of mining and milling sites and other environmental matters, each of which could have an adverse material effect on the costs or the viability of a particular project. Compliance with environmental considerations and permitting could have a material adverse effect on the costs or the viability of our projects.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>MINING AND EXPLORATION ACTIVITIES ARE SUBJECT TO EXTENSIVE GOVERNMENTAL REGULATION. FUTURE CHANGES IN GOVERNMENTS, REGULATIONS AND POLICIES, COULD ADVERSELY AFFECT OUR RESULTS OF OPERATIONS FOR A PARTICULAR PERIOD AND OUR LONG-TERM BUSINESS PROSPECTS.</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mining and exploration activities are subject to extensive regulation by government. Such regulation relates to production, development, exploration, exports, taxes and royalties, labor standards, occupational health, waste disposal, protection and remediation of the environment, mine and mill reclamation, mine and mill safety, toxic substances and other matters. Compliance with such laws and regulations has increased the costs of exploring, drilling, developing, constructing, operating mines and other facilities. Furthermore, future changes in governments, regulations and policies, could adversely affect our results of operations in a particular period and our long-term business prospects.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The development of mines and related facilities is contingent upon governmental approvals, which are complex and time consuming to obtain and which, depending upon the location of the project, involve various governmental agencies. The duration and success of such approvals are subject to many variables outside our control.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>RISKS RELATED TO OUR FINANCIAL CONDITION AND BUSINESS MODEL</FONT></B></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>WE HAVE NOT PAID ANY CASH DIVIDENDS ON OUR SHARES OF COMMON STOCK AND DO NOT ANTICIPATE PAYING ANY SUCH DIVIDENDS IN THE FORESEEABLE FUTURE.</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Payment of future dividends, if any, will depend on our earnings and capital requirements, our debt facilities and other factors considered appropriate by our Board of Directors. To date, we have not paid any cash dividends on our Common Stock and do not anticipate paying any such dividends in the foreseeable future.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We will need to obtain additional financing in order to complete our business plan. We currently do not have any operations and we have no income. We do not have any arrangements for financing and we may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor acceptance of mineral claims and investor sentiment. These factors may adversely affect the timing, amount, terms, or conditions of any financing that we may obtain or make any additional financing unavailable to us.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>BECAUSE OF OUR LIMITED RESOURCES AND THE SPECULATIVE NATURE OF OUR BUSINESS, THERE IS A SUBSTANTIAL DOUBT AS TO OUR ABILITY TO CONTINUE AS A GOING CONCERN.</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The report of our independent auditors, on our audited financial statements for the period ended&nbsp;December 31, 2008, indicates that there are a number of factors that raise substantial doubt about our ability to continue as a going concern. Our continued operations are dependent on our ability to obtain financing and upon our ability to achieve</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>future profitable operations from the development of our mineral properties. If we are not able to continue as a going concern, it is likely investors will lose their investment.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>RISKS RELATED TO THIS OFFERING AND OUR STOCK</FONT></B></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 10</FONT></P>
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<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">IF WE COMPLETE A FINANCING THROUGH THE SALE OF ADDITIONAL SHARES OF OUR COMMON STOCK IN THE FUTURE, THEN SHAREHOLDERS WILL EXPERIENCE DILUTION.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The most likely source of future financing presently available to us is through the sale of shares of our common stock. Any sale of common stock will result in dilution of equity
ownership to existing shareholders. This means that if we sell shares of our common stock, more shares will be outstanding and each existing shareholder will own a smaller percentage of the shares then outstanding. To raise additional capital we may
have to issue additional shares, which may substantially dilute the interests of existing shareholders. Alternatively, we may have to borrow large sums, and assume debt obligations that require us to make substantial interest and capital
payments.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">THERE IS NO MARKET FOR OUR COMMON STOCK, WHICH LIMITS OUR SHAREHOLDERS' ABILITY TO RESELL THEIR SHARES OR PLEDGE THEM AS COLLATERAL.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">There is currently no public market for our shares, and we cannot assure you that a market for our stock will develop. Consequently, investors may not be able to use their shares for
collateral or for loans and may not be able to liquidate at a suitable price in the event of an emergency. In addition, investors may not be able to resell their shares at or above the price they paid for them or may not be able to sell their shares
at all.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">IF A PUBLIC MARKET FOR OUR STOCK IS DEVELOPED, FUTURE SALES OF SHARES COULD NEGATIVELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">If a public market for our stock is developed, then sales of Common Stock in the public market could adversely affect the market price of our Common Stock. There are at present
30,000,000 shares of Common Stock issued and outstanding.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">OUR STOCK IS A PENNY STOCK. TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SEC'S PENNY STOCK REGULATIONS AND THE NASD&#146;S SALES PRACTICE REQUIREMENTS, WHICH MAY LIMIT A
STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our common shares may be deemed to be &#147;penny stock&#148; as that term is defined in Regulation Section &#147;240.3a51 -1&#148; of the Securities and Exchange Commission (the
&#147;SEC&#148;). Penny stocks are stocks: (a) with a price of less than U.S. &#36;5.00 per share; (b) that are not traded on a &#147;recognized&#148; national exchange; (c) whose prices are not quoted on the NASDAQ automated quotation system
(NASDAQ - where listed stocks must still meet requirement (a) above); or (d) in issuers with net tangible assets of less than U.S. &#36;2,000,000 (if the issuer has been in continuous operation for at least three (3) years) or U.S. &#36;5,000,000
(if in continuous operation for less than three (3) years), or with average revenues of less than U.S. &#36;6,000,000 for the last three (3) years.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Section &#147;15(g)&#148; of the United States Securities Exchange Act of 1934, as amended, and Regulation Section &#147;240.15g(c)2&#148; of the SEC require broker dealers dealing in
penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction in a penny stock for the investor&#146;s
account. Potential investors in our common shares are urged to obtain and read such disclosure carefully before purchasing any common shares that are deemed to be &#147;penny stock&#148;.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Moreover, Regulation Section &#147;240.15g -9&#148; of the SEC requires broker dealers in penny stocks to approve the account of any investor for transactions in such stocks before
selling any penny stock to that investor. This procedure requires the broker-dealer to: (a) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives; (b) reasonably determine,
based on that information,</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of
penny stock transactions; (c) provide the investor with a written statement setting forth the basis on which the broker dealer made the determination in (ii) above; and (d) receive a signed and dated copy of such statement from the investor
confirming that it accurately reflects the investor&#146;s financial situation, investment experience and investment objectives. Compliance with these</FONT></P>
<P align="right">
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">requirements may make it more difficult for investors in our common shares to resell their common shares to third parties or to otherwise dispose of them. Stockholders should be aware
that, according to Securities and Exchange Commission Release No. 34-29093, dated April 17, 1991, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include:</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases;</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iii) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons;</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(v)</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the wholesale dumping of the same securities by promoters and broker-dealers after prices have been</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or
of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.</FONT></P>
<P align="left">
<B><U><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></U></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">This prospectus contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this prospectus include, among others, statements regarding our
capital needs, business plans and expectations. Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs,
our ability to achieve significant revenues, our business model and products and other factors. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology.
These forward-looking statements address, among others, such issues as:</FONT></P>
<UL>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the amount and nature of future exploration, development and other capital expenditures,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">mining claims to be drilled,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">future earnings and cash flow,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">development projects,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">exploration prospects,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">drilling prospects,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">development and drilling potential,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">business strategy,</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">expansion and growth of our business and operations, and</FONT></LI>
<LI>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">our estimated financial information.</FONT></LI>
</UL>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties outlined in this prospectus under "Risk Factors". These factors
or any of them may cause our actual results to differ materially from any forward-looking statement made in this prospectus. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect
our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. The forward-looking statements in this
prospectus are made as of the date of this prospectus and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities
laws of the United States.</FONT></P>
<P align="right">
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>DILUTION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The common stock to be sold by the selling shareholder is common stock that is currently issued and outstanding. Accordingly, there will be no dilution to our existing shareholders.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>PLAN OF DISTRIBUTION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The selling shareholder or their respective donees, pledges, transferees or other successors-in-interest selling shares received after the date of this prospectus from a selling shareholder as a gift, pledge, distribution or otherwise, may, from time to time, sell any or all of his or her shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales will be at fixed prices. The selling shareholder may use any one or more of the following methods when selling shares:</FONT></P>
<UL>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>portion of the block as principal to facilitate the transaction;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>purchases by a broker-dealer as principal and resale by the broker-dealer for its own account;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>an exchange distribution following the rules of the applicable exchange;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>privately negotiated transactions;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>short sales that are not violations of the laws and regulations of any state of the United States;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>through the writing or settlement of options or other hedging transactions, whether through an options</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>exchange or otherwise;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>broker-dealers may agree with the selling shareholder to sell a specified number of such shares at a</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>stipulated price per share; and</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>a combination of any such methods of sale or any other lawful method.</FONT> </LI></UL>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The selling shareholder may, from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling shareholder to include the pledgee, transferee or other successors-in-interest as selling shareholder under this prospectus. The selling shareholder also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the selling beneficial owners for purposes of this prospectus.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In connection with the sale of our common stock or interests therein, the selling shareholder may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling shareholder also may sell shares of our common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling shareholder also may enter into option or other transactions with broker-dealers or other financial institutions for the creation of one or more derivative securities which require the delivery to the broker-dealer or other financial institution of shares offered by this prospectus, which shares the broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect the transaction).</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The aggregate proceeds to the selling shareholder from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each selling shareholder reserves the right to accept and, together with its agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive any of the proceeds from this offering.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The selling shareholder and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests therein may be "underwriters" within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the shares may be underwriting discounts and commissions under the Securities Act. Each selling shareholder that is an "underwriter" within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act.</FONT></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 13</FONT></P>
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">To the extent required, the shares of our common stock to be sold, the names of the selling shareholder, the respective purchase prices and public offering prices, the names of any
agents, dealers or underwriters, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus.</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sales Pursuant to Rule 144</FONT></U></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any shares of common stock covered by this prospectus, which qualify for sale pursuant to Rule 144 under the Securities Act of 1933 may be sold under Rule 144 rather than pursuant to
this prospectus.</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Regulation M</FONT></U></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We plan to advise the selling shareholder that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of
the selling shareholder and their affiliates. Regulation M under the Exchange Act prohibits, with certain exceptions, participants in a distribution from bidding for, or purchasing for an account in which the participant has a beneficial interest,
any of the securities that are the subject of the distribution. Accordingly, the selling shareholder are not permitted to cover short sales by purchasing shares while the distribution it taking place. Regulation M also governs bids and purchases
made in order to stabilize the price of a security in connection with a distribution of the security. In addition, we will make copies of this prospectus available to the selling shareholder for the purpose of satisfying the prospectus delivery
requirements of the Securities Act.</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">State Securities Laws</FONT></U></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under the securities laws of some states, the shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the common shares
may not be sold unless the shares have been registered or qualified for sale in the state or an exemption from registration or qualification is available and is complied with.</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Expenses of Registration</FONT></U></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are bearing substantially all costs relating to the registration of the shares of common stock offered hereby. These expenses are estimated to be &#36;25,000, including, but not
limited to, legal, accounting, printing and mailing fees. The selling shareholder, however, will pay any commissions or other fees payable to brokers or dealers in connection with any sale of such shares common stock.</FONT></P>
<P align="left">
<B><U><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">USE OF PROCEEDS TO ISSUER</FONT></U></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We will not receive any proceeds from the sale of the common stock offered through this prospectus by the selling shareholder.</FONT></P>
<P align="right">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 14</FONT></P>

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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>BUSINESS OF THE ISSUER </FONT></U></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>GLOSSARY OF MINING TERMS </FONT></B></P>
<P align=left>
<TABLE width="100%" border=1>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Archean</FONT></STRONG></TD>
     <TD width="50%">
<P><FONT size=2>Of or belonging to the earlier of the two divisions of Precambrian time, from approximately 3.8 to 2.5 billion years ago, marked by an atmosphere with little free oxygen, the formation of the first rocks and oceans, and the development of unicellular life. Of or relating to the oldest known rocks, those of the Precambrian Eon, that are predominantly igneous in composition.</FONT></P>
</TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Assaying</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>Laboratory examination that determines the content or proportion of a specific metal (ie: gold) contained within a sample. Technique usually involves firing/smelting.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Conglomerate</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>A coarse-grained clastic sedimentary rock, composed of rounded to subangular fragments larger than 2 mm in diameter (granules, pebbles, cobbles, boulders) set in a fine-grained matrix of sand or silt, and commonly cemented by calcium carbonate, iron oxide, silica, or hardened clay; the consolidated equivalent of gravel. The rock or mineral fragments may be of varied composition and range widely in size, and are usually rounded and smoothed from transportation by water or from wave action.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Cratons</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>Parts of the Earth's crust that have attained stability, and have been little deformed for a prolonged period.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Development<BR>
<FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Stage</FONT></FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>A &#147;development stage&#148; project is one which is undergoing preparation of an established commercially mineable deposit for its extraction but which is not yet in production. This stage occurs after completion of a feasibility study.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Dolomite Beds</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>Dolomite beds are associated and interbedded with limestone, commonly representing postdepositional replacement of limestone.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Dor&#233;</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>Unrefined gold bullion bars containing various impurities such as silver, copper and mercury, which will be further refined to near pure gold.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Dyke or Dike</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>A tabular igneous intrusion that cuts across the bedding or foliation of the country rock.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Exploration<BR>
<FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Stage</FONT></FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>An &#147;exploration stage&#148; prospect is one which is not in either the development or production stage.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Fault</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>A break in the continuity of a body of rock. It is accompanied by a movement on one side of the break or the other so that what were once parts of one continuous rock stratum or vein are now separated. The amount of displacement of the parts may range from a few inches to thousands of feet.</FONT></TD></TR>
<TR>
     <TD width="50%"><STRONG><FONT size=2>Feldspathic</FONT></STRONG></TD>
     <TD width="50%"><FONT size=2>Said of a rock or other mineral aggregate containing feldspar.</FONT></TD></TR>
<TR>
     <TD width="50%"></TD>
     <TD width="50%"></TD></TR></TABLE></P>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2></FONT></B></TD></TR></TABLE></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 15</FONT></P>
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<A name="page_16"></A>

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fold</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A curve or bend of a planar structure such as rock strata, bedding planes, foliation, or cleavage</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Foliation</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A general term for a planar arrangement of textural or structural features in any type of rock; esp., the planar structure that results from flattening of
the constituent grains of a metamorphic rock.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Formation</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Gabbro</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A distinct layer of sedimentary rock of similar composition.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A group of dark-colored, basic intrusive igneous rocks composed principally of basic plagioclase (commonly labradorite or bytownite) and clinopyroxene (augite), with or without
olivine and orthopyroxene; also, any member of that group. It is the approximate intrusive equivalent of basalt. Apatite and magnetite or ilmenite are common accessory minerals.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Geochemistry</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The study of the distribution and amounts of the chemical elements in minerals, ores, rocks, solids, water, and the atmosphere.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Geophysicist</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">One who studies the earth; in particular the physics of the solid earth, the atmosphere and the earth&#146;s magnetosphere.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Geotechnical</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Gneiss</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The study of ground stability.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A foliated rock formed by regional metamorphism, in which bands or lens-shaped strata or bodies of rock of granular minerals alternate with bands or lens-shaped strata or bodies or
rock in which minerals having flaky or elongate prismatic habits predominate.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Granitic</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Heap Leach</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pertaining to or composed of granite.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A mineral processing method involving the crushing and stacking of an ore on an impermeable liner upon which solutions are sprayed that dissolve metals such as gold and copper; the
solutions containing the metals are then collected and treated to recover the metals.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Intrusions</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Masses of igneous rock that, while molten, were forced into or between other rocks.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Kimberlite</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A blue/gray igneous rock that contains olivine, serpentine, calcite and silica and is the principal original environment of diamonds.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=27%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Lamproite</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Lithospere</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mantle</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mapped or Geological</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mapping</FONT></B></P>

	</TD>
	<TD width=72% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Dark-colored igneous rocks rich in potassium and magnesium.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The solid outer portion of the Earth.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The zone of the Earth below the crust and above the core.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The recording of geologic information such as the distribution and nature of rock</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Units and the occurrence of structural features, mineral deposits, and fossil localities.</FONT></P>

	</TD>
</TR>
</TABLE><BR>
<P align="right">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 16</FONT></P>

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<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Metavolcanic</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Migmatite</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Said of partly metamorphosed volcanic rock.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A composite rock composed of igneous or igneous- appearing and/or metamorphic materials that are generally distinguishable megascopically.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mineral</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A naturally formed chemical element or compound having a definite chemical composition and, usually, a characteristic crystal form.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mineralization</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A natural occurrence in rocks or soil of one or more metal yielding minerals.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mineralized Material</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term &#147;mineralized material&#148; refers to material that is not included in the reserve as it does not meet all of the criteria for adequate
demonstration for economic or legal extraction.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Mining</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Mining is the process of extraction and beneficiation of mineral reserves to produce a marketable metal or mineral product. Exploration continues during
the mining process and, in many cases, mineral reserves are expanded during the life of the mine operations as the exploration potential of the deposit is realized.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Outcrop</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">That part of a geologic formation or structure that appears at the surface of the earth.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Pipes</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Plagioclase</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Vertical conduits.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any of a group of feldspars containing a mixture of sodium and calcium feldspars, distinguished by their extinction angles.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Probable Reserve</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term &#147;probable reserve&#148; refers to reserves for which quantity and grade and/or quality are computed from information similar to that used for
proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity
between points of observation.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Production Stage</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A &#147;production stage&#148; project is actively engaged in the process of extraction and beneficiation of mineral reserves to produce a marketable metal
or mineral product.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Proterozoic</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Of or relating to the later of the two divisions of Precambrian time, from approximately 2.5 billion to 570 million years ago, marked by the buildup of
oxygen and the appearance of the first multicellular eukaryotic life forms.</FONT></P>

	</TD>
</TR>
</TABLE><BR>
<P align="right">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 17</FONT></P>

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<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Reserve</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term &#147;reserve&#148; refers to that part of a mineral deposit which could be economically and legally extracted or produced at the time of the
reserve determination. Reserves must be supported by a feasibility study done to bankable standards that demonstrates the economic extraction. (&#147;Bankable standards&#148; implies that the confidence attached to the costs and achievements
developed in the study is sufficient for the project to be eligible for external debt financing.) A reserve includes adjustments to the in-situ tonnes and grade to include diluting materials and allowances for losses that might occur when the
material is mined.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Sedimentary</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Shear</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Formed by the deposition of sediment.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A form of strain resulting from stresses that cause or tend to cause contiguous parts of a body of rock to slide relatively to each other in a direction parallel to their plane of
contact.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Sill</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A concordant sheet of igneous rock lying nearly horizontal. A sill may become a dike or vice versa.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Strike</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The direction or trend that a structural surface, e.g. a bedding or fault plane, takes as it intersects the horizontal.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Strip</FONT></B></P>
<P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Till</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">To remove overburden in order to expose ore.</FONT></P>
<P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Generally unconsolidated matter, deposited directly by and underneath a glacier without subsequent reworking by meltwater, and consisting of a mixture of clay, silt, sand, gravel,
and boulders ranging widely in size and shape.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Unconformably</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Not succeeding the underlying rocks in immediate order of age or not fitting together with them as parts of a continuous whole.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vein</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A thin, sheet like crosscutting body of hydrothermal mineralization, principally quartz.</FONT></P>

	</TD>
</TR>
<TR>
	<TD colspan=2>
&nbsp;
	</TD>
</TR>
<TR valign="top">
	<TD width=28%><P><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Wall Rock</FONT></B></P>

	</TD>
	<TD width=71% colspan=1><P><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The rock adjacent to a vein.</FONT></P>

	</TD>
</TR>
</TABLE><BR>
<P align="right">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 18</FONT></P>

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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>GENERAL OVERVIEW</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden Valley Mines, Inc. (&#147;we&#148;, &#147;us&#148;, &#147;our&#148; or the &#147;Company&#148;) was organized under the laws of the State of Nevada on August 11, 2008 to explore gold and other mineral properties in North America.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We were formed to engage in the exploration of mineral properties for gold and other mineral properties. We have acquired an option to purchase an interest in four (4) unpatented lode mining claims situated in the Northern Tuscarora Mountains of Elko County, Nevada. We refer to these mining claims as the &#147;New Dawn Property&#148; or &#147;New Dawn&#148;.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn Property is located within a fault-bounded wedge of upper plate Paleozoic rocks within the Tuscarora volcanic field, which is an Eocene complex covering approximately 300 square miles and located north of the major gold deposits of the Carlin trend (in the southern Tuscarora Mountains) and west of the Jerritt Canyon gold deposits (in the Independence Mountains). Mineralized Eocene (feeder?) dikes have been found in many of the mines within the Carlin trend, and the temporal and spatial correlation with Carlin-type gold mineralization suggests a genetic link. The New Dawn property contains part of an alteration zone associated with a nearby altered and locally mineralized Eocene dike. The limited data available from previous exploration in the property area indicates that this alteration zone in the lowermost unit of upper plate Paleozoic sediments contains anomalous values in gold and silver with locally high concentrations of arsenic and antimony. No resources have thus far been defined on the property.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property area is in the southwest corner of the Tuscarora mining district, within a zone of &#147;world class&#148; gold endowment where the potential of finding a large, high-grade, gold mine is favorable. The target concept for the New Dawn property is that alteration in upper plate Paleozoic sediments, locally associated with an Eocene porphyritic dike and with epithermal gold-arsenic dominated, Eocene-aged, precious metal mineralization, may represent the top of a mineralizing hydrothermal plume that had the potential to form a high-grade Carlin-type (e.g. Meikle) deposit within lower plate sediments at depth. It is believe that geologic, structural, stratigraphic, geochemical and geophysical studies at the New Dawn property may define such a target at a reasonable depth (2,500 feet).</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>It is recommended that we explore this property. The proposed work shall be carried out in two phases, with the second being contingent upon the successful completion of the first phase. It is believed that the proposed exploration program offers an opportunity to discover new Carlin-type mineralization beneath upper plate Paleozoic sediments on this property.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Phase 1 will focus on defining mineralized outflow structures with strong Au-As geochemical signatures, delineating permissive Paleozoic sedimentary units and structures, and targeting Carlin-type mineralization at a reasonable depth for drilling.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Phase 2 will drill test favorable targets.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The combined estimated expenditures of Phase 1 on the property are US $100,000; and for Phase 2 US $200,000, for a total expenditure of US $300,000.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We are an exploration stage company and we cannot provide assurance to investors that our mineral claims contains a commercially exploitable mineral deposit, or reserve, until appropriate exploratory work is conducted and an evaluation by a professional geologist of the exploration program concludes economic feasibility.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Introduction</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property is a gold prospect located in the northern Tuscarora Mountains in Elko County, Nevada, at the southwest edge of the Tuscarora mining district, approximately 45 miles northwest of the town of Elko. We have recently entered into a lease agreement with Altair Minerals, Inc. to explore and, if warranted, develop the New Dawn property. Altair Minerals, Inc. owns the four claims comprising the New Dawn property. The terms of this</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>option agreement provide for annual property payments, payment and recordation of annual maintenance fees to the Bureau of Land Management and to Elko County, and net smelter return royalties. The recommendations contained herein are for a two-stage exploration program to define, and then test prospective areas of alteration and gold mineralization.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Property Acquisition Details</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See above.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Property Description and Location</FONT></U></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Area and Location</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property is located in Elko County, in the Tuscarora Mountains of north-central Nevada, at approximately 41&#176; 17&#146; North Latitude, 116&#176; 20&#146; West Longitude. The property is about 45 miles northwest of the town of Elko, see Figure 1. Elko is the seat of Elko County and lies on Interstate Highway I-80 about halfway between Reno, Nevada, and the Salt Lake City, Utah. The New Dawn property area is included within the Mt. Blitzen U.S. Geological Survey (1:24,000) 7 &#189; minute quadrangle topographic map. The New Dawn property is located in Section 4 of Township 39 North, Range 50 East, Mount Diablo Base and Meridian, see Figure 2. The property is comprised of four unoatented lode mining claims, with each claim covering approximately 20 acres. There are no known environmental concerns or parks designated for any area contained within the claims. The property has no encumbrances. As advanced exploration proceeds, there may be bonding requirements for reclamation.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Claims and Title</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property is comprised of the following four unpatented lode mining claims:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>CLAIM NAME</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BLM Nevada Mining Claim#</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="34%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Elko County Document #</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ND 1</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>851630</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="34%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>507219</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ND 2</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>851631</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="34%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>507220</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ND3</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>851632</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="34%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>507221</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ND4</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>851633</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="34%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>507222</FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The claims were staked using a GPS unit (with &lt;10 ft accuracy), but have not been legally surveyed. The outline of the claim group is shown in Figures 2 and 4.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Public lands in the area of the New Dawn property are administered by the U.S. Department of Interior, Bureau of Land Management (&#147;BLM&#148;), under the Federal Land Policy and Management Act of 1976. All claims are subject to an annual maintenance fee of $125.00 per claim, payable to the BLM and due by noon September 1 of each year. In addition, an annual Notice of Intent to Hold and fee of approximately $8.50 per claim is payable to the Elko County Recorder&#146;s Office.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Based on an examination of Certificates of Location and Notices of Intent to Hold on file at the Elko County Recorder&#146;s Office in Elko, Nevada, and at the BLM Nevada State Office in Reno, Nevada, these ND claims were properly recorded. Their 2008 annual maintenance fees have been paid, and the claims are now in good standing until noon September 1, 2008, at which time the 2009 annual maintenance fees are due and payable.</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The four unpatented lode mining claims comprising the New Dawn property are registered in the name of and are owned by Altair Minerals, Inc., a privately held Nevada Corporation. Braeden Valley Mines Inc. has the right to earn a 100% interest in these claims under the terms of an existing agreement. Ownership of these claims does not confer any surface rights.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Environmental Liabilities</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>There are no open adits, shafts or deep trenches on the New Dawn Property, and thus no mining or exploration associated safety hazards exists at this time. There are no known prospect pits, and or to the best of the author&#146;s knowledge, there are no environmental liabilities known to exist on the New Dawn Property that can be attributed to or become the responsibility of either Altair Minerals, Inc. or Braeden Valley Mines Inc. Any exploration an development project proposed under present conditions will inevitably face environmentally driven hurdles. However, given that Nevada is generally regarded as the most mining district that has already seen mining activity, there is no reason to believe that the process of obtaining the requisite permits to operate would be particularly onerous.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Permits</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The BLM is responsible for the surface and subsurface mineral estate on federal lands. At the time of this writing, no Notice of Intent to Operate, no Plan of Operation have been filed with the BLM. Permitting for the proposed two phases of work on these properties is not anticipated to cause any problems or serous delays, as all of the planned work would involve physical disturbance of less than five acres or more involve a more stringent permitting process.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accessibility, Climate, Local Resources, Infrastructure and Topography</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>From Reno, Nevada, access to the New Dawn property is by Interstate Freeway I-80 east for about 280 miles to Elko (Exit 301 on I-80), then north to paved State Highway 225 for about 26 miles, then northwest on paved State Highway 226, and then turning off to the west onto the county maintained gravel road SSR 18 that heads toward the historic mining town of Tuscarora, see Figure 1. After about 6 miles this gravel road turns due south. After heading due southabout 1 mile, turn onto a secondary gravel road heading due west for about 4 miles past the Quarter Circle S Ranch and along the north side of McCann Creek, see Figure 2. Take the west fork onto a dirt track that heads northwest and then curves to the southwest then southeast, and eventually heads south along a ridge top, passing through the New Dawn property after about 2.5 miles.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The climate in this part of Nevada is typical of the high desert country of the American southwest, with hot summers, cold winters and generally dry conditions. Temperature variations recorded for the area extend from a minimum of -40&#176; F to a maximum of 108&#176; F, with average temperatures of 16&#176; F in winter and 84&#176; F in summer (Western Regional Climate Center). This is semi-arid desert, with an average annual precipitation of 12.5 inches. Heavy snowfall can be expected in the higher ranges, but the climate should not be an impediment to mining, especially if the operations were underground. Mining at open pits elsewhere in Nevada, in roughly similar conditions, is continued year round. Physical exploration work could be conducted on the New Dawn property year round, except during early spring when the frozen ground is melting and the unimproved dirt roads become muddy and difficult to travel.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Vegetation in this part of Nevada is generally confined to grasses and sagebrush, with local stands of willows, trembling aspen and some cottonwoods in valley bottoms, and local areas with dwarf juniper and pines. The property area includes summer grazing leases for cattle from local ranches. Most of the access roads are officially designated as ranch access roads, meaning that there are few restrictions on their use. But it is imperative to respect ranchers&#146; rights, especially, to keep gates closed where requested to do so.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Water is relatively short supply, however there is probably sufficient water in McCann Creek for drilling, although it may be necessary to truck water if a diamond drill is employed. Grid electrical power is not available on the New Dawn property, although it does extend to the Quarter Circle S Ranch about 4 miles to the east.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property is in moderately steep terrain, on a north-south trending ridge of the northern Tuscarora Mountains, with Mount Blitzen (el. 8130 ft) located about five miles to the northeast. The north-south trending ridge</FONT></P>
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">is between the headwaters of Berry and Lewis Creeks, see Figure 2. Within the New Dawn property, elevations range from 7480 ft at the ridge top, sloping down to 6920 ft in the eastern
gullies draining into Berry Creek, and sloping down to 7200 ft in the western gullies draining into Lewis Creek. Further to the east, Berry Creek joins McCann Creek, which eventually joins the South Fork of the Owyhee River. Further to the west,
Lewis Creek joins other creeks that eventually drain into the Humboldt River.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Elko is located on the Humboldt River, which has I-80 and a transcontinental railway along its course through northern Nevada. Elko is the county seat, and has a regional airport with
helicopter services available. Numerous drilling companies operate out of Elko. And in general, Elko is the service centre for large mining operations in the Carlin trend and the Jerritt Canyon district, see Figure 1. For 2005, the Elko Field Office
of the BLM reported total annual production of 3.8 million ounces of gold from 17 active gold mines, including: five mines at Jerritt Canyon (Queenstake, 0.2 M ounces); and the Midas mine (Newmont, 0.2 M ounces). Given all the mining activity in the
Elko region, it is anticipated that sufficient infrastructure and manpower would be available locally to support a mining operation at the New Dawn property.</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">History</FONT></U></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Past Production</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">This New Dawn property is at the southwest edge of the Tuscarora mining district (Tingley, 1992), which includes several gold and silver deposits and past producing mines. Between
1867 and 1989, total production for the Tuscarora district was more than 198,000 ounces gold and 7,274,000 ounces silver (LaPointe, et al, 1991). The New Dawn property does not include any of the known deposits or past producing mines of the
Tuscarora district within its claim boundaries.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In the Tuscarora district, placer gold was first discovered in McCann Creek in 1867. The first silver ore was minded and shipped in 1875, and further prospecting led to the discovery
of a bonanza silver deposit in 1876, provoking a silver rush to Tuscarora in 1877. The most productive gold mine in the district was the Dexter mine, which was worked underground from 1897 to 1904. As described by LaPointe, et al. (1991, p.
211-212):</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Exploration activity in the early 1980&#146;s in the vicinity of the old Dexter mine defined a low-grade bulk-mineable gold deposit. A joint venture between Fischer-Watt Gold
Mining Company and Horizon Gold Shares was formed in 1987 to open-pit mine the deposit, which began production in late 1987. Announced reserves at that time were 2.0 million tons of one grading 0.039 ounces of gold and 1.9 ounces of silver per ton
(Bonham, 1988). Cheveron Resources joined the joint venture in 1988 to do geologic mapping and drilling in an effort to expand reserves from several promising oxide-mineralized areas in the vicinity of the Dexter mine (The Mining Record, February 2,
1988; September 27, 1989). The mine was still active at the end of 1989, with proven and probable reserves of 1.8 million tons of ore grading 0.037 ounces of gold and 0.74 ounces of silver (Bonham and Hess, 1990).&#148;</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Dexter open pit mine, which exploited the Dexter volcanic-hosted gold deposit , is located about 6 miles northeast of the New Dawn property and is indicated by the yellow square
just below the Tuscarora town site in Figure 1. Tuscarora lies about 20 miles north of the northern end of the Carlin trend, and about 12 miles southwest of the Carlin-type deposits at Jerritt Canyon.</FONT></P>
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<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Previous Exploration and Drilling</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">There were two rounds of exploration drilling in the immediate vicinity of the New Dawn property. In the late 1980&#146;s, Echo Bay drilled eleven RC holes, and in 1996 Western States
drilled two 1500 ft vertical RC holes. As described by Henry and Boden (1998), these holes were located on the ridge between the headwaters of Berry and Lewis Creeks, testing a zone of alteration with a vein in the footwall of a porphyritic rhyolite
dike. This rhyolite dike outcrops less than 100 ft north of the New Dawn property, see Figure 4. Results of these drilling programmes are not available.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">There has also been recent drilling at the Berry Basin and Beard Hill areas, located about two miles to the east-northeast of the New Dawn property, see Figure 2. In the Berry Basin
area, Placer Dome drilled three holes in 2004, with three more holes drilled in 2005 by Grandcru (</FONT><U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.grancruresources.com</FONT></U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">).</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Geological Setting</FONT></U></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Regional Geology</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The hilly terrains and the middle level plain contain crystalline hard rocks such as charnockites, granite gneiss, khondalites, leptynites, metamorphic gneisses with detached
occurrences of crystalline limestone, iron ore, quartzo-feldspathic veins and basic intrusives such as dolerites and anorthosites. Coastal zones contain sedimentary limestones, clay, laterites, heavy mineral sands and silica sands. The hill ranges
are sporadically capped with laterites and bauxites of residual nature. Gypsum and phosphatic nodules occur as sedimentary veins in rocks of the cretaceous age. Gypsum of secondary replacement occurs in some of the areas adjoining the foot hills of
the Western Ghats. Lignite occurs as sedimentary beds of tertiary age. The Black Granite and other hard rocks are amenable for high polish. These granites occur in most of the districts except the coastal area.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Figures 3 and 3a locate and describe the major rock units of north-central-north-eastern Nevada, according to Steward and Carison (1977), whose labels are indicated in bold in the
following text. As described by Teal and Jackson (2002), Bonham (1986), Roberts (1986), and others, regional stratigraphic and isotopic data indicate that during the Cambrian through Early Mississippian, most of eastern Nevada was situated along a
stable paleo-continental margin. During this period, a westward-thickening and deepening wedge of sediments was deposited across the paleo-continental shelf and oceanic basin. The sedimentary facies of this Cordilleran geosynclines graded from
eastern shallow water (miogeoclinal) carbonates, to deep water (eugeoclinal) fine-grained siliciclastics. During the Late Devonian through Middle Mississippian, tectonic activity associated with the Antier orogeny resulted in large-scale uplift,
folding and thrusting of the eugeoclinical siliceous rocks eastward over the miogenoclinal carbonate rocks, along the Roberts Mountain thrust fault system. The leading edge of the overriding thrust plate formed the emergent Antler highland, from
which coarse siliceous clastic sediment eroding from the upper-plate was she eastward into the adjacent foreland basin.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Local terminology refers to three major Palaeozoic tectonostratigraphic rocks sequences: the eastern or carbonate autochthonous assemblage (PzZc), i.e., the lower plate rocks
characterized by limestone and dolomite, with minor shale and quaztzite: the western or siliceous allochthonous assemblage (IPzs), i.e., the upper plate rocks characterized by chert and dark shale, with grey quartzite, greywacke, and minor mafic
volcanic and limestone; and the overlap assemblage (uPzc), i.e., the foreland basin rocks characterized by coarser clastic flysch.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Roberts Mountain thrust fault, the major regional structure between the upper plate IPzs and the lower plate PzZc rocks, is believed to have localized or controlled gold
deposition at many mines in north-eastern Nevada exploiting Carlin-type deposits. Late Palaeozoic through Late Mesozoic compressional tectonism (the Sonoma and Sevier orogenies) resulted in local folding and subsequent erosion that exposed lower
plate rocks in so-called &#147;windows&#148; through the Roberts Mountains thrust fault. Such windows revealing PzZc rocks outcrop in the southern Tuscarora Mountains, hosting the core Carlin trend gold deposits. To the northeast, windows of PzZc
rocks host the Jerritt Canyon deposits in the Independence Mountains and host the Doby George deposit in the Bull Run Mountains. Upper plate IPzs rocks outcrop as a fault-bounded wedge in the northern Tuscarora Mountains at the</FONT></P>
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">New Dawn property, indicating the possible presence of mineralized PzZc rocks below. Foreland basin uPzc rocks comprise the Adobe Range east of the Independence Mountains.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">During the Late Permian through Early Triassac Sonoma orogeny, more western facies rocks (uPzs) of the Cordilleran geosuncline were thrust eastward as the upper plate of the Golconda
thrust fault; these rocks outcrop in the northern Independence Mountains. Only small amounts of Mesozoic sedimentary or volcanic (Mzr) rocks occur in eastern Nevada.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Teritiary rocks in northern Nevada include volcanic rocks ranging from silicic tuffs to basalt flows. Silicic tuffs predominate in the older, mid-Eocene to mid-Miocene. Teritiary
volcanic (Tvl). The New Dawn property is located within a fault-bounced wedge of Palaeozoic IPzs rocks, within the Eocene Tuscarora volcanic field, which is included in Tvl. The Tuscarora volcanic field is a complex of Eocene coalesced calderas and
strato-volcanoes that covers approximately 300 sq. miles (800 km^2). It lies just north of the Carlin trend gold deposits in the southern Tuscarora Mountains, and west of the Jerritt Canyon gold deposits in the Independence Mountains. The Tuscarora
volcanic field consists of andesitic to rhyolitic tuffs and flows that erupted from several volcanic centres; these igneous rocks intruded and locally covered sequences of upper and lower plate Palaeozoic sediments. It is believed that Eocene
magmatism was the heat source that drove the Hydrothermal circulation that generated Carlin-type deposits (Henry and Boden, 1997; Henry and Ressel, 2000). Related plutons (TMzi) and dike swarms intrude the volcanics and adjacent Palaeizoic rocks.
Younger, late-Miocene volcanic (Tvu) comprised mainly of basalt flows occur to the north in the Qwyhee Desert, and late-Miocene tuffaceous sediments (Ts) occur to the south, e.g., between the Independence Mountains and the Adobe Range. Quaternary
alluvium (Qa) fills the Independence valley east of the Tuscarora volcanic field.</FONT></P>
<P align="left">
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Local and Property Geology</FONT></I></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Three of the regional rock units outcrop in the immediate vicinity of the New Dawn propery: 1) upper plate Palaeozoic rocks IPzs; 2) Tertiary volcanic Tvl; and 3) contemporaneous and
younger dikes TMzi. In addition, there are unconsolidated 4) Quaternary surficial deposits Qa. As mapped by Henry and Boden (1998), these regional units are locally subdivided and described as follows:</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1) The Palaeozoic (Ordovician &#150; Devonian) rocks are locally distinguished into a siltstone-dominated assemblage Pzs and a chert-dominated assemblage Pzc. These rocks outcrop as a
fault-bounded wedge in the Tuscarora volcanic field, see Figure 3. These are the rocks exposed at the New Dawn property, see Figure 4, where they are strongly deformed, with folds and thrusts striking east-northeast and mostly dipping
northwest.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2) In the area of the New Dawn property, the Tertiary (Eocene) volcanic are lavas, tuffs and volcaniclastic sediments of the Pleasant Valley volcanic complex, part of the Tuscarora
volcanic field. Local sources for these volcanic rocks include a probable psyclastic vent located in the upper part of Pleasant Valley volcanic complex, part of the Tuscarora volcanic field. Local sources for these volcanic rocks include a probable
pyroclastic vent located in the upper part of Pleasant Valley (about 1.5 miles east of the New Dawn property), and a dacite dome located south of Lewis Creek (about 1.5 miles west of the property). The probable vent is indicated by the andesite
breccias Tpx, interpreted as a proximal fallout deposit is surrounding a former vent. Pyroxene andesite lava Tpa is the most abundant volcanic rock, but it and other lava types, e.g., Tpb, and lenses of volcanistic sediments and tuffs Tps, are all
complexly interlayered and discontinuous. Individual flows are 30 ft to possibly as much as 225 ft thick, with composite thickness of more than 900 ft. Platy flow banding and ramp structures are best developed in Tpa but are present in all lava
types.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3) A 1.8 mile long, discontinuous rhyolite dike Tmrf outcrops just north of the New Dawn property. This is one of numerous dikes, ranging in composition from andesite to rhyolite,
that are interpreted as the last manifestation of a late Eocene (39.34 Ma) intrusive episode.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4) Quarternary surficial deposits include: older alluvial fan deposits Qof, landslide deposits Qls, young alluvial fan deposits Qf, and channel deposits of unconsolidated alluvium
Qal.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The following descriptions of the rock units show in Figure 4 are adapted from Henry and Boden (1998). The rock units are listed from 3) the youngest down to 1) the oldest, and note
that metric units are used:</FONT></P>
<P align="right">
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Tmrf Finely prophyritic rhyolite A 3km long, discontinuous dike cuts Palaeozoic rocks, striking north-northeast and dipping 65-85 degrees northwest. Phenocrysts (5-25%): plagioclase
(20%, &lt;4mm), quartz (2%, 2mm), and biotite (&lt;1%, 1mm).</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Tpa Pyroxene andesite lava Andesitic lavas that contain pyroxene as the only or nearly only mafic phenocryst are the most widespread and voluminous of the Pleasant Valley rocks.
Phenocrysts (25-30%): plagioclase (20-25%, &lt;3mm) clinopyroxene (6-7%, 1.5mm), orthopyroxene (2-3%, &lt;1mm): a few flows contain hornblende (&lt;&lt;0.5%, &lt;3mm).</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Trb Biotite-bearing andesite-dacite lava Biotite-bearing lava flows in Pleasant Valley are mostly glassy and commonly have well-developed columnar joints, variably oriented.
Phenocrysts (20-30%): plagioc;ase (18025%, &lt;5 mm), clinopyroxene (1-3%, &lt;2 mm), biotite (1-2%, &lt;1.5 mm), and orthoproxene (1-2%, &lt;1 mm).</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Tps Volcaniclastic sediments and tuffs These rocks crop out as a relatively thick sequence underlying coarse breccias (Tpx) near the head of Pleasant Valley Creek. This sequence
includes massive to poorly bedded, non-welded, prumiceous tuff containing scattered fragments of andesite up to 20 cm in diameter and, rarely, Palaezoic rocks; individual beds are 3 to about 50 cm thick. This deposit is at least 70 m thick, and the
base is not exposed.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Tpx Andesite breccia Coarse , massive to poorly stratified breccia. Clasts are dominantly glassy pyroxene andesite, pettographically similar to unit Tpa, and a few clasts similar to
Tpb.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pzc Chert-dominated assemblage Mostly consists of thick (10 to 30 cm) to thin-bedded, commonly nodular, black to reddish brown to plate greenish grey, &#147;glassy&#148; to variably
recrystallized chat. The chert makes resistant ridges or smooth hillsides covered by chert lag. Individual beds are separated by thin (1 cm) siltstone layers, which were squeezed out by folding in many areas. Unit also includes some thicker siltsone
layers and minor sandstone and limestone, similar to rock types in Pzs, but these rarely crop out.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pzs Siltstone-dominated assemblage Heterogeneous assemblage dominated by finely laminated siltstone, shale or argillite, and including chert, sandstone, calcarenite, pebbly
conglomerate, and limestone. Siltstone is tan to black (carbonaceours?), rarely micaceous, and locally in graded beds with fine sandstone. Chert is thin-bedded (&lt;5 cm) and greenish grey). Sandstone is fine-grained, plana to cross-bedded, calcite-
to weakly silica-cemented. Calcarenite consists of rounded calcite grains to 0.5 mm</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The rock unit exposed within the boundaries of the New Dawn property is Pzs, which includes Paleozoic petroliferous (oil-bearing) carbonate (limestone) sediments interpreted as being
the lowermost unit of the upper plate rocks which are immediately above the Roberts Mountain thrust. It is the immediately underlying lower plate Palaeozoic petrliferous carbonate sediments that host most of the Carlin-type deposits of the Carlin
trend.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Moreover, many of these deposits are associated with altered and locally mineralized Eocene porphyritic dikes, e.g., the Meikle deposit, as is discussed in Section 9.0 (Deposit
Types). Such a dike Tmrf outcrops less than 1000 ft to the north of the North of the New Dawn property; this dike is mapped as one of the &#147;Eocene porphyritic rhyolite dikes (Beast-type dikes)&#148; by Russel et al. (200b, p. 1419 and p.
1419):</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;The Beast, lower-grade (7.3 Mt @ 0.7 g/t), disseminated Au deposit in the Carlin trend, Nevada, is a unique among Carlin-type Au deposits in having
as much as 50 percent of the ore hosted by a 37.3 Ma porphyritic rhyolite dike.&#148;</FONT></P>
<P align="left">
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Mineralization and Alteration</FONT></U></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Alteration can be observed on the New Dawn property in a northeast trending zone associated with the porphyritic rhyolite dike that outcrops less than 1000ft to the north. This
alteration zone crosses with the ridge between the headwaters of Lewis and Berry Creeks and is approximately 8000 ft long and 1500 ft wide, and it is recognizable on Land Sat Thermatic Mapper images.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">As described by Henry and Boden (1998, p. 18 and p. 20)</FONT></P>
<P align="right">
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#147;Quartz-barite veins occur along northeast-striking faults in the ridge between the headwaters of Lewis and Berry Creeks. Struhsacker (1992) reported that one vein lies in the footwall of a 65-85 degree northwest-dipping, finely porphyritic rhyolite dike (Tmrf) that cuts the Palaeozoic rocks. The dike is bleached and mildly argillized, and the vein contains as much as 2 ppm Au and 200 ppm Ag long with high As and Sb (Struhsacker, 1992).&#148;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#147;Stuhsacker, E.M., 1992, Tuscarora project, Elko County, Nevada: Prospect Summaries: Unpublished Consulting Report for Corona Gold, 21 p. plus figures and plates.&#148;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>This mineralization is indicative of an epithermal system, which may represent the top of a hydrothermal plume of mineralizing fluids. This area, located just north of the New Dawn property, was drilled in the 1980&#146;s and in 1996, as described in Section 6.2 (Previous Exploration and Drilling).</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deposit Types</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The deposit being sought at the New Dawn property is a Carlin-type gold deposit, and especially a Meikle-type deposit, i.e., deep, higher grade, structurally controlled, and dike associated, hosted in underlying lower plate Palaeozoic sediments. This is a blind target, whose surface expression is believed to be the alteration halo in the Palaeozoic rocks of the New Dawn property. These rocks are the lowermost unit of the upper plate, and their alteration at the New Dawn property is associated with an altered and locally mineralized Eocene porphyritic rhyolite dike that outcrops to the north of the property.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Carlin-type gold deposits are among the most important being mined at present anywhere in the world. These are sedimentary rock-hosted, disseminated gold deposits, with high Au/Ag ratios, that occur mainly in moderately folded silty carbonate host rocks; the adjacent faults are sometimes intruded by Eocene porphyritic dikes, that are sericitically altered or silicified (Ressel, et al., 2000a). Total production from the Carlin trend, since the original mine began operation in 1964, has now exceeded 60 million troy ounces. Clearly, these deposits are worthwhile and attractive targets.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Carlin-type gold deposit formed the frontal zone of the Roberts Mountains thrust plate, mostly in autochthonous carbonate rocks of the lower plate, but also in allochthonous rocks of the upper plate, and in igneous rocks (mainly Eocene age feeder dikes) that cut both plates. Most of the deposits are on the flanks of domal uplifts, which are exposed as erosional windows in the thrust. These domes are structurally controlled along regional scale fracture zones, and are developed over intrusive bodies that fed overlying volcanic fields (like the Tuscarora volcanic field). It has been speculated that at the time of ore formation, the thrust plate covered the erosional windows, and being relatively impermeable, impeded the flow of ore-forming solutions upward and confined them mostly to the lower plate rocks. This combination of permeable and soluble lower plate rocks with impermeable upper plate rocks, created stratigraphic and/or structural traps, very much like the traps observed in oil and gas reservoirs. In fact, nearly all Carlin-type deposits contain appreciable amounts of pyrobitumen, the residue of failed oil reservoirs. It is now understood that deep structures acted as channel ways for solutions that both prepared the ground (by hydrothermal de-calcification or de-carbonitisation of limestones to make them more porous and permeable) and carried the gold and associated elements from source region (probably the upper mantle) to depositional site. Many of the more recently discovered deposits are deep, higher grade, and are structurally controlled (and associated with Eocene porphyritic dikes), in particular, the Meikle deposit:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#147;Field relations, isotopic ages, and petrographic and chemical date of dacite dikes suggest that Carlin-type Au mineralization at the Griffin and Meikle deposits is of Eocene age and Closely linked to contemporaneous igneous activity &#133; Au mineralization at Meikle and Griffin closely followed dike intrusion.&#148; (Ressel, et al., 2000a)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#147;In addition to the Beast deposit, mineralized Eocene dikes are recognized in the Betze-Post, Deep Star, Genesis, and Meikle-Griffin deposits and indicated that major gold mineralization in the Carlin trend occurred after 40 Ma, probably as a consequence of multiple Eocene intrusive events &#133; Eocene magmatism is considered the major</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>process that drove hydrothermal circulation, which formed Carlin-type deposits of the Carlin trend.&#148; (Ressel, et al., 2000b)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The question then becomes where exactly to look for such blind targets; and the answer is to look in the place(s) where there is the greatest opportunity to discover these targets. Figure 8.1 is contour map of district gold endowment and regional structures of northern Nevada. It suggests that the most prospective area for finding such blind targets would be north of the Carlin District, e,g, the Tuscarora district. The Tuscarora district contains the New Dawn property in a fault-bounded wedge of the lowermost upper plate Palaeozoic sediments, thus the underlying prospective lower plate rocks are within reasonable distance from the surface (&lt;2,500 ft) at the New Dawn property.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exploration</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Apart from reviewing the available scientific literature, to date Braeden Valley Mines </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Inc. has not carried out any exploration work on these the New Dawn property, nor on any adjacent or other properties within the district.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The results of previous exploration work on the adjacent area to the north of the property, and on areas to the east-northeast of the property, are described in Section 8 (Mineralization and Alteration).</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Drilling Summary</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We have not carried out any drilling on the property, nor on adjacent properties.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>There have been several previous drilling programs on the adjacent area to the north of the property and on areas to the east-northeast of the property, as described in Section 6.2 (Previous Exploration and Drilling).</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Sampling Method, Sample Preparation and Data Verification</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During examination of the New Dawn property, the author collected several rock specimens from altered outcrop. These specimens were collected for comparison purposes and to characterize the altered rocks, and have been retained by the author for further study.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>No samples were collected from the New Dawn property for assaying.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>No information is available to the author or to Braeden Valley Mines Inc. concerning preparation, treatment, or analytical procedures of samples collected and analyzed by or on behalf of previous workers on the adjacent property to the north and the property to the east-northeast, of the New Dawn property. It is probably fair to assume that the majority of this previous work was diligently carried out by professional persons in the employ of large and reputable consulting firms and exploration companies, utilizing the then accepted prudent methods and procedures.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Data Verification</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Along with a review of the available scientific literature, the geological setting of the property and the style and intensity of alteration in outcrop was confirmed by the author during his field visits.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mineral Processing and Metallurgical Testing</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>No metallurgical test work has been conducted on the property by us. </FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mineral Resource Estimate </FONT></U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>There are at present no mineral resources defined on the New Dawn property.</FONT></P>
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<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Other Relevant Data and Information</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>There are at present no plans for production from the subject property. All work contemplated at this time is purely of an exploration nature.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The initial stage of the proposed exploration work on the New Dawn property is largely of a preliminary nature, involving geological, structural and alteration mapping, geochemistry and geophysics. Where appropriate, reverse circulation and/or core drilling would follow such work.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interpretation and Conclusions</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The target concept the New Dawn property is as follows: Alteration in upper plate Paleozoic sediments, locally associated with an Eocene porphyritic dike and with epithermal gold-arsenic dominated, Eocene-aged, precious metal mineralization , may represent the top of a mineralizing hydrothermal plume that had the potential to form a high-grade Carlin-type (e.g. Meikle) deposit within lower plate sediments at depth.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The New Dawn property is located in the Tuscarora district, which is a prospective area about 20 miles north of the Carlin district:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#147;The Tuscarora mining district contains the oldest and only productive Eocene epithermal deposits in Nevada. Moreover, Tuscarora deposits are of interest because they formed contemporaneously with nearby, giant Carlin-type gold deposits. &#133;As noted in previous studies, the hydrothermal fluids that generated the Tuscarora and other epithermal deposits could have evolved from Carlin-type fluids by boiling and mixing with meteoric water. If so, the Tuscarora deposits may represent epithermal conditions above Carlin-type deposits, and Carlin-type deposits may lie beneath the district.&#148;</FONT></P>
<P align=center>
<TABLE>
<TR>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Castor, et al., 2003)</FONT></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Tuscarora district contains New Dawn property in a fault-bounded wedge of lowermost upper plate Palaeozoic sediments, thus the underlying prospective lower plate rocks are within reasonable distance from the surface (&lt;2,500 ft).</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Recommendations</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The objective is to define a deep drilling target that may lead to the discovery of Carlin-type gold mineralization hosted in lower plate Palaeozoic sediments. It is believed that geologic, structural, stratigraphic, geochemical and geophysical studies at the New Dawn property may define such a target at a reasonable depth (&lt;2500 ft).</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In the opinion of this author, the property is of sufficient merit to warrant the exploration work recommended herein. The exploration work on this property should be conducted in two phases, with advancement to the second phase only upon successful completion of the first.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>PHASE 1</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1. Stake an additional 20 claims, adjoining to the north of the existing claims (in a 2 x 10 matrix); according to BLM records, this ground is unclaimed at present.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2. If possible, obtain the data collected during previous exploration campaigns from their respective operators.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Establish the provenance of this data, verify it, and if suitable, digitize and transfer all available exploration data onto a base map.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3. Carry out lithologic, structural, and alteration mapping with particular focus on the Eocene rhyolite dike and the adjacent Palaeozoic rocks.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4. Carry out geochemical soil and rock-chip sampling. Analyses should include gold, its pathfinder elements (As, Sb, Hg, Tl), and elements associated with oilfield/basin brines (i.e., B, Br, F, l, Pb, Zn, V).</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5. Conduct a CSAMT (Controlled Source Audio-frequency Magneto Tellurics) geophysical survey along profiles across the entire property, and if possible, on the newly staked claims.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6. Review results of Phase 1 work, and, if warranted, select and prioritize targets for drilling.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Contingent on a review of the results of Phase 1 and approval by an independent qualified person, the project should continue to Phase 2.</FONT></P>
<P align=left><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>PHASE 2</FONT></I></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Drill targets identified by the Phase 1 work.</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Sample and assay all drill core or cuttings obtained from altered rocks (both Palaeozoic and Eocene).</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Review results of Phase 2 work, and, where warranted, select targets for further drilling.</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>COMPLIANCE WITH GOVERNMENT REGULATION</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We will be required to conduct all mineral exploration activities in accordance with applicable regulations. Such operations are subject to various laws governing land use, the protection of the environment, production, taxes, labor standards, occupational health, waste disposal, toxic substances, well safety and other matters. Unfavorable amendments to current laws, regulations and permits governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially adverse impact and cause increases in capital expenditures which could result in a cessation of operations.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EMPLOYEES</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>At present, we have no employees. We anticipate that we will be conducting most of our business through agreements with consultants and third parties.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those statements included elsewhere in this prospectus. In addition to the historical consolidated financial information, the following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Our business plan is to proceed with the exploration of the New Dawn Property to determine whether there is a potential for gold or other minerals located on the properties that comprise the mineral claims. We have decided to proceed with the exploration program recommended by the geological report. We anticipate that the two phases of the recommended geological exploration program will cost approximately $100,000 and $200,000. We had $0 in cash reserves as of December 31, 2008. The lack of cash has kept us from conducting any exploration work on the property.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We anticipate that we will incur the following expenses over the twelve (12) month period following commencement of our exploration plans:</FONT></P>
<UL>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>USD$100,000 in connection with the completion of Phase 1 of our recommended geological work</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>program;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>USD$200,000 in connection with the completion of Phase 2 of our recommended geological work</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>program; and</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>USD$25,000.00 for operating expenses, including professional legal and accounting expenses associated</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>with compliance with the periodic reporting requirements after we become a reporting issuer under the</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Securities Exchange Act of 1934, but excluding expenses of the offering.</FONT> </LI></UL>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 29</FONT></P>
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">If we determine not to proceed with further exploration of our mineral claims due to a determination that the results of our initial geological program do not warrant further
exploration or due to an inability to finance further exploration, we plan to pursue the acquisition of an interest in other mineral claims. We anticipate that any future acquisition would involve the acquisition of an option to earn an interest in
a mineral claim as we anticipate that we would not have sufficient cash to purchase a mineral claim of sufficient merit to warrant exploration. This means that we might offer shares of our stock to obtain an option on a property. Once we obtain an
option, we would then pursue finding the funds necessary to explore the mineral claim by one or more of the following means: engaging in an offering of our stock; engaging in borrowing; or locating a joint venture partner or partners.</FONT></P>
<P align="left">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">RESULTS OF OPERATIONS</FONT></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have not yet earned any revenues. We anticipate that we will not earn revenues until such time as we have entered into commercial production, if any, of our mineral properties. We
are presently in the exploration stage of our business and we can provide no assurance that we will discover commercially exploitable levels of mineral resources on our properties, or if such resources are discovered, that we will enter into
commercial production of our mineral properties.</FONT></P>
<P align="left">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">LIQUIDITY AND CAPITAL RESOURCES</FONT></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our cash at the end of the period on December 31, 2008 was &#36;0. As of December 31, 2008, our current liabilities consisted of accounts payable in the amount of &#36;1,654 and loans
from a director of &#36;1,675. Since our inception on August 11, 2008 to the end of the period on December 31, 2008, we have incurred a loss of &#36;10,291. At December 31, 2008, we had an accumulated deficit of &#36;10,291 and &#36;4,709 in
shareholders&#146; equity.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the period ended December 31, 2008, net cash provided by financing activities was &#36;16,658, which was derived from the issuance of common stock for &#36;15,000 and a
directors&#146; loan in the amount of &#36;1,658.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the period ended December 31, 2008, net cash used in the purchase of the options related to the New Dawn Property was &#36;8,038. For the period ended December 31, 2008, net cash
used in operating and investing activities was a deficit of &#36;16,658.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Based on our current operating plan, we do not expect to generate revenue that is sufficient to cover our expenses for at least the next twelve (12) months. In addition, we do not
have sufficient cash and cash equivalents to execute our operations for at least the next twelve (12) months. We will need to obtain additional financing to operate our business for the next twelve (12) months. We will raise the capital necessary to
fund our business through a private placement and public offering of our common stock. Additional financing, whether through public or private equity or debt financing, arrangements with stockholders or other sources to fund operations, may not be
available, or if available, may be on terms unacceptable to us. Our ability to maintain sufficient liquidity is dependent on our ability to raise additional capital. If we issue additional equity securities to raise funds, the ownership percentage
of our existing stockholders would be reduced. New investors may demand rights, preferences or privileges senior to those of existing holders of our common stock. Debt incurred by us would be senior to equity in the ability of debt holders to make
claims on our assets. The terms of any debt issued could impose restrictions on our operations. If adequate funds are not available to satisfy either short or long-term capital requirements, our operations and liquidity could be materially adversely
affected and we could be forced to cease operations.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are bearing all costs relating to the registration of the common stock, which are estimated at &#36;25,000. The selling shareholder, however, will pay any commissions or other fees
payable to brokers or dealers in connection with any sale of the common stock.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are paying the expenses of the offering because we seek to (i) become a reporting company with the Commission under the Securities Exchange Act of 1934 (the "1934 Act"); and (ii)
enable our common stock to be traded on the Over-the-Counter Bulletin Board (&#147;OTC.BB&#148;). We believe that the registration of the resale of shares on behalf of our existing shareholder may facilitate the development of a public market in our
common stock if our</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">common stock is approved for trading on the OTC.BB. We have not yet determined whether we will separately register our securities under Section 12 of the 1934 Act.</FONT></P>
<P align="right">
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Information about our Executive Officers and Directors follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>NAME</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>AGE</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>POSITION AND TERM OF OFFICE</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="25%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="10%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="60%">
<HR noShade SIZE=1>
</TD></TR>
<TR>
     <TD width="99%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>G. Leigh Lyons</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="10%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>President, Treasurer, Secretary and Member of the Board of Directors</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="25%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="10%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="60%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>E. Alejandro Vasquez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>36</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Member of the Board of Directors</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="25%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="10%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="60%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Hilario Vanegas Guiterrez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="10%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Member of the Board of Directors</FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>At present, we have one (1) Executive Officer and three members of our Board of Directors. Our Bylaws provide for a Board of Directors ranging from one (1) to nine (9) members, with the exact number to be specified by the board. All Directors will hold office until the next annual meeting of the stockholders following their election and until their successors have been elected and qualified. The Board of Directors appoints Officers. Officers will hold office until the next annual meeting of our Board of Directors following their appointment and until their successors have been appointed and qualified.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Set forth below is a brief description of the recent employment and business experience of our two (2) executive Officers and Directors:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Leigh Lyons </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>&#150; </FONT></B><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New &#13;&#10;Roman,Times,serif" size=2>President, Treasurer and Secretary</FONT></I></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mr. Lyons joined us on August 11, 2008, as a member of the Board of Directors and as President, Secretary and Treasurer. Mr. Lyons is a United States resident and holds an AMP from Harvard Business School and a B.A. degree in Earth Science from the University of California at Santa Cruz. From 2005 to the present, Mr. Lyons has been the President and a member of the Board of Directors of Sound Energy Advisors LLC, a private company based in Blaine, Washington, that provides corporate management and governance services to publicly-traded small cap and start-up companies. From 2002 to 2005, Mr. Lyons served as the Chief Operating Officer and Vice President of Gas Transbolivano S.A., in Santa Cruz, Bolivia, a large natural gas transmission system expansion project. Mr. Lyons&#146; duties included risk management, project team supervision, planning, HSES, cost control and reporting to the Board of Directors.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mr. Lyons also serves as a director for the following companies registered with the SEC under the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;): Outback Energy Corp., American Petro-Hunter, GoldMountain Exploration Corporation and Radial Energy Inc.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>E. Alejandro Vasquez </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>&#150; </FONT></B><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New &#13;&#10;Roman,Times,serif" size=2>Member of the Board of Directors</FONT></I></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mr. Guiterrez joined us in 2008, as a member of the Board of Directors. My Vasquez is Panamanian citizen For the past 6 years , Mr. Vasquez served as a Manager of Agencia de Seguridad omega 270-7981, a Panamanian company located in Panama City, Panama. Mr. Vasquez&#146;s duties included managing all security entail. Mr. Vasquez does not serve as a director of any company with a class of securities registered pursuant to section 12 of the U.S. Securities Exchange Act of 1934 or subject to the requirements of section 15(d) of such Act or any company registered as an investment company under the Investment Company Act of 1940.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Hilarrio Vanegas Guiterrez &#150; </FONT><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2>Member of the Board of Directors</FONT></I></B></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REMUNERATION OF DIRECTORS AND OFFICERS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The following table sets forth the remuneration of our Executive Officers and Directors for the period from inception on August 11, 2008 through to the end of the period on September 30, 2008.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>CAPACITIES IN WHICH</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>NAME OF</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="44%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>REMUNERATION WAS</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="27%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>AGGREGATE</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>INDIVIDUAL</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="44%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>RECEIVED</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="27%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>REMUNERATION</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="24%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="44%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="27%">
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 31</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>G. Leigh Lyons</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Executive Officer</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$0</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="31%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="50%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>E. Alejandro Vasquez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Member of the Board of Directors</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$0</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="31%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="50%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="31%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Hilario Vanegas Guiterrez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Member of the Board of Directors</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$0</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="31%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="50%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD></TR></TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We have no employment agreements with our Executive Officers. We will not pay compensation to Directors for attendance at meetings. We will reimburse Directors for reasonable expenses incurred during the course of their performance.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The following table lists the share ownership of persons who, as of the date of this prospectus owned of record or beneficially, directly or indirectly, more than five percent (5%) of the outstanding common stock, and our Executive Officer and Directors:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="18%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SHARES TO</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="27%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>PERCENTAGE OF CLASS (1)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="18%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="17%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="14%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="27%" colSpan=3>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="18%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SHARES TO BE</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BE OWNED</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="18%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SHARES</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OFFERED FROM</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>UPON</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BEFORE</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>AFTER</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>NAME AND</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OWNED</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SELLING</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>COMPLETION</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OFFERING</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OFFERING</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ADDRESS OF</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>PRIOR TO</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SHAREHOLDER'S</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OF</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OWNER</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OFFERING</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ACCOUNT</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>OFFERING</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD></TR>
<TR>
     <TD width="18%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="17%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="14%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>G. Leigh Lyons</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>20,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>15,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>66.7%</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16.7%</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="18%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="17%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="14%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD></TR>
<TR>
     <TD width="96%" colSpan=11>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>E. Alejandro Vasquez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16.7%</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16.7%</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="18%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="17%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="14%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="13%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="12%">
<HR noShade SIZE=1>
</TD></TR>
<TR>
     <TD width="96%" colSpan=11>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=11>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Hilario Vanegas</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16.7%</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16.7%</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Guiterrez</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="12%">&nbsp; </TD></TR></TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1) This table is based on 30,000,000 shares of common stock issued and outstanding as of December 31, 2008.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>As of the date of this prospectus, we only have three (3) shareholders.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>As of the date of this prospectus, other than the transaction described above, there are no, and have not been since inception, any material agreements or proposed transactions, whether direct or indirect, with any of the following:</FONT></P>
<UL>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>any of our Directors or Officers;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>any nominee for election as a Director;</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>any principal security holder identified in the preceding "Security Ownership of Selling Shareholder and</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>Management" section; or</FONT>
<LI><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>any relative or spouse, or relative of such spouse, of the above referenced persons.</FONT> </LI></UL>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SECURITIES BEING OFFERED</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We are authorized to issue up to 50,000,000 shares of common stock, par value $.001 per share, and we have not authorized the issuance of preferred stock.</FONT></P>
<P align=left><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock</FONT></U></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 32</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. We do not have cumulative voting rights in the election of directors, and accordingly, holders of a majority of the voting shares are able to elect all of the directors.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Subject to preferences that may be granted, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available therefore as well as any distributions to the stockholders. We have never paid cash dividends on our common stock, and do not expect to pay such dividends in the foreseeable future.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In the event of a liquidation, dissolution or winding up of our company, holders of common stock are entitled to share ratably in all of our assets remaining after payment of liabilities. Holders of common stock have no</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>preemptive or other subscription or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>TRANSFER AGENT AND REGISTRAR</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Holladay Stock Transfer, Inc., 2939 N 67th Place, Suite C, Scottsdale, AZ 85251, serves as the transfer agent and registrar for our common stock.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SEC POSITION ON INDEMNIFICATION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Our bylaws provide that each of our officers and directors shall be indemnified by us against all costs and expenses actually and necessarily incurred by him or her in connection with the defense of any action, suit or proceeding in which he or she may be involved or to which he or she may be made a party by reason of his or her being or having been such director or officer, except in relation to matters as to which he or she has been finally adjudged in such action, suit or proceeding to be liable for negligence or misconduct in the performance of duty.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The indemnification provisions of our bylaws diminish the potential rights of action, which might otherwise be available to shareholders by affording indemnification against most damages and settlement amounts paid by a director in connection with any shareholders derivative action. However, there are no provisions limiting the right of a shareholder to enjoin a director from taking actions in breach of his fiduciary duty, or to cause us to rescind actions already taken, although as a practical matter courts may be unwilling to grant such equitable remedies in circumstances in which such actions have already been taken. Also, because we do not presently have directors' liability insurance and because there is no assurance that we will procure such insurance or that if such insurance is procured it will provide coverage to the extent directors would be indemnified under the provisions, we may be forced to bear a portion or all of the cost of the director's claims for indemnification under such provisions. If we are forced to bear the costs for indemnification, the value of our stock may be adversely affected.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Act") may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have 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.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>LEGAL MATTERS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>W. Scott Lawler of Lawler &amp; Associates, PLC, 11622 El Camino Real, Suite 100, San Diego, CA 92130 will pass upon certain matters relating to the legality of the common stock offered hereby for us.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EXPERTS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Our financial statements as of December 31, 2008 have been audited by Moore &amp; Associates C.H., as set forth in its report. The financial statements have been included in reliance upon the authority of&nbsp;Moore &amp; Associates C.H.&nbsp;as experts in accounting and auditing.</FONT></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 33</FONT></P>
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>AVAILABLE INFORMATION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We have not previously been subject to the reporting requirements of the Securities and Exchange Commission. We have filed with the Commission a registration statement on Form S-1 under the Securities Act with respect to the shares offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to our securities and us you should review the registration statement and the exhibits and schedules thereto. Statements made in this prospectus regarding the contents of any contract or document filed as an exhibit to the registration statement are not necessarily complete. You should review the copy of such contract or document so filed.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>You can inspect the registration statement and the exhibits and the schedules thereto filed with the commission, without charge, at the office of the Commission at Judiciary Plaza, 100 F Street, NE, Washington, D.C. 20549. You can also obtain copies of these materials from the public reference section of the commission at 100 F Street, NE,</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Washington, D.C. 20549, at prescribed rates. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission maintains a web site on the Internet that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission at </FONT><U><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" color=#0000ff size=2>HTTP://WWW.SEC.GOV</FONT></U></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REPORTS TO STOCKHOLDERS</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>As a result of filing the registration statement, we are subject to the reporting requirements of the federal securities laws, and are required to file periodic reports and other information with the SEC. We will furnish our shareholders with annual reports containing audited financial statements certified by independent public accountants following the end of each fiscal year and quarterly reports containing unaudited financial information for the first three (3) quarters of each fiscal year following the end of such fiscal quarter.</FONT></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 34</FONT></P>
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<A name="page_35"></A>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></U></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>MOORE &amp; ASSOCIATES, CHARTERED</FONT></B></P>
<P align=left>
<TABLE>
<TR>
     <TD width=30>&nbsp;</TD>
     <TD noWrap><I><U><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>ACCOUNTANTS AND ADVISORS</FONT></U></I><BR>
<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>PCAOB REGISTERED</FONT></I></TD></TR></TABLE></P>
<P align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></U></B></P>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>To the Board of Directors</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Braeden Valley Mines, Inc.</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(An Exploration Stage Company)</FONT></B></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We have audited the accompanying balance sheet of Braeden Valley Mines, Inc. (An Exploration Stage Company) as of December 31, 2008, and the related statements of operations, stockholders&#146; equity and cash flows from inception on August 11, 2008 through December 31, 2008. These financial statements are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audits.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We conduct our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Braeden Valley Mines, Inc. (An Exploration Stage Company) as of December 31, 2008, and the related statements of operations, stockholders&#146; equity and cash flows from inception on August 11, 2008 through December 31, 2008, in conformity with accounting principles generally accepted in the United States of America.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has an accumulated deficit of $10,291, which raises substantial doubt about its ability to continue as a going concern. Management&#146;s plans concerning these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</FONT></P>
<P align=left><I><FONT face="Bradley Hand ITC,Arial,Helvetica,sans-serif" size=5>/s/ Moore &amp; Associates, Chartered</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Moore &amp; Associates, Chartered Las Vegas, Nevada March 5, 2009</FONT></P>
<P align=left><I><U><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>6490 West Desert Inn Rd, Las Vegas, NV 89146 (702) 253-7499 Fax (702) 253-7501</FONT></U></I></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 35</FONT></P>
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<A name="page_36"></A>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>Braeden Valley Mines, Inc.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=4>(An Exploration Stage Company)</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>Financial Statements December 31, 2008</FONT></B></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 36</FONT></P>
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<A name="page_37"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>Braeden Valley Mines, Inc.</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(An Exploration Stage Company)</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Balance Sheet</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>December 31,</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2008</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ASSETS</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mineral interests</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 8,038</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total assets</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 8,038</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>LIABILITIES and SHAREHOLDERS' EQUITY</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Current</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 1,654</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Note payable to related parties</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,675</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total current liabilities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,329</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>STOCKHOLDERS' EQUITY</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital stock 50,000,000 common stock authorized, $0.001 par value</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="24%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000,000 shares outstanding</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Additional paid in capital</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(15,000)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficit accumulated during exploration stage</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,291)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total stockholders' equity</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,709</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="73%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total liabilities and stockholders' equity</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 8,038</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="73%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="24%">
<HR noShade SIZE=2>
</TD></TR></TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The accompanying notes are an integral part of these financial statements.</FONT></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 37</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<P align=left>
<TABLE>
<TR>
     <TD width=4>&nbsp;</TD>
     <TD noWrap></TD></TR></TABLE></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif"><FONT size=4>Braeden Valley Mines, Inc.</FONT><BR>
(An Exploration Stage Company) Statement of Operations</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">For the Period from August 11, 2008 [Inception] though to December 31, 2008</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Period from</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>August 11, 2008</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>[Inception]</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>though to</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>December 31,</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2008</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="72%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Revenue</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expenses</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="25%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 17</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>General and Administrative</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,274</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Provisions for income taxes</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="72%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss for the period</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 10,291</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="72%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=2>
</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Loss per share - basic and diluted</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%">&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>$ 0.00</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=2>
</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%">&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Weighted Average Shares Outstanding</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="72%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="25%">
<HR noShade SIZE=2>
</TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="72%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The accompanying notes are an integral part of these financial statements.</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="25%">&nbsp; </TD></TR></TABLE><BR>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 38</FONT></P>
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<A name="page_39"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>Braeden Valley Mines, Inc.</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(An Exploration Stage Company)</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Statement of Stockholders' Equity</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="71%" colSpan=7><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">For the Period from August 11, 2008 [Inception] to December 31, 2008</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR>
     <TD width="71%" colSpan=7>
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD></TR>
<TR>
     <TD width="97%" colSpan=11>&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=11>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Deficit</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Accumulated</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Additional</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>during</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Total</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Common Stock</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Paid-In</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Exploration</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Stockholder's</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shares</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amount</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Capital</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Stage</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=center width="11%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Equity</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="35%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="8%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD></TR>
<TR>
     <TD width="97%" colSpan=11>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Balance, at inception on August 11, 2008</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Issuance of stock for cash, September 30, 2008</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(15,000)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>15,000</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss for the period from inception on August 11,</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008 through December 31, 2008</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,291)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,291)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="35%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="8%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="35%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Balance, December 31, 2008</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,000,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 30,000</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ (15,000)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ (10,291)</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ 4,709</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="35%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="8%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="11%">
<HR noShade SIZE=2>
</TD></TR>
<TR>
     <TD width="97%" colSpan=11>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The accompanying notes are an integral part of these financial statements.</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD></TR></TABLE><BR>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 39</FONT></P>
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<A name="page_40"></A>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>Braeden Valley Mines, Inc.</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(An Exploration Stage Company) Statement of Cash Flows</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">For the Period from August 11, 2008 [Inception] though to December 31, 2008</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Period from August 11,</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2008 [Inception] though</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>to December 31, 2008</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Operating Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss from operations</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ (10,291)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Changes in balances of assets and liabilities:</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>- Accrued interest</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>17</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>- accounts payable and accrued expenses</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,654</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash Flows Used in Operating Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,620)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Investing Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Acquisition of mineral interest rights</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,038)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash Flows Used in Investing Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,038)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Financing Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proceeds from subscriptions of stock</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>15,000</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proceeds from related party debt</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,658</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash Flows Provided by Financing Activities</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,658</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Net increase (decrease) in cash</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash, beginning of period</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=1>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash, end of period</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$ -</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SUPPLEMENTAL CASH DISCLOSURES</FONT></B>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash paid for:</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income taxes</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>$ -</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=right width="29%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>$ -</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="68%">
<HR noShade SIZE=2>
</TD>
     <TD width="2%">&nbsp; </TD>
     <TD width="29%">
<HR noShade SIZE=2>
</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="68%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The accompanying notes are an integral part of these financial statements.</FONT>&nbsp; </TD>
     <TD width="2%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD></TR></TABLE><BR>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 40</FONT></P>
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<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>Braeden Valley Mines, Inc.</FONT></B><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>(An Exploration Stage Company)</FONT><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>Notes to Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2008</FONT></TD></TR></TABLE></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>1.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Nature of operations and going concern</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD width="100%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden Valley Mines, Inc. (&#147;Braeden&#148;) was incorporated under the laws of the State of Nevada on August 11, 2008 for the purpose of acquiring and developing mineral properties.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Summary of significant accounting policies</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD width="100%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD width="100%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The financial statements have, in management&#146;s opinion, been properly prepared within the framework of the significant accounting policies summarized below:</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>a.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Cash and cash equivalents</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments with an original maturity of ninety days or less.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>b.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Mineral interests</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mineral property acquisition costs are capitalized in accordance with Emerging Issues Task Force ("EITF") 04-2 when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. Through the date of these financial statements, the Company has not yet had any costs it believes have met the criteria for capitalizing under EITF 04-2.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Mineral property exploration costs are expensed as incurred. If and when it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>c.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Loss per share</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In accordance with SFAS No. 128, </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Earnings Per Share</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>d.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Income taxes</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden accounts for income taxes under SFAS No. 109, </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Accounting for Income Taxes. </FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Under SFAS No.109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 41</FONT></P>
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<A name="page_42"></A>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>Braeden Valley Mines, Inc.</FONT></B><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>(An Exploration Stage Company)</FONT><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>Notes to Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2008</FONT></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In July, 2006, the FASB issued FASB Interpretations No. 48, </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Accounting for Uncertainty in Income Taxes -an interpretation of FASB Statement No. 109 </FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(&#147;FIN 48&#148;), which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. FIN 48 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. FIN 48 became effective as of January 1, 2007 and had no impact on the Company&#146;s consolidated financial statements.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>e.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Impairment of long-lived assets</FONT></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In accordance with SFAS No. 144, </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Accounting for the Impairment or Disposal of Long-lived Assets</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>, the carrying value of intangible assets and other long-lived assets are reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. Braeden recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. Mineral properties accounted for using the full cost method of accounting, a method utilized by Braeden, is excluded from this requirement, but will continue to be subject to the ceiling test limitations. There were no impairment losses in 2008.</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>f.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Full costs method</FONT></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Breaden uses the full cost method of accounting for exploration and development activities as defined by SEC Regulation S-X Rule 4-10. Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as property and equipment. This includes any internal costs that are directly related to exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of mineral properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves minerals attributable to a country. The application of the full cost method of accounting for mineral properties generally results in higher capitalized costs and higher depreciation and amortization rates compared to the successful efforts method of accounting for mineral properties.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Costs excluded</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Properties and equipment include costs that are excluded from costs being depreciated or amortized. Mineral costs excluded represent investments in unproved properties and major development projects in which we own a direct interest. These unproved property costs include nonproducing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. Braeden excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The amount of any impairment is transferred to the capitalized costs being amortized (the depletion, depreciation and amortization) or a charge is made against earnings for those international operations where a reserve base has not yet been established. Impairments transferred to the depletion, depreciation and amortization increase the depletion, depreciation and amortization rate for that country. For international operations where a reserve base has not yet been established, an impairment requiring a charge to earnings may be indicated through evaluation of drilling results, relinquishing drilling rights or other information.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>At December 31, 2008, Braeden&#146;s mineral properties were located in one geographical segment, being the United States of America.</FONT></P>
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     <TD noWrap><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>Braeden Valley Mines, Inc.</FONT></B><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>(An Exploration Stage Company)</FONT><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>Notes to Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2008</FONT></TD></TR></TABLE></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Ceiling test</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. Under full cost accounting rules for each cost center, capitalized costs of unproved and proved properties, less accumulated amortization and related deferred income taxes, shall not exceed an amount (the "cost ceiling") equal to the sum of (a) the present value of future net cash flows from estimated production of proved mineral reserves, based on current economic and operating condition, discounted at 10 percent, plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged as an impairment expense. As of December 31, 2008, total capitalized costs were $8,038, which were subject to the ceiling test for impairment. At December 31, 2008, Braeden has reviewed these capitalized costs for impairment and determined that there was no impairment.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Amortization</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capitalized costs within a cost center amortized on the unit-of-production basis using proved mineral reserves include: (i) all capitalized costs, less accumulated amortization; (ii) the estimated future expenditures (based on current costs) to be incurred in developing proved reserves; and (iii) estimated dismantlement and abandonment costs, net of estimated salvage values. Capitalized costs subject to amortization do not include the excluded costs as described above.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>g.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Stock based compensation</FONT></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company recognizes stock based compensation expense and other forms of employee equity compensation in accordance with SFAS No. 123R, </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Share-Based Payment, </FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>as interpreted by SEC Staff Accounting Bulletin No. 107.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>h.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Recent accounting pronouncements</FONT></B> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In June 2008, the FASB issued FSP EITF 03-6-1, &#147;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Determining Whether Instruments Granted in Share- Based Payment Transactions Are Participating Securities</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#148; (&#147;FSP EITF 03-6-1&#148;). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in computing earnings per share under the two-class method described in SFAS No. 128, &#147;Earnings Per Share.&#148; FSP EITF 03-6-1 is effective for the Company as of January 1, 2009 and in accordance with its requirements it will be applied retrospectively. The Company does not expect the adoption of FSP EITF 03-6-1 to have a material impact on its financial statements.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In May 2008, the FASB issued SFAS No. 162, &#147;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>The Hierarchy of Generally Accepted Accounting Principles</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#148;, which identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (GAAP) in the United States of America (the GAAP hierarchy). This Statement is effective 60 days following the SEC&#146;s approval of the Public Company Accounting Oversight Board amendments to AU Section 411, &#147;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#148;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>. </FONT></I><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>The Company does not expect adoption of SFAS 162 to have a material effect on its financial statements or related disclosures.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In March 2008, the FASB issued SFAS No. 161, &#147;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Disclosures about Derivative Instruments and Hedging Activities&#151;an amendment of FASB Statement No. 133</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#148;. SFAS 161 requires entities that utilize derivative instruments to provide qualitative disclosures about their objectives and strategies for using such instruments, as well as any details of credit-risk-related contingent features contained within derivatives. SFAS 161 also requires entities to disclose additional information about the amounts and location of derivatives located within the financial statements, how the provisions of SFAS 133 has been applied, and the impact that hedges have on an entity&#146;s financial position, financial performance, and cash flows. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company currently does not anticipate the adoption of SFAS 161 will have a material impact on the disclosures already provided.</FONT></P>
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     <TD noWrap><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>Braeden Valley Mines, Inc.</FONT></B><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>(An Exploration Stage Company)</FONT><BR>
<FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>Notes to Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2008</FONT></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In December 2007, the FASB issued SFAS No. 141R, &#147;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Business Combinations</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>,&#148; which revises SFAS No. 141 and changes multiple aspects of the accounting for business combinations. SFAS No. 141R requires the acquirer to recognize most identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree at their full fair value on the acquisition date. Goodwill is to be recognized as the excess of the consideration transferred plus the fair value of the non-controlling interest over the fair values of the identifiable net assets acquired. Subsequent changes in the fair value of contingent consideration classified as a liability are to be recognized in earnings, while contingent consideration classified as equity is not to be re-measured. Costs such as transaction costs are to be excluded from acquisition accounting, generally leading to recognizing expense and additionally, restructuring costs that do not meet certain criteria at acquisition date are to be subsequently recognized as post-acquisition costs. SFAS No. 141R is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 31, 2008. The Company is currently evaluating the impact that this issuance will have on its financial position and results of operations.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>i. Advertising</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company has not incurred any advertising fees to date. Any advertising that is incurred in the future will be expensed as accrued.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>3. Going concern</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that Braeden will be able to meet its obligations and continue its operations for the next twelve months. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should Braeden be unable to continue as a going concern. At December 31, 2008, Braeden has not yet achieved profitable operations, has accumulated losses of $10,291 since its inception, has a working capital deficiency of $3,329 and expects to incur further losses in the development of its business, all of which casts substantial doubt about Braeden&#146;s ability to continue as a going concern. Braeden&#146;s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden expects to continue to incur substantial losses and will require substantial capital to execute its business plan and does not expect to attain profitability in the near future. Since its inception, Braeden has funded operations through short-term borrowings and equity investments in order to meet its strategic objectives. Braeden's future operations are dependent upon external funding and its ability to execute its business plan, realize sales and control expenses. Management believes that sufficient funding will be available from additional borrowings and private placements to meet its business objectives including anticipated cash needs for working capital, for a reasonable period of time. However, there can be no assurance that Braeden will be able to obtain sufficient funds to continue the development of its business operation.</FONT></P>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>4.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Financial instruments</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>a.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Credit risk</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden maintains cash deposits with financial institutions, which from time to time may exceed federally insured limits. Braeden has not experienced any losses in connection with these deposits and believes it is not exposed to any significant credit risk from cash.</FONT> </TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>b.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Fair values</FONT></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financial instruments that are subject to fair disclosure requirements are carried in the financial statements at amounts that approximate fair value and include cash, accounts payable and accrued expenses and notes payable. Fair values are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk.</FONT> </TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR></TABLE>
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<P align=left><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>Braeden Valley Mines, Inc.</FONT></B></P>
<P align=left><FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>(An Exploration Stage Company) Notes to Financial Statements</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2008</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>c. Liquidity risk</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden is exposed to liquidity risk as its continued operations are dependent upon obtaining additional capital or achieving profitable operations to satisfy its liabilities as they come due.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>5. Mineral interest rights</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>On August 11, 2008, Braeden entered into an exploration and mining lease agreement with Altair Minerals, Inc. (&#147;Altair&#148;), and acquired an undivided interest into mining claims located in Elko County, Nevada, in consideration for the payment of advance minimum royalties, as follows:</FONT></P>
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     <TD vAlign=top noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>i.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$5,000 upon the execution of the agreement, to hold the property for one year from the effective date (paid);</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ii.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$10,000 on May 15, 2009;</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>iii.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$15,000 on May 15, 2010;</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>iv.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$25,000 on May 15, 2011;</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>v.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$25,000 on each subsequent anniversary of the effective date, so long as the agreement remains in effect.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The lease, effective May 15, 2008, is for an initial term of 15 year and shall be extended for so long as there is production of minerals from the property.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Upon commencing of production of minerals, Braeden shall pay a royalty on production to Altair equal to 4% of net smelter returns. Braeden has the right to purchase up to 2 of the 4 royalty points, by paying Altair $1,000,000 for the first royalty percentage point, and $2,000,000 for the second royalty percentage point.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>At December 31, 2008, Braeden had incurred $3,038 in deferred exploration costs associated with the preparation of a technical report and annual maintenance fees. These costs are included in mineral interest rights on the balance sheet.</FONT></P>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>6.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Note payable from a related party</FONT></B> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face=ArialMT,Arial,Helvetica,sans-serif size=2>On September 30, 2008, Braeden received $1,658 pursuant to a promissory note with a related party. The note is unsecured, bears interest at 5% per annum calculated annually and is due on demand. At December 31, 2008, $1,675 is owing on this note, including $17 in accrued interest.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>7.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Capital stock</FONT></B> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common stock</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Braeden&#146;s authorized capital consists of 50,000,000 shares of common stock, with par value of $0.001.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>On September 30, 2008, Braeden issued 30,000,000 to two directors at $0.0005 per share, for net proceeds of $15,000.</FONT> </TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>No dealer, salesman or any other person has been authorized to give any quotation or to make any representations in connection with the offering described herein, other than those contained in this prospectus. If given or made, such other information or representation, must not be relied upon as having been authorized by us or by any underwriter. This prospectus does not constitute an offer to sell, or a solicitation of an offer to buy any securities offered hereby in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>DEALER PROSPECTUS DELIVERY OBLIGATION</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Until __________________ (90th day after the later of (1) the effective date of the registration statement or (2) the first date on which the securities are offered publicly), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.</FONT></P>
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>PART II - INFORMATION NOT REQUIRED IN PROSPECTUS</FONT></U></B></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 1. INDEMNIFICATION OF DIRECTORS AND OFFICERS.</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Section 78.7502 of the Nevada Revised Statutes and Article VII of our Articles of Incorporation permit us to indemnify our officers and directors and certain other persons against expenses in defense of a suit to which they are parties by reason of such office, so long as the persons conducted themselves in good faith and the persons reasonably believed that their conduct was in our best interests or not opposed to our best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful. See our Articles of Incorporation filed as Exhibit 2.1 to this registration statement.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Indemnification is not permitted in connection with a proceeding by us or in our right in which the officer or director was adjudged liable to us or in connection with any other proceeding charging that the officer or director derived an improper personal benefit, whether or not involving action in an official capacity.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 2. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The expenses to be paid by us in connection with the securities being registered are as follows:</FONT></P>
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<TR>
     <TD align=left width="50%"></TD>
     <TD align=right width="50%"><FONT size=2>Amount</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Securities and Exchange Commission Registration Fee*</FONT></TD>
     <TD align=right width="50%"><FONT size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Accounting Fees and Expenses</FONT></TD>
     <TD align=right width="50%"><FONT size=2>6,700</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Legal Fees and Expenses</FONT></TD>
     <TD align=right width="50%"><FONT size=2>17,900</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Transfer Agent and Registrar Fees and Expenses</FONT></TD>
     <TD align=right width="50%"><FONT size=2>200</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Printing Expenses</FONT></TD>
     <TD align=right width="50%"><FONT size=2>0</FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Miscellaneous Expenses</FONT></TD>
     <TD align=right width="50%"><FONT size=2><U>&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; 100</U></FONT></TD></TR>
<TR>
     <TD width="50%"><FONT size=2>Total</FONT></TD>
     <TD align=right width="50%"><FONT size=2>$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25,000*</FONT></TD></TR></TABLE></P>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>------------------</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>*Estimated amount</FONT></TD></TR></TABLE></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 47</FONT></P>
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 3. UNDERTAKINGS.</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We hereby undertake to:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1) File, during any period in which it offers or sells securities, a post-effective amendment to this registration statement to:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>i)</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Include any prospectus required by section 10(a)(3) of the Securities Act; and</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ii)</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Reflect in the prospectus any facts or events which, individually or together, represent a fundamental</FONT> <FONT size=2>change in the information in the registration statement; and notwithstanding the foregoing, 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 estimated maximum offering range may be reflected in the form of prospectus 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 twenty percent (20%) change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and</FONT></TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Include any additional or changed material information on the plan of distribution; </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>provided, however, that paragraphs (i) and (ii) do not apply if the&nbsp;&nbsp;&nbsp; information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to Section 13 or Section 14(d) of the Securities Exchange Act of 1934;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3) To remove from registration by means of a post-effective amendment any of the securities being registered hereby which remain unsold at the termination of the offering;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4) That, for the purpose of 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 align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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 of Regulation C of the Securities Act;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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 align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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 align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" 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 align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 48</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, we have 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.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by one of our directors, officers or controlling persons 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, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 4. UNREGISTERED SECURITIES ISSUED OR SOLD WITHIN ONE YEAR</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>We issued 20,000,000 shares of common stock on August 11, 2008 to Leigh Lyons at a price of $0.0005 per share, for total proceeds of $10,000 and a member of our Board of Directors. We also sold 5 million shares to each of Brualio Vasquez and Hilario Vanegas for $0.0005 per share. Mr. Lyons is our President, Secretary and Treasurer and Messrs. Vasquez and Vanegas are members of our Board of Directors. These shares were issued pursuant to Section 4(2) of the Securities Act. The 30,000,000 shares of common stock are restricted shares as defined in the Securities Act. These issuances were made to sophisticated investors. As our promoter since our inception, Messrs. Lyons, Vasquez and Vanegas are in a position to access the relevant and material information regarding our operations. No underwriters were used.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>All of the above noted securities were sold in reliance on Regulation D, Section 504 of the Securities Act of 1933. All shareholders are subject to Rule 144 of the Securities Act of 1933 with respect to resale. We relied the exemption from registration since we were not subject to the reporting requirements of Section 13 or 15(d) of the Securities Act of 1933, not an investment company, we had a specific business plan at the time we sold the securities, we are not a blank check company, as that term is defined in Rule 419(a)(2) of Regulation C or Rule 504 (a)(3) of Regulation D of the Securities Act of 1933, and the aggregate offering price was less than $1,000,000. All of the subscribers are our directors and/or our executive officers.</FONT></P>
<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 5. INDEX TO EXHIBITS.</FONT></U></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>REGULATION</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="39%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>S-B NUMBER</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="39%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EXHIBIT</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3.1</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Articles of Incorporation</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3.2</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Bylaws</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10.1</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Purchase Agreement for the New Dawn Property</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ITEM 6. DESCRIPTION OF EXHIBITS</FONT></U></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See item 5 above.</FONT></TD></TR></TABLE></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 49</FONT></P>
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<P align=center>
<TABLE>
<TR>
     <TD noWrap align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>SIGNATURES</FONT></U></B></TD></TR></TABLE></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In accordance with the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements of filing on Form S-1 and authorized this registration statement to be signed on its behalf by the undersigned, in Baline, Washington on&nbsp;March 13, 2009.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BRAEDEN VALLEY MINES, INC.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>By: </FONT><B><I><U><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2>/s/ G. Leigh Lyons</FONT></U></I></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>G. Leigh Lyons</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>President (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BRAEDEN VALLEY MINES, INC.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>By: </FONT><B><I><U><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2>/s/ G. Leigh Lyons&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></U></I></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>G. Leigh Lyons</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Dated: March 13, 2009</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>President (Principal Executive Officer) and Treasurer (Principal Accounting Officer and Member of the Board of Directors)</FONT></P>
<P align=left>
<TABLE>
<TR>
     <TD noWrap><B><I><U><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2></FONT></U></I></B></TD></TR></TABLE></P>
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<TABLE>
<TR>
     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT></TD></TR></TABLE></P>
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<TABLE>
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     <TD noWrap><B><I><U><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2></FONT></U></I></B></TD></TR></TABLE></P>
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<TABLE>
<TR>
     <TD noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT></TD></TR></TABLE></P>
<P align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Page 50</FONT></P>
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forms-1version1dtd08282008.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
BRAEDEN VALLEY MINES, INC.
(Exact name of registrant as specified in its charter)
Nevada
1000
26-3257291
(State or other jurisdiction
(Primary Standard
(IRS Employer
of incorporation or
Industrial Classification
Identification No.)
organization)
Code Number)
318 North Carson Street Suite 208, Carson City, Nevada 89701
(Address including zip code, of registrant's principal executive offices)
W. Scott Lawler, Esq., Lawler & Associates, 11622 El Camino Real, Suite 100, San Diego, CA 92130 888-675-0888 (phone); 866-506-8877 (fax)
(Name, address, including zip code, and telephone number, including area code, of agent for service)
As soon as practicable after the effective date of the Registration Statement
(Approximate date of commencement of proposed sale to the 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 effective 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. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b2 of the Exchange Act.
Large accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)
Accelerated filer [ ]
Smaller reporting company [X]
1
SEC 870 (02-08)
Persons who are to respond to the collection of information contained in this form are not required to
respond unless the form displays a currently valid OMB control number.
CALCULATION OF REGISTRATION FEE
Title of each
Proposed
class of
Dollar
maximum
securities to
Amount to
Number of
offering
Amount of
be
be
Shares to be
price per
registration
registered
registered
registered
unit
fee
Common stock
$750,000.00
15,000,000
$0.05
(1)
$29.48
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 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
(1)
As of the date hereof, there is no established public market for the common stock being registered. Accordingly, and in accordance with Item 505 of Regulation S-K requirements certain factor(s) must be considered and utilized in determining the offering price. The offering price of $0.10 per share was determined arbitrarily by the selling shareholder. The offering price is not based upon the net worth, total asset value, or any other objective measure of value based on accounting measurements of Braeden Valley Mines, Inc. ("we", "us", "our" or similar terms). Should a market develop or occur for our securities, the market price may be far less than the offering price. If and when our common stock is listed on the Over-the-Counter Bulletin Board the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares.
The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is declared effective. This prospectus is not an offer to sell these securities, and we are not soliciting offers to buy these securities, in any state where the offer or sale is not permitted.
2
Subject to Completion, Dated January ____, 2009
PROSPECTUS
Braeden Valley Mines, Inc.
15,000,000 Shares of Common Stock
The selling shareholder named in this prospectus is offering a total of 15,000,000 shares of common stock of Braeden Valley Mines, Inc. at a fixed price of $0.05 per share.
We will not receive any of the proceeds from the sale of these shares. The shares were acquired by the selling shareholder directly from us in a private offering of our common stock that was exempt from registration under the securities laws. The selling shareholder has arbitrarily set an offering price for these securities of $0.05 per share and an offering period of twelve (12) months from the date of this prospectus. The offering price is not based upon our net worth, total asset value, or any other objective measure of value based on accounting measurements. Should a market develop or occur for our securities, the market price may be far less than the offering price. If and when our common stock is listed on the Over-the-Counter Bulletin Board, the price will be established according to the demand of our common stock and will fluctuate based on the demand for our shares. See "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" for more information about the selling shareholder.
Our common stock is presently not traded on any market or securities exchange. The offering price may not reflect the market price of our shares after the offering.
__________
This investment involves a high degree of risk. You should purchase shares only if you can afford a complete loss. See "Risk Factors" beginning on page 7.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of the prospectus. Any representation to the contrary is a criminal offense.
_________
The information in this prospectus is not complete and may be changed. We 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 securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Shares Offered by
Proceeds to
Selling
Selling Agent
Selling
Shareholders
Price To Public
Commissions
Shareholders
Per Share
$0.05
Not applicable
$750,000
Minimum Purchase
Not applicable
Not applicable
Not applicable
Total Offering
$0.05
Not applicable
$750,000
Proceeds to the selling shareholder do not include offering costs, including filing fees, printing costs, legal fees, accounting fees, and transfer agent fees estimated at $25,000. Braeden Valley Mines, Inc. will pay these expenses.
This Prospectus is dated January ___, 2009.
3
TABLE OF CONTENTS
Page
PART I
6
PROSPECTUS SUMMARY
6
THE OFFERING
6
RISK FACTORS
7
RISKS RELATED TO OUR COMPANY AND OUR INDUSTRY
7
RISKS RELATED TO OUR FINANCIAL CONDITION AND BUSINESS MODEL
11
RISKS RELATED TO THIS OFFERING AND OUR STOCK
11
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
13
DILUTION
14
PLAN OF DISTRIBUTION
14
USE OF PROCEEDS TO ISSUER
16
BUSINESS OF THE ISSUER
16
GLOSSARY OF MINING TERMS
16
GENERAL OVERVIEW
21
Property Acquisitions Details
21
Land Status, Topography, Location and
Access
22
Mining Claims
22
Geology of the Mineral Claims
22
Exploration History and Previous Operations
23
Proposed Work Program
23
Cost Estimates of Exploration Programs
23
COMPLIANCE WITH GOVERNMENT REGULATION
24
EMPLOYEES
24
MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
24
RESULTS OF OPERATIONS
25
LIQUIDITY AND CAPITAL RESOURCES
25
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES
26
REMUNERATION OF DIRECTORS AND OFFICERS
27
SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS
27
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
28
SECURITIES BEING OFFERED
28
TRANSFER AGENT AND REGISTRAR
28
SEC POSITION ON INDEMNIFICATION
29
EXPERTS
29
Page 4
AVAILABLE INFORMATION
29
REPORTS TO STOCKHOLDERS
30
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
31
PART II - INFORMATION NOT REQUIRED IN PROSPECTUS
44
ITEM 1. INDEMNIFICATION OF DIRECTORS AND OFFICERS
44
ITEM 2. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
44
ITEM 3. UNDERTAKINGS
45
ITEM 4. UNREGISTERED SECURITIES ISSUED OR SOLD WITHIN ONE YEAR
46
ITEM 5. INDEX TO EXHIBITS
46
ITEM 6. DESCRIPTION OF EXHIBITS
46
SIGNATURES
47
Page 5
PART I
INFORMATION REQUIRED IN PROSPECTUS
PROSPECTUS SUMMARY
Braeden Valley Mines, Inc.
Braeden Valley Mines, Inc. ("we", "us", "our" or the "Company") was organized under the laws of the State of Nevada on August 11, 2008 to
explore mineral properties in North America.
We were formed to engage in the exploration of mineral properties for gold. We have acquired an option to purchase an interest in four (4) unpatented lode mining claims situated in
the Northern Tuscarora Mountains of Elko County, Nevada. We refer to these mining claims as the "New Dawn Property" or "New Dawn".
We are an exploration stage company and we have not realized any revenues to date. We do not have sufficient capital to enable us to commence and complete our exploration program. We
will require financing in order to conduct the exploration program described in the section entitled, "Business of the Issuer." Our auditors have issued a going concern opinion, raising substantial doubt about our financial prospects and our ability
to continue as a going concern.
We are not a "blank check company," as we do not intend to participate in a reverse acquisition or merger transaction. Securities laws define a "blank check company" as a
development stage company that has no specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person.
Our offices are located at 318 North Carson Street, Suite 208, Carson City, Nevada 89701.
THE OFFERING
Securities offered
Selling shareholder
Offering price
Shares outstanding prior to the offering
Shares to be outstanding after the offering
Use of proceeds
15,000,000 shares of common stock
One (1)
$0.05 per share
30,000,000 shares of common stock
30,000,000 shares of common stock
We will not receive any proceeds from the sale of the
common stock by the selling shareholder.
Page 6
RISK FACTORS
INVESTING IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK. IN ADDITION TO THE OTHER INFORMATION CONTAINED IN THIS PRIVATE PLACEMENT MEMORANDUM, PROSPECTIVE
PURCHASERS OF THE SECURITIES OFFERED HEREBY SHOULD CONSIDER CAREFULLY THE FOLLOWING FACTORS IN EVALUATING US AND OUR BUSINESS.
IF ANY OF THE FOLLOWING RISKS OCCUR, OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION COULD BE SERIOUSLY HARMED. THE RISKS AND UNCERTAINTIES DESCRIBED BELOW
ARE NOT THE ONLY ONES WE FACE. ADDITIONAL RISKS AND UNCERTAINTIES, INCLUDING THOSE THAT WE DO NOT KNOW ABOUT OR THAT WE CURRENTLY DEEM IMMATERIAL, ALSO MAY ADVERSELY AFFECT OUR BUSINESS. THE TRADING PRICE OF OUR SHARES OF COMMON STOCK COULD DECLINE
DUE TO ANY OF THESE RISKS, AND YOU MAY LOSE ALL OR PART OF YOUR INVESTMENT.
THE SECURITIES WE ARE OFFERING THROUGH THIS REGISTRATION STATEMENT ARE SPECULATIVE BY NATURE AND INVOLVE AN EXTREMELY HIGH DEGREE OF RISK AND SHOULD BE PURCHASED ONLY
BY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. WE ALSO CAUTION PROSPECTIVE INVESTORS THAT THE FOLLOWING RISK FACTORS, AMONG OTHERS, COULD CAUSE OUR ACTUAL FUTURE OPERATING RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD
LOOKING STATEMENTS, ORAL OR WRITTEN, MADE BY OR ON BEHALF OF US. IN ASSESSING THESE RISKS, WE SUGGEST THAT YOU ALSO REFER TO OTHER INFORMATION CONTAINED IN THIS REGISTRATION STATEMENT, INCLUDING OUR FINANCIAL STATEMENTS AND RELATED
NOTES.
RISKS RELATED TO US AND OUR INDUSTRY
WE HAVE NEVER EARNED A PROFIT AND THERE IS NO GUARANTEE THAT WE WILL EVER EARN A PROFIT.
From our inception on August 11, 2008 to the period ended on December 31, 2008, we have not generated any revenue. We do not currently have any revenue producing operations. We are
not currently operating profitably, and it should be anticipated that we will operate at a loss at least until such time when the production stage is achieved, if production is, in fact, ever achieved.
WE WERE RECENTLY FORMED, AND WE HAVE NOT PROVEN THAT WE CAN GENERATE A PROFIT. IF WE FAIL TO GENERATE INCOME AND ACHIEVE PROFITABILITY, AN INVESTMENT IN OUR SECURITIES MAY
BE WORTHLESS.
We have no operating history and have not proved we can operate successfully. We face all of the risks inherent in a new business. If we fail, your investment in our common stock will
become worthless. From inception on August 11, 2008 to the period ended on December 31, 2008, we incurred a net loss of $10,291 and did not earn any revenue. We do not currently have any revenue producing operations. The purchase of the
securities offered hereby must therefore be regarded as the placing of funds at a high risk in a new or "start-up" venture with all the unforeseen costs, expenses, problems, and difficulties to which such ventures are subject.
WE HAVE NO OPERATING HISTORY. THERE CAN BE NO ASSURANCE THAT WE WILL BE SUCCESSFUL IN OUR GOLD OR OTHER MINERAL EXPLORATION ACTIVITIES.
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We have no history of operations. As a result of our brief operating history, there can be no assurance that that we will be successful exploring for gold or other minerals. Our
success to date in entering into ventures to acquire interests in exploration blocks is not indicative that we will be successful in entering into any further ventures. Any future significant growth in our mineral exploration activities will place
additional demands on our Executive Officer, and any increased scope of our operations will present challenges due to our current limited management resources. Our future performance will depend upon our management and their ability to locate and
negotiate additional exploration opportunities in which we can participate. There can be no assurance that we will be successful in these efforts. Our inability to locate additional opportunities, to hire additional management and other personnel,
or to enhance our management systems, could have a material adverse effect on our results of operations. There can be no assurance that our operations will be profitable.
THERE IS A HIGH RISK OUR BUSINESS WILL FAIL BECAUSE NONE OF OUR OFFICERS AND DIRECTORS, HAVE FORMAL TRAINING SPECIFIC TO THE TECHNICALITIES OF MINERAL
EXPLORATION.
None of our Officers or Directors has formal training as a geologist or in the technical aspects of management of a mineral exploration company. They lack technical training and
experience with exploring for, starting, and operating a mine. With no direct training or experience in these areas, they may not be fully aware of the specific requirements related to working within this industry. Their decisions and choices may
not take into account standard engineering or managerial approaches mineral exploration companies commonly use. Consequently, our operations, earnings, and ultimate financial success could suffer irreparable harm due to management's lack of
experience in this industry.
WE ARE CONTROLLED BY OUR EXECUTIVE OFFICERS AND DIRECTORS, AND, AS SUCH, YOU MAY HAVE NO EFFECTIVE VOICE IN OUR MANAGEMENT.
Upon the completion of this offering, our sole officer, Mr. G. Leigh Lyons, and our directors Mr. Lyons, Mr. Braulio Vasquez Davis and Mr. Hilario Vanegas Guiterrez, will beneficially
own 50% of our issued and outstanding common stock. Our officers and directors will therefore exercise control over all matters requiring shareholder approval, including the possible election of additional directors and approval of significant
corporate transactions. If you purchase shares of our common stock, you may have no effective voice in our management.
WE ARE SOLELY GOVEREND BY MESSRS. LYONS, VASQUEZ AND VANEGAS OUR ONLY EXECUTIVE OFFICERS AND DIRECTORS, AND, AS SUCH, THERE MAY BE SIGNIFICANT RISK TO US FROM A CORPORATE
GOVERNANCE PERSPECTIVE.
Leigh Lyons is our only Executive Officer. Mr. Lyons, along with Messrs. B. Alejandro Vasquez and Hilario Vanegas Guiterrez are the only members of our Board of Directors, and will be
relied upon to make decisions such as the approval of related party transactions, the compensation of Executive Officers, and the oversight of the accounting function. Because we only have one (1) Executive Officer, there may be limited segregation
of executive duties, and thus, there may not be effective disclosure and accounting controls to comply with applicable laws and regulations, which could result in fines, penalties and assessments against us. In addition, Messrs. Lyons, Vasquez and
Vanegas will exercise full control over all matters that require the approval of a Board of Directors.
Messrs. Lyons, Vasquez and Vanegas will exercise control over all matters requiring shareholder approval including the election of directors and the approval of significant corporate
transactions. We have not voluntarily implemented various corporate governance measures, in the absence of which, shareholders may have more limited protections against the transactions implemented by Messrs. Lyons, Vasquez and Vanegas, conflicts of
interest and similar matters.
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We have not adopted corporate governance measures such as an audit or other independent committees as we presently do not have any independent directors. Shareholders should bear in
mind our current lack of corporate governance measures in formulating their investment decisions.
BECAUSE OUR EXECUTIVE OFFICER HAS OTHER BUSINESS INTERESTS, HE MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS OPERATIONS, WHICH MAY CAUSE
OUR BUSINESS TO FAIL.
It is possible that the demands on Mr. Lyons, our sole Executive Officer, from other obligations could increase with the result that he would no longer be able to devote sufficient
time to the management of our business. In addition, Mr. Lyons may not possess sufficient time to manage our business if the demands of managing our business increased substantially.
THE IMPRECISION OF MINERAL DEPOSIT ESTIMATES MAY PROVE ANY RESOURCE CALCULATIONS THAT WE MAKE TO BE UNRELIABLE.
Mineral deposit estimates and related databases are expressions of judgment based on knowledge, mining experience, and analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information becomes available. By their nature, mineral deposit estimates are imprecise and depend upon statistical inferences, which may ultimately prove unreliable. Mineral deposit
estimates included here, if any, have not been adjusted in consideration of these risks and, therefore, no assurances can be given that any mineral deposit estimate will ultimately be reclassified as reserves. If our exploration program locates a
mineral deposit, there can be no assurances that any of such deposits will ever be classified as reserves.
WE ARE SENSITIVE TO FLUCTUATIONS IN THE PRICE OF GOLD AND OTHER MINERALS, WHICH IS BEYOND OUR CONTROL. THE PRICE OF GOLD AND OTHER MINERALS IS VOLATILE AND PRICE CHANGES ARE
BEYOND OUR CONTROL.
The price of gold and other minerals can fluctuate. The prices of gold and other minerals have been and will continue to be affected by numerous factors beyond our control. Factors
that affect the price of gold and other minerals include the demand from consumers for products that use gold and other minerals, economic conditions, over supply from secondary sources and costs of production. Price volatility and downward price
pressure, which can lead to lower prices, could have a material adverse effect on the costs or the viability of our projects.
MINERAL EXPLORATION AND PROSPECTING IS HIGHLY COMPETITIVE AND SPECULATIVE BUSINESS AND WE MAY NOT BE SUCCESSFUL IN SEEKING AVAILABLE OPPORTUNITIES.
The process of mineral exploration and prospecting is a highly competitive and speculative business. In seeking available opportunities, we will compete with a number of other
companies, including established, multi-national companies that have more experience and resources than us. We compete with other exploration companies looking for gold and other mineral deposits. Because we may not have the financial and managerial
resources to compete with other companies, we may not be successful in our efforts to acquire projects of value, which, ultimately, become productive. However, while we compete with other exploration companies, there is no competition for the
exploration or removal of mineral from our claims.
COMPLIANCE WITH ENVIRONMENTAL CONSIDERATIONS AND PERMITTING COULD HAVE A MATERIAL ADVERSE EFFECT ON THE COSTS OR THE VIABILITY OF OUR PROJECTS. THE HISTORICAL TREND TOWARD
STRICTER ENVIRONMENTAL REGULATION MAY CONTINUE, AND, AS SUCH, REPRESENTS AN UNKNOWN FACTOR IN OUR PLANNING PROCESSES.
All mining is regulated by the government agencies. Compliance with such regulation has a material effect on the economics of our operations and the timing of project development. Our
primary regulatory costs have been related
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to obtaining licenses and permits from government agencies before the commencement of mining activities. An environmental impact study that must be obtained on each property in order to obtain governmental approval to mine on the properties is also a part of the overall operating costs of a mining company.
The possibility of more stringent regulations exists in the areas of worker health and safety, the dispositions of wastes, the decommissioning and reclamation of mining and milling sites and other environmental matters, each of which could have an adverse material effect on the costs or the viability of a particular project. Compliance with environmental considerations and permitting could have a material adverse effect on the costs or the viability of our projects.
MINING AND EXPLORATION ACTIVITIES ARE SUBJECT TO EXTENSIVE GOVERNMENTAL REGULATION. FUTURE CHANGES IN GOVERNMENTS, REGULATIONS AND POLICIES, COULD ADVERSELY AFFECT OUR RESULTS OF OPERATIONS FOR A PARTICULAR PERIOD AND OUR LONG-TERM BUSINESS PROSPECTS.
Mining and exploration activities are subject to extensive regulation by government. Such regulation relates to production, development, exploration, exports, taxes and royalties, labor standards, occupational health, waste disposal, protection and remediation of the environment, mine and mill reclamation, mine and mill safety, toxic substances and other matters. Compliance with such laws and regulations has increased the costs of exploring, drilling, developing, constructing, operating mines and other facilities. Furthermore, future changes in governments, regulations and policies, could adversely affect our results of operations in a particular period and our long-term business prospects.
The development of mines and related facilities is contingent upon governmental approvals, which are complex and time consuming to obtain and which, depending upon the location of the project, involve various governmental agencies. The duration and success of such approvals are subject to many variables outside our control.
RISKS RELATED TO OUR FINANCIAL CONDITION AND BUSINESS MODEL
WE HAVE NOT PAID ANY CASH DIVIDENDS ON OUR SHARES OF COMMON STOCK AND DO NOT ANTICIPATE PAYING ANY SUCH DIVIDENDS IN THE FORESEEABLE FUTURE.
Payment of future dividends, if any, will depend on our earnings and capital requirements, our debt facilities and other factors considered appropriate by our Board of Directors. To date, we have not paid any cash dividends on our Common Stock and do not anticipate paying any such dividends in the foreseeable future.
IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.
We will need to obtain additional financing in order to complete our business plan. We currently do not have any operations and we have no income. We do not have any arrangements for financing and we may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor acceptance of mineral claims and investor sentiment. These factors may adversely affect the timing, amount, terms, or conditions of any financing that we may obtain or make any additional financing unavailable to us.
BECAUSE OF OUR LIMITED RESOURCES AND THE SPECULATIVE NATURE OF OUR BUSINESS, THERE IS A SUBSTANTIAL DOUBT AS TO OUR ABILITY TO CONTINUE AS A GOING CONCERN.
The report of our independent auditors, on our audited financial statements for the period ended December 31, 2008, indicates that there are a number of factors that raise substantial doubt about our ability to continue as a going concern. Our continued operations are dependent on our ability to obtain financing and upon our ability to achieve
future profitable operations from the development of our mineral properties. If we are not able to continue as a going concern, it is likely investors will lose their investment.
RISKS RELATED TO THIS OFFERING AND OUR STOCK
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IF WE COMPLETE A FINANCING THROUGH THE SALE OF ADDITIONAL SHARES OF OUR COMMON STOCK IN THE FUTURE, THEN SHAREHOLDERS WILL EXPERIENCE DILUTION.
The most likely source of future financing presently available to us is through the sale of shares of our common stock. Any sale of common stock will result in dilution of equity
ownership to existing shareholders. This means that if we sell shares of our common stock, more shares will be outstanding and each existing shareholder will own a smaller percentage of the shares then outstanding. To raise additional capital we may
have to issue additional shares, which may substantially dilute the interests of existing shareholders. Alternatively, we may have to borrow large sums, and assume debt obligations that require us to make substantial interest and capital
payments.
THERE IS NO MARKET FOR OUR COMMON STOCK, WHICH LIMITS OUR SHAREHOLDERS' ABILITY TO RESELL THEIR SHARES OR PLEDGE THEM AS COLLATERAL.
There is currently no public market for our shares, and we cannot assure you that a market for our stock will develop. Consequently, investors may not be able to use their shares for
collateral or for loans and may not be able to liquidate at a suitable price in the event of an emergency. In addition, investors may not be able to resell their shares at or above the price they paid for them or may not be able to sell their shares
at all.
IF A PUBLIC MARKET FOR OUR STOCK IS DEVELOPED, FUTURE SALES OF SHARES COULD NEGATIVELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK.
If a public market for our stock is developed, then sales of Common Stock in the public market could adversely affect the market price of our Common Stock. There are at present
30,000,000 shares of Common Stock issued and outstanding.
OUR STOCK IS A PENNY STOCK. TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SEC'S PENNY STOCK REGULATIONS AND THE NASD'S SALES PRACTICE REQUIREMENTS, WHICH MAY LIMIT A
STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.
Our common shares may be deemed to be "penny stock" as that term is defined in Regulation Section "240.3a51 -1" of the Securities and Exchange Commission (the
"SEC"). Penny stocks are stocks: (a) with a price of less than U.S. $5.00 per share; (b) that are not traded on a "recognized" national exchange; (c) whose prices are not quoted on the NASDAQ automated quotation system
(NASDAQ - where listed stocks must still meet requirement (a) above); or (d) in issuers with net tangible assets of less than U.S. $2,000,000 (if the issuer has been in continuous operation for at least three (3) years) or U.S. $5,000,000
(if in continuous operation for less than three (3) years), or with average revenues of less than U.S. $6,000,000 for the last three (3) years.
Section "15(g)" of the United States Securities Exchange Act of 1934, as amended, and Regulation Section "240.15g(c)2" of the SEC require broker dealers dealing in
penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction in a penny stock for the investor's
account. Potential investors in our common shares are urged to obtain and read such disclosure carefully before purchasing any common shares that are deemed to be "penny stock".
Moreover, Regulation Section "240.15g -9" of the SEC requires broker dealers in penny stocks to approve the account of any investor for transactions in such stocks before
selling any penny stock to that investor. This procedure requires the broker-dealer to: (a) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives; (b) reasonably determine,
based on that information,
that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of
penny stock transactions; (c) provide the investor with a written statement setting forth the basis on which the broker dealer made the determination in (ii) above; and (d) receive a signed and dated copy of such statement from the investor
confirming that it accurately reflects the investor's financial situation, investment experience and investment objectives. Compliance with these
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requirements may make it more difficult for investors in our common shares to resell their common shares to third parties or to otherwise dispose of them. Stockholders should be aware
that, according to Securities and Exchange Commission Release No. 34-29093, dated April 17, 1991, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include:
(i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;
(ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases;
(iii) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons;
(iv)
excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and
(v)
the wholesale dumping of the same securities by promoters and broker-dealers after prices have been
manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses.
Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or
of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this prospectus include, among others, statements regarding our
capital needs, business plans and expectations. Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs,
our ability to achieve significant revenues, our business model and products and other factors. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology.
These forward-looking statements address, among others, such issues as:
the amount and nature of future exploration, development and other capital expenditures,
mining claims to be drilled,
future earnings and cash flow,
development projects,
exploration prospects,
drilling prospects,
development and drilling potential,
business strategy,
expansion and growth of our business and operations, and
our estimated financial information.
In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties outlined in this prospectus under "Risk Factors". These factors
or any of them may cause our actual results to differ materially from any forward-looking statement made in this prospectus. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect
our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. The forward-looking statements in this
prospectus are made as of the date of this prospectus and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities
laws of the United States.
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DILUTION
The common stock to be sold by the selling shareholder is common stock that is currently issued and outstanding. Accordingly, there will be no dilution to our existing shareholders.
PLAN OF DISTRIBUTION
The selling shareholder or their respective donees, pledges, transferees or other successors-in-interest selling shares received after the date of this prospectus from a selling shareholder as a gift, pledge, distribution or otherwise, may, from time to time, sell any or all of his or her shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales will be at fixed prices. The selling shareholder may use any one or more of the following methods when selling shares:
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a
portion of the block as principal to facilitate the transaction;
purchases by a broker-dealer as principal and resale by the broker-dealer for its own account;
an exchange distribution following the rules of the applicable exchange;
privately negotiated transactions;
short sales that are not violations of the laws and regulations of any state of the United States;
through the writing or settlement of options or other hedging transactions, whether through an options
exchange or otherwise;
broker-dealers may agree with the selling shareholder to sell a specified number of such shares at a
stipulated price per share; and
a combination of any such methods of sale or any other lawful method.
The selling shareholder may, from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling shareholder to include the pledgee, transferee or other successors-in-interest as selling shareholder under this prospectus. The selling shareholder also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the selling beneficial owners for purposes of this prospectus.
In connection with the sale of our common stock or interests therein, the selling shareholder may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling shareholder also may sell shares of our common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling shareholder also may enter into option or other transactions with broker-dealers or other financial institutions for the creation of one or more derivative securities which require the delivery to the broker-dealer or other financial institution of shares offered by this prospectus, which shares the broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect the transaction).
The aggregate proceeds to the selling shareholder from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each selling shareholder reserves the right to accept and, together with its agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive any of the proceeds from this offering.
The selling shareholder and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests therein may be "underwriters" within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the shares may be underwriting discounts and commissions under the Securities Act. Each selling shareholder that is an "underwriter" within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act.
Page 13
To the extent required, the shares of our common stock to be sold, the names of the selling shareholder, the respective purchase prices and public offering prices, the names of any
agents, dealers or underwriters, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus.
Sales Pursuant to Rule 144
Any shares of common stock covered by this prospectus, which qualify for sale pursuant to Rule 144 under the Securities Act of 1933 may be sold under Rule 144 rather than pursuant to
this prospectus.
Regulation M
We plan to advise the selling shareholder that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of
the selling shareholder and their affiliates. Regulation M under the Exchange Act prohibits, with certain exceptions, participants in a distribution from bidding for, or purchasing for an account in which the participant has a beneficial interest,
any of the securities that are the subject of the distribution. Accordingly, the selling shareholder are not permitted to cover short sales by purchasing shares while the distribution it taking place. Regulation M also governs bids and purchases
made in order to stabilize the price of a security in connection with a distribution of the security. In addition, we will make copies of this prospectus available to the selling shareholder for the purpose of satisfying the prospectus delivery
requirements of the Securities Act.
State Securities Laws
Under the securities laws of some states, the shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the common shares
may not be sold unless the shares have been registered or qualified for sale in the state or an exemption from registration or qualification is available and is complied with.
Expenses of Registration
We are bearing substantially all costs relating to the registration of the shares of common stock offered hereby. These expenses are estimated to be $25,000, including, but not
limited to, legal, accounting, printing and mailing fees. The selling shareholder, however, will pay any commissions or other fees payable to brokers or dealers in connection with any sale of such shares common stock.
USE OF PROCEEDS TO ISSUER
We will not receive any proceeds from the sale of the common stock offered through this prospectus by the selling shareholder.
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BUSINESS OF THE ISSUER
GLOSSARY OF MINING TERMS
Archean
Of or belonging to the earlier of the two divisions of Precambrian time, from approximately 3.8 to 2.5 billion years ago, marked by an atmosphere with little free oxygen, the formation of the first rocks and oceans, and the development of unicellular life. Of or relating to the oldest known rocks, those of the Precambrian Eon, that are predominantly igneous in composition.
Assaying
Laboratory examination that determines the content or proportion of a specific metal (ie: gold) contained within a sample. Technique usually involves firing/smelting.
Conglomerate
A coarse-grained clastic sedimentary rock, composed of rounded to subangular fragments larger than 2 mm in diameter (granules, pebbles, cobbles, boulders) set in a fine-grained matrix of sand or silt, and commonly cemented by calcium carbonate, iron oxide, silica, or hardened clay; the consolidated equivalent of gravel. The rock or mineral fragments may be of varied composition and range widely in size, and are usually rounded and smoothed from transportation by water or from wave action.
Cratons
Parts of the Earth's crust that have attained stability, and have been little deformed for a prolonged period.
Development
Stage
A "development stage" project is one which is undergoing preparation of an established commercially mineable deposit for its extraction but which is not yet in production. This stage occurs after completion of a feasibility study.
Dolomite Beds
Dolomite beds are associated and interbedded with limestone, commonly representing postdepositional replacement of limestone.
Doré
Unrefined gold bullion bars containing various impurities such as silver, copper and mercury, which will be further refined to near pure gold.
Dyke or Dike
A tabular igneous intrusion that cuts across the bedding or foliation of the country rock.
Exploration
Stage
An "exploration stage" prospect is one which is not in either the development or production stage.
Fault
A break in the continuity of a body of rock. It is accompanied by a movement on one side of the break or the other so that what were once parts of one continuous rock stratum or vein are now separated. The amount of displacement of the parts may range from a few inches to thousands of feet.
Feldspathic
Said of a rock or other mineral aggregate containing feldspar.
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Fold
A curve or bend of a planar structure such as rock strata, bedding planes, foliation, or cleavage
Foliation
A general term for a planar arrangement of textural or structural features in any type of rock; esp., the planar structure that results from flattening of
the constituent grains of a metamorphic rock.
Formation
Gabbro
A distinct layer of sedimentary rock of similar composition.
A group of dark-colored, basic intrusive igneous rocks composed principally of basic plagioclase (commonly labradorite or bytownite) and clinopyroxene (augite), with or without
olivine and orthopyroxene; also, any member of that group. It is the approximate intrusive equivalent of basalt. Apatite and magnetite or ilmenite are common accessory minerals.
Geochemistry
The study of the distribution and amounts of the chemical elements in minerals, ores, rocks, solids, water, and the atmosphere.
Geophysicist
One who studies the earth; in particular the physics of the solid earth, the atmosphere and the earth's magnetosphere.
Geotechnical
Gneiss
The study of ground stability.
A foliated rock formed by regional metamorphism, in which bands or lens-shaped strata or bodies of rock of granular minerals alternate with bands or lens-shaped strata or bodies or
rock in which minerals having flaky or elongate prismatic habits predominate.
Granitic
Heap Leach
Pertaining to or composed of granite.
A mineral processing method involving the crushing and stacking of an ore on an impermeable liner upon which solutions are sprayed that dissolve metals such as gold and copper; the
solutions containing the metals are then collected and treated to recover the metals.
Intrusions
Masses of igneous rock that, while molten, were forced into or between other rocks.
Kimberlite
A blue/gray igneous rock that contains olivine, serpentine, calcite and silica and is the principal original environment of diamonds.
Lamproite
Lithospere
Mantle
Mapped or Geological
Mapping
Dark-colored igneous rocks rich in potassium and magnesium.
The solid outer portion of the Earth.
The zone of the Earth below the crust and above the core.
The recording of geologic information such as the distribution and nature of rock
Units and the occurrence of structural features, mineral deposits, and fossil localities.
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Metavolcanic
Migmatite
Said of partly metamorphosed volcanic rock.
A composite rock composed of igneous or igneous- appearing and/or metamorphic materials that are generally distinguishable megascopically.
Mineral
A naturally formed chemical element or compound having a definite chemical composition and, usually, a characteristic crystal form.
Mineralization
A natural occurrence in rocks or soil of one or more metal yielding minerals.
Mineralized Material
The term "mineralized material" refers to material that is not included in the reserve as it does not meet all of the criteria for adequate
demonstration for economic or legal extraction.
Mining
Mining is the process of extraction and beneficiation of mineral reserves to produce a marketable metal or mineral product. Exploration continues during
the mining process and, in many cases, mineral reserves are expanded during the life of the mine operations as the exploration potential of the deposit is realized.
Outcrop
That part of a geologic formation or structure that appears at the surface of the earth.
Pipes
Plagioclase
Vertical conduits.
Any of a group of feldspars containing a mixture of sodium and calcium feldspars, distinguished by their extinction angles.
Probable Reserve
The term "probable reserve" refers to reserves for which quantity and grade and/or quality are computed from information similar to that used for
proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity
between points of observation.
Production Stage
A "production stage" project is actively engaged in the process of extraction and beneficiation of mineral reserves to produce a marketable metal
or mineral product.
Proterozoic
Of or relating to the later of the two divisions of Precambrian time, from approximately 2.5 billion to 570 million years ago, marked by the buildup of
oxygen and the appearance of the first multicellular eukaryotic life forms.
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Reserve
The term "reserve" refers to that part of a mineral deposit which could be economically and legally extracted or produced at the time of the
reserve determination. Reserves must be supported by a feasibility study done to bankable standards that demonstrates the economic extraction. ("Bankable standards" implies that the confidence attached to the costs and achievements
developed in the study is sufficient for the project to be eligible for external debt financing.) A reserve includes adjustments to the in-situ tonnes and grade to include diluting materials and allowances for losses that might occur when the
material is mined.
Sedimentary
Shear
Formed by the deposition of sediment.
A form of strain resulting from stresses that cause or tend to cause contiguous parts of a body of rock to slide relatively to each other in a direction parallel to their plane of
contact.
Sill
A concordant sheet of igneous rock lying nearly horizontal. A sill may become a dike or vice versa.
Strike
The direction or trend that a structural surface, e.g. a bedding or fault plane, takes as it intersects the horizontal.
Strip
Till
To remove overburden in order to expose ore.
Generally unconsolidated matter, deposited directly by and underneath a glacier without subsequent reworking by meltwater, and consisting of a mixture of clay, silt, sand, gravel,
and boulders ranging widely in size and shape.
Unconformably
Not succeeding the underlying rocks in immediate order of age or not fitting together with them as parts of a continuous whole.
Vein
A thin, sheet like crosscutting body of hydrothermal mineralization, principally quartz.
Wall Rock
The rock adjacent to a vein.
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GENERAL OVERVIEW
Braeden Valley Mines, Inc. ("we", "us", "our" or the "Company") was organized under the laws of the State of Nevada on August 11, 2008 to explore gold and other mineral properties in North America.
We were formed to engage in the exploration of mineral properties for gold and other mineral properties. We have acquired an option to purchase an interest in four (4) unpatented lode mining claims situated in the Northern Tuscarora Mountains of Elko County, Nevada. We refer to these mining claims as the "New Dawn Property" or "New Dawn".
The New Dawn Property is located within a fault-bounded wedge of upper plate Paleozoic rocks within the Tuscarora volcanic field, which is an Eocene complex covering approximately 300 square miles and located north of the major gold deposits of the Carlin trend (in the southern Tuscarora Mountains) and west of the Jerritt Canyon gold deposits (in the Independence Mountains). Mineralized Eocene (feeder?) dikes have been found in many of the mines within the Carlin trend, and the temporal and spatial correlation with Carlin-type gold mineralization suggests a genetic link. The New Dawn property contains part of an alteration zone associated with a nearby altered and locally mineralized Eocene dike. The limited data available from previous exploration in the property area indicates that this alteration zone in the lowermost unit of upper plate Paleozoic sediments contains anomalous values in gold and silver with locally high concentrations of arsenic and antimony. No resources have thus far been defined on the property.
The New Dawn property area is in the southwest corner of the Tuscarora mining district, within a zone of "world class" gold endowment where the potential of finding a large, high-grade, gold mine is favorable. The target concept for the New Dawn property is that alteration in upper plate Paleozoic sediments, locally associated with an Eocene porphyritic dike and with epithermal gold-arsenic dominated, Eocene-aged, precious metal mineralization, may represent the top of a mineralizing hydrothermal plume that had the potential to form a high-grade Carlin-type (e.g. Meikle) deposit within lower plate sediments at depth. It is believe that geologic, structural, stratigraphic, geochemical and geophysical studies at the New Dawn property may define such a target at a reasonable depth (2,500 feet).
It is recommended that we explore this property. The proposed work shall be carried out in two phases, with the second being contingent upon the successful completion of the first phase. It is believed that the proposed exploration program offers an opportunity to discover new Carlin-type mineralization beneath upper plate Paleozoic sediments on this property.
Phase 1 will focus on defining mineralized outflow structures with strong Au-As geochemical signatures, delineating permissive Paleozoic sedimentary units and structures, and targeting Carlin-type mineralization at a reasonable depth for drilling.
Phase 2 will drill test favorable targets.
The combined estimated expenditures of Phase 1 on the property are US $100,000; and for Phase 2 US $200,000, for a total expenditure of US $300,000.
We are an exploration stage company and we cannot provide assurance to investors that our mineral claims contains a commercially exploitable mineral deposit, or reserve, until appropriate exploratory work is conducted and an evaluation by a professional geologist of the exploration program concludes economic feasibility.
Introduction
The New Dawn property is a gold prospect located in the northern Tuscarora Mountains in Elko County, Nevada, at the southwest edge of the Tuscarora mining district, approximately 45 miles northwest of the town of Elko. We have recently entered into a lease agreement with Altair Minerals, Inc. to explore and, if warranted, develop the New Dawn property. Altair Minerals, Inc. owns the four claims comprising the New Dawn property. The terms of this
Page 19
option agreement provide for annual property payments, payment and recordation of annual maintenance fees to the Bureau of Land Management and to Elko County, and net smelter return royalties. The recommendations contained herein are for a two-stage exploration program to define, and then test prospective areas of alteration and gold mineralization.
Property Acquisition Details
See above.
Property Description and Location
Area and Location
The New Dawn property is located in Elko County, in the Tuscarora Mountains of north-central Nevada, at approximately 41° 17' North Latitude, 116° 20' West Longitude. The property is about 45 miles northwest of the town of Elko, see Figure 1. Elko is the seat of Elko County and lies on Interstate Highway I-80 about halfway between Reno, Nevada, and the Salt Lake City, Utah. The New Dawn property area is included within the Mt. Blitzen U.S. Geological Survey (1:24,000) 7 ½ minute quadrangle topographic map. The New Dawn property is located in Section 4 of Township 39 North, Range 50 East, Mount Diablo Base and Meridian, see Figure 2. The property is comprised of four unoatented lode mining claims, with each claim covering approximately 20 acres. There are no known environmental concerns or parks designated for any area contained within the claims. The property has no encumbrances. As advanced exploration proceeds, there may be bonding requirements for reclamation.
Claims and Title
The New Dawn property is comprised of the following four unpatented lode mining claims:
CLAIM NAME
BLM Nevada Mining Claim#
Elko County Document #
ND 1
851630
507219
ND 2
851631
507220
ND3
851632
507221
ND4
851633
507222
The claims were staked using a GPS unit (with <10 ft accuracy), but have not been legally surveyed. The outline of the claim group is shown in Figures 2 and 4.
Public lands in the area of the New Dawn property are administered by the U.S. Department of Interior, Bureau of Land Management ("BLM"), under the Federal Land Policy and Management Act of 1976. All claims are subject to an annual maintenance fee of $125.00 per claim, payable to the BLM and due by noon September 1 of each year. In addition, an annual Notice of Intent to Hold and fee of approximately $8.50 per claim is payable to the Elko County Recorder's Office.
Based on an examination of Certificates of Location and Notices of Intent to Hold on file at the Elko County Recorder's Office in Elko, Nevada, and at the BLM Nevada State Office in Reno, Nevada, these ND claims were properly recorded. Their 2008 annual maintenance fees have been paid, and the claims are now in good standing until noon September 1, 2008, at which time the 2009 annual maintenance fees are due and payable.
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The four unpatented lode mining claims comprising the New Dawn property are registered in the name of and are owned by Altair Minerals, Inc., a privately held Nevada Corporation. Braeden Valley Mines Inc. has the right to earn a 100% interest in these claims under the terms of an existing agreement. Ownership of these claims does not confer any surface rights.
Environmental Liabilities
There are no open adits, shafts or deep trenches on the New Dawn Property, and thus no mining or exploration associated safety hazards exists at this time. There are no known prospect pits, and or to the best of the author's knowledge, there are no environmental liabilities known to exist on the New Dawn Property that can be attributed to or become the responsibility of either Altair Minerals, Inc. or Braeden Valley Mines Inc. Any exploration an development project proposed under present conditions will inevitably face environmentally driven hurdles. However, given that Nevada is generally regarded as the most mining district that has already seen mining activity, there is no reason to believe that the process of obtaining the requisite permits to operate would be particularly onerous.
Permits
The BLM is responsible for the surface and subsurface mineral estate on federal lands. At the time of this writing, no Notice of Intent to Operate, no Plan of Operation have been filed with the BLM. Permitting for the proposed two phases of work on these properties is not anticipated to cause any problems or serous delays, as all of the planned work would involve physical disturbance of less than five acres or more involve a more stringent permitting process.
Accessibility, Climate, Local Resources, Infrastructure and Topography
From Reno, Nevada, access to the New Dawn property is by Interstate Freeway I-80 east for about 280 miles to Elko (Exit 301 on I-80), then north to paved State Highway 225 for about 26 miles, then northwest on paved State Highway 226, and then turning off to the west onto the county maintained gravel road SSR 18 that heads toward the historic mining town of Tuscarora, see Figure 1. After about 6 miles this gravel road turns due south. After heading due southabout 1 mile, turn onto a secondary gravel road heading due west for about 4 miles past the Quarter Circle S Ranch and along the north side of McCann Creek, see Figure 2. Take the west fork onto a dirt track that heads northwest and then curves to the southwest then southeast, and eventually heads south along a ridge top, passing through the New Dawn property after about 2.5 miles.
The climate in this part of Nevada is typical of the high desert country of the American southwest, with hot summers, cold winters and generally dry conditions. Temperature variations recorded for the area extend from a minimum of -40° F to a maximum of 108° F, with average temperatures of 16° F in winter and 84° F in summer (Western Regional Climate Center). This is semi-arid desert, with an average annual precipitation of 12.5 inches. Heavy snowfall can be expected in the higher ranges, but the climate should not be an impediment to mining, especially if the operations were underground. Mining at open pits elsewhere in Nevada, in roughly similar conditions, is continued year round. Physical exploration work could be conducted on the New Dawn property year round, except during early spring when the frozen ground is melting and the unimproved dirt roads become muddy and difficult to travel.
Vegetation in this part of Nevada is generally confined to grasses and sagebrush, with local stands of willows, trembling aspen and some cottonwoods in valley bottoms, and local areas with dwarf juniper and pines. The property area includes summer grazing leases for cattle from local ranches. Most of the access roads are officially designated as ranch access roads, meaning that there are few restrictions on their use. But it is imperative to respect ranchers' rights, especially, to keep gates closed where requested to do so.
Water is relatively short supply, however there is probably sufficient water in McCann Creek for drilling, although it may be necessary to truck water if a diamond drill is employed. Grid electrical power is not available on the New Dawn property, although it does extend to the Quarter Circle S Ranch about 4 miles to the east.
The New Dawn property is in moderately steep terrain, on a north-south trending ridge of the northern Tuscarora Mountains, with Mount Blitzen (el. 8130 ft) located about five miles to the northeast. The north-south trending ridge
Page 21
is between the headwaters of Berry and Lewis Creeks, see Figure 2. Within the New Dawn property, elevations range from 7480 ft at the ridge top, sloping down to 6920 ft in the eastern
gullies draining into Berry Creek, and sloping down to 7200 ft in the western gullies draining into Lewis Creek. Further to the east, Berry Creek joins McCann Creek, which eventually joins the South Fork of the Owyhee River. Further to the west,
Lewis Creek joins other creeks that eventually drain into the Humboldt River.
Elko is located on the Humboldt River, which has I-80 and a transcontinental railway along its course through northern Nevada. Elko is the county seat, and has a regional airport with
helicopter services available. Numerous drilling companies operate out of Elko. And in general, Elko is the service centre for large mining operations in the Carlin trend and the Jerritt Canyon district, see Figure 1. For 2005, the Elko Field Office
of the BLM reported total annual production of 3.8 million ounces of gold from 17 active gold mines, including: five mines at Jerritt Canyon (Queenstake, 0.2 M ounces); and the Midas mine (Newmont, 0.2 M ounces). Given all the mining activity in the
Elko region, it is anticipated that sufficient infrastructure and manpower would be available locally to support a mining operation at the New Dawn property.
History
Past Production
This New Dawn property is at the southwest edge of the Tuscarora mining district (Tingley, 1992), which includes several gold and silver deposits and past producing mines. Between
1867 and 1989, total production for the Tuscarora district was more than 198,000 ounces gold and 7,274,000 ounces silver (LaPointe, et al, 1991). The New Dawn property does not include any of the known deposits or past producing mines of the
Tuscarora district within its claim boundaries.
In the Tuscarora district, placer gold was first discovered in McCann Creek in 1867. The first silver ore was minded and shipped in 1875, and further prospecting led to the discovery
of a bonanza silver deposit in 1876, provoking a silver rush to Tuscarora in 1877. The most productive gold mine in the district was the Dexter mine, which was worked underground from 1897 to 1904. As described by LaPointe, et al. (1991, p.
211-212):
"Exploration activity in the early 1980's in the vicinity of the old Dexter mine defined a low-grade bulk-mineable gold deposit. A joint venture between Fischer-Watt Gold
Mining Company and Horizon Gold Shares was formed in 1987 to open-pit mine the deposit, which began production in late 1987. Announced reserves at that time were 2.0 million tons of one grading 0.039 ounces of gold and 1.9 ounces of silver per ton
(Bonham, 1988). Cheveron Resources joined the joint venture in 1988 to do geologic mapping and drilling in an effort to expand reserves from several promising oxide-mineralized areas in the vicinity of the Dexter mine (The Mining Record, February 2,
1988; September 27, 1989). The mine was still active at the end of 1989, with proven and probable reserves of 1.8 million tons of ore grading 0.037 ounces of gold and 0.74 ounces of silver (Bonham and Hess, 1990)."
The Dexter open pit mine, which exploited the Dexter volcanic-hosted gold deposit , is located about 6 miles northeast of the New Dawn property and is indicated by the yellow square
just below the Tuscarora town site in Figure 1. Tuscarora lies about 20 miles north of the northern end of the Carlin trend, and about 12 miles southwest of the Carlin-type deposits at Jerritt Canyon.
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Previous Exploration and Drilling
There were two rounds of exploration drilling in the immediate vicinity of the New Dawn property. In the late 1980's, Echo Bay drilled eleven RC holes, and in 1996 Western States
drilled two 1500 ft vertical RC holes. As described by Henry and Boden (1998), these holes were located on the ridge between the headwaters of Berry and Lewis Creeks, testing a zone of alteration with a vein in the footwall of a porphyritic rhyolite
dike. This rhyolite dike outcrops less than 100 ft north of the New Dawn property, see Figure 4. Results of these drilling programmes are not available.
There has also been recent drilling at the Berry Basin and Beard Hill areas, located about two miles to the east-northeast of the New Dawn property, see Figure 2. In the Berry Basin
area, Placer Dome drilled three holes in 2004, with three more holes drilled in 2005 by Grandcru (
http://www.grancruresources.com
).
Geological Setting
Regional Geology
The hilly terrains and the middle level plain contain crystalline hard rocks such as charnockites, granite gneiss, khondalites, leptynites, metamorphic gneisses with detached
occurrences of crystalline limestone, iron ore, quartzo-feldspathic veins and basic intrusives such as dolerites and anorthosites. Coastal zones contain sedimentary limestones, clay, laterites, heavy mineral sands and silica sands. The hill ranges
are sporadically capped with laterites and bauxites of residual nature. Gypsum and phosphatic nodules occur as sedimentary veins in rocks of the cretaceous age. Gypsum of secondary replacement occurs in some of the areas adjoining the foot hills of
the Western Ghats. Lignite occurs as sedimentary beds of tertiary age. The Black Granite and other hard rocks are amenable for high polish. These granites occur in most of the districts except the coastal area.
Figures 3 and 3a locate and describe the major rock units of north-central-north-eastern Nevada, according to Steward and Carison (1977), whose labels are indicated in bold in the
following text. As described by Teal and Jackson (2002), Bonham (1986), Roberts (1986), and others, regional stratigraphic and isotopic data indicate that during the Cambrian through Early Mississippian, most of eastern Nevada was situated along a
stable paleo-continental margin. During this period, a westward-thickening and deepening wedge of sediments was deposited across the paleo-continental shelf and oceanic basin. The sedimentary facies of this Cordilleran geosynclines graded from
eastern shallow water (miogeoclinal) carbonates, to deep water (eugeoclinal) fine-grained siliciclastics. During the Late Devonian through Middle Mississippian, tectonic activity associated with the Antier orogeny resulted in large-scale uplift,
folding and thrusting of the eugeoclinical siliceous rocks eastward over the miogenoclinal carbonate rocks, along the Roberts Mountain thrust fault system. The leading edge of the overriding thrust plate formed the emergent Antler highland, from
which coarse siliceous clastic sediment eroding from the upper-plate was she eastward into the adjacent foreland basin.
Local terminology refers to three major Palaeozoic tectonostratigraphic rocks sequences: the eastern or carbonate autochthonous assemblage (PzZc), i.e., the lower plate rocks
characterized by limestone and dolomite, with minor shale and quaztzite: the western or siliceous allochthonous assemblage (IPzs), i.e., the upper plate rocks characterized by chert and dark shale, with grey quartzite, greywacke, and minor mafic
volcanic and limestone; and the overlap assemblage (uPzc), i.e., the foreland basin rocks characterized by coarser clastic flysch.
The Roberts Mountain thrust fault, the major regional structure between the upper plate IPzs and the lower plate PzZc rocks, is believed to have localized or controlled gold
deposition at many mines in north-eastern Nevada exploiting Carlin-type deposits. Late Palaeozoic through Late Mesozoic compressional tectonism (the Sonoma and Sevier orogenies) resulted in local folding and subsequent erosion that exposed lower
plate rocks in so-called "windows" through the Roberts Mountains thrust fault. Such windows revealing PzZc rocks outcrop in the southern Tuscarora Mountains, hosting the core Carlin trend gold deposits. To the northeast, windows of PzZc
rocks host the Jerritt Canyon deposits in the Independence Mountains and host the Doby George deposit in the Bull Run Mountains. Upper plate IPzs rocks outcrop as a fault-bounded wedge in the northern Tuscarora Mountains at the
Page 23
New Dawn property, indicating the possible presence of mineralized PzZc rocks below. Foreland basin uPzc rocks comprise the Adobe Range east of the Independence Mountains.
During the Late Permian through Early Triassac Sonoma orogeny, more western facies rocks (uPzs) of the Cordilleran geosuncline were thrust eastward as the upper plate of the Golconda
thrust fault; these rocks outcrop in the northern Independence Mountains. Only small amounts of Mesozoic sedimentary or volcanic (Mzr) rocks occur in eastern Nevada.
Teritiary rocks in northern Nevada include volcanic rocks ranging from silicic tuffs to basalt flows. Silicic tuffs predominate in the older, mid-Eocene to mid-Miocene. Teritiary
volcanic (Tvl). The New Dawn property is located within a fault-bounced wedge of Palaeozoic IPzs rocks, within the Eocene Tuscarora volcanic field, which is included in Tvl. The Tuscarora volcanic field is a complex of Eocene coalesced calderas and
strato-volcanoes that covers approximately 300 sq. miles (800 km^2). It lies just north of the Carlin trend gold deposits in the southern Tuscarora Mountains, and west of the Jerritt Canyon gold deposits in the Independence Mountains. The Tuscarora
volcanic field consists of andesitic to rhyolitic tuffs and flows that erupted from several volcanic centres; these igneous rocks intruded and locally covered sequences of upper and lower plate Palaeozoic sediments. It is believed that Eocene
magmatism was the heat source that drove the Hydrothermal circulation that generated Carlin-type deposits (Henry and Boden, 1997; Henry and Ressel, 2000). Related plutons (TMzi) and dike swarms intrude the volcanics and adjacent Palaeizoic rocks.
Younger, late-Miocene volcanic (Tvu) comprised mainly of basalt flows occur to the north in the Qwyhee Desert, and late-Miocene tuffaceous sediments (Ts) occur to the south, e.g., between the Independence Mountains and the Adobe Range. Quaternary
alluvium (Qa) fills the Independence valley east of the Tuscarora volcanic field.
Local and Property Geology
Three of the regional rock units outcrop in the immediate vicinity of the New Dawn propery: 1) upper plate Palaeozoic rocks IPzs; 2) Tertiary volcanic Tvl; and 3) contemporaneous and
younger dikes TMzi. In addition, there are unconsolidated 4) Quaternary surficial deposits Qa. As mapped by Henry and Boden (1998), these regional units are locally subdivided and described as follows:
1) The Palaeozoic (Ordovician – Devonian) rocks are locally distinguished into a siltstone-dominated assemblage Pzs and a chert-dominated assemblage Pzc. These rocks outcrop as a
fault-bounded wedge in the Tuscarora volcanic field, see Figure 3. These are the rocks exposed at the New Dawn property, see Figure 4, where they are strongly deformed, with folds and thrusts striking east-northeast and mostly dipping
northwest.
2) In the area of the New Dawn property, the Tertiary (Eocene) volcanic are lavas, tuffs and volcaniclastic sediments of the Pleasant Valley volcanic complex, part of the Tuscarora
volcanic field. Local sources for these volcanic rocks include a probable psyclastic vent located in the upper part of Pleasant Valley volcanic complex, part of the Tuscarora volcanic field. Local sources for these volcanic rocks include a probable
pyroclastic vent located in the upper part of Pleasant Valley (about 1.5 miles east of the New Dawn property), and a dacite dome located south of Lewis Creek (about 1.5 miles west of the property). The probable vent is indicated by the andesite
breccias Tpx, interpreted as a proximal fallout deposit is surrounding a former vent. Pyroxene andesite lava Tpa is the most abundant volcanic rock, but it and other lava types, e.g., Tpb, and lenses of volcanistic sediments and tuffs Tps, are all
complexly interlayered and discontinuous. Individual flows are 30 ft to possibly as much as 225 ft thick, with composite thickness of more than 900 ft. Platy flow banding and ramp structures are best developed in Tpa but are present in all lava
types.
3) A 1.8 mile long, discontinuous rhyolite dike Tmrf outcrops just north of the New Dawn property. This is one of numerous dikes, ranging in composition from andesite to rhyolite,
that are interpreted as the last manifestation of a late Eocene (39.34 Ma) intrusive episode.
4) Quarternary surficial deposits include: older alluvial fan deposits Qof, landslide deposits Qls, young alluvial fan deposits Qf, and channel deposits of unconsolidated alluvium
Qal.
The following descriptions of the rock units show in Figure 4 are adapted from Henry and Boden (1998). The rock units are listed from 3) the youngest down to 1) the oldest, and note
that metric units are used:
Page 24
Tmrf Finely prophyritic rhyolite A 3km long, discontinuous dike cuts Palaeozoic rocks, striking north-northeast and dipping 65-85 degrees northwest. Phenocrysts (5-25%): plagioclase
(20%, <4mm), quartz (2%, 2mm), and biotite (<1%, 1mm).
Tpa Pyroxene andesite lava Andesitic lavas that contain pyroxene as the only or nearly only mafic phenocryst are the most widespread and voluminous of the Pleasant Valley rocks.
Phenocrysts (25-30%): plagioclase (20-25%, <3mm) clinopyroxene (6-7%, 1.5mm), orthopyroxene (2-3%, <1mm): a few flows contain hornblende (<<0.5%, <3mm).
Trb Biotite-bearing andesite-dacite lava Biotite-bearing lava flows in Pleasant Valley are mostly glassy and commonly have well-developed columnar joints, variably oriented.
Phenocrysts (20-30%): plagioc;ase (18025%, <5 mm), clinopyroxene (1-3%, <2 mm), biotite (1-2%, <1.5 mm), and orthoproxene (1-2%, <1 mm).
Tps Volcaniclastic sediments and tuffs These rocks crop out as a relatively thick sequence underlying coarse breccias (Tpx) near the head of Pleasant Valley Creek. This sequence
includes massive to poorly bedded, non-welded, prumiceous tuff containing scattered fragments of andesite up to 20 cm in diameter and, rarely, Palaezoic rocks; individual beds are 3 to about 50 cm thick. This deposit is at least 70 m thick, and the
base is not exposed.
Tpx Andesite breccia Coarse , massive to poorly stratified breccia. Clasts are dominantly glassy pyroxene andesite, pettographically similar to unit Tpa, and a few clasts similar to
Tpb.
Pzc Chert-dominated assemblage Mostly consists of thick (10 to 30 cm) to thin-bedded, commonly nodular, black to reddish brown to plate greenish grey, "glassy" to variably
recrystallized chat. The chert makes resistant ridges or smooth hillsides covered by chert lag. Individual beds are separated by thin (1 cm) siltstone layers, which were squeezed out by folding in many areas. Unit also includes some thicker siltsone
layers and minor sandstone and limestone, similar to rock types in Pzs, but these rarely crop out.
Pzs Siltstone-dominated assemblage Heterogeneous assemblage dominated by finely laminated siltstone, shale or argillite, and including chert, sandstone, calcarenite, pebbly
conglomerate, and limestone. Siltstone is tan to black (carbonaceours?), rarely micaceous, and locally in graded beds with fine sandstone. Chert is thin-bedded (<5 cm) and greenish grey). Sandstone is fine-grained, plana to cross-bedded, calcite-
to weakly silica-cemented. Calcarenite consists of rounded calcite grains to 0.5 mm
The rock unit exposed within the boundaries of the New Dawn property is Pzs, which includes Paleozoic petroliferous (oil-bearing) carbonate (limestone) sediments interpreted as being
the lowermost unit of the upper plate rocks which are immediately above the Roberts Mountain thrust. It is the immediately underlying lower plate Palaeozoic petrliferous carbonate sediments that host most of the Carlin-type deposits of the Carlin
trend.
Moreover, many of these deposits are associated with altered and locally mineralized Eocene porphyritic dikes, e.g., the Meikle deposit, as is discussed in Section 9.0 (Deposit
Types). Such a dike Tmrf outcrops less than 1000 ft to the north of the North of the New Dawn property; this dike is mapped as one of the "Eocene porphyritic rhyolite dikes (Beast-type dikes)" by Russel et al. (200b, p. 1419 and p.
1419):
"The Beast, lower-grade (7.3 Mt @ 0.7 g/t), disseminated Au deposit in the Carlin trend, Nevada, is a unique among Carlin-type Au deposits in having
as much as 50 percent of the ore hosted by a 37.3 Ma porphyritic rhyolite dike."
Mineralization and Alteration
Alteration can be observed on the New Dawn property in a northeast trending zone associated with the porphyritic rhyolite dike that outcrops less than 1000ft to the north. This
alteration zone crosses with the ridge between the headwaters of Lewis and Berry Creeks and is approximately 8000 ft long and 1500 ft wide, and it is recognizable on Land Sat Thermatic Mapper images.
As described by Henry and Boden (1998, p. 18 and p. 20)
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"Quartz-barite veins occur along northeast-striking faults in the ridge between the headwaters of Lewis and Berry Creeks. Struhsacker (1992) reported that one vein lies in the footwall of a 65-85 degree northwest-dipping, finely porphyritic rhyolite dike (Tmrf) that cuts the Palaeozoic rocks. The dike is bleached and mildly argillized, and the vein contains as much as 2 ppm Au and 200 ppm Ag long with high As and Sb (Struhsacker, 1992)."
"Stuhsacker, E.M., 1992, Tuscarora project, Elko County, Nevada: Prospect Summaries: Unpublished Consulting Report for Corona Gold, 21 p. plus figures and plates."
This mineralization is indicative of an epithermal system, which may represent the top of a hydrothermal plume of mineralizing fluids. This area, located just north of the New Dawn property, was drilled in the 1980's and in 1996, as described in Section 6.2 (Previous Exploration and Drilling).
Deposit Types
The deposit being sought at the New Dawn property is a Carlin-type gold deposit, and especially a Meikle-type deposit, i.e., deep, higher grade, structurally controlled, and dike associated, hosted in underlying lower plate Palaeozoic sediments. This is a blind target, whose surface expression is believed to be the alteration halo in the Palaeozoic rocks of the New Dawn property. These rocks are the lowermost unit of the upper plate, and their alteration at the New Dawn property is associated with an altered and locally mineralized Eocene porphyritic rhyolite dike that outcrops to the north of the property.
Carlin-type gold deposits are among the most important being mined at present anywhere in the world. These are sedimentary rock-hosted, disseminated gold deposits, with high Au/Ag ratios, that occur mainly in moderately folded silty carbonate host rocks; the adjacent faults are sometimes intruded by Eocene porphyritic dikes, that are sericitically altered or silicified (Ressel, et al., 2000a). Total production from the Carlin trend, since the original mine began operation in 1964, has now exceeded 60 million troy ounces. Clearly, these deposits are worthwhile and attractive targets.
Carlin-type gold deposit formed the frontal zone of the Roberts Mountains thrust plate, mostly in autochthonous carbonate rocks of the lower plate, but also in allochthonous rocks of the upper plate, and in igneous rocks (mainly Eocene age feeder dikes) that cut both plates. Most of the deposits are on the flanks of domal uplifts, which are exposed as erosional windows in the thrust. These domes are structurally controlled along regional scale fracture zones, and are developed over intrusive bodies that fed overlying volcanic fields (like the Tuscarora volcanic field). It has been speculated that at the time of ore formation, the thrust plate covered the erosional windows, and being relatively impermeable, impeded the flow of ore-forming solutions upward and confined them mostly to the lower plate rocks. This combination of permeable and soluble lower plate rocks with impermeable upper plate rocks, created stratigraphic and/or structural traps, very much like the traps observed in oil and gas reservoirs. In fact, nearly all Carlin-type deposits contain appreciable amounts of pyrobitumen, the residue of failed oil reservoirs. It is now understood that deep structures acted as channel ways for solutions that both prepared the ground (by hydrothermal de-calcification or de-carbonitisation of limestones to make them more porous and permeable) and carried the gold and associated elements from source region (probably the upper mantle) to depositional site. Many of the more recently discovered deposits are deep, higher grade, and are structurally controlled (and associated with Eocene porphyritic dikes), in particular, the Meikle deposit:
"Field relations, isotopic ages, and petrographic and chemical date of dacite dikes suggest that Carlin-type Au mineralization at the Griffin and Meikle deposits is of Eocene age and Closely linked to contemporaneous igneous activity … Au mineralization at Meikle and Griffin closely followed dike intrusion." (Ressel, et al., 2000a)
"In addition to the Beast deposit, mineralized Eocene dikes are recognized in the Betze-Post, Deep Star, Genesis, and Meikle-Griffin deposits and indicated that major gold mineralization in the Carlin trend occurred after 40 Ma, probably as a consequence of multiple Eocene intrusive events … Eocene magmatism is considered the major
Page 26
process that drove hydrothermal circulation, which formed Carlin-type deposits of the Carlin trend." (Ressel, et al., 2000b)
The question then becomes where exactly to look for such blind targets; and the answer is to look in the place(s) where there is the greatest opportunity to discover these targets. Figure 8.1 is contour map of district gold endowment and regional structures of northern Nevada. It suggests that the most prospective area for finding such blind targets would be north of the Carlin District, e,g, the Tuscarora district. The Tuscarora district contains the New Dawn property in a fault-bounded wedge of the lowermost upper plate Palaeozoic sediments, thus the underlying prospective lower plate rocks are within reasonable distance from the surface (<2,500 ft) at the New Dawn property.
Exploration
Apart from reviewing the available scientific literature, to date Braeden Valley Mines
Inc. has not carried out any exploration work on these the New Dawn property, nor on any adjacent or other properties within the district.
The results of previous exploration work on the adjacent area to the north of the property, and on areas to the east-northeast of the property, are described in Section 8 (Mineralization and Alteration).
Drilling Summary
We have not carried out any drilling on the property, nor on adjacent properties.
There have been several previous drilling programs on the adjacent area to the north of the property and on areas to the east-northeast of the property, as described in Section 6.2 (Previous Exploration and Drilling).
Sampling Method, Sample Preparation and Data Verification
During examination of the New Dawn property, the author collected several rock specimens from altered outcrop. These specimens were collected for comparison purposes and to characterize the altered rocks, and have been retained by the author for further study.
No samples were collected from the New Dawn property for assaying.
No information is available to the author or to Braeden Valley Mines Inc. concerning preparation, treatment, or analytical procedures of samples collected and analyzed by or on behalf of previous workers on the adjacent property to the north and the property to the east-northeast, of the New Dawn property. It is probably fair to assume that the majority of this previous work was diligently carried out by professional persons in the employ of large and reputable consulting firms and exploration companies, utilizing the then accepted prudent methods and procedures.
Data Verification
Along with a review of the available scientific literature, the geological setting of the property and the style and intensity of alteration in outcrop was confirmed by the author during his field visits.
Mineral Processing and Metallurgical Testing
No metallurgical test work has been conducted on the property by us.
Mineral Resource Estimate
There are at present no mineral resources defined on the New Dawn property.
Page 27
Other Relevant Data and Information
There are at present no plans for production from the subject property. All work contemplated at this time is purely of an exploration nature.
The initial stage of the proposed exploration work on the New Dawn property is largely of a preliminary nature, involving geological, structural and alteration mapping, geochemistry and geophysics. Where appropriate, reverse circulation and/or core drilling would follow such work.
Interpretation and Conclusions
The target concept the New Dawn property is as follows: Alteration in upper plate Paleozoic sediments, locally associated with an Eocene porphyritic dike and with epithermal gold-arsenic dominated, Eocene-aged, precious metal mineralization , may represent the top of a mineralizing hydrothermal plume that had the potential to form a high-grade Carlin-type (e.g. Meikle) deposit within lower plate sediments at depth.
The New Dawn property is located in the Tuscarora district, which is a prospective area about 20 miles north of the Carlin district:
"The Tuscarora mining district contains the oldest and only productive Eocene epithermal deposits in Nevada. Moreover, Tuscarora deposits are of interest because they formed contemporaneously with nearby, giant Carlin-type gold deposits. …As noted in previous studies, the hydrothermal fluids that generated the Tuscarora and other epithermal deposits could have evolved from Carlin-type fluids by boiling and mixing with meteoric water. If so, the Tuscarora deposits may represent epithermal conditions above Carlin-type deposits, and Carlin-type deposits may lie beneath the district."
(Castor, et al., 2003)
The Tuscarora district contains New Dawn property in a fault-bounded wedge of lowermost upper plate Palaeozoic sediments, thus the underlying prospective lower plate rocks are within reasonable distance from the surface (<2,500 ft).
Recommendations
The objective is to define a deep drilling target that may lead to the discovery of Carlin-type gold mineralization hosted in lower plate Palaeozoic sediments. It is believed that geologic, structural, stratigraphic, geochemical and geophysical studies at the New Dawn property may define such a target at a reasonable depth (<2500 ft).
In the opinion of this author, the property is of sufficient merit to warrant the exploration work recommended herein. The exploration work on this property should be conducted in two phases, with advancement to the second phase only upon successful completion of the first.
PHASE 1
1. Stake an additional 20 claims, adjoining to the north of the existing claims (in a 2 x 10 matrix); according to BLM records, this ground is unclaimed at present.
2. If possible, obtain the data collected during previous exploration campaigns from their respective operators.
Establish the provenance of this data, verify it, and if suitable, digitize and transfer all available exploration data onto a base map.
3. Carry out lithologic, structural, and alteration mapping with particular focus on the Eocene rhyolite dike and the adjacent Palaeozoic rocks.
4. Carry out geochemical soil and rock-chip sampling. Analyses should include gold, its pathfinder elements (As, Sb, Hg, Tl), and elements associated with oilfield/basin brines (i.e., B, Br, F, l, Pb, Zn, V).
Page 28
5. Conduct a CSAMT (Controlled Source Audio-frequency Magneto Tellurics) geophysical survey along profiles across the entire property, and if possible, on the newly staked claims.
6. Review results of Phase 1 work, and, if warranted, select and prioritize targets for drilling.
Contingent on a review of the results of Phase 1 and approval by an independent qualified person, the project should continue to Phase 2.
PHASE 2
1.
Drill targets identified by the Phase 1 work.
2.
Sample and assay all drill core or cuttings obtained from altered rocks (both Palaeozoic and Eocene).
3.
Review results of Phase 2 work, and, where warranted, select targets for further drilling.
COMPLIANCE WITH GOVERNMENT REGULATION
We will be required to conduct all mineral exploration activities in accordance with applicable regulations. Such operations are subject to various laws governing land use, the protection of the environment, production, taxes, labor standards, occupational health, waste disposal, toxic substances, well safety and other matters. Unfavorable amendments to current laws, regulations and permits governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially adverse impact and cause increases in capital expenditures which could result in a cessation of operations.
EMPLOYEES
At present, we have no employees. We anticipate that we will be conducting most of our business through agreements with consultants and third parties.
MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those statements included elsewhere in this prospectus. In addition to the historical consolidated financial information, the following discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.
Our business plan is to proceed with the exploration of the New Dawn Property to determine whether there is a potential for gold or other minerals located on the properties that comprise the mineral claims. We have decided to proceed with the exploration program recommended by the geological report. We anticipate that the two phases of the recommended geological exploration program will cost approximately $100,000 and $200,000. We had $0 in cash reserves as of December 31, 2008. The lack of cash has kept us from conducting any exploration work on the property.
We anticipate that we will incur the following expenses over the twelve (12) month period following commencement of our exploration plans:
USD$100,000 in connection with the completion of Phase 1 of our recommended geological work
program;
USD$200,000 in connection with the completion of Phase 2 of our recommended geological work
program; and
USD$25,000.00 for operating expenses, including professional legal and accounting expenses associated
with compliance with the periodic reporting requirements after we become a reporting issuer under the
Securities Exchange Act of 1934, but excluding expenses of the offering.
Page 29
If we determine not to proceed with further exploration of our mineral claims due to a determination that the results of our initial geological program do not warrant further
exploration or due to an inability to finance further exploration, we plan to pursue the acquisition of an interest in other mineral claims. We anticipate that any future acquisition would involve the acquisition of an option to earn an interest in
a mineral claim as we anticipate that we would not have sufficient cash to purchase a mineral claim of sufficient merit to warrant exploration. This means that we might offer shares of our stock to obtain an option on a property. Once we obtain an
option, we would then pursue finding the funds necessary to explore the mineral claim by one or more of the following means: engaging in an offering of our stock; engaging in borrowing; or locating a joint venture partner or partners.
RESULTS OF OPERATIONS
We have not yet earned any revenues. We anticipate that we will not earn revenues until such time as we have entered into commercial production, if any, of our mineral properties. We
are presently in the exploration stage of our business and we can provide no assurance that we will discover commercially exploitable levels of mineral resources on our properties, or if such resources are discovered, that we will enter into
commercial production of our mineral properties.
LIQUIDITY AND CAPITAL RESOURCES
Our cash at the end of the period on December 31, 2008 was $0. As of December 31, 2008, our current liabilities consisted of accounts payable in the amount of $1,654 and loans
from a director of $1,675. Since our inception on August 11, 2008 to the end of the period on December 31, 2008, we have incurred a loss of $10,291. At December 31, 2008, we had an accumulated deficit of $10,291 and $4,709 in
shareholders' equity.
For the period ended December 31, 2008, net cash provided by financing activities was $16,658, which was derived from the issuance of common stock for $15,000 and a
directors' loan in the amount of $1,658.
For the period ended December 31, 2008, net cash used in the purchase of the options related to the New Dawn Property was $8,038. For the period ended December 31, 2008, net cash
used in operating and investing activities was a deficit of $16,658.
Based on our current operating plan, we do not expect to generate revenue that is sufficient to cover our expenses for at least the next twelve (12) months. In addition, we do not
have sufficient cash and cash equivalents to execute our operations for at least the next twelve (12) months. We will need to obtain additional financing to operate our business for the next twelve (12) months. We will raise the capital necessary to
fund our business through a private placement and public offering of our common stock. Additional financing, whether through public or private equity or debt financing, arrangements with stockholders or other sources to fund operations, may not be
available, or if available, may be on terms unacceptable to us. Our ability to maintain sufficient liquidity is dependent on our ability to raise additional capital. If we issue additional equity securities to raise funds, the ownership percentage
of our existing stockholders would be reduced. New investors may demand rights, preferences or privileges senior to those of existing holders of our common stock. Debt incurred by us would be senior to equity in the ability of debt holders to make
claims on our assets. The terms of any debt issued could impose restrictions on our operations. If adequate funds are not available to satisfy either short or long-term capital requirements, our operations and liquidity could be materially adversely
affected and we could be forced to cease operations.
We are bearing all costs relating to the registration of the common stock, which are estimated at $25,000. The selling shareholder, however, will pay any commissions or other fees
payable to brokers or dealers in connection with any sale of the common stock.
We are paying the expenses of the offering because we seek to (i) become a reporting company with the Commission under the Securities Exchange Act of 1934 (the "1934 Act"); and (ii)
enable our common stock to be traded on the Over-the-Counter Bulletin Board ("OTC.BB"). We believe that the registration of the resale of shares on behalf of our existing shareholder may facilitate the development of a public market in our
common stock if our
common stock is approved for trading on the OTC.BB. We have not yet determined whether we will separately register our securities under Section 12 of the 1934 Act.
Page 30
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES
Information about our Executive Officers and Directors follows:
NAME
AGE
POSITION AND TERM OF OFFICE
G. Leigh Lyons
President, Treasurer, Secretary and Member of the Board of Directors
E. Alejandro Vasquez
36
Member of the Board of Directors
Hilario Vanegas Guiterrez
Member of the Board of Directors
At present, we have one (1) Executive Officer and three members of our Board of Directors. Our Bylaws provide for a Board of Directors ranging from one (1) to nine (9) members, with the exact number to be specified by the board. All Directors will hold office until the next annual meeting of the stockholders following their election and until their successors have been elected and qualified. The Board of Directors appoints Officers. Officers will hold office until the next annual meeting of our Board of Directors following their appointment and until their successors have been appointed and qualified.
Set forth below is a brief description of the recent employment and business experience of our two (2) executive Officers and Directors:
Leigh Lyons
–
President, Treasurer and Secretary
Mr. Lyons joined us on August 11, 2008, as a member of the Board of Directors and as President, Secretary and Treasurer. Mr. Lyons is a United States resident and holds an AMP from Harvard Business School and a B.A. degree in Earth Science from the University of California at Santa Cruz. From 2005 to the present, Mr. Lyons has been the President and a member of the Board of Directors of Sound Energy Advisors LLC, a private company based in Blaine, Washington, that provides corporate management and governance services to publicly-traded small cap and start-up companies. From 2002 to 2005, Mr. Lyons served as the Chief Operating Officer and Vice President of Gas Transbolivano S.A., in Santa Cruz, Bolivia, a large natural gas transmission system expansion project. Mr. Lyons' duties included risk management, project team supervision, planning, HSES, cost control and reporting to the Board of Directors.
Mr. Lyons also serves as a director for the following companies registered with the SEC under the Securities Exchange Act of 1934 (the "Exchange Act"): Outback Energy Corp., American Petro-Hunter, GoldMountain Exploration Corporation and Radial Energy Inc.
E. Alejandro Vasquez
–
Member of the Board of Directors
Mr. Guiterrez joined us in 2008, as a member of the Board of Directors. My Vasquez is Panamanian citizen For the past 6 years , Mr. Vasquez served as a Manager of Agencia de Seguridad omega 270-7981, a Panamanian company located in Panama City, Panama. Mr. Vasquez's duties included managing all security entail. Mr. Vasquez does not serve as a director of any company with a class of securities registered pursuant to section 12 of the U.S. Securities Exchange Act of 1934 or subject to the requirements of section 15(d) of such Act or any company registered as an investment company under the Investment Company Act of 1940.
Hilarrio Vanegas Guiterrez –
Member of the Board of Directors
REMUNERATION OF DIRECTORS AND OFFICERS
The following table sets forth the remuneration of our Executive Officers and Directors for the period from inception on August 11, 2008 through to the end of the period on September 30, 2008.
CAPACITIES IN WHICH
NAME OF
REMUNERATION WAS
AGGREGATE
INDIVIDUAL
RECEIVED
REMUNERATION
Page 31
G. Leigh Lyons
Executive Officer
$0
E. Alejandro Vasquez
Member of the Board of Directors
$0
Hilario Vanegas Guiterrez
Member of the Board of Directors
$0
We have no employment agreements with our Executive Officers. We will not pay compensation to Directors for attendance at meetings. We will reimburse Directors for reasonable expenses incurred during the course of their performance.
SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS
The following table lists the share ownership of persons who, as of the date of this prospectus owned of record or beneficially, directly or indirectly, more than five percent (5%) of the outstanding common stock, and our Executive Officer and Directors:
SHARES TO
PERCENTAGE OF CLASS (1)
SHARES TO BE
BE OWNED
SHARES
OFFERED FROM
UPON
BEFORE
AFTER
NAME AND
OWNED
SELLING
COMPLETION
OFFERING
OFFERING
ADDRESS OF
PRIOR TO
SHAREHOLDER'S
OF
OWNER
OFFERING
ACCOUNT
OFFERING
G. Leigh Lyons
20,000,000
15,000,000
5,000,000
66.7%
16.7%
E. Alejandro Vasquez
5,000,000
0
5,000,000
16.7%
16.7%
Hilario Vanegas
5,000,000
0
5,000,000
16.7%
16.7%
Guiterrez
(1) This table is based on 30,000,000 shares of common stock issued and outstanding as of December 31, 2008.
As of the date of this prospectus, we only have three (3) shareholders.
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
As of the date of this prospectus, other than the transaction described above, there are no, and have not been since inception, any material agreements or proposed transactions, whether direct or indirect, with any of the following:
any of our Directors or Officers;
any nominee for election as a Director;
any principal security holder identified in the preceding "Security Ownership of Selling Shareholder and
Management" section; or
any relative or spouse, or relative of such spouse, of the above referenced persons.
SECURITIES BEING OFFERED
We are authorized to issue up to 50,000,000 shares of common stock, par value $.001 per share, and we have not authorized the issuance of preferred stock.
Common Stock
Page 32
The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. We do not have cumulative voting rights in the election of directors, and accordingly, holders of a majority of the voting shares are able to elect all of the directors.
Subject to preferences that may be granted, holders of common stock are entitled to receive ratably such dividends as may be declared by the board of directors out of funds legally available therefore as well as any distributions to the stockholders. We have never paid cash dividends on our common stock, and do not expect to pay such dividends in the foreseeable future.
In the event of a liquidation, dissolution or winding up of our company, holders of common stock are entitled to share ratably in all of our assets remaining after payment of liabilities. Holders of common stock have no
preemptive or other subscription or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock.
TRANSFER AGENT AND REGISTRAR
Holladay Stock Transfer, Inc., 2939 N 67th Place, Suite C, Scottsdale, AZ 85251, serves as the transfer agent and registrar for our common stock.
SEC POSITION ON INDEMNIFICATION
Our bylaws provide that each of our officers and directors shall be indemnified by us against all costs and expenses actually and necessarily incurred by him or her in connection with the defense of any action, suit or proceeding in which he or she may be involved or to which he or she may be made a party by reason of his or her being or having been such director or officer, except in relation to matters as to which he or she has been finally adjudged in such action, suit or proceeding to be liable for negligence or misconduct in the performance of duty.
The indemnification provisions of our bylaws diminish the potential rights of action, which might otherwise be available to shareholders by affording indemnification against most damages and settlement amounts paid by a director in connection with any shareholders derivative action. However, there are no provisions limiting the right of a shareholder to enjoin a director from taking actions in breach of his fiduciary duty, or to cause us to rescind actions already taken, although as a practical matter courts may be unwilling to grant such equitable remedies in circumstances in which such actions have already been taken. Also, because we do not presently have directors' liability insurance and because there is no assurance that we will procure such insurance or that if such insurance is procured it will provide coverage to the extent directors would be indemnified under the provisions, we may be forced to bear a portion or all of the cost of the director's claims for indemnification under such provisions. If we are forced to bear the costs for indemnification, the value of our stock may be adversely affected.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Act") may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have 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.
LEGAL MATTERS
W. Scott Lawler of Lawler & Associates, PLC, 11622 El Camino Real, Suite 100, San Diego, CA 92130 will pass upon certain matters relating to the legality of the common stock offered hereby for us.
EXPERTS
Our financial statements as of December 31, 2008 have been audited by Moore & Associates C.H., as set forth in its report. The financial statements have been included in reliance upon the authority of Moore & Associates C.H. as experts in accounting and auditing.
Page 33
AVAILABLE INFORMATION
We have not previously been subject to the reporting requirements of the Securities and Exchange Commission. We have filed with the Commission a registration statement on Form S-1 under the Securities Act with respect to the shares offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to our securities and us you should review the registration statement and the exhibits and schedules thereto. Statements made in this prospectus regarding the contents of any contract or document filed as an exhibit to the registration statement are not necessarily complete. You should review the copy of such contract or document so filed.
You can inspect the registration statement and the exhibits and the schedules thereto filed with the commission, without charge, at the office of the Commission at Judiciary Plaza, 100 F Street, NE, Washington, D.C. 20549. You can also obtain copies of these materials from the public reference section of the commission at 100 F Street, NE,
Washington, D.C. 20549, at prescribed rates. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission maintains a web site on the Internet that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission at
HTTP://WWW.SEC.GOV
REPORTS TO STOCKHOLDERS
As a result of filing the registration statement, we are subject to the reporting requirements of the federal securities laws, and are required to file periodic reports and other information with the SEC. We will furnish our shareholders with annual reports containing audited financial statements certified by independent public accountants following the end of each fiscal year and quarterly reports containing unaudited financial information for the first three (3) quarters of each fiscal year following the end of such fiscal quarter.
Page 34
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
MOORE & ASSOCIATES, CHARTERED
ACCOUNTANTS AND ADVISORS
PCAOB REGISTERED
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
Braeden Valley Mines, Inc.
(An Exploration Stage Company)
We have audited the accompanying balance sheet of Braeden Valley Mines, Inc. (An Exploration Stage Company) as of December 31, 2008, and the related statements of operations, stockholders' equity and cash flows from inception on August 11, 2008 through December 31, 2008. 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 conduct our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as 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 financial position of Braeden Valley Mines, Inc. (An Exploration Stage Company) as of December 31, 2008, and the related statements of operations, stockholders' equity and cash flows from inception on August 11, 2008 through December 31, 2008, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has an accumulated deficit of $10,291, which raises substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Moore & Associates, Chartered
Moore & Associates, Chartered Las Vegas, Nevada March 5, 2009
6490 West Desert Inn Rd, Las Vegas, NV 89146 (702) 253-7499 Fax (702) 253-7501
Page 35
Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Financial Statements December 31, 2008
Page 36
Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Balance Sheet
December 31,
2008
ASSETS
Mineral interests
$ 8,038
Total assets
$ 8,038
LIABILITIES and SHAREHOLDERS' EQUITY
Current
Accounts payable
$ 1,654
Note payable to related parties
1,675
Total current liabilities
3,329
STOCKHOLDERS' EQUITY
Capital stock 50,000,000 common stock authorized, $0.001 par value
30,000,000 shares outstanding
30,000
Additional paid in capital
(15,000)
Deficit accumulated during exploration stage
(10,291)
Total stockholders' equity
4,709
Total liabilities and stockholders' equity
$ 8,038
The accompanying notes are an integral part of these financial statements.
Page 37
Braeden Valley Mines, Inc.
(An Exploration Stage Company) Statement of Operations
For the Period from August 11, 2008 [Inception] though to December 31, 2008
Period from
August 11, 2008
[Inception]
though to
December 31,
2008
Revenue
$ -
Expenses
Interest
$ 17
General and Administrative
10,274
Provisions for income taxes
$ -
Net loss for the period
$ 10,291
Loss per share - basic and diluted
$ 0.00
Weighted Average Shares Outstanding
30,000,000
The accompanying notes are an integral part of these financial statements.
Page 38
Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Statement of Stockholders' Equity
For the Period from August 11, 2008 [Inception] to December 31, 2008
Deficit
Accumulated
Additional
during
Total
Common Stock
Paid-In
Exploration
Stockholder's
Shares
Amount
Capital
Stage
Equity
Balance, at inception on August 11, 2008
-
$ -
$ -
$ -
$ -
Issuance of stock for cash, September 30, 2008
30,000,000
30,000
(15,000)
-
15,000
Net loss for the period from inception on August 11,
2008 through December 31, 2008
-
-
-
(10,291)
(10,291)
Balance, December 31, 2008
30,000,000
$ 30,000
$ (15,000)
$ (10,291)
$ 4,709
The accompanying notes are an integral part of these financial statements.
Page 39
Braeden Valley Mines, Inc.
(An Exploration Stage Company) Statement of Cash Flows
For the Period from August 11, 2008 [Inception] though to December 31, 2008
Period from August 11,
2008 [Inception] though
to December 31, 2008
Operating Activities
Net loss from operations
$ (10,291)
Changes in balances of assets and liabilities:
- Accrued interest
17
- accounts payable and accrued expenses
1,654
Cash Flows Used in Operating Activities
(8,620)
Investing Activities
Acquisition of mineral interest rights
(8,038)
Cash Flows Used in Investing Activities
(8,038)
Financing Activities
Proceeds from subscriptions of stock
15,000
Proceeds from related party debt
1,658
Cash Flows Provided by Financing Activities
16,658
Net increase (decrease) in cash
-
Cash, beginning of period
-
Cash, end of period
$ -
SUPPLEMENTAL CASH DISCLOSURES
Cash paid for:
Income taxes
$ -
Interest
$ -
The accompanying notes are an integral part of these financial statements.
Page 40
Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Notes to Financial Statements
December 31, 2008
1.
Nature of operations and going concern
Braeden Valley Mines, Inc. ("Braeden") was incorporated under the laws of the State of Nevada on August 11, 2008 for the purpose of acquiring and developing mineral properties.
2.
Summary of significant accounting policies
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates.
The financial statements have, in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below:
a.
Cash and cash equivalents
Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments with an original maturity of ninety days or less.
b.
Mineral interests
Mineral property acquisition costs are capitalized in accordance with Emerging Issues Task Force ("EITF") 04-2 when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. Through the date of these financial statements, the Company has not yet had any costs it believes have met the criteria for capitalizing under EITF 04-2.
Mineral property exploration costs are expensed as incurred. If and when it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized.
c.
Loss per share
In accordance with SFAS No. 128,
Earnings Per Share
, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period.
d.
Income taxes
Braeden accounts for income taxes under SFAS No. 109,
Accounting for Income Taxes.
Under SFAS No.109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between their financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
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Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Notes to Financial Statements
December 31, 2008
In July, 2006, the FASB issued FASB Interpretations No. 48,
Accounting for Uncertainty in Income Taxes -an interpretation of FASB Statement No. 109
("FIN 48"), which clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a return. FIN 48 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. FIN 48 became effective as of January 1, 2007 and had no impact on the Company's consolidated financial statements.
e.
Impairment of long-lived assets
In accordance with SFAS No. 144,
Accounting for the Impairment or Disposal of Long-lived Assets
, the carrying value of intangible assets and other long-lived assets are reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. Braeden recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. Mineral properties accounted for using the full cost method of accounting, a method utilized by Braeden, is excluded from this requirement, but will continue to be subject to the ceiling test limitations. There were no impairment losses in 2008.
f.
Full costs method
Breaden uses the full cost method of accounting for exploration and development activities as defined by SEC Regulation S-X Rule 4-10. Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as property and equipment. This includes any internal costs that are directly related to exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of mineral properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves minerals attributable to a country. The application of the full cost method of accounting for mineral properties generally results in higher capitalized costs and higher depreciation and amortization rates compared to the successful efforts method of accounting for mineral properties.
Costs excluded
Properties and equipment include costs that are excluded from costs being depreciated or amortized. Mineral costs excluded represent investments in unproved properties and major development projects in which we own a direct interest. These unproved property costs include nonproducing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. Braeden excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred.
The amount of any impairment is transferred to the capitalized costs being amortized (the depletion, depreciation and amortization) or a charge is made against earnings for those international operations where a reserve base has not yet been established. Impairments transferred to the depletion, depreciation and amortization increase the depletion, depreciation and amortization rate for that country. For international operations where a reserve base has not yet been established, an impairment requiring a charge to earnings may be indicated through evaluation of drilling results, relinquishing drilling rights or other information.
At December 31, 2008, Braeden's mineral properties were located in one geographical segment, being the United States of America.
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Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Notes to Financial Statements
December 31, 2008
Ceiling test
The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. Under full cost accounting rules for each cost center, capitalized costs of unproved and proved properties, less accumulated amortization and related deferred income taxes, shall not exceed an amount (the "cost ceiling") equal to the sum of (a) the present value of future net cash flows from estimated production of proved mineral reserves, based on current economic and operating condition, discounted at 10 percent, plus (b) the cost of properties not being amortized, plus (c) the lower of cost or estimated fair value of any unproved properties included in the costs being amortized, less (d) any income tax effects related to differences between the book and tax basis of the properties involved. If capitalized costs exceed this limit, the excess is charged as an impairment expense. As of December 31, 2008, total capitalized costs were $8,038, which were subject to the ceiling test for impairment. At December 31, 2008, Braeden has reviewed these capitalized costs for impairment and determined that there was no impairment.
Amortization
Capitalized costs within a cost center amortized on the unit-of-production basis using proved mineral reserves include: (i) all capitalized costs, less accumulated amortization; (ii) the estimated future expenditures (based on current costs) to be incurred in developing proved reserves; and (iii) estimated dismantlement and abandonment costs, net of estimated salvage values. Capitalized costs subject to amortization do not include the excluded costs as described above.
g.
Stock based compensation
The Company recognizes stock based compensation expense and other forms of employee equity compensation in accordance with SFAS No. 123R,
Share-Based Payment,
as interpreted by SEC Staff Accounting Bulletin No. 107.
h.
Recent accounting pronouncements
In June 2008, the FASB issued FSP EITF 03-6-1, "
Determining Whether Instruments Granted in Share- Based Payment Transactions Are Participating Securities
" ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in computing earnings per share under the two-class method described in SFAS No. 128, "Earnings Per Share." FSP EITF 03-6-1 is effective for the Company as of January 1, 2009 and in accordance with its requirements it will be applied retrospectively. The Company does not expect the adoption of FSP EITF 03-6-1 to have a material impact on its financial statements.
In May 2008, the FASB issued SFAS No. 162, "
The Hierarchy of Generally Accepted Accounting Principles
", which identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (GAAP) in the United States of America (the GAAP hierarchy). This Statement is effective 60 days following the SEC's approval of the Public Company Accounting Oversight Board amendments to AU Section 411, "
The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles
"
.
The Company does not expect adoption of SFAS 162 to have a material effect on its financial statements or related disclosures.
In March 2008, the FASB issued SFAS No. 161, "
Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133
". SFAS 161 requires entities that utilize derivative instruments to provide qualitative disclosures about their objectives and strategies for using such instruments, as well as any details of credit-risk-related contingent features contained within derivatives. SFAS 161 also requires entities to disclose additional information about the amounts and location of derivatives located within the financial statements, how the provisions of SFAS 133 has been applied, and the impact that hedges have on an entity's financial position, financial performance, and cash flows. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company currently does not anticipate the adoption of SFAS 161 will have a material impact on the disclosures already provided.
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Braeden Valley Mines, Inc.
(An Exploration Stage Company)
Notes to Financial Statements
December 31, 2008
In December 2007, the FASB issued SFAS No. 141R, "
Business Combinations
," which revises SFAS No. 141 and changes multiple aspects of the accounting for business combinations. SFAS No. 141R requires the acquirer to recognize most identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree at their full fair value on the acquisition date. Goodwill is to be recognized as the excess of the consideration transferred plus the fair value of the non-controlling interest over the fair values of the identifiable net assets acquired. Subsequent changes in the fair value of contingent consideration classified as a liability are to be recognized in earnings, while contingent consideration classified as equity is not to be re-measured. Costs such as transaction costs are to be excluded from acquisition accounting, generally leading to recognizing expense and additionally, restructuring costs that do not meet certain criteria at acquisition date are to be subsequently recognized as post-acquisition costs. SFAS No. 141R is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 31, 2008. The Company is currently evaluating the impact that this issuance will have on its financial position and results of operations.
i. Advertising
The Company has not incurred any advertising fees to date. Any advertising that is incurred in the future will be expensed as accrued.
3. Going concern
These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that Braeden will be able to meet its obligations and continue its operations for the next twelve months. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should Braeden be unable to continue as a going concern. At December 31, 2008, Braeden has not yet achieved profitable operations, has accumulated losses of $10,291 since its inception, has a working capital deficiency of $3,329 and expects to incur further losses in the development of its business, all of which casts substantial doubt about Braeden's ability to continue as a going concern. Braeden's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.
Braeden expects to continue to incur substantial losses and will require substantial capital to execute its business plan and does not expect to attain profitability in the near future. Since its inception, Braeden has funded operations through short-term borrowings and equity investments in order to meet its strategic objectives. Braeden's future operations are dependent upon external funding and its ability to execute its business plan, realize sales and control expenses. Management believes that sufficient funding will be available from additional borrowings and private placements to meet its business objectives including anticipated cash needs for working capital, for a reasonable period of time. However, there can be no assurance that Braeden will be able to obtain sufficient funds to continue the development of its business operation.
4.
Financial instruments
a.
Credit risk
Braeden maintains cash deposits with financial institutions, which from time to time may exceed federally insured limits. Braeden has not experienced any losses in connection with these deposits and believes it is not exposed to any significant credit risk from cash.
b.
Fair values
Financial instruments that are subject to fair disclosure requirements are carried in the financial statements at amounts that approximate fair value and include cash, accounts payable and accrued expenses and notes payable. Fair values are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk.
Page 44
Braeden Valley Mines, Inc.
(An Exploration Stage Company) Notes to Financial Statements
December 31, 2008
c. Liquidity risk
Braeden is exposed to liquidity risk as its continued operations are dependent upon obtaining additional capital or achieving profitable operations to satisfy its liabilities as they come due.
5. Mineral interest rights
On August 11, 2008, Braeden entered into an exploration and mining lease agreement with Altair Minerals, Inc. ("Altair"), and acquired an undivided interest into mining claims located in Elko County, Nevada, in consideration for the payment of advance minimum royalties, as follows:
i.
$5,000 upon the execution of the agreement, to hold the property for one year from the effective date (paid);
ii.
$10,000 on May 15, 2009;
iii.
$15,000 on May 15, 2010;
iv.
$25,000 on May 15, 2011;
v.
$25,000 on each subsequent anniversary of the effective date, so long as the agreement remains in effect.
The lease, effective May 15, 2008, is for an initial term of 15 year and shall be extended for so long as there is production of minerals from the property.
Upon commencing of production of minerals, Braeden shall pay a royalty on production to Altair equal to 4% of net smelter returns. Braeden has the right to purchase up to 2 of the 4 royalty points, by paying Altair $1,000,000 for the first royalty percentage point, and $2,000,000 for the second royalty percentage point.
At December 31, 2008, Braeden had incurred $3,038 in deferred exploration costs associated with the preparation of a technical report and annual maintenance fees. These costs are included in mineral interest rights on the balance sheet.
6.
Note payable from a related party
On September 30, 2008, Braeden received $1,658 pursuant to a promissory note with a related party. The note is unsecured, bears interest at 5% per annum calculated annually and is due on demand. At December 31, 2008, $1,675 is owing on this note, including $17 in accrued interest.
7.
Capital stock
Common stock
Braeden's authorized capital consists of 50,000,000 shares of common stock, with par value of $0.001.
On September 30, 2008, Braeden issued 30,000,000 to two directors at $0.0005 per share, for net proceeds of $15,000.
Page 45
No dealer, salesman or any other person has been authorized to give any quotation or to make any representations in connection with the offering described herein, other than those contained in this prospectus. If given or made, such other information or representation, must not be relied upon as having been authorized by us or by any underwriter. This prospectus does not constitute an offer to sell, or a solicitation of an offer to buy any securities offered hereby in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.
DEALER PROSPECTUS DELIVERY OBLIGATION
Until __________________ (90th day after the later of (1) the effective date of the registration statement or (2) the first date on which the securities are offered publicly), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
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PART II - INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 1. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 78.7502 of the Nevada Revised Statutes and Article VII of our Articles of Incorporation permit us to indemnify our officers and directors and certain other persons against expenses in defense of a suit to which they are parties by reason of such office, so long as the persons conducted themselves in good faith and the persons reasonably believed that their conduct was in our best interests or not opposed to our best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful. See our Articles of Incorporation filed as Exhibit 2.1 to this registration statement.
Indemnification is not permitted in connection with a proceeding by us or in our right in which the officer or director was adjudged liable to us or in connection with any other proceeding charging that the officer or director derived an improper personal benefit, whether or not involving action in an official capacity.
ITEM 2. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The expenses to be paid by us in connection with the securities being registered are as follows:
Amount
Securities and Exchange Commission Registration Fee*
$                   100
Accounting Fees and Expenses
6,700
Legal Fees and Expenses
17,900
Transfer Agent and Registrar Fees and Expenses
200
Printing Expenses
0
Miscellaneous Expenses
100
Total
$           25,000*
------------------
*Estimated amount
Page 47
ITEM 3. UNDERTAKINGS.
We hereby undertake to:
1) File, during any period in which it offers or sells securities, a post-effective amendment to this registration statement to:
i)
Include any prospectus required by section 10(a)(3) of the Securities Act; and
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 foregoing, 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 estimated maximum offering range may be reflected in the form of prospectus 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 twenty percent (20%) change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
iii)      Include any additional or changed material information on the plan of distribution;
provided, however, that paragraphs (i) and (ii) do not apply if the    information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to Section 13 or Section 14(d) of the Securities Exchange Act of 1934;
2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, 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 hereby which remain unsold at the termination of the offering;
4) That, for the purpose of 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 of Regulation C of the Securities Act;
(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.
Page 48
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, we have 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 us of expenses incurred or paid by one of our directors, officers or controlling persons 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, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
ITEM 4. UNREGISTERED SECURITIES ISSUED OR SOLD WITHIN ONE YEAR
We issued 20,000,000 shares of common stock on August 11, 2008 to Leigh Lyons at a price of $0.0005 per share, for total proceeds of $10,000 and a member of our Board of Directors. We also sold 5 million shares to each of Brualio Vasquez and Hilario Vanegas for $0.0005 per share. Mr. Lyons is our President, Secretary and Treasurer and Messrs. Vasquez and Vanegas are members of our Board of Directors. These shares were issued pursuant to Section 4(2) of the Securities Act. The 30,000,000 shares of common stock are restricted shares as defined in the Securities Act. These issuances were made to sophisticated investors. As our promoter since our inception, Messrs. Lyons, Vasquez and Vanegas are in a position to access the relevant and material information regarding our operations. No underwriters were used.
All of the above noted securities were sold in reliance on Regulation D, Section 504 of the Securities Act of 1933. All shareholders are subject to Rule 144 of the Securities Act of 1933 with respect to resale. We relied the exemption from registration since we were not subject to the reporting requirements of Section 13 or 15(d) of the Securities Act of 1933, not an investment company, we had a specific business plan at the time we sold the securities, we are not a blank check company, as that term is defined in Rule 419(a)(2) of Regulation C or Rule 504 (a)(3) of Regulation D of the Securities Act of 1933, and the aggregate offering price was less than $1,000,000. All of the subscribers are our directors and/or our executive officers.
ITEM 5. INDEX TO EXHIBITS.
REGULATION
S-B NUMBER
EXHIBIT
3.1
Articles of Incorporation
3.2
Bylaws
10.1
Purchase Agreement for the New Dawn Property
ITEM 6. DESCRIPTION OF EXHIBITS
See item 5 above.
Page 49
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements of filing on Form S-1 and authorized this registration statement to be signed on its behalf by the undersigned, in Baline, Washington on March 13, 2009.
BRAEDEN VALLEY MINES, INC.
By:
/s/ G. Leigh Lyons
G. Leigh Lyons
President (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated:
BRAEDEN VALLEY MINES, INC.
By:
/s/ G. Leigh Lyons
G. Leigh Lyons
Dated: March 13, 2009
President (Principal Executive Officer) and Treasurer (Principal Accounting Officer and Member of the Board of Directors)
Page 50