The Companys financial
statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern,
which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not
yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.
The Company experienced a loss of $227,730 for the three months ended July 31, 2012 and $1,363,891 since inception, July 8, 2008.
The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating
losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease development
The ability of the Company to
continue as a going concern is dependent upon its ability to successfully accomplish its plans to generate revenue from mining
claims. The accompanying financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or the amount and classifications or liabilities or other adjustments that might be necessary should
the Company be unable to continue as a going concern.