UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

# FORM 20-F/A(Amendment No. 2)

|[  ] |  | REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|---- |  | ----------------------------------------------------------------------------------------------

OR

|X |  | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the
fiscal year ended June 30, 2005
|- |  | ----------------------------------------------------------------------------------------------------------------------------

OR

|[  ] |  | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES          EXCHANGE ACT OF 1934
|---- |  | -------------------------------------------------------------------------------------------------

| | For
the transition period from __________ to _______________
| | ------------------------------------------------------------

OR

|[  ] |  | SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES          EXCHANGE ACT OF
1934
|---- |  | ----------------------------------------------------------------------------------------------------

| | Date
of event requiring this shell company report __________
| | ------------------------------------------------------------

Commission file number:
0-50880

White Knight
Resources Ltd. (Exact name of
Registrant as specified in its charter)

Province of British
Columbia, Canada
(Jurisdiction of incorporation or organization)

#922, 510 West
Hastings Street, Vancouver, British Columbia, Canada V6B 1L8
(Address of principal executive offices)

| | Securities
registered or to be registered pursuant to Section 12(b) of the Act.
| | -------------------------------------------------------------------------------

|Title of each classN/A | Name of each exchange on which registeredN/A
|---------------------- | --------------------------------------------

| | Securities
registered or to be registered pursuant to Section 12(g) of the Act.
| | -------------------------------------------------------------------------------

Common Stock, No Par Value
(Title of Class)

Securities for which there is a
reporting obligation pursuant to Section 15(d) of the Act.   N/A

Indicate the number of outstanding
shares of each of the issuer's classes of capital or common stock as of the close of the
period covered by this annual report, June 30, 2005:   54,089,386 Common Shares

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.   X   Yes      [_]   No

If this is an annual report, indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).  [_]   Yes      X  No 

Indicate by check mark which financial
statement item the registrant has elected to follow.   X  Item 17      [_]   Item 18

---

# WHITE KNIGHT RESOURCES
LTD.
FORM 20-F/A ANNUAL REPORT 
TABLE OF CONTENTS

|         
|---------
|ITEM 17: 
|
|ITEM 18: 
|
|ITEM 19: 
|
|SIGNATURE

i

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# ITEM 17:     FINANCIAL
STATEMENTS

The consolidated financial statements
are presented in CAD$ and were prepared in accordance with Canadian GAAP, the application
of which, in the case of the Company, conforms in all material respects for the years
presented with US GAAP, except as disclosed in Note 15 to the consolidated financial
statements forming part hereof.

The financial statements and related
schedules as required under item 17 are attached hereto and found immediately following
the text of this Annual Report. The audit report of Davidson & Company is included
herein immediately preceding the consolidated financial statements.

1

---

# WHITE KNIGHT RESOURCES
LTD.

# CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars) 

JUNE 30, 2005

2

---



# INDEPENDENT
AUDITORS REPORT

To the Shareholders of
White Knight Resources Ltd.

We have audited the consolidated
balance sheets of White Knight Resources Ltd. as at June 30, 2005 and 2004 and the
consolidated statements of operations, shareholders equity and cash flows for the
years ended June 30, 2005, 2004 and 2003. These financial statements are the
responsibility of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance
with Canadian generally accepted auditing standards and with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that we plan
and perform an audit to obtain reasonable assurance 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.

In our opinion, these consolidated
financial statements present fairly, in all material respects, the financial position of
the Company as at June 30, 2005 and 2004 and the results of its operations and its cash
flows for the years ended June 30, 2005, 2004 and 2003 in accordance with Canadian
generally accepted accounting principles.

DAVIDSON &
COMPANY LLP

|Vancouver, Canada
September 14, 2005 
(except as to Note 15, which
is as of May 19, 2006) | Chartered Accountants
|----------------------------------------------------------------------------------------- | ---------------------

# COMMENTS BY AUDITORS
FOR U.S. READERS ON CANADA 
U.S. REPORTING DIFFERENCE

In the United States, reporting
standards for auditors require the addition of an explanatory paragraph (following the
opinion paragraph) to identify circumstances when there is a restatement that has a
material effect on the comparability of the Companys financial statements such as
the restatement described in Note 15, or when the financial statements are affected by
conditions and events that cast substantial doubt on the Companys ability to
continue as a going concern, such as those described in Note 1 to the financial
statements. Our report to the shareholders dated September 14, 2005 is expressed in
accordance with Canadian reporting standards which do not permit a reference to such
events and conditions in the auditors report when these are adequately disclosed in
the financial statements.

DAVIDSON &
COMPANY LLP

|Vancouver, Canada
September 14, 2005 
(except as to Note 15, which
is as of May 19, 2006) | Chartered Accountants
|----------------------------------------------------------------------------------------- | ---------------------

A Member ofSC
INTERNATIONAL

1200  609
Granville Street, P.O. Box 10372, Pacific Centre, Vancouver, BC, Canada, V7Y 1G6
Telephone (604) 687-0947 Fax (604) 687-6172

3

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WHITE KNIGHT RESOURCES LTD.CONSOLIDATED BALANCE SHEETS 
(Expressed in Canadian Dollars) 
AS AT JUNE 30

|                                                                
|----------------------------------------------------------------
|
|                                                                
|ASSETS                                                          
|Current                                                         
|Cash and cash equivalents                                       
|Temporary investments (Note 3)                                  
|Receivables (Note 7)                                            
|Prepaid expenses                                                
|                                                                
|Total current assets                                            
|                                                                
|Mineral property interests(Note 4)                              
|Deferred exploration costs(Note 5)                              
|Equipment(Note 6)                                               
|Restricted reclamation bonds(Note 11)                           
|                                                                
|Total assets                                                    
|                                                                
|                                                                
|LIABILITIES AND SHAREHOLDERS' EQUITY                            
|Current                                                         
|Accounts payable and accrued liabilities                        
|Due to related parties (Note 7)                                 
|                                                                
|Total current liabilities                                       
|                                                                
|Shareholders' equity                                            
|Capital stock (Note 8)                                          
|Authorized:                                                     
|100,000,000 common shares without par value                     
|Issued and outstanding                                          
|54,089,386 (2004 - 50,029,386)                                  
|Contributed surplus                                             
|Deficit                                                         
|                                                                
|Total shareholders' equity                                      
|                                                                
|Total liabilities and shareholders' equity                      
|                                                                
|Nature and continuance of operations(Note 1)Commitments(Note 13)

On behalf of the Board:

|John Leask                
                
      
                Director
__________________________________
John M. Leask | Megan CameronJones                
                Director
__________________________________
Megan CameronJones
|------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------

The
accompanying notes are an integral part of these consolidated financial statements.

4

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WHITE KNIGHT RESOURCES
LTD.CONSOLIDATED STATEMENTS OF OPERATIONS 
(Expressed in Canadian Dollars) 
YEAR ENDED JUNE 30

|                                                            
|------------------------------------------------------------
|
|                                                            
|ADMINISTRATION COSTS                                        
|Amortization                                                
|Audit                                                       
|Bank charges and interest                                   
|Consulting                                                  
|Consulting - related party (Note 7)                         
|Consulting - stock-based compensation (Note 8)              
|Investor relations and shareholder information              
|Legal                                                       
|Management fees - related party (Note 7)                    
|Office and miscellaneous                                    
|Rent                                                        
|Telephone                                                   
|Transfer agent and listing fees                             
|Travel and entertainment                                    
|Wages and benefits                                          
|                                                            
|                                                            
|Loss before other items                                     
|                                                            
|OTHER ITEMS                                                 
|Write-off of deferred exploration costs (Note 5)            
|Interest income                                             
|Loss on foreign exchange                                    
|Unrealized recovery (loss) on temporary investments (Note 3)
|Loss on disposal of equipment                               
|                                                            
|                                                            
|                                                            
|                                                            
|Loss for the year                                           
|                                                            
|                                                            
|Basic and diluted loss per common share                     
|                                                            
|                                                            
|Weighted average number of common shares outstanding        
|                                                            

The
accompanying notes are an integral part of these consolidated financial statements.

5

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WHITE KNIGHT RESOURCES
LTD.CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY 
(Expressed in Canadian Dollars)

|                                  
|----------------------------------
|
|                                  
|Balance, June 30, 2002            
|Shares issued for:                
|Mineral property interests        
|Exercise of stock options         
|Loss for the year                 
|                                  
|                                  
|Balance, June 30, 2003            
|Shares issued for:                
|Mineral property interests        
|Exercise of stock options         
|Exercise of warrants              
|Private placement                 
|Finder's fee                      
|Private placement                 
|Private placement                 
|Private placement expenses        
|Stock-based compensation          
|Loss for the year                 
|                                  
|                                  
|Balance, June 30, 2004            
|Shares issued for:                
|Mineral property interests        
|Exercise of stock options (Note 8)
|Exercise of warrants (Note 8)     
|Exercise of broker's warrants     
|(Note 8)                          
|Private placement                 
|Stock-based compensation          
|Less:  Fair market value of stock 
|options and broker's warrants     
|exercised                         
|Loss for the year                 
|                                  
|                                  
|Balance, June 30, 2005            
|                                  

The
accompanying notes are an integral part of these consolidated financial statements.

6

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WHITE KNIGHT RESOURCES LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS 
(Expressed in Canadian Dollars) 
YEAR ENDED JUNE 30

|                                                                
|----------------------------------------------------------------
|
|                                                                
|CASH FLOWS FROM OPERATING ACTIVITIES                            
|Loss for the year                                               
|Items not affecting cash:                                       
|Amortization                                                    
|Write-off of deferred exploration costs                         
|Loss on disposal of equipment                                   
|Stock-based compensation                                        
|Unrealized recovery (loss) on temporary investments             
|                                                                
|Changes in non-cash working capital items:                      
|Decrease (increase) in receivables                              
|Increase in prepaid expenses                                    
|Increase (decrease) in accounts payable and accrued liabilities 
|Increase (decrease) in due to related parties                   
|                                                                
|Net cash used in operating activities                           
|                                                                
|CASH FLOWS FROM FINANCING ACTIVITIES                            
|Issuance of capital stock                                       
|                                                                
|Net cash provided by financing activities                       
|                                                                
|CASH FLOWS FROM INVESTING ACTIVITIES                            
|Acquisition of mineral property interests                       
|Deferred exploration costs                                      
|Reclamation bond refunded (posted)                              
|Acquisition of  temporary investments                           
|Proceeds from disposal of equipment                             
|Acquisition of equipment                                        
|                                                                
|Net cash used in investing activities                           
|                                                                
|Increase (decrease) in cash and cash equivalents during the year
|                                                                
|Cash and cash equivalents, beginning of year                    
|                                                                
|Cash and cash equivalents, end of year                          
|                                                                
|Supplemental disclosures with respect to cash flows  (Note 12)  

The
accompanying notes are an integral part of these consolidated financial statements.

7

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WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|1. |  | NATURE
AND CONTINUANCE OF OPERATIONS
|-- |  | ------------------------------------

| | White
Knight  Resources  Ltd.  (the  Company)  is a Canadian  company  incorporated  in
British  Columbia.  The          Company is primarily engaged in the acquisition and
exploration of mineral property interests.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
the date of these consolidated financial statements, the Company has not been able to
identify an ore body on any of its mineral property interests. The ability of the Company
to realize the costs it has incurred to date on these mineral property interests is
dependent upon the Company being able to lever its property interests and cash, by way of
exploration activities and option/joint ventures, into assets of greater value or to
identify a commercial ore body, to finance its exploration costs and to resolve any
environmental, regulatory or other constraints which may hinder the successful
development of the mineral property interest. To date, the Company has not earned
revenues and is considered to be in the exploration stage.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | These
consolidated financial statements have been prepared assuming the Company will continue
on a going concern basis. The Company has incurred losses since inception and the ability
of the Company to continue as a going-concern depends upon its ability to develop
profitable operations and to continue to raise adequate financing. Management is actively
targeting sources of additional financing through alliances with financial, exploration
and mining entities, or other business and financial transactions which would assure
continuation of the Companys operations and exploration programs. In order for the
Company to meet its liabilities as they come due and to continue its operations, the
Company is solely dependent upon its ability to generate such financing. The Company has
sufficient resources to meet its obligations for the foreseeable future at its current
level of activity.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | There
can be no assurance that the Company will be able to continue to raise funds in which
case the Company may be unable to meet its obligations. Should the Company be unable to
realize on its assets and discharge its liabilities in the normal course of business, the
net realizable value of its assets may be materially less than the amounts recorded on
the consolidated balance sheets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | All
amounts are in Canadian dollars unless otherwise stated.
| | ------------------------------------------------------------

|               
|---------------
|
|               
|Working capital
|Deficit        
|               

|2. |  | SIGNIFICANT
ACCOUNTING POLICIES
|-- |  | -------------------------------

| | These
consolidated financial statements have been prepared in accordance with Canadian
generally accepted accounting principles (Canadian GAAP). The significant
accounting policies adopted by the Company are as follows:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Use
of estimates
| | ----------------

| | The
preparation of financial statements in accordance with Canadian GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amount of revenues and expenses during the year.
Actual results could differ from these estimates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

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WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|2. |  | SIGNIFICANT
ACCOUNTING POLICIES(contd)
|-- |  | ----------------------------------------

| | Principles
of consolidation
| | ---------------------------

| | These
consolidated financial statements include the accounts of the Company and the following
subsidiaries, all of which are 100% owned:
| | ----------------------------------------------------------------------------------------------------------------------------------------

| | White Knight Gold (U.S.) Inc.
CUN Minerals Inc.
Quito Gold Corp.
| | ----------------------------------------------------------------

| | All
material inter-company transactions have been eliminated upon consolidation.
| | --------------------------------------------------------------------------------

| | Cash
and cash equivalents
| | -------------------------

| | Cash
and cash equivalents consist of cash on hand and highly liquid investments with original
maturities of three months or less. At June 30, 2005 and 2004, cash and cash equivalents
consisted of cash held in financial institutions.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Temporary
investments
| | ---------------------

| | Temporary
investments are recorded at the lower of cost or market on an aggregate basis. For
temporary investments in which unrealized losses had been recognized in a previous year,
any subsequent recoveries in market value are recorded up to original cost. This occurred
for the first time during fiscal 2005.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Mineral
property interests and deferred exploration costs
| | ---------------------------------------------------------

| | The
Company records mineral property interests, which consist of the right to explore for
mineral deposits, at cost. The Company records deferred exploration costs, which consist
of costs attributable to the exploration of mineral property interests, at cost. All
direct and indirect costs relating to the acquisition and exploration of these mineral
property interests are capitalized on the basis of specific claim blocks until the
mineral property interests to which they relate are placed into production, the mineral
property interests are disposed of through sale or where management has determined there
to be an impairment. If a mineral property interest is abandoned, the mineral property
interest and deferred exploration costs will be written off to operations in the period
of abandonment.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
an ongoing basis, the capitalized costs are reviewed on a property-by-property basis to
consider if there is any impairment on the subject mineral property interest. Managements
determination for impairment is based on: i) whether the Companys exploration
programs on the mineral property interests have significantly changed, such that
previously identified resource targets are no longer being pursued; ii) whether
exploration results to date are promising and whether additional exploration work is
being planned in the foreseeable future or iii) whether remaining lease terms are
insufficient to conduct necessary studies or exploration work. As at June 30, 2005 and
2004, management believes that no impairment relating to the mineral property interests
and deferred exploration costs was required.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
recorded cost of mineral property interests and deferred exploration costs is based on
cash paid and the assigned value of share consideration issued for mineral property
interest acquisitions and exploration costs incurred. The recorded amount may not reflect
recoverable value as this will be dependent on future development programs, the nature of
the mineral deposit, commodity prices, adequate funding and the ability of the Company to
bring its projects into production.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Canadian
GAAP Conflict in Accounting for Mineral Property Interests and Deferred Exploration Costs
| | --------------------------------------------------------------------------------------------------

| | In
March 2000, the Accounting Standards Board of the Canadian Institute of Chartered
Accountants (CICA) issued Accounting Guideline No. 11 Enterprises in
the Development Stage (AcG 11). AcG 11 addresses three
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

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WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|2. |  | SIGNIFICANT
ACCOUNTING POLICIES(contd)
|-- |  | ----------------------------------------

| | distinct
issues: i) the capitalization of costs/expenditures; ii) impairment; and iii) disclosure.
Prior to its issuance, development stage entities were exempt from following certain
aspects of Canadian GAAP. AcG 11 requires that all companies account for transactions
based on the underlying characteristics of the transaction rather than the maturity of
the enterprise. In addition, AcG 11 requires specific disclosure of information by
development stage companies.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
March 2002, the Emerging Issues Committee (EIC) of the CICA issued EIC-126
Accounting by Mining Enterprises for Exploration Costs (EIC-126)
which interprets how AcG 11 affects mining companies with respect to the deferral of
exploration costs. EIC-126 refers to CICA Handbook Section 3061 Property, Plant and
Equipment (HB 3061), paragraph .21, which states that for a mineral
property interest, the cost of the asset includes exploration costs if the enterprise
considers that such costs have the characteristics of property, plant and equipment.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | EIC-126
then states that a mining enterprise that has not established mineral reserves
objectively, and therefore does not have a basis for preparing a projection of the
estimated cash flow from the mineral property interest, is not precluded from considering
the exploration costs to have the characteristics of property, plant and equipment.
EIC-126 also sets forth the EICs consensus that a mining enterprise in the
development stage is not required to consider the conditions in AcG 11 regarding
impairment in determining whether exploration costs may be initially capitalized. With
respect to impairment of capitalized exploration costs, EIC-126 sets forth the EICs
consensus that a mining enterprise in the development stage that has not established
mineral reserves objectively, and, therefore, does not have a basis for preparing a
projection of the estimated cash flow from the property, is not obliged to conclude that
capitalized costs have been impaired. However, such an enterprise should consider the
conditions set forth in AcG 11 and HB 3061 in determining whether a subsequent write-down
of capitalized exploration costs related to mineral property interests is required.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
disclosed above, the Company considers that its mineral property interests and deferred
exploration costs have the characteristics of property, plant and equipment, and,
accordingly, the Company has chosen to classify its mineral property interests and
deferred exploration costs as tangible assets in accordance with its interpretation of
Canadian GAAP.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Although
the Company believes its accounting policy is appropriate and consistent with Canadian
GAAP, there is an alternative interpretation of Canadian GAAP that would consider them to
be intangible assets as a result of the issuance of CICA Handbook Section 1581 Business
Combinations (HB 1581) and CICA Handbook Section 3062 Goodwill
and Other Intangible Assets (HB 3062).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | This
alternative interpretation under HB 1581 and HB 3062 would provide for the capitalization
of a contract based mining asset as an intangible asset at its fair value at the time it
was acquired, either as an individual asset purchase or as part of a business
combination. For exploration stage mineral property interests and deferred exploration
costs such as those owned by the Company, the excess of the carrying value over the
residual value of the intangible assets would be amortized on a straight-line basis over
the period in which the Company expected to complete its exploration process or convert,
develop or further explore the underlying properties. For the Company, a reasonable
estimate of this amortization period would be 5 years.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
September, 2004, the CICA amended the guidance in HB 3062 to remove the example of
mineral rights as this reference may have implied that mineral rights are necessarily an
intangible asset. This amendment confirmed the Companys current method of
accounting for mineral property interests. Unless alternative guidance is provided, the
Company expects to continue accounting for these assets as tangible assets.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|2. |  | SIGNIFICANT
ACCOUNTING POLICIES(contd)
|-- |  | ----------------------------------------

| | Asset
retirement obligations
| | ----------------------------

| | Effective
July 1, 2004, the Company recognizes the fair value of a liability for an asset
retirement obligation in the year in which it is incurred when a reasonable estimate of
fair value can be made. The carrying amount of the related long-lived asset is increased
by the same amount as the liability. Changes in the liability for an asset retirement
obligation due to the passage of time will be measured by applying an interest method of
allocation. The amount will be recognized as an increase in the liability and an
accretion expense in the statement of operations. Changes resulting from revisions to the
timing or the amount of the original estimate of undiscounted cash flows are recognized
as an increase or a decrease in the carrying amount of the liability for an asset
retirement obligation and the cost of the related long-lived asset. At June 30, 2005,
there are no asset retirement obligations.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Impairment
of long-lived assets and long-lived assets to be disposed of
| | -----------------------------------------------------------------------

| | Long-lived
assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Recoverability of assets to
be held and used is measured by a comparison of the carrying amount of an asset to future
net cash flows expected to be generated by the asset. If such assets are considered to be
impaired, the impairment to be recognized is measured by the amount by which the carrying
amount of the assets exceeds the fair value of the assets. Assets to be disposed of are
reported at the lower of the carrying amount and the fair value less costs to sell.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Risk
management
| | ---------------

| | The
Companys largest non-monetary assets are its mineral property interests in the
United States of America. The Company could accordingly be at risk for foreign currency
fluctuations and developing legal and political environments.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company does not maintain significant cash or other monetary assets or liabilities in the
United States.
| | ------------------------------------------------------------------------------------------------------------

| | The
Company relies on local consultants for the management of its exploration activities and
for legal and accounting matters.
| | ------------------------------------------------------------------------------------------------------------------------------

| | Equipment
and amortization
| | --------------------------

| | Equipment
is recorded at cost and amortization is calculated at the following rates per annum using
the declining-balance method:
| | ---------------------------------------------------------------------------------------------------------------------------------

|                                 | 
|-------------------------------- | 
|Vehicles and technical equipment | 
|Office equipment                 | 

| | Foreign
currency translation
| | ----------------------------

| | The
Companys subsidiaries are integrated foreign operations and are translated into
Canadian dollar equivalents using the temporal method. Monetary items are translated at
the exchange rate in effect at the balance sheet date; non-monetary items are translated
at historical exchange rates. Income and expense items are translated at the average
exchange rate for the period. Translation gains and losses are reflected in loss for the
year.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|2. |  | SIGNIFICANT
ACCOUNTING POLICIES(contd)
|-- |  | ----------------------------------------

| | Stock-based
compensation
| | ------------------------

| | Effective
July 1, 2002, the Company adopted the CICA Handbook Section 3870 Stock-Based
Compensation and Other Stock-Based Payments, which recommends the fair value-based
methodology for measuring compensation costs. The section permitted, and the Company
adopted, the use of the intrinsic value-based method, which recognizes compensation cost
for awards to employees and directors only when the market price exceeds the exercise
price at date of grant, but requires pro-forma disclosure of earnings and earnings per
share as if the fair value method had been adopted. Any consideration paid by the option
holders to purchase shares is credited to capital stock.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Effective
July 1, 2003, the Company recognizes compensation expense, on a prospective basis, for
all stock options and warrants granted using the fair value based method of accounting.
Pro forma disclosures of loss and loss per share as if the fair value based accounting
method had been used to account for stock-based compensation for any options granted
before July 1, 2003 but on or after July 1, 2002 are provided in the notes.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Future
income taxes
| | -------------------

| | Future
income taxes are recorded using the asset and liability method. Under the asset and
liability method, future tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases. Future tax assets and
liabilities are measured using the enacted or substantively enacted tax rates expected to
apply when the asset is realized or the liability settled. The effect on future tax
assets and liabilities of a change in tax rates is recognized in income in the period
that substantive enactment or enactment occurs. To the extent that the Company does not
consider it more likely than not that a future tax asset will be recovered, it provides a
valuation allowance against the excess.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Loss
per share
| | --------------

| | The
Company uses the treasury stock method to compute the dilutive effect of options,
warrants and similar instruments. Under this method, the dilutive effect on earnings per
share is recognized on the use of the proceeds that could be obtained upon exercise of
options, warrants and similar instruments. It assumes that the proceeds would be used to
purchase common shares at the average market price during the year. The weighted average
number of common shares outstanding at June 30, 2005 of 53,091,304 (2004  39,038,472;
2003  28,958,186) does not include the 9,808,233 (2004  11,964,899; 2003
5,649,308) warrants outstanding and the 3,385,000 (2004  3,665,000; 2003
3,075,000) stock options outstanding.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Basic
loss per share is calculated using the weighted-average number of shares outstanding
during the year.
| | -----------------------------------------------------------------------------------------------------------

| | Comparative
figures
| | -------------------

| | Certain
comparative figures have been reclassified to conform with the current years
presentation.
| | ---------------------------------------------------------------------------------------------------

|3. |  | TEMPORARY
INVESTMENTS
|-- |  | ---------------------

| | Temporary
investments consist of highly liquid bonds with a carrying value at June 30, 2005 of
$10,895,443 and a fair value of $10,931,667. The recovery reported in the consolidated
financial statements of $31,404 related to temporary investments is a partial recovery of
the unrealized loss on temporary investments reported in fiscal 2004 of $42,999.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|4. |  | MINERAL
PROPERTY INTERESTS
|-- |  | --------------------------

|                       
|-----------------------
|
|                       
|Nevada Properties      
|Benmark                
|Celt                   
|Cottonwood             
|Fye Canyon             
|Gold Bar Horst         
|Gold Pick              
|Goldstone              
|Hunter                 
|Ian                    
|Indian Ranch           
|Knolls                 
|McClusky Pass          
|New Pass               
|Pat Canyon             
|Slaven Canyon          
|South Cabin Creek      
|Squaw Creek            
|Tonkin Summit          
|Other                  
|                       
|Total Nevada Properties
|                       

|                       
|-----------------------
|
|                       
|Nevada Properties      
|Benmark                
|Celt                   
|Cottonwood             
|Fye Canyon             
|Gold Bar Horst         
|Gold Pick              
|Goldstone              
|Hunter                 
|Indian Ranch           
|McClusky Pass          
|New Pass               
|Pat Canyon             
|Slaven Canyon          
|South Cabin Creek      
|Squaw Creek            
|Tonkin Summit          
|                       
|Total Nevada Properties
|                       

13

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|4. |  | MINERAL
PROPERTY INTERESTS (contd)
|-- |  | ------------------------------------

|                       
|-----------------------
|
|                       
|Nevada Properties      
|Cottonwood             
|Gold Bar Horst         
|Gold Pick              
|Hunter                 
|Indian Ranch           
|McClusky Pass          
|New Pass               
|Slaven Canyon          
|South Cabin Creek      
|Squaw Creek            
|                       
|Total Nevada Properties
|                       

| | Title
to mineral property interests involves certain inherent risks due to the difficulties of
determining the validity of certain claims as well as the potential for problems arising
from the frequently ambiguous conveyancing history characteristic of many mineral claims.
The Company has investigated title to all of its mineral property interests and, to the
best of its knowledge, expects title to all of its interests to be in good standing. The
mineral property interests in which the Company has committed to earn an interest are
located in the United States and the Company is therefore relying on advice by legal
counsel who are basing such advice on the laws of the United States.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Celt,
Eureka County, Nevada
| | ---------------------------

| | In
fiscal 2004, the Company acquired the property by staking. During the 2005 fiscal year,
Teck Cominco American Incorporated (TCAI) elected to earn an initial 51%
interest in the property pursuant to its rights under a Financing and Acquisition
Agreement. The terms of the agreement provide for exploration expenditures of
US$4,000,000 and cash payments of US$750,000 which must be incurred and paid to the
Companys U.S. subsidiary in annual increments prior to December 31, 2008. TCAI has
made a firm commitment to incur US$500,000 in exploration expenditures by December 31,
2005. Upon TCAI vesting its 51% interest, TCAI and the Company will form a joint venture
to further develop the property. When the joint venture completes the earlier of US$8.0
million in expenditures or a preliminary feasibility study, TCAI will have a one-time
option to elect to earn an additional 9% interest in the property by funding and
completing a feasibility study. Upon TCAI earning its additional interest and the
approval of a production plan, the Company will have the option to request that TCAI
arrange financing for the Companys share of the capital costs required to develop
the property. If the Company exercises this option TCAI shall commit to use its best
efforts to arrange or provide project debt financing for not less than 60% of projected
capital costs on a limited recourse basis after technical completion. If project costs
exceed the amount available for debt financing and the parties elect nonetheless to put
the property into production then at the Companys election TCAI shall also arrange
or provide the Companys share of equity financing on a subordinate loan basis at
LIBOR plus 4%. The property is comprised of 608 claims.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cottonwood,
Eureka County, Nevada
| | ---------------------------------

| | In
fiscal 2002, the Company staked 56 claims and executed a mining lease agreement to
acquire six adjacent claims. Under the terms of the agreement, the Company has made lease
payments totalling US$6,000 and has issued 60,000 common shares of the Company at a value
of $33,800. In addition, the Company is required to make a further lease payment of
US$3,000 and issue a further 20,000 common shares of the Company over the next one-year
period, and thereafter is required to make annual lease payments of US$5,000. The Company
has staked an additional 28 claims in the surrounding area.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|4. |  | MINERAL
PROPERTY INTERESTS(contd)
|-- |  | -----------------------------------

| | Fye
Canyon, Eureka County, Nevada
| | ---------------------------------

| | In
fiscal 2004, the Company executed a mining lease agreement to acquire 114 claims (the
Underlying Fye Agreement). Under the terms of the agreement, the Company has
made an initial lease payment of US$5,000 which will increase by US$5,000 per year to a
maximum of US$50,000 per year. The underlying royalty retained by the owner is 2% of net
smelter returns up to a maximum of US$1,000,000 after which it is reduced to 1% of net
smelter returns to a maximum of US$5,000,000. During the 2005 fiscal year, the Company
entered into a Financing and Acquisition Agreement with TCAI whereby TCAI was granted the
option to earn an initial 51% interest in the property. The terms of the agreement
provide for exploration expenditures of US$4,000,000, cash payments of US$750,000 which
must be incurred and paid to the Companys U.S. subsidiary in annual increments
prior to December 31, 2008, and the assumption of all obligations under the Underlying
Fye Agreement. TCAI has made a firm commitment to incur US$500,000 in exploration
expenditures by December 31, 2005. Upon TCAI vesting its 51% interest, TCAI and the
Company will form a joint venture to further develop the property. When the joint venture
completes the earlier of US$8.0 million in expenditures or a preliminary feasibility
study, TCAI will have a one-time option to elect to earn an additional 9% interest in the
property by funding and completing a feasibility study. Upon TCAI earning its additional
interest and the approval of a production plan, the Company will have the option to
request that TCAI arrange financing for the Companys share of the capital costs
required to develop the property. If the Company exercises this option TCAI shall commit
to use its best efforts to arrange or provide project debt financing for not less than
60% of projected capital costs on a limited recourse basis after technical completion. If
project costs exceed the amount available for debt financing and the parties elect
nonetheless to put the property into production then at the Companys election TCAI
shall also arrange or provide the Companys share of equity financing on a
subordinate loan basis at LIBOR plus 4%. An additional 231 claims have been staked in the
area of interest.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Hunter,
Eureka County, Nevada
| | -----------------------------

| | In
fiscal 2002, the Company staked 46 claims and executed a mining lease agreement to
acquire two adjacent claims. Under the terms of the agreement, the Company has made lease
payments totalling US$10,000 and issued 80,000 common shares of the Company at a value of
$37,800. In addition, the Company is required to make a further lease payment of US$4,000
and issue a further 20,000 common shares of the Company over the next one-year period,
and thereafter is required to make annual lease payments of US$7,000.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Indian
Ranch, Eureka County, Nevada
| | -----------------------------------

| | In
fiscal 1994, the Company entered into a lease agreement for a 100% interest in 48 claims
by issuing 100,000 common shares of the Company. The agreement is subject to a 6% net
smelter return royalty payable to the lessee. The agreement was amended during a prior
year whereby the Company secured the ability to buy down the 6% net smelter return
royalty to 3% by making a payment of US$500,000 and extending the lease term to 2014. The
Company holds an additional 496 claims within the area of interest.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
fiscal 1997, the Company entered into an option agreement with Chapleau Resources Ltd. (Chapleau).
Pursuant to the terms of the agreement and the subsequent amendment, Chapleau was vested
a 40% undivided interest in the property in 2001.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
fiscal 2001, the Company and Chapleau entered into an option agreement with Kennecott
Exploration Company (Kennecott) whereby Kennecott could earn a 60% interest
in the property by making certain option payments and incurring certain exploration
expenditures. After paying the Company certain option payments, Kennecott terminated the
agreement in November 2001. Upon termination of the Kennecott agreement, Chapleaus
interest in the property was reduced to a 25% undivided interest, leaving the Company
with a 75% undivided interest in the property.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|4. |  | MINERAL
PROPERTY INTERESTS(contd)
|-- |  | -----------------------------------

| | Indian
Ranch, Eureka County, Nevada(contd)
| | --------------------------------------------

| | In
fiscal 2003, the Company and Chapleau entered into an option-joint venture agreement with
Placer Dome U.S. Inc. (PDUS). Under the terms of the agreement, PDUS may earn
a 60% interest in the property by incurring minimum work expenditures of US$2.0 million
over a four year period and reimbursing the companies for their 2002 claim filing costs.
Upon vesting its 60% ownership, PDUS can elect to earn an additional 15% by financing a
feasibility study on the property.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | New
Pass, Churchill County, Nevada
| | ----------------------------------

| | In
fiscal 1998, the Company purchased a 100% interest in the property from Quest USA
Resources Inc. by making payments totalling US$165,000, subject to a 2.75% net smelter
return royalty. In fiscal 2000, the Company purchased the 2.75% net smelter return
royalty by issuing 100,000 common shares of its capital stock to the vendor. In fiscal
2005, the Company granted Consolidated Odyssey Exploration Inc. (ODE) an
option to earn an initial 50% interest in the property. The Company paid a finders fee of
$10,000 with respect to the ODE agreement. In February 2005, ODE assigned all of its
rights under the agreement to Bonaventure Enterprises Inc. (Bonaventure).
Under the terms of the agreement, Bonaventure must incur US$2,000,000 in exploration
expenditures, issue 500,000 shares and make option payments totalling US$500,000 over a
4-year period (US$50,000 and 100,000 shares at a value of $24,617 received). Upon vesting
a 50% interest, Bonaventure may elect to earn an additional 10% interest by financing the
completion of a feasibility study. The property is comprised of 107 claims.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Slaven
Canyon, Lander County, Nevada
| | ------------------------------------

| | In
fiscal 2002, the Company acquired 51 claims by staking. In fiscal 2003, the Company
acquired 17 claims by staking and acquired an additional 642 acres of land contiguous to
the Companys claims by executing three lease agreements which provide for
escalating lease payments. In fiscal 2004, the Company acquired an additional 190 claims
by staking and acquired an additional 350 acres of land contiguous to the Companys
claims by executing seven lease agreements which provide for cash payments totalling
US$7,400 on signing and escalating lease payments thereafter. The underlying royalty
retained by the owners ranges from 1⁄2% of net smelter returns to 31⁄2% of net
smelter returns with a buy-down provision allowing the Company to reduce the underlying
royalty to a 2% net smelter return by paying US$1,500,000. In July, 2005, the Company
acquired an additional 320 acres of land contiguous to the Companys claims by
executing a lease agreement which provides for a cash payment of US$7,619 and
re-imbursement of fees of US$15,000 upon signing (both payments made), and escalating
lease payments thereafter. The underlying royalty retained by the owner is 2.75%.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Squaw
Creek, Elko County, Nevada
| | --------------------------------

| | Since
1996, the Company has held a 100% interest in 151 claims located in Elko County which
were acquired by staking. During the 2005 fiscal year, the Company granted ODE an option
to earn an initial 50% interest in the property. The Company paid a finders fee of
$10,000 with respect to the ODE agreement. In February 2005, ODE assigned all of its
rights under the agreement to Bonaventure. Under the terms of the agreement, Bonaventure
must incur US$2,000,000 in exploration expenditures, issue 500,000 shares and make option
payments totalling US$500,000 over a 4-year period (US$50,000 and 100,000 shares at a
value of $24,617 received). Upon vesting a 50% interest, Bonaventure may elect to earn an
additional 10% interest by financing the completion of a feasibility study.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|4. |  | MINERAL
PROPERTY INTERESTS(contd)
|-- |  | -----------------------------------

| | Other
Nevada Properties
| | -----------------------

| | In
fiscal 2002, the Company acquired a 100% interest by staking the South Cabin Creek and
Gold Bar Horst properties. In fiscal 2003, the Company acquired a 100% interest in the
Gold Pick property by staking. In fiscal 2004, the Company acquired the McClusky Pass,
Pat Canyon, Tonkin Summit, Benmark, and Goldstone properties. During the 2005 fiscal
year, the Company acquired the Ian and Knolls properties.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | DEFERRED
EXPLORATION COSTS
|-- |  | --------------------------

|                               
|-------------------------------
|
|                               
|Assays                         
|Consulting                     
|Drafting and report preparation
|Drilling                       
|Field operations               
|Reclamation                    
|Recording                      
|Supervision                    
|Surveys                        
|Transportation                 
|Trenching and site preparation 
|Recovery                       
|Write-off                      
|                               
|Total                          
|                               

|                               
|-------------------------------
|
|                               
|Assays                         
|Consulting                     
|Drafting and report preparation
|Drilling                       
|Field operations               
|Reclamation                    
|Recording                      
|Supervision                    
|Surveys                        
|Transportation                 
|Trenching and site preparation 
|Recovery                       
|Write-off                      
|                               
|Total                          
|                               

17

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|5. |  | DEFERRED
EXPLORATION COSTS (contd)
|-- |  | ------------------------------------

|                               
|-------------------------------
|
|                               
|Assays                         
|Consulting                     
|Drafting and report preparation
|Drilling                       
|Field operations               
|Reclamation                    
|Recording                      
|Supervision                    
|Surveys                        
|Transportation                 
|Trenching and site preparation 
|Recovery                       
|Write-off                      
|                               
|Total                          
|                               

|                       
|-----------------------
|
|                       
|Nevada Properties      
|Benmark                
|Celt                   
|Cottonwood             
|Fye Canyon             
|Gold Bar Horst         
|Gold Pick              
|Goldstone              
|Hunter                 
|Ian                    
|Indian Ranch           
|Knolls                 
|McClusky Pass          
|New Pass               
|Pat Canyon             
|Slaven Canyon          
|South Cabin Creek      
|Squaw Creek            
|Tonkin Summit          
|General exploration    
|                       
|Total Nevada Properties
|                       

18

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|5. |  | DEFERRED
EXPLORATION COSTS (contd)
|-- |  | ------------------------------------

|                       
|-----------------------
|
|                       
|Nevada Properties      
|Benmark                
|Celt                   
|Cottonwood             
|Fye Canyon             
|Gold Bar Horst         
|Gold Pick              
|Goldstone              
|Hunter                 
|Indian Ranch           
|McClusky Pass          
|New Pass               
|Pat Canyon             
|Slaven Canyon          
|South Cabin Creek      
|Squaw Creek            
|Tonkin Summit          
|General exploration    
|                       
|Total Nevada Properties
|                       

|                                        
|----------------------------------------
|
|                                        
|Nevada Properties                       
|Cottonwood                              
|Gold Bar Horst                          
|Gold Pick                               
|Hunter                                  
|Indian Ranch                            
|New Pass                                
|Quito                                   
|Slaven Canyon                           
|South Cabin Creek                       
|Squaw Creek                             
|General exploration (including McClusky)
|                                        
|Total Nevada Properties                 
|                                        

19

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|6. |  | EQUIPMENT
|-- |  | ---------

|                   
|-------------------
|
|                   
|
|                   
|Vehicles           
|Technical equipment
|Office equipment   
|                   
|                   
|                   

|7. |  | RELATED
PARTY TRANSACTIONS
|-- |  | --------------------------

| | During
the year ended June 30, 2005, the Company entered into the following transactions with
related parties:
| | --------------------------------------------------------------------------------------------------------------

| | a) |  | Paid
or accrued $264,000 (2004  $210,000; 2003  $58,000) in
                    management fees to directors and officers of the Company and to
companies                     controlled by directors of the Company.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | Paid
or accrued $111,223 (2004  $115,879; 2003  $122,736) in
                    consulting fees to directors and officers of the Company and to
companies                     controlled by directors of the Company, of which $111,223
(2004  $115,879;                     2003  $108,736) is included in or
written-off to deferred exploration                     costs.
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) |  | Paid
or accrued $8,815 (2004  Nil; 2003  Nil) in administrative fees
                    to companies controlled by a director of the Company.
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------

| | At
June 30, 2005, there is $17,754 (2004  $70,370) payable to directors and officers
of the Company and to companies controlled by directors of the Company. Included in
receivables at June 30, 2005 is a travel advance in the amount of $4,572 (2004  Nil)
to cover expenses incurred subsequent to year end paid to a company controlled by a
director. The amounts are unsecured and non-interest bearing.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
amounts charged to the Company for the services provided have been determined by
negotiation among the parties and, in certain cases, are covered by signed agreements.
These transactions were in the normal course of operations and were measured at the
exchange value which represented the amount of consideration established and agreed to by
the related parties.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. |  | CAPITAL
STOCK
|-- |  | -------------

| | Share
issuances
| | ---------------

| | During
the 2005 fiscal year the Company completed a private placement of 1,500,000 units at
$1.58, each unit consisting of one common share and one non-transferable share purchase
warrant, each warrant entitling the holder to purchase an additional share at $2.50 for
one year.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|8. |  | CAPITAL
STOCK (contd)
|-- |  | -----------------------

| | During
the 2004 fiscal year the Company completed three private placements:
| | ---------------------------------------------------------------------------

| | a) |  | 2,500,000
units at $0.40, each unit consisting of one common share and one
          non-transferable share purchase warrant, each warrant entitling the holder to
          purchase an additional share at $0.60 for two years (435,000 warrants exercised
          during the year) with an additional provision that if the closing price of the
          Companys shares exceeds $0.95 for a period of more than 20 business days,
          the warrants must be exercised within two weeks of notice (triggered subsequent
          to year end). A finders fee of 125,000 units were issued as well as
          finders warrants valued at $47,304 entitling the holder to acquire
200,000           shares of the Company at a price of $0.60 for one year; subject to the
same           additional provision as for the placees (triggered subsequent to year
end),
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | 7,764,704
units at $0.85, each unit consisting of one common share and one
          non-transferable share purchase warrant, each warrant entitling the holder to
          purchase an additional share at $1.25 for 18 months. Brokers warrants
          valued at $239,567 were issued entitling the holder to acquire 543,529 shares
of           the Company at a price of $1.25, exercisable for 18 months;
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) |  | 2,222,222
units at $0.90, each unit consisting of one common share and one-half
          non-transferable share purchase warrant, each one warrant entitling the holder
          to purchase an additional share at $1.25 for one year. Brokers warrants
          valued at $69,035 were issued entitling the holder to acquire 155,555 shares of
          the Company at a price of $1.25, exercisable for 1 year.
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d) |  | Share
issuance costs related to private placements during the year totalled           $540,522.
| | -- |  | -----------------------------------------------------------------------------------------------

| | During
the 2003 fiscal year the Company had no share issuances other than those issued for
mineral property interests and stock options.
| | ----------------------------------------------------------------------------------------------------------------------------------------

| | Stock
options
| | -------------

| | Under
the Companys stock option plan effective November 4, 2002 and amended December 12,
2003, the Company may grant options for up to 7,072,935 common shares to directors,
employees and consultants at exercise prices to be determined by the market value on the
date of grant. Vesting of options is made at the discretion of the Board of Directors at
the time the options are granted with the exception of options granted in relation to
investor relations. Options granted to consultants engaged in investor relations
activities vest no earlier than as to one-quarter upon the grant date and a further
one-quarter after each of the following three three-month periods. The options can be
granted for a maximum term of 10 years.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
June 30, 2005, the following incentive stock options were outstanding:
| | -------------------------------------------------------------------------

|         
|---------
|
|         
|55,000   
|805,500  
|2,074,500
|300,000  
|50,000   
|100,000  
|         
|3,385,000
|         

21

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|8. |  | CAPITAL
STOCK (contd)
|-- |  | -----------------------

| | Stock
options(contd)
| | ----------------------

| | Stock
option transactions and the number of stock options outstanding are summarized as
follows:
| | ------------------------------------------------------------------------------------------------

|                                                              
|--------------------------------------------------------------
|
|                                                              
|Balance, June 30, 2002                                        
|Options granted                                               
|Options expired/cancelled                                     
|Options exercised                                             
|                                                              
|                                                              
|Balance, June 30, 2003                                        
|Options granted                                               
|Options exercised                                             
|                                                              
|                                                              
|Balance, June 30, 2004                                        
|Options granted                                               
|Options expired/cancelled                                     
|Options exercised                                             
|                                                              
|                                                              
|Balance, June 30, 2005                                        
|                                                              
|Number of options currently exercisable                       
|                                                              
|                                                              
|Weighted average fair value of options granted during the year
|                                                              
|                                                              
|                                                              

| | Stock-based
compensation
| | ------------------------

| | Effective
July 1, 2003, the Company recognizes compensation expense for all stock options and
warrants granted using the fair value based method of accounting. During fiscal 2003, the
Company elected to measure compensation costs using the intrinsic value-based method for
employee and director stock options. Under this method, no compensation expense is
recognized when stock options are issued, as the exercise price of each option equals the
minimum of the market value at the date immediately preceding the grant. Had the
compensation costs during fiscal 2003 been determined based on the fair value of the
options and warrants at the grant date using the Black-Scholes option-pricing model,
additional compensation expense would have been recorded in the statement of operations
of the period, with pro forma results as presented below.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                  | 
|------------------------------------------------- | 
|Loss for the year as reported                     | 
|                                                  | 
|Compensation expense under Section 3870           | 
|                                                  | 
|Pro forma loss for the year                       | 
|                                                  | 
|Pro forma basic and diluted loss per common share | 
|                                                  | 

22

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|8. |  | CAPITAL
STOCK (contd)
|-- |  | -----------------------

| | Stock-based
compensation (contd)
| | ----------------------------------

| | The
following assumptions were used in the Black-Scholes valuation of stock options and
warrants granted during the years presented:
| | ------------------------------------------------------------------------------------------------------------------------------------

|                                         | 2005 | 2004    | 2003
|---------------------------------------- | ---- | ------- | ----
|                                        
|Weighted average risk-free interest rate |      | 3.7 %   |     
|Expected life of options and warrants    |      | 5 years |     
|Weighted average annualized volatility   |      | 101%    |     
|Dividend                                 |      | 0.00 %  |     

| | Warrants
| | --------

| | Warrant
transactions are summarized as follows:
| | -----------------------------------------------

|                               
|-------------------------------
|
|                               
|Balance, June 30, 2002 and 2003
|                               
|Warrants exercised             
|Warrants exercised             
|Warrants granted               
|Warrants granted               
|Warrants exercised             
|Warrants granted               
|Warrants granted               
|Warrants granted               
|                               
|Balance, June 30, 2004         
|                               
|Warrants exercised             
|Warrants expired               
|Warrants expired               
|Warrants granted               
|                               
|Balance, June 30, 2005         
|                               

| | The
number of warrants outstanding is summarized as follows:
| | ------------------------------------------------------------

|         
|---------
|
|         
|4,352,351
|3,367,647
|588,235  
|1,500,000
|         
|9,808,233
|         

23

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|9. |  | INCOME
TAXES
|-- |  | ------------

| | A
reconciliation of income tax recovery at statutory rates with the reported income tax
recovery is as follows:
| | ---------------------------------------------------------------------------------------------------------------

|                                                 
|-------------------------------------------------
|
|                                                 
|Loss before income tax recovery                  
|                                                 
|Expected income tax recovery                     
|Non-deductible expenses                          
|Differences in foreign tax rates                 
|Tax loss benefit not recognized for book purposes
|                                                 
|Actual income tax recovery                       
|                                                 

| | The
significant components of the Company's future tax assets are as follows:
| | -----------------------------------------------------------------------------

|                                   
|-----------------------------------
|
|                                   
|Net operating loss carry forwards  
|Mineral properties and other assets
|Share issuance costs               
|                                   
|                                   
|                                   
|Less:  valuation allowances        
|                                   
|Net future tax assets              
|                                   

| | The
Company has non-capital losses of approximately $6,758,000 which may be carried forward
and applied against taxable income in future years. These losses, if unutilized, will
begin to expire in 2006. Subject to certain restrictions, the Company has further
resource development and exploration expenditures totalling approximately $1,730,000
available to reduce taxable income of future years. Future tax benefits which may arise
as a result of these non-capital losses and resource deductions have not been recognized
in these financial statements and have been offset by a valuation allowance.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|10. |  | SEGMENTED
INFORMATION
|--- |  | ---------------------

| | The
Companys one reportable operating segment is the exploration and development of
mineral properties. Geographic information is as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------------------

|             
|-------------
|
|             
|June 30, 2005
|Canada       
|United States
|             
|             
|             
|June 30, 2004
|Canada       
|             
|United States
|             
|             

|                         | 2005 | 2004 | 2003 |          
|------------------------ | ---- | ---- | ---- | ---------
|                        
|Loss before other items: |      |      |      |          
|Canada                   |      |      | $    | 893,992  
|United States            |      |      |      | 206,754  
|                         |      |      |      |          
|                         |      |      | $    | 1,100,746
|                        

|11. |  | RESTRICTED
RECLAMATION BONDS
|--- |  | ----------------------------

| | The
Company has secure funds in place with the United States government, a Canadian bank and a
United States bank as security for reclamation bonds on its mineral properties. These
restricted reclamation bonds were required by the local jurisdictions at the time
exploration activities commenced on the properties and do not represent an asset
retirement obligation (Note 2). Interest on the certificates of deposit with Canadian and
United States banks is paid on a periodic basis to the Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | SUPPLEMENTAL
DISCLOSURES WITH RESPECT TO CASH FLOWS
|--- |  | ---------------------------------------------------

| | Significant
non-cash transactions during the years ended June 30, 2005, June 30, 2004 and June 30,
2003 include the Company issuing 40,000 common shares each year at a value in the current
year of $28,400 (2004  $31,200; 2003  $8,000) for the acquisition of mineral
property interests. In the year ended June 30, 2004, the Company issued 125,000 common
shares as a finders fee related to a private placement. Included in accounts payable
are $153,756 (2004  $Nil) relating to deferred exploration costs.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. |  | COMMITMENTS
|--- |  | -----------

| | The
Company has entered into lease agreements for its premises in Canada and the United
States. The annual lease commitments are as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------

|     | United States Premisese | Canadian Premises
|---- | ----------------------- | -----------------
|     |                         |                  
|2006 |                         |                  
|2007 |                         |                  
|2008 |                         |                  
|     |                         |                  
|     |                         |                  
|     |                         |                  

25

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|14. |  | FINANCIAL
INSTRUMENTS
|--- |  | ---------------------

| | The
Companys financial instruments consist of cash and cash equivalents, temporary
investments, receivables, restricted reclamation bonds, accounts payable and accrued
liabilities, and due to related parties. It is managements opinion that the Company
is not exposed to significant interest, currency or credit risks arising from its
financial instruments. The fair values of these financial instruments approximate their
carrying values, unless otherwise noted.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company has its cash primarily in one commercial bank in Vancouver, British Columbia,
Canada and one commercial bank in Reno, Nevada, United States.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

|15. |  | DIFFERENCES
BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
|--- |  | ---------------------------------------------------------------------------------------

| | These
financial statements have been prepared in accordance with Canadian GAAP. Material
variations in the accounting principles, practices and methods used in preparing these
financial statements from principles, practices and methods accepted in the United States
(United States GAAP) are described and quantified below.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
impact of the differences between Canadian GAAP and United States GAAP on the
consolidated balance sheets would be as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------

|                      
|----------------------
|
|                      
|
|                      
|Temporary             
|investments           
|Other current assets  
|Mineral property      
|interests             
|Deferred exploration  
|costs                 
|Equipment             
|Restricted reclamation
|bonds                 
|                      
|                      
|                      
|Current liabilities   
|Shareholders' equity  
|                      
|                      
|                      

26

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|15. |  | DIFFERENCES
BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (contd)
|--- |  | -------------------------------------------------------------------------------------------------

| | The
impact of the  differences  between  Canadian GAAP and United States GAAP on the
 consolidated  statements of          operations would be as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                     
|-----------------------------------------------------
|
|                                                     
|Loss for the period, Canadian GAAP                   
|Adjustments:                                         
|Mineral property interests                           
|Deferred exploration costs                           
|Prior years' write-offs                              
|Increase in temporary investments                    
|                                                     
|Loss for the period, United States GAAP              
|                                                     
|Basic and diluted loss per share, United States GAAP 
|                                                     
|Weighted average number of common shares outstanding,
|United States GAAP                                   
|                                                     

| | The
impact of the  differences  between  Canadian GAAP and United States GAAP on the
 consolidated  statements of          cash flows would be as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                         
|-------------------------------------------------------------------------
|
|                                                                         
|Cash flows used in operating activities, Canadian GAAP                   
|Acquisition of mineral property interests                                
|Deferred exploration costs                                               
|Acquisition of temporary investments                                     
|                                                                         
|Cash flows used in operating activities, United States GAAP              
|                                                                         
|Cash flows provided by financing activities, Canadian GAAP and           
|United States GAAP                                                       
|                                                                         
|Cash flows used in investing activities, Canadian GAAP                   
|Acquisition of mineral property interests                                
|Deferred exploration costs                                               
|Acquisition of temporary investments                                     
|                                                                         
|Cash flows provided by (used in) investing activities, United
States GAAP
|                                                                         
|Increase (decrease) in cash and cash equivalents during the period       
|                                                                         
|Cash and cash equivalents, beginning of period                           
|                                                                         
|Cash and cash equivalents, end of period                                 
|                                                                         

27

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|15. |  | DIFFERENCES
BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (contd)
|--- |  | -------------------------------------------------------------------------------------------------

| | Restatements
| | ------------

| | For
fiscal years 2005, 2004 and 2003, the Company has restated its reported balances and
results under US GAAP to properly account for acquisition costs of mineral property
interests. Pursuant to EITF 04-02 Whether Mineral Rights are Tangible or Intangible
Assets, mineral property interests are considered tangible assets and related
acquisition costs can be capitalized as an asset. Previously, the Company expensed as
incurred acquisition costs for mineral property interest. To properly account for these
acquisition costs under US GAAP, the balance sheets and statements and operations and
cash flows for the years ended June 30, 2005, 2004, and 2003 have been restated.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company also restated the presentation of the acquisition of temporary investments on its
consolidated statement of cash flows for US GAAP purposes. The Company previously
reported acquisition of temporary investments under investing activities, and now records
these acquisitions under operating activities as these temporary investments are
considered trading securities under Statement of Financial Accounting Standard No. 115
Accounting for Certain Investments in Debt and Equity Securities (SFAS
115).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
effect of the restatements for US GAAP purposes was an increase in mineral property
interests for the years ended June 30, 2005 and 2004 of $616,540 and $534,264
respectively, and a reduction in loss for the years ended June 30, 2005, 2004, and 2003
of $82,276, $92,670 and $36,861 respectively. Basic and diluted loss per share remained
unchanged for fiscal 2005, decreased by $0.01 to $(0.06) for fiscal 2004 and was
unchanged for fiscal 2003.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
addition, cash flows from operating activities for US GAAP for fiscal 2005, 2004, and
2003 decreased by $3,359,339, $7,443,191 and $Nil respectively. Cash flows from investing
activities for fiscal 2005, 2004, and 2003 increased by $3,359,339, $7,443,191 and $Nil
respectively. Cash flows from financing activities for US GAAP remained unchanged.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
restatement under US GAAP had no effect on the Companys primary financial
statements and related noted prepared in accordance with Canadian GAAP (other than Note
15).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Mineral
property interests and deferred exploration costs
| | ---------------------------------------------------------

| | In
accordance with EITF 04-02, the Company classifies the costs of acquiring its mineral
interests as tangible assets resulting in no difference between Canadian and U.S GAAP.
Under U.S. GAAP exploration costs on mineral properties, other than acquisition costs,
prior to the establishment of proven or probable reserves are expensed as incurred. Under
Canadian GAAP these costs may be deferred.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Under
US GAAP, the Company performs evaluations of its investment in mineral properties to
assess the recoverability and the residual value of its investments in these assets. All
mineral properties are reviewed for impairment whenever events or circumstances change
which indicates the carrying amount of an asset may not be recoverable, utilizing
established guidelines based on undiscounted future net cash flows from the asset or upon
the determination that certain exploration properties do not have sufficient potential
for economic mineralization.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Stock-based
compensation
| | ------------------------

| | Under
United States GAAP, Statements of Financial Accounting Standards No. 123, Accounting
for Stock-based Compensation (SFAS 123) requires companies to
establish a fair market value based method of accounting for stock-based compensation
plans. The Company has chosen to account for stock-based compensation using Accounting
Principles Board Opinion No. 25 Accounting for Stock Issued to Employees(APB
25).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|15. |  | DIFFERENCES
BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (contd)
|--- |  | -------------------------------------------------------------------------------------------------

| | Accordingly,
compensation cost for stock options is measured as the excess, if any, of the quoted
market price of the Companys stock at the date of grant over the option price.
Effective July 1, 2003 the Company elected to follow the fair value method of accounting
for stock based compensation.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | New
accounting and disclosure standards were introduced under Canadian GAAP (Note 8) for the
fiscal year ending June 30, 2003. Accordingly, there were no differences between Canadian
GAAP and United States GAAP for the years ended June 30, 2005, 2004 and 2003.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Asset
retirement obligations
| | ----------------------------

| | The
Company has determined that there are no asset retirement obligations as at June 30, 2005
and adopted new accounting and disclosure standards under Canadian GAAP (Note 2) for the
2005 fiscal year. Accordingly there were no differences between Canadian GAAP and United
States GAAP as at June 30, 2005.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Under
Canadian GAAP, the Company was not required to record asset retirement obligations as at
June 30, 2004. The Company determined there were no asset retirement obligations as at
June 30, 2004.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Temporary
Investments
| | ---------------------

| | Under
Canadian GAAP, temporary investments are carried at the lower of aggregate cost or
current market value, with any unrealized gain or loss included in the statement of
operations. Long-term investments are carried on the cost or equity basis and are only
written down when there is evidence of a decline in value that is other than temporary.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Under
United States GAAP, SFAS 115 requires that certain debt and equity investments must be
classified into available-for-sale or trading securities and stated at fair market
values. Any unrealized holding gains or losses are reported as a separate component of
shareholders equity until realized for available-for-sale securities, and included
in earnings for trading securities. For United States GAAP purposes, the Companys
investment in debt securities have been classified as trading securities. Under SFAS 115,
for the 2004 fiscal year there was no difference under Canadian GAAP or United States
GAAP as these debt securities have been written down to their fair market value, with an
unrealized loss of $42,999 included in the consolidated statement of operations. For the
2005 fiscal year, an excess holding gain of $36,224 would be recognized under United
States GAAP.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | New
accounting pronouncements
| | -----------------------------

| | In
December 2004, Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 153, Exchanges of Nonmonetary Assets  an amendment
of APB Opinion No. 29 (SFAS 153) which amends Accounting Principles
Board Opinion No. 29, Accounting for Nonmonetary Transactions to eliminate
the exception for nonmonetary exchanges of similar productive assets and replaces it with
a general exception for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash flows of
the entity are expected to change significantly as a result of the exchange. SFAS 153 is
effective for nonmonetary asset exchanges occurring in fiscal periods beginning after
June 15, 2005.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
December 2004, FASB issued Statement of Financial Accounting Standards No. 123R, Share
Based Payment (SFAS 123R). SFAS 123R supersedes APB 25 and its related
implementation guidance by requiring entities to recognize the cost of employee services
received in exchange for awards of equity instruments based on the grant-date fair value
of those awards (with limited exceptions) and revises SFAS 123 as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29

---

WHITE KNIGHT RESOURCES LTD.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Expressed in Canadian Dollars) 
JUNE 30, 2005

---

|15. |  | DIFFERENCES
BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (contd)
|--- |  | -------------------------------------------------------------------------------------------------

| | i) |  | Public
entities are required to measure liabilities incurred to employees in
               share-based payment transactions at fair value and nonpublic entities may
elect                to measure their liabilities to employees incurred in share-based
payment                transactions at their intrinsic value whereas under SFAS 123, all
share-based                payment liabilities were measured at their intrinsic value.
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ii) |  | Nonpublic
entities are required to calculate fair value using an appropriate
               industry sector index for the expected volatility of its share price if it
is                not practicable to estimate the expected volatility of the entitys
share                price.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iii) |  | Entities
are required to estimate the number of instruments for which the                requisite
service is expected to be rendered as opposed to accounting for
               forfeitures as they occur.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iv) |  | Incremental
compensation cost for a modification of the terms or conditions of                an
award is measured by comparing the fair value of the modified award with the
               fair value of the award immediately before the modification whereas SFAS
123                required that the effects of a modification be measured as the
difference                between the fair value of the modified award at the date it is
granted and the                awards value immediately before the modification
determined based on the                shorter of (1) its remaining initially estimated
expected life or (2) the                expected life of the modified award.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | SFAS
123R also clarifies and expands guidance in several areas, including measuring fair
value, classifying an award as equity or as a liability and attributing compensation cost
to reporting periods. SFAS 123R does not change the accounting guidance for share-based
payment transactions with parties other than employees provided in SFAS 123 as originally
issued and Emerging Issues Task Force No. 96-18 Accounting for Equity Instruments
that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling,
Goods and Services (EITF 96-18). SFAS 123R also does not address the
accounting for employee share ownership plans which are subject to Statement of Position
93-6, Employers Accounting for Employee Stock Ownership Plans. Public
entities (other than those filing as small business issuers) will be required to apply
SFAS 123R as of the first annual reporting period that begins after June 15, 2005. Public
entities that file as small business issuers will be required to apply SFAS 123R in the
first annual reporting period that begins after December 15, 2005. For nonpublic
entities, SFAS 123R must be applied as of the beginning of the first annual reporting
period beginning after December 15, 2005.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
May 2005, FASB issued Statement of Financial Accounting Standards No. 154, Accounting
Changes and Error Corrections  A Replacement of APB Opinion No. 20 and FASB
Statement No. 3 (SFAS 154) which is effective for fiscal years ending
after December 15, 2005. SFAS 154 requires that changes in accounting policy be accounted
for on a retroactive basis.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
adoption of these new pronouncements is not expected to have a material effect on the
Companys consolidated financial position or results of operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

30

---

# ITEM 18:     FINANCIAL
STATEMENTS

Not applicable.  See Item 17 above.

# ITEM 19:     EXHIBITS

Exhibits as follows:

|Exhibit      
Number | Description
|-------------------- | -----------
|1                    | .1(2)      
|1                    | .2(2)      
|4                    | .1(1)      
|4                    | .2(1)      
|4                    | .3(1)      
|4                    | .4(1)      
|4                    | .5(1)      
|4                    | .6(1)      
|4                    | .7(1)      
|4                    | .8(1)      
|4                    | .9(1)      
|4                    | .10(1)     
|4                    | .11(2)     
|4                    | .12(2)     
|4                    | .13(2)     
|4                    | .14(2)     
|4                    | .15(2)     
|4                    | .16(2)     
|8                    | .1(2)      
|12                   | .1         
|13                   | .1         
|15                   | .1(2)      

_________________

|(1) |  | Incorporated
by reference to the Registrants Form 20-F Registration Statement filed on July 30, 2004.
|--- |  | ------------------------------------------------------------------------------------------------------

|(2) |  | Incorporated
by reference to the Registrants Form 20-F Annual Report filed on December 30, 2005.
|--- |  | -------------------------------------------------------------------------------------------------

31

---

# SIGNATURES

The registrant certifies that it
meets all of the requirements for filing on Form 20-F and that it has duly caused and
authorized the undersigned to sign this annual report on its behalf.

Date:   June 19, 2006

| | WHITE KNIGHT RESOURCES LTD.
Per:   
John M. Leask
         John M. Leask 
         Chairman, President and 
         Chief Executive Officer
| | ----------------------------------------------------------------------------------------------------------------------------------------------

32

---