UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549  FORM 10-K/A


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|[X]  | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|     | For the fiscal year ended July 31, 2012                                       
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|[  ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT    
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|     | For the transition period from _________ to ________                          
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|     | Commission file number: 000-54840                                             




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|SOURCE GOLD CORP.                                             
|(Exact name of registrant as specified in its charter)        
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|Nevada                                                         | N/A                                 
|(State or other jurisdiction of
incorporation or organization) | (I.R.S. Employer Identification No.)
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|2 Toronto Street, Suite 234
Toronto, Ontario, Canada           | M5C 2B5                             
|(Address of principal executive offices)                       | (Zip Code)                          
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|Registrants telephone number: (289)-208-6664                 




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|Securities registered under Section 12(b) of the Exchange Act:
|Title of each class                                            | Name of each exchange on which registered
|None                                                           | Not Applicable                           
|Securities registered under Section 12(g) of the Exchange Act:
|Common Stock Par Value $0.001 per share                       

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]  Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]  Indicate by checkmark 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. Yes [X] No [ ]  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X]  State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrants most recently completed second fiscal quarter. Not available   1  Indicate the number of shares outstanding of each of the registrants classes of common stock, as of the latest practicable date. We had 60,966,819shares of our common stock issued and outstanding as of November 5, 2012.  EXPLANATORY NOTE  We are filing this Amendment No.1 to our Form 10-K for the fiscal year ended July 31, 2012, to correct the first page of the 10-K that was filed on November 7, 2012, where the Company had incorrectly checked the yes box on the Form 10-K item where it states Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act Yes ( ) No ( ). The Company is required to file reports pursuant to Section 13 or Section 15(d) of the Act; therefore, we have filed this Form 10-K/A to correctly reflect that.  Also, this Form 10-K/A corrects that the Company does have common stock, par value $0.001 registered under Section 12(g) of the Exchange Act. This Amendment No. 1 also contains currently dated certifications as Exhibits 31.1, 31.2, and 32.1. This Amendment No. 1 does not reflect events occurring after the filing of the original Form 10-K or modify or update those disclosures that may be affected by subsequent events. Accordingly, this Amendment No. 1 should be read in conjunction with the Original 10-K and our other SEC filings subsequent to the filing of the Original 10-K.  Signatures have also been updated to reflect the date of this filing.        2   TABLE OF CONTENTSPagePART IItem 1.Business3Item 2.Properties3Item 3.Legal Proceedings3Item 4.(Removed and Reserved)3PART IIItem 5.Market for Registrants Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities3Item 6.Selected Financial Data3Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations3Item 7A.Quantitative and Qualitative Disclosures About Market Risk3Item 8.Financial Statements and Supplementary Data3Item 9.Changes In and Disagreements With Accountants on Accounting and Financial Disclosure3Item 9A(T).Controls and Procedures3Item 9B.Other Information3PART IIIItem 10.Directors, Executive Officers and Corporate Governance3Item 11.Executive Compensation3Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters3Item 13.Certain Relationships and Related Transactions, and Director Independence3Item 14.Principal Accountant Fees and Services3PART IVItem 15.Exhibits, Financial Statement Schedules3      3  PART I   Item 1. Business  Company Overview  We are an exploration stage company that intends to engage in the exploration of mineral properties. We have acquired three mineral claims through our wholly owned subsidiaries Northern Bonanza, Inc., an Ontario corporation, (Northern Bonanza) and Source Bonanza, LLC, a Nevada limited liability company, (Source Bonanza), and have an option to acquire a fourth set of claims in British Columbia. None of these properties possesses known mineral reserves. Exploration of these mineral claims is required before a final determination as to their viability can be made.  Northern Bonanza holds or possesses an option to acquire a partial interest in the following claims in Ontario, Canada:  · Southern Beardmore Claims O A group of 21 mineral claims in the Beardmore Area and the Mary Jane Lake Area, 3  km south of Beardmore, Ontario, Canada.  · KRK West Claims O Northern Bonanza entered into an agreement that gave them the option to acquire an undivided 50% interest, in 19 mineral claims known as the KRK West Claims, located north of Thunder Bay, Ontario, Canada. The foregoing agreement is now the subject of a lawsuit between us and the other party to the agreement.  Source Bonanza owns a 100% membership interest in Vulture Gold, LLC, a Nevada limited liability company. Vulture Gold is the owner of the mineral rights to 27 unpatented mineral claims located in Maricopa County Arizona.  During the quarter ended April 30, 2012, we also entered into a property option agreement to acquire all mineral interests in three quartz claims located in British Columbia. If the option is exercised, then we will have the right to perform mining exploration work on the claims.  Our Business  Northern Bonanza, Inc.  Southern Beardmore Claims. On May 4, 2010, we acquired a group of 21 contiguous mineral claims in the Beardmore Area and Mary Jane Lake Area, near Beardmore, Ontario for $51,800 (CDN).  Location and Means of Access to Southern Beardmore Claims. The property consists of nineteen contiguous mineral claims.  The area of the property is 269 hectares. The northern boundary of the property is 3 kilometers south of Beardmore, Ontario on Highway11. Highway 11 transects the property. Old logging roads also cross the property.  4  Title to Southern Beardmore Claims. We only hold the mineral rights to the Southern Beardmore Claims.  We do not possess surface rights to the property.  There are no royalties, back-in rights payments or other agreements and encumbrances to which the property is subject. Additionally, there are no environmental liabilities to which the property is subject or permits that must be acquired to conduct the work proposed.  Previous Operations on the Southern Beardmore Claims. There have been no prior operations on these claims.  Present Condition of Southern Beardmore Claims. At the moment there are no established mineralized zones, mineral resources, mineral reserves and mine workings, tailing ponds, waste deposits and important natural features and improvements, relative to the outside property boundaries.  Work Completed on the Southern Beardmore Claims. No work has been completed on the claims with the exception of certain airborne survey work, discussed below.  Proposed and Current State of Exploration and Development on the Southern Beardmore Claims. During the year ended July 31, 2010, we incurred an additional $17,741 in staking costs in relation to these claims.  Subsequent to acquisition the claims and exploration costs were transferred to Northern Bonanza at cost.  During the year ended July 31, 2010, we made exploration advances to the operator amounting to $47,806.  As at July 31, 2010 the operator had incurred exploration expenses aggregating $20,118 resulting in net advances held being $26,968.  During the year ended July 31, 2011, we made further advances to the operator of $7,040.  During the year ended July 31, 2011 the operator incurred exploration expenditures of $34,008 and we also incurred direct exploration expenditures of $47,335.  Our direct exploration expenditures were primarily a fixed-wing airborne survey and a 43-101 report produced for the property.  Due to lack of funding, we have no immediate plans to explore these mines to determine resources available and consequently the costs incurred of $68,599 for these mineral properties was deemed to be fully impaired as of July 31, 2011.  No Known Presence of Reserves on the Southern Beardmore Claims. The proposed program is exploratory in nature and there are no known reserves on the property.   5  Rock Formations and Mineralization of Existing or Potential Economic Significance on the Southern Beardmore Claims. Regionally a swath of metavolcanic-metasedimentary rocks runs from Geraldton to Beardmore. The metavolcanic rocks are host to numerous showings and former producers of gold and silver. A metasedimentary sequence consists of both clastic and chemical metasediments. These are rocks from two northeast trenching belts and occur to the northwest and southeast of the central volcanic belt. The northern belt is about 3.4 km thick; the southern belt is in excess of 5.4 km. The Northern Bonanza claim group lies entirely within the southern belt. The clastic metasediments are wacked with minor intercalated siltstone and mudstone. The chemical metasediments comprise ironstone units 1-2 m thick bedded in the metavolcanics. The metavolcanics comprise mafic to intermediate flows in a belt 2.0 to 2.5 km wide and trend northeasterly between the two metasedimentary units. The metavolcanic flows are dark green to greenish black in color and typically consist of a massive medium grained basal part, a finer middle portion and a fine-grained to aphanitic upper part, which may be pillowed, amygdaloidal and/or variolitic. Proterozoic rocks comprise diabase sills of medium grain size and massive texture and form topographic highs in outcrop. Precious metals occur (i) in quartz and quartz-carbonate veins almost exclusively in metavolcanics but also in metasediments and (ii) in quartz veins in chert-hematite-magnelite-grunerite ironstone units interlaycled with the mafic metavolcanics.  Impairment of the Southern Beardsmore Claims. Although we possess a plan of exploration for the Southern Beadsmore Claims, we do not possess the resources to execute on that plan. Additionally, while it is our goal to raise capital to finance the exploration, there is no assurance of additional funding being available or on acceptable terms, if at all. Consequently, we have no immediate plans to explore these mines to determine resources available and consequently the costs incurred of $68,599 for these mineral properties was deemed to be fully impaired as of July 31, 2011.  The KRK West Claims  Location and Means of Access to KRK West Claims.  The property consists of 19 claims covering 15 square miles.  It is located north of Thunder Bay in the Beardmore area of Northwestern Ontario, Canada.  The nearest townships to the property are Pifher, Sandra, and Meade.  The property can be accessed Access via Hwy 11 through the Village of Beardmore to Hwy 801.  Option Agreement On October 26, 2009, we entered into an agreement with Thunder Bay Minerals, Inc. (the Agreement and Thunder Bay, respectively) under which we were granted an option to acquire an undivided 50% interest in 19 mineral claims known as the KRK West Claim, located north of Thunder Bay, Ontario, Canada.  We are currently in a dispute with Thunder Bay regarding the ownership of the claims.  The dispute is discussed more fully in the following section titled Separate Purchase of KRK West Claims and in Item 3 Legal Proceedings  Detailed below are the payments we have made to date and the payments we will be obligated to make in the future if the dispute with Thunder Bay is not resolved in our favor.  6   · Pay $110,000 (CDN) to Thunder Bay with $50,000 (CDN) of that amount due upon execution of the Agreement before commencing due diligence of the claims (paid) and the balance of $60,000 (CDN) on or before December 1, 2009 (paid); · Incur $500,000 (CDN) in expenditures on the claims before December 31, 2010 and $500,000 in expenditures on the claims before December 31, 2011; and · Issue 2,000,000 shares of our common stock to the shareholders of Thunder Bay within 30 days of closing the transaction. · Exploration expenditures of $484,768 (CDN$500,000) on or before December 31, 2010, and $969,268 (CDN$1,000,000) in aggregate on or before December 31, 2011. · In aggregate to July 31, 2011, the Company incurred exploration expenditures aggregating $32,080 (CDN$32,836)  Pursuant to the agreement, if commercial production had been achieved and we sold or otherwise disposed of metals and minerals that had been produced and removed from the KRK West properties, we would pay Thunder Bay a 3% Net Smelter Return royalty.  In the event we sold or caused the sale of products other than to a smelter or refinery or otherwise caused the removal of products from the property, we would pay a 2% Net Smelter Return Royalty. Alternatively, we could buy back the royalty right for $1,000,000 for each breccia pipe that reached commercial production.  The property option agreement was stated in Canadian dollars.  The US dollar equivalent was converted using the foreign exchange rate at July 31, 2010 for all future commitments.  During the year ended July 31, 2010, we learned that the optionor had allowed the underlying claims to lapse, and therefore the option agreement was null and void.  We and our sole officer and director, Lauren Notar, purchased the claims from persons who re-staked the claims for an aggregate amount of $27,577. We subsequently purchased these claims from our sole officer and director. Subsequent to acquisition, the claims were transferred to our wholly owned subsidiary, Northern Bonanza Inc  The original optionor represents that control of the claims remains with the option or and that we have no right to further explore the property. We disagree with this assertion and accordingly, ownership to the claims is in dispute. On January 6, 2011 the Ministry of Northern Development, Mines and Forestry, Canada, was to adjudicate upon the ownership of the claims.  The hearing did not occur as the other party filed for a change of venue.  A determination regarding the change of venue has not yet been made and a date for rendering the decision has not yet been established.  Mediation regarding the matter was deferred until late 2011 and prior to the hearing the optionor cancelled the mediation.   7  In October 2011, we, as a result of the cancellation of the mediation hearing with William J. Wheeler regarding the Thunder Bay claims, decided the best course of action was to file suit.  Accordingly, a suit was filed against Thunder Bay and Wheeler in Ontario Superior Court of Justice. In the suit we detail the breach of the Agreement by Thunder Bay and Wheeler and request:  · An order transferring an application regarding mining claims pending before the Office of the Mining and Lands Commissioner to the  Ontario Superior Court of Justice to be consolidated with this action; · A declaration regarding our ownership and Thunder Bay and Wheeler’s ownership with respect to certain mining claims; and · $1,200,000 in damages from Thunder Bay and Wheeler.  Previous Operations on the KRK West Claims. The KRK West property encompasses many previous prospects and occurrences that, since 1930, have been the subject of many prospecting, geophysics, and diamond drilling as well as high grading conducted by operators dating back between 1930-1950 where copper and gold mineralization was identified.  Present Condition of KRK West Claims. At the moment there are no established mineralized zones, mineral resources, mineral reserves and mine workings, tailing ponds, waste deposits and important natural features and improvements, relative to the outside property boundaries.  Work Completed on the Claims and Proposed and Current State of Exploration and Development on the Claims. We have undertaken an initial trenching, sampling, and geological mapping program on the KRK West Claims. The samples are being assayed by Accurassay Laboratories in Thunder Bay, Ontario, Canada.  Based upon the initial exploration program of trenching, channel sampling, geological mapping and a TEM survey covering our claim group on over 15 square miles of the KRK West Property, we have identified three main areas of interest.  The first area of interest is the Little Brother Claim Group, where a number of samples were taken from an area along a northern grandiorite with intermediate volcanics, which yielded visible gold occurrences.  The second area of interest is close to the eastern portion of the property east of Peddle Lake. This area is the most active on the property where a number of drill collars belonging to a previous operator were drilled during the 1970's. The ground observations in the trenches and historical assessment have indicated a large disrupted zone carrying the potential for significant gold and silver values.  8  The third area of interest is the most westerly area of the property near Musca Lake, along a continuous shear zone. The Musca Lake zone consists of a quartz flooded shear which pinches and swells along its strike length.  Although we have not established an overall exploration budget for the KRK West claims at this time, we intend to continue with an exploration program centered on the major fault lines and areas of interest which traverse the KRK West mineral claims. Accurassay Laboratories is currently processing more than 250 trench samples from our three main areas of interest on the KRK West Property.  No Known Presence of Reserves on the KRK West Claims. The proposed program is exploratory in nature and there are no established reserves on the property.  Rock Formations and Mineralization of Existing or Potential Economic Significance on the KRK West Claims. The property is located within the Northern Felsic Metavolcanic Belt. Intermediate crystal-lithic tuff is the dominant rock type and underlies most of the property. These tuffs consist of intermixed units of crystal tuffs containing feldspar crystals and lithic tuffs containing fragments of felsic to intermediate composition. Felsic crystal tuffs are easily identified by the presence of quartz-eyes within a light gray crystal tuff. The rock weathers to a very distinctive porcellaneous buff-white color. The felsic crystal tuff forms two prominent east-west trending horizons within the intermediate crystal-lithic tuff in the southern half of the western portion of the property and can be traced to the western boundary. The felsic horizons vary in width from 25 to 120 meters, and can be traced for a length of 2.8 kilometers.  Gold occurs on the property associated with white quartz veins and pyritic horizons within felsic crystal tuffs and quartz-feldspar porphyry. Earlier exploration identified quartz veins and mineralized shear zones within felsic and mafic intrusions. Base and precious metals are found all over the property. The KRK West property encompasses many previous well known prospects and occurrences that since 1930 have been the subject of many prospecting, geophysics, and diamond drilling as well as high grading conducted by operators dating back between 1930-1950 where copper and gold mineralization was identified.  Impairment of the KRK West Claims. We impaired a total of $131,295 of acquisition costs incurred as of July 31, 2010 made up of the initial $103,718 payment and the additional payment of $27,577.  Source Bonanza, LLC.  Vulture Peak Property and Gold Point Claim Group. On August 7, 2010, we entered into an agreement with Vulture Gold LLC (Vulture), to purchase 100% of Vultures outstanding membership interests in consideration for 4 million shares of our common stock. Vulture is the owner of the mineral rights to unpatented mineral claims located in Maricopa County Arizona known collectively as the Vulture Claims.  9  Location and Means of Access to Vulture Claims. The property is located approximately 15 km to 17 km southwest of Wickenburg in Maricopa County, Arizona. It consists of 27 claims located in Section(s) 23, 24, 25, 26, 35 and 36, T.6N., R.GW., and in Section(s) 3D, T.6N., R.5W., Maricopa County, Arizona. Each claim is approximately 20.7 acres with a total property area of 476.1 acres, configured in three separate blocks.  The property can be accessed from Wickenburg through Vulture Mine Road south from State Highway 60. Wickenburg is located 85 km (53 miles) NW of Phoenix; 98 km (61 miles) S of Prescott; and 206 km (128 miles) SE of Kingman. Wickenburg is connected with Phoenix through State Highway 60 south; and to Prescott and Kingman through State Highways 89 and 93 respectively. Wickenburg is one of the railway stations for Prescott-Phoenix branch of Santa Fe Railway. From Vulture Mine Road various gravel roads traverse through different areas of the property providing access to almost all the mineral claims.  Title to Vulture Claims. The Vulture Claims are owned by Vulture Gold, LLC, which is owned 100% by Source Bonanza. The following claim maintenance fees are applicable for the property:  · Bureau of Land Management Claim Maintenance Feeequals $125 per claim per year ($3,625 each year, due on or before September 1) · Maricopa County Recorder "Notice of Intent to Hold" Fee = $104 per year (due on or before November 1).  A "Mineral Exploration Permit" application will be required to get a permit for the proposed exploration work to be carried out on the property. A minimum bond required is $3,000 but the actual bond amount is based upon the type of exploration and the degree of disturbance. The department responsible for issuing this is the Minerals Section of the Arizona State Land Department.  Additionally, the Arizona State Land Commissioner, at his discretion, may also change the amount of the damage and restoration bond when warranted by any changes in the Plan of Operation.  Previous Operations on the Vulture Claims. The Vulture Claims were part of the historical Red Cloud Mine, Vulture Mine, Vulture Mine Extension, and Mohawk Mines. The first prospecting party to explore the mountains of north-central Arizona was guided by Pauline Veaver, a pioneer trapper and Indian Scout of the period. Henry Wickenburg, one of the party members, while prospecting south of Wickenburg located the Vulture lode in 1863. He established a camp on the Hassayampa River six miles east of the location, and for the next three years worked the richer parts of the outcrop ore. No records are available for his production.   10  In November 1, 1866, the Vulture Claims and adjoining area was acquired from Wickenburg by the Vulture Company of New York. This company established a camp at the mine, and built a forty stamp amalgamation and concentration mill at Wickenburg. This pioneer company operated steadily from 1867 to July 1872. Chinese miners were employed. Concentrates were stored, and the production was in gold bullion saved on the plates. The property was closed due to excessive transportation costs and to the apparent pinching of the ore at water level.  In 1870 a new corporation was formed to operate the Vulture and Vulture Extension of Taylor and Smith. This company was known as the Arizona Central Mining Company. Vulture Extension property was reportedly located to the north of the Vulture Mine and is believed to be located on claim 27 and 28, an area staked by Gold Point LLC.  An 80 stamp mill was built at the mine, and water was pumped from Hassayampa at Seymour, through a seven mile pipe line. Power was supplied by woodburning boilers. Work was continued by this company for nine years on a large scale. A great deal of very low grade ore was treated. No exact figures are available on the production but scattered estimates of the Art one Daily Star and U.S. Mint reports indicate a probable gross of 3,000,000 ounces. The mine was worked down about 300 feet to a fault which cut off the ore body.  In 1908 the property was acquired by the Vulture Mines Company. This company at first used 20 stamps of the Arizona Central Company mill. In 1910 a new 20 stamp mill was erected driven by gasoline engine, which treated from 100 to 120 tons a day of ore. This company operated the mine up to 1917. The gross output of this company which worked on the faulted segment of ore was $1,839,375, 30 percent of which was concentrates and 70 percent bullion.  In 1927 D.R. Finlayson acquired the property and organized the Vulture Mining and Milling Company. A 5-stamp amalgamation mill was built at the mine using water pumped from the mine, power being supplied by Diesel engine. Old pillars were treated.  In 1929, a diamond drill campaign was started, after a careful geological study, to prospect for the second faulted segment of the ore. Vein matter carrying free gold was encountered. Financial help was enlisted from the United Verde Extension Mining Company of Jerome. In 1930 and 1931 an 800 foot shaft was sunk to prospect the ground cut by the drill. A large vein was encountered. After six months lateral work and a little drilling, work was abandoned.  Present Condition of Vulture Claims.  There are several areas of past producing mines and old workings located on the property. Detailed below are some of the old workings on the property.    11   · Red Cloud Mine o This shaft is located at 0329733 E, 3745506 N at an elevation of 2,222 ft (692 m). The shaft area is fenced. Mine dump material is lying in the immediate surrounding area. Groundwater was observed in the shaft by throwing a piece of rock in the shaft and is estimated to be at a depth of 60 to 80 m below ground surface. Three old trenches were observed; two on the west and one on the east side along strike of this shaft. · Red Cloud Mill and Shaft o An old shaft, foundations of a stamp mill and an approximately 30 m long trench was observed at this location. A small dump of old milling material was also observed. · Vulture Mine Extension o This area is marked by the presence of a shaft, an abandoned mill site with remnants of hoist, head frame, ball mills, generator, etc. This area is located on Vulture claim at 0330263 E, 3744219 N with an elevation of 2162 ft (659 m). The shaft is fenced and was observed to be plugged with rock material at 6 to 7 m depth. · Mohawk o Gold Point claims 27-29 located immediately to the west of Vulture Mine private property were historically called Mohawk group of claims reportedly located 2 miles (3 km) to the west of historical Vulture and Black Hawk mines. Historical work done in this area included a shaft down to about 48 feet which passed through 24 feet of ledge matter.  Work Completed on the Vulture Claims. During the years ended July 31, 2012 and July 31, 2011, we incurred exploration expenditures of $3,317 and $2,221 on the property.  Due to lack of funding, we have no immediate plans to explore these mines to determine resources available and consequently the costs of $2,000,000 incurred for these mineral properties is deemed to be fully impaired.  Proposed State of Exploration and Development on the Vulture Claims and Impairment of Vulture Claims.We have not carried out any substantive exploration work on the property. However, on March 13, 2008 Gold Point LLC, the party that staked the current Vulture Claims, contracted Fred B. Brost, P.E. to carry out rock sampling on Red Cloud, Red Rock, and Vulture claims. A total of six samples were collected during this work at various locations. The samples were analyzed at Jacobs Assay Office in Tucson. Following receipt of the assay results, we retained a geologist to conduct a study and produce a report on the exploration potential of the property.  He recommended the following two stage exploration program:   12   Phase 1- Data Compilation, Geological Mapping, Trenching and Sampling  · This work should be completed in two stages. The first stage should include compilation of all the historical geological data available for property and putting it into a data base to generate several layers of maps in GIS format for further interpretation. This work will also include geo-referencing historical geological maps, sampling and trenching data, and collecting available historical production records from shafts and mines. · In the second stage, the geological fieldwork program should be carried out. This program should include, geological mapping 1:5,000 scale, conducting systematic rock sampling on each claim, and trenching at selected locations. All the accessible old shafts should be studied and sampled in detail to understand the local mineralization trend and to get an insight into the type of ore historically mined. The intent of this work should be to define ground geophysical surveying targets for Phase 2 work Program.  The estimated cost of this program is $132,500, which would be expended as follows:  PHASE 1 BUDGET - GEOLOGICAL MAPPING, TRENCHING AND SAMPLING  ItemNo. of UnitsRateTotalBonds and Permitting1$5,000$5,000Data Compilation10$500$5,000Maps production1$1,000$1,000Geological mapping (2 geologists)21$1,100$23,100Prospecting (Prospectors 2)21$900$18,900Assaying rock samples500$40$20,000Soil Samples300$40$12,000Excavator10$1,500$15,000Accommodation and Meals50 Man days$200$10,000Vehicles: 125$100$2,500Supplies, Blasting Equipment and RentalsLump Sum$10,000$10,000ReportsLump Sum$10,000$10,000TOTAL (CANADIAN DOLLARS)$132,500  Phase 2 - Ground Geophysical Surveying, Diamond Drilling  Based on the results of Phase 1 program, the following ground geophysical surveys should be carried out at suitable locations: 3D Induced Polarization (IP), Magnetometer Survey and Electromagnetic (EM) - VLF Survey   13   · The IP technique will help in measuring the amount of disseminated metallic sulphides in the underlying porphyritic rocks and quartz veins.  This technique energizes the ground surface with an alternating square wave pulsar via a pair of current electrodes and the IP effect is measured as a time diminishing voltage at the receiver electrodes. · The very-low frequency (VLF) EM method will help to detect any subsurface conducting zone by utilizing radio signals in the 15 to 30 kilohertz (kH) range that are used for military communications. · Magnetometer survey measures the earth's magnetic field which can be influenced due to presence of magnetic or relatively non-magnetic rocks in the survey area. This survey will be helpful in identifying gold bearing zones associated with pyrrhotite or magnetite depleted porphyry type copper-gold mineralization. In some property areas with potential for porphyry copper-gold type ore bodies the mineralizing fluids might have destroyed the magnetite associated with the original intrusive or volcanic rocks. Magnetic surveys would outline positive magnetic anomalies over the unaltered rock formations. The exploration target would be the relatively magnetic lows within these formations where magnetite has altered to a non-magnetic mineral, such as pyrite. · The geophysical survey is initially recommended to be carried out at 50 m x 50 m grid on selected areas within the following claim blocks: Red Cloud, Vulture Extension Mohawk. · The type of geophysical survey on each claim would depend on the style of mineralization. This work will help to define the trends and continuity of the anomalous surface mineralization and locate targets for drilling. A 10 to 15 drill hole program for up to 2,000 m diamond drilling is proposed which will be contingent upon the findings of Phase 1 program and geophysical surveys.  Estimated cost of Phase 2 work program is $522,600, which would be expended as follows:  PHASE 2 BUDGET - GROUND GEOPHYSICAL SURVEYING, DIAMOND DRILLING  ItemNo. of UnitsRateTotalBond and permitting1$10,000$10,000Geologist10$600$6,000Geophysical Survey Induced Polarization42$2,000$84,000Magnetometer, EM-VLF Survey Crew28$1,200$33,600Diamond Core Drilling (m), if warranted2,000$150$300,000Accommodation and Meals200$200$40,000Vehicles: 2 - 4x4 truck20$200$4,000Supplies and RentalsLump Sum$10,000$10,000Data InterpretationLump Sum$20,000$20,000ReportsLump Sum$15,000$15,000TOTAL (CANADIAN DOLLARS)$522,600  No Known Presence of Reserves on the Vulture Claims.  The proposed program is exploratory in nature and there are no known reserves on the property.   14   Rock Formations and Mineralization of Existing or Potential Economic Significance on the Vulture Claims. Mineralization on the claims and adjoining areas can be classified into three types: i) mineralized veins, ii) porphyritic masses of rock, iii) mixed deposits in which veins and porphyry are both present.  Mineralized Veins.  Fractures filled with quartz and other veining material was observed at places on the claims but no strong or regular veins were located. Most of the veins are at the contact of volcanics and metasediments. Gold, silver and other metals may concentrate in quartz veins and in silicified and altered rocks. Some irregular quartz veins were observed in schistose rocks where vein filling occur mainly along the cleavage of schist.  Porphyritic Masses of Rock. At many places quartz monzonite volcanic dykes were observed containing pyrite in disseminated crystalline grains with in porphyritic masses of rocks. The distribution of this sulphide looks like independent of fractures or fracture filling. Moderate to severe alteration of dykes and wall rocks has converted feldspar and mafic minerals to a fine grained sericite, hematite, and clay minerals. Altered dyke rocks commonly consist of quartz "eyes" in a fine-grained matrix of alteration minerals. Conceptual restoration of the rocks of the Vulture mine area to their pre-rotations orientation reveals that the mineralization and alteration originally occurred along a north-northeast-trending subvertical dyke that projected upward from the structural top of a Cretaceous granitoid pluton. The association of gold with dyke and gradation of the dyke into the granitic rocks of the pluton indicate that gold mineralization was intimately related to Cretaceous magmatism and dyke emplacement. Later erosion and subsequent burial by lower Miocene volcanic rocks was followed by structural dismemberment and tilting and eventual uncovering by late Cenozoic erosion.  Mixed Mineralization. Combined veining and porphyritic style of mineralization was observed to be a common feature especially on Gold Point Vulture claim and Gold Point claims 27-29 located in the southwestern part of the property. Granitoid rocks are intersected by porphyritic volcanic rocks in these areas. Hematitic alteration is common and covers large areas at the contact of granite and volcanic dykes.  Impairment of the Vulture Claims. Although we possess a plan of exploration for the Vulture Claims, we do not possess the resources to execute on that plan. Additionally, while it is our goal to raise capital to finance the exploration, there is no assurance of additional funding being available or on acceptable terms, if at all. As a result, we have fully impaired the value of the Vulture Claims.  British Columbia Claims.  On March 28, 2012, we entered into a property option agreement with Blair Naughty (Naughty), an individual, to acquire all mineral interests in three quartz claims located in British Columbia (the Agreement and the British Columbia Claims, respectively). The British Columbia Claims cover approximately 2,785 acres in Northern British Columbia on the Yukon Border. Pursuant to the terms of the Agreement:  15   O We can acquire mineral interests in and to the British Columbia Claims by 1) paying to Naughty $5,000 within 5 days of the effective date of the Agreement (paid), 2) issuing to Naughty 1,000,000 shares of our common stock (issued) and 3) incurring expenditures (as defined in the Agreement, a copy of which is attached as Exhibit 10.1 to our Form 10-Q for the quarter ended April 30, 2012, which was filed on June 14, 2012) of $25,000 on or before September 15, 2013 for the purpose of developing the British Columbia Claims. A further description of the British Columbia Claims can be found in Exhibit A to the Agreement; O We can serve as the operator on the British Columbia Claims; O Naughty will retain a 3.0% royalty in the British Columbia Claims. A further description of the royalty on the British Columbia Claims can be found in the Agreement; O Under certain terms and conditions we will have the ability to purchase 2% of the 3% royalty held by Naughty; O If Naughty desires to sell the royalty, then we have a first right of refusal; O We can assign the agreement with the consent of Naughty; O We and Naughty agreed to the establishment of an area of common interest which covers all land within 2 kilometres of the British Columbia Claims. If Naughty acquires mining permits in such area of common interest, then he must offer us the mining permits at staking cost plus 20%. If acquired, the mining permits would fall under the terms of the Agreement; O Conduct such prospecting, exploration and development work as we deem advisable; and O Remove and dispose of reasonable quantities of ores, minerals and metals for the purpose of obtaining assays or making other tests.  The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Agreement attached as Exhibit 10.1 to our Form 10-Q for the quarter ended April 30, 2012, which was filed on June 14, 2012.  At this point in time we are still gathering information on the British Columbia Claims. Once we have gathered sufficient information, then there will be disclosures regarding the British Columbia Claims similar to the disclosures regarding our other claims.  Competition  The mineral exploration industry, in general, is intensely competitive and even if commercial quantities of reserves are discovered, a ready market may not exist for the sale of the reserves.    16   Most companies operating in this industry are more established and have greater resources to engage in the production of mineral claims.  We were incorporated on June 4, 2008 and our operations are not well-established.  Our resources at the present time are limited.  We may exhaust all of our resources and be unable to complete full exploration of our various claims.  There is also significant competition to retain qualified personnel to assist in conducting mineral exploration activities.  If a commercially viable deposit is found to exist and we are unable to retain additional qualified personnel, we may be unable to enter into production and achieve profitable operations.  These factors set forth above could inhibit our ability to compete with other companies in the industry and enter into production of the mineral claim if a commercial viable deposit is found to exist.  Numerous factors beyond our control may affect the marketability of any substances discovered.  These factors include market fluctuations, the proximity and capacity of natural resource markets and processing equipment, government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection.  The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in not receiving an adequate return on invested capital.  Compliance with Government Regulation  Canada.  The main agency that governs the exploration of minerals in the Province of Ontario is the Ontario Ministry of Northern Development, Mines and Forestry.  The Ontario Ministry of Northern Development, Mines and Forestry manages the development of Ontarios mineral resources, and implements policies and programs respecting their development while protecting the environment. In addition, the Ministry regulates and inspects the exploration and mineral production industries in Ontario to protect workers, the public and the environment.  The material legislation applicable to us is the Ontario Mining Act. In order to prospect on Crown lands in Ontario or stake out, record, or apply to record the staking of a mining claim, a person must be a holder of a prospector's license issued under the Ontario Mining Act. In order to obtain a license an application is made to the nearest Mining Lands office or other offices offering Mining Lands services of the Ministry of Northern Development, Mines and Forestry.  Although a license is required for prospecting, unlicensed parties can perform pre-exploration activities including: geophysical/geochemical surveys, airborne geophysical surveys, limited stripping and trenching, limited bulk sampling and various forms of drilling can be conducted without a license.  Prospecting or preliminary exploration may require the following permits and approvals:  17   · Provincial permits associated with use of Crown land for road building, water crossings, tree cutting, burning of materials or approach to a Provincial highway. In addition, some of the permits required for activity on Crown land may require a limited Environmental Assessment; · Federal approvals for crossing a watercourse designated as navigable; work near or within waters that are -fish habitat; exploration on First Nation Reserve land; or purchase and possession of explosives; and · Municipal approvals for potential changes in land use, and sometimes for burning of materials.  If we progress past the exploration stage then the next three main stages in the development of a mining project are advanced exploration, development, operations, and closures. At such point in time as we move closer towards realizing each stage we will provide the major regulatory and permitting requirements to be taken into consideration.  In order to hold a claim in good standing or to apply for a lease, exploration work (referred to as assessment work) must be performed and reported to the Crown for approval within specified time limits.  Qualifying assessment activities fall into two categories, those performed within 12 months prior to the recording of mining claims and those performed after the recording of mining claims.  Activities in the former category are regional surveys such as airborne geophysics and regional or reconnaissance ground exploration and prospecting by a holder of a valid prospectors license.  Activities in the latter category include prospecting and physical work such as manual, mechanical overburden stripping and bedrock trenching, and shaft sinking, driving adits and open cuttings.  United States. The exploration, drilling, and mining industries in the United States operate in a legal environment that requires permits to conduct virtually all operations.  A Mineral Exploration Permit application will be required to get a permit for the proposed exploration work to be carried out on the Vulture Claims. The department responsible for issuing this is the Minerals Section of the Arizona State Land Department (the ALSD).  An exploration permit is valid for one (1) year, renewable up to five(5) years.  An Exploration Plan of Operation must be submitted annually and approved by the ASLD prior to startup of exploration activities.  A minimum bond required is $3,000 but the actual bond amount is based upon the type of exploration and the degree of disturbance. The State Land Commissioner, an Arizona official, at his discretion, may also change the amount of the damage and restoration bond when warranted by any changes in the Plan of Operation.  Once a permit is issued then there are minimum expenditure requirements.  If no work was completed on-site, the applicant can pay the equal amount to the department. An exploration permit does not permit its holder to conduct mining operations.  If discovery of a valuable mineral deposit is made, then the permitee must apply for a mineral lease before actual mining activities can begin.  18   Employees  We have no employees as of the date of this report other than our president and CEO, Ms. Notar. We conduct our business largely through agreements with consultants and other independent third party vendors. We do not anticipate hiring additional employees over the next twelve months.  Research and Development Expenditures  We have not incurred any research or development expenditures since our incorporation.  Environmental Laws  With the exception of the regulations discussed above, we have not incurred and do not anticipate incurring any expenses associated with environmental laws during the currently planned exploratory phases of our operations.  Subsidiaries  We do not have any subsidiaries other than Northern Bonanza, Inc., an Ontario corporation, and Source Bonanza, LLC, a Nevada limited liability company and IRC Exploration, Ltd., an Alberta Corporation.  Source Bonanza wholly owns Vulture Gold LLC.  Patents and Trademarks  We do not own, either legally or beneficially, any patent or trademark.   Item 2. Properties  We do not lease or own any real property other than our mineral claims. Our executive and head office is located at 2 Toronto Street, Suite 234, Toronto, Ontario, Canada M5C 2B5. We believe our current premises are adequate for our current operations and we do not anticipate that we will require any additional premises in the foreseeable future.  When and if we require additional space, we intend to move at that time.  Southern Beardmore Claims  The Southern Beardmore property consists of a group of 21 contiguous mineral claims in the Beardmore Area and Mary Jane Lake Area, near Beardmore, Ontario. The area of the property is 269 hectares. The northern boundary of the property is 3 kilometers south of Beardmore, Ontario on Highway11.   19   [srgl10ka5032013001.jpg]    20  KRK West Claims  The KRK West property consists of 19 claims covering 15 square miles. It is located north of Thunder Bay in the Beardmore area of Northwestern Ontario, Canada.  [srgl10ka5032013002.jpg]   21  Vulture Peak Claims  The Vulture Peak property is located approximately 15 km to 17 km southwest of Wickenburg in Maricopa County, Arizona. It consists of 23 claims located in Section(s) 23, 24, 25, 26, 35 and 36, T.6N., R.GW., and in Section(s) 3D, T.6N., R.5W., Maricopa County, Arizona. Each claim is approximately 20.7 acres with a total property area of 476.1 acres, configured in three separate blocks.  [srgl10ka5032013003.jpg]    22  British Columbia Claims. The British Columbia Claims cover approximately 2,785 acres in Northern British Columbia on the Yukon Border. We do not currently have a map of the property that can be included with this filing.  Item 3. Legal Proceedings  On October 26, 2009, we entered into an agreement with Thunder Bay Minerals, Inc. (the Agreement and Thunder Bay, respectively) under which we were granted an option to acquire an undivided 50% interest in 19 mineral claims known as the KRK West Claim, located north of Thunder Bay, Ontario, Canada.  During the year we learned that Thunder Bay had allowed the KRK West Claims to lapse, and therefore the option agreement was null and void.  As discussed above, we were able to re-purchase 13 of the 19 KRK West Claims from persons who re-staked the claims for an aggregate amount of $27,578.  We also incurred exploration expenditures of $555 in relation to these claims.  Subsequent to acquisition of the claims they were transferred to our wholly owned subsidiary, Northern Bonanza, Inc.  Thunder Bay currently maintains that control of the KRK West Claims remains with it and that we have no right to further explore the property.  We disagree with this assertion and accordingly ownership to the claims is in dispute.  On January 6, 2011 the Ministry of Northern Development, Mines and Forestry, Canada, was to adjudicate upon the ownership of the claims. The hearing did not occur as the other party filed for a change of venue and mediation regarding the matter was scheduled. Two days prior to the scheduled mediation, William J. Wheeler (Wheeler), the principal of Thunder Bay, cancelled the mediation.  As a result of the cancellation, we decided the best course of action was to file suit. Accordingly, we filed an action against Thunder Bay and Wheeler in Ontario Superior Court of Justice. In the suit we detail the breach of the Agreement by Thunder Bay and Wheeler and request:  · An order transferring an application regarding mining claims to Ontario Superior Court to be consolidated with this action; · A declaration regarding our ownership and Thunder Bay and Wheeler’s ownership with respect to certain mining claims; and · $1,200,000 in damages from Thunder Bay and Wheeler.  Other than the foregoing, we are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.   Item 4. (Removed and Reserved)   23  PART II   Item 5. Market for Registrants Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities  Market Information  Our common stock is currently quoted on the OTC Bulletin Board (OTCBB), which is sponsored by FINRA. The OTCBB is a network of security dealers who buy and sell stock. The dealers are connected by a computer network that provides information on current "bids" and "asks", as well as volume information. Our shares are quoted on the OTCBB under the symbol SRGL.OB.  The following table sets forth the range of high and low bid quotations for our common stock for each of the periods indicated as reported by the OTCBB. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.  Fiscal Year Ending July 31, 2011Quarter EndedHigh $Low $July 31, 20110.150.11April 30, 20110.4150.11February 28, 20110.620.1October 31, 20100.720  Fiscal Year Ending July 31, 2012Quarter EndedHigh $Low $July 31, 20120.01750.0145April 30, 20120.0660.06February 28, 20120.0950.0811October 31, 20110.110.11  Penny Stock  The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;  24  (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.  The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.  These disclosure requirements may have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.  Holders of Our Common Stock  As of October 23, 2012, we had 60,966,819 shares of our common stock issued and outstanding, held by fifty-seven (57) shareholders of record.  Dividends  There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:  1. We would not be able to pay our debts as they become due in the usual course of business, or; 2. Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.  We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.   25  Recent Sales of Unregistered Securities  On May 10, 2012, the Company issued 1,000,000 common shares to Canal Front Investments, Inc., as payment to Blair Naughty pursuant to a mineral property option agreement. The shares were valued at $80,000 or $0.08 per share.These shares were issued pursuant to Section 4(2) of the Securities Act of 1933 and are restricted shares as defined in the Securities Act.  We did not engage in any general solicitation or advertising.  On January, 23, 2012, we issued a convertible promissory note for $32,500 to Asher Enterprises, Inc., a Delaware corporation. Subsequent to the end of the year ended July 31, 2012, Asher Enterprises, Inc. converted the foregoing note into 9,585,054 common shares of stock with a value of $34,000. This issuance was exempt from Registration pursuant to Rule 506 of Regulation D of the Securities Act of 1933, as amended. The promissory note, which includes the terms of the conversion and additional detail, are contained in Exhibit 10.1 to our Form 10-Q for the quarter ended January 31, 2012, which was filed on March 15, 2012.  Securities Authorized for Issuance under Equity Compensation Plans  None.   Item 6. Selected Financial Data  A smaller reporting company is not required to provide the information required by this Item.   Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations  Forward-Looking Statements  Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements. These forward-looking statements generally are identified by the words believes, project, expects, anticipates, estimates, intends, strategy, plan, may, will, would, will be, will continue, will likely result, and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  26   Results of Operations for the years ended July 31, 2012 and 2011 and period from Inception (June 4, 2008 to July 31, 2012)  We generated no revenue for the years ended July 31, 2012 and 2011 and for the period from June 4, 2008 (Date of Inception) until July 31, 2012. We do not anticipate earning revenues until such time that we enter into commercial production of our claims.  We are presently in the exploration stage of our business and we can provide no assurance that we will discover commercially exploitable levels of mineral resources on any of our claims, or if such resources are discovered, that we will enter into commercial production.  Our operating expenses for the years ended July 31, 2012 and 2011 and for the period from June 4, 2008 (Date of Inception) to July 31, 2012, were $227,699, $6,304,842 and $14,139,781, respectively.  The primary operating expenses for the year ended July 31, 2012, consisted of management fees of $72,000, mineral property exploration costs of $3,317, legal fees of $35,554, accounting and audit fees of $45,205, tax penalties and interest of $32,500 and office expenses of $33,109.  The primary operating expenses for the year ended July 31, 2011, consisted of management fees of $4,054,571, mineral property option impairment of $2,000,000, legal fees of $64,058, mineral property exploration costs of $83,743, accounting and audit fees of $54,022, office expenses of $25,832 and tax penalties and interest of $22,616. The overwhelming amount of the operating expense attributable to management fees was an expense in the amount of $3,992,571 accrued as a result of options to purchase common stock granted from our former president to our current president.  The total expense for the options was $10,960,000but because of the vesting period for the options the other expense of $6,967,429 was attributable to the fiscal year ended July 31, 2010.  The primary operating expenses for the period from June 4, 2008 (Date of Inception) until July 31, 2012, consisted of management fees of $11,161,569, mineral property option impairment costs of $2,203,611, mineral property exploration costs of $155,946, legal fees of $239,255, accounting and audit fees of $179,838, office expenses of $109,921 and tax penalties and interest of $80,347.  We recorded a net loss of $298,289, $6,304,842 and $14,113,129 for the years ended July 31, 2012 and 2011 and for the period from June 4, 2008 (Date of Inception) until July 31, 2012, respectively.  Liquidity and Capital Resources  As of July 31, 2012, we had total current assets of $15,760, consisting of $15,620 in cash and $140 of prepaid expenses.  We had $291,133 in current liabilities as of July 31, 2012. Thus, we had a working capital deficit of $275,373 as of July 31, 2012.   27   Net cash used in operating activities was $224,869, $250,388 and $845,947 for the years ended July 31, 2012 and 2011 and for the period from June 4, 2008 (Date of Inception) to July 31, 2012, respectively. Our main source of cash has been from the sale of our common stock which has generated $952,375 in cash flow to date since the date of our inception.  During the quarter ended July 31, 2012, we raised $52,500 through the issuance of a promissory note to Asher Enterprises, Inc., a Delaware corporation. The foregoing promissory note is dated May 14, 2012. Interest on the promissory note is eight percent (8%) per annum. The promissory note is due on February 18, 2013. Beginning six months from the date of the promissory note until February 18, 2013, Asher has the ability to convert the promissory note to stock of the Company. The terms of the conversion and additional detail regarding the promissory note are contained in Exhibit 10.3 to our Form 10-Q for the quarter ended April 30, 2012, which was filed on June 14, 2012.  Subsequent to the end of the quarter ending July 31, 2012, we raised additional money through the issuance of a promissory note for $42,500 to Asher Enterprises, Inc., a Delaware corporation. The foregoing promissory note is dated October 5, 2012. Interest on the promissory note is eight percent (8%) per annum. The promissory note is due on July 10, 2013. Beginning six months from the date of the promissory note until July 10, 2013, Asher has the ability to convert the promissory note to stock of the Company. The terms of the conversion and additional detail regarding the promissory note are contained in Exhibit 10.5.On January, 23, 2012, we issued a convertible promissory note for $32,500 to Asher Enterprises, Inc., a Delaware corporation. Subsequent to the end of the year ended July 31, 2012, we issued an aggregate of 9,585,054 shares with a value of $34,000 to Asher Enterprises, Inc., in satisfaction of the foregoing note. The promissory note, which includes the terms of the conversion and additional detail, are contained in Exhibit 10.1 to our Form 10-Q for the quarter ended January 31, 2012, which was filed on March 15, 2012.  We will require significant additional cash to complete the proposed exploration programs on our various mining properties. Our business plan calls for ongoing expenses in connection with exploring and developing our mineral properties, including, but not limited to, an initial exploration budget of $60,000 for the Southern Beardmore claims and $132,500 CDN for Phase I of the exploration plan on the Vulture claims.  Accordingly, we must seek additional financing to fund our planned operations. Such additional funds may be raised through the issuance of equity, debt, convertible debt or similar securities that may have rights or preferences senior to those of our common stock. If financing adequate to fund our planned exploration activities cannot be secured, we will be required to limit our operations and the execution of our business plan will be significantly delayed.  There can be no assurance that such additional financing, when and if necessary, will be available to us on acceptable terms, or at all.    28   Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.  Off Balance Sheet Arrangements  As of July 31, 2012, there were no off balance sheet arrangements.  Going Concern  These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that we will be able to meet our obligations and continue our operations for our next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should we be unable to continue as a going concern.  We have yet to achieve profitable operations, have accumulated losses of $14,113,129 since our inception, have a working capital deficiency of $275,373, no source of recurring revenues, and expect to incur further losses in the development of our business, all of which casts substantial doubt about the our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet our obligations and repay our liabilities arising from normal business operations when they come due.  Management has no formal plan in place to address this concern but considers that we will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue in existence.     29   Critical Accounting Policies  In December 2001, the SEC requested that all registrants list their most critical accounting polices in the Management Discussion and Analysis. The SEC indicated that a critical accounting policy is one which is both important to the portrayal of a companys financial condition and results, and requires managements most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. At this time, we believe that the following is the only of our accounting policies that fits this definition.  Stock-based compensation  The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.  Stock based compensation for non-employees is accounted for using the Stock Based Compensation Topic of the FASB ASC 505. We use the fair value method for equity instruments granted to non-employees and will use the Black Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.  Recently Issued Accounting Pronouncements  We have reviewed issued accounting pronouncements and plan to adopt those that are applicable to us. We do not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.   Item 7A. Quantitative and Qualitative Disclosures About Market Risk  A smaller reporting company is not required to provide the information required by this Item.     30   Item 8. Financial Statements and Supplementary Data  Index to Financial Statements Required by Article 8 of Regulation S-X:  Audited Financial Statements:F-1Report of Independent Registered Public Accounting FirmF-2Consolidated Balance Sheets as of July 31, 2012 and 2011;F-3Consolidated Statements of Operations for the years ended July 31, 2012 and 2011 and the period from June 4, 2008 (Date of Inception) to July 31, 2012;F-4Consolidated Statement of Stockholders Deficit for the period from June 4, 2008 (Date of Inception) to July 31, 2012;F-6Consolidated Statements of Cash Flows for the years ended July 31, 2012 and 2011 and the period from June 4, 2008 (Date of Inception) to July 31, 2012;F-7Notes to Financial Statements       31     REPORT          32  SOURCE GOLD CORP. (An Exploration Stage Company)  Consolidated Balance Sheets (Audited)


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|--------------------------------------------------------------------------------- | ------- | ------------ | ------- | - | ------------
|                                                                                  | July 31 |              | July 31
|ASSETS                                                                            | 2012    |              | 2011   
|                                                                                  |         |              |        
|Current                                                                           |         |              |         |   |             
|Cash                                                                              | $       | 15,620       |         | $ | 47,106      
|Prepaid expenses                                                                  |         | 140          |         |   | 480         
|                                                                                  |         |              |         |   |             
|Total current assets                                                              |         | 15,760       |         |   | 47,586      
|                                                                                  |         |              |         |   |             
|Computer equipment - Note 3                                                       |         | 1,849        |         |   | -           
|Mineral property - Note 8                                                         |         | 85,000       |         |   | -           
|                                                                                  |         |              |         |   |             
|Total assets                                                                      |         | 102,609      |         |   | 47,586      
|                                                                                  |         |              |         |   |             
|LIABILITIES AND STOCKHOLDERS DEFICIT                                             |         |              |         |   |             
|                                                                                  |         |              |         |   |             
|Current                                                                           |         |              |         |   |             
|Due to related party - Note 5                                                     |         | 3,429        |         |   | -           
|Accounts payable and accrued liabilities                                          |         | 132,114      |         |   | 129,748     
|Convertible notes payable (net of unamortized debt discount of  $45,345) - Note 6 |         | 155,590      |         |   | -           
|                                                                                  |         |              |         |   |             
|Total current liabilities                                                         |         | 291,133      |         |   | 129,748     
|                                                                                  |         |              |         |   |             
|Total liabilities                                                                 | $       | 291,133      |         | $ | 129,748     
|                                                                                  |         |              |         |   |             
|STOCKHOLDERS DEFICIT                                                             |         |              |         |   |             
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|Preferred stock, $0.001 par value                                                 |         |              |         |   |             
|20,000,000 shares authorized, none outstanding                                    | $       | -            |         | $ | -           
|Common stock, $0.001 par value - Note 7                                           |         |              |         |   |             
|180,000,000 shares authorized                                                     |         |              |         |   |             
|51,381,765 (July 31, 2011 -  49,846,765) shares issued and outstanding            |         | 51,381       |         |   | 49,846      
|Additional paid in capital                                                        |         | 13,970,994   |         |   | 13,787,529  
|Accumulated other comprehensive loss                                              |         | (528)        |         |   | (7,455)     
|Deficit accumulated during the exploration stage                                  |         | (14,210,371) |         |   | (13,912,082)
|                                                                                  |         |              |         |   |             
|Total stockholders deficit                                                       |         | (188,524)    |         |   | (82,162)    
|                                                                                  |         |              |         |   |             
|Total liabilities and stockholders deficit                                       | $       | 102,609      |         | $ | 47,586      

The accompanying notes are an integral part of these consolidated financial statements.  33   SOURCE GOLD CORP. (An Exploration Stage Company)  Consolidated Statements of Operations (Audited)


|                                                      |             |            |                |   |             |  |   |             
|----------------------------------------------------- | ----------- | ---------- | -------------- | - | ----------- |  | - | ------------
|                                                      |             |            | From
Inception
|                                                      |             |            | (June 4, 2008)
|                                                      | Years Ended |            | to            
|                                                      | July 31,    |            | July 31,      
|                                                      | 2012        |            | 2011           |   | 2012       
|                                                      |             |            |                |   |            
|Expenses                                              |             |            |                |   |             |  |   |             
|Accounting and audit fees                             | $           | 45,205     |                | $ | 54,022      |  | $ | 179,838     
|Depreciation                                          |             | 124        |                |   | -           |  |   | 124         
|Foreign exchange (gain) loss                          |             | 5,890      |                |   | -           |  |   | 9,170       
|Legal fees                                            |             | 35,554     |                |   | 64,058      |  |   | 239,255     
|Management fees - Note 5                              |             | 72,000     |                |   | 4,054,571   |  |   | 11,161,569  
|Mineral property option impairment                    |             | -          |                |   | 2,000,000   |  |   | 2,203,611   
|Mineral property exploration costs                    |             | 3,317      |                |   | 83,743      |  |   | 155,946     
|Office expenses                                       |             | 33,109     |                |   | 25,832      |  |   | 109,921     
|Tax penalties and interest                            |             | 32,500     |                |   | 22,616      |  |   | 80,347      
|Total expenses                                        |             | 227,699    |                |   | 6,304,842   |  |   | 14,139,781  
|                                                      |             |            |                |   |             |  |   |             
|Other expenses                                        |             |            |                |   |             |  |   |             
|Interest on convertible notes  - Note 6               |             | 32,165     |                |   | -           |  |   | 32,165      
|Accretion of convertible note discount - Note 6       |             | 38,425     |                |   | -           |  |   | 38,425      
|                                                      |             |            |                |   |             |  |   |             
|Net loss                                              |             | (298,289)  |                |   | (6,304,842) |  |   | (14,113,129)
|                                                      |             |            |                |   |             |  |   |             
|Other comprehensive gain (loss)                       |             |            |                |   |             |  |   |             
|Unrealized foreign exchange                           |             | 6,927      |                |   | (4,653)     |  |   | (1,269)     
|                                                      |             |            |                |   |             |  |   |             
|Comprehensive loss                                    | $           | (291,362)  |                | $ | (6,309,495) |  | $ | (14,210,371)
|                                                      |             |            |                |   |             |  |   |             
|Basic loss per share                                  | $           | (0.01)     |                | $ | (0.13)      |  |   |             
|                                                      |             |            |                |   |             |  |   |             
|Weighted average number of shares outstanding - basic |             | 50,453,902 |                |   | 48,563,666  |  |   |             

The accompanying notes are an integral part of these consolidated financial statements.  34   SOURCE GOLD CORP. (An Exploration Stage Company)  Consolidated Statement of Stockholders Equity (Deficit) (Audited)


|                                                  |                  |               |     |            |            |               |   |             |  |      |           |       |   |         |  |   |             |  |   |            
|------------------------------------------------- | ---------------- | ------------- | --- | ---------- | ---------- | ------------- | - | ----------- |  | ---- | --------- | ----- | - | ------- |  | - | ----------- |  | - | -----------
|                                                  |                  |               |     |            |            |               |   | Deficit     |  |     
|                                                  |                  |               |     |            |            | Accumulated   |   | Accumulated |  |     
|                                                  |                  |               |     | Additional |            | Other         |   | During the  |  |     
|                                                  | Preferred Shares | Common Shares |     | Paid In    |            | Comprehensive |   | Exploration |  |     
|                                                  | Number           |               | Par | Number     |            | Par           |   | Capital     |  | Loss |           | Stage |   | Total  
|Balance at inception (June 4, 2008)               | -                |               | $   | -          | -          |               | $ | -           |  | $    | -         |       | $ | -       |  | $ | -           |  | $ | -          
|Common stock issued for cash:                     | -                |               |     | -          | 24,000,000 |               |   | 24,000      |  |      | 24,000    |       |   | -       |  |   | -           |  |   | 48,000     
|                                                  | -                |               |     | -          | 20,400,000 |               |   | 20,400      |  |      | 51,000    |       |   | -       |  |   | -           |  |   | 71,400     
|Less: commission                                  | -                |               |     | -          | -          |               |   | -           |  |      | (7,025)   |       |   | -       |  |   | -           |  |   | (7,025)    
|Net loss                                          | -                |               |     | -          | -          |               |   | -           |  |      | -         |       |   | -       |  |   | (9,089)     |  |   | (9,089)    
|                                                  |                  |               |     |            |            |               |   |             |  |      |           |       |   |         |  |   |             |  |   |            
|Balance July 31, 2008                             | -                |               |     | -          | 44,400,000 |               |   | 44,400      |  |      | 67,975    |       |   | -       |  |   | (9,089)     |  |   | 103,286    
|Net loss                                          | -                |               |     | -          | -          |               |   | -           |  |      | -         |       |   | -       |  |   | (102,804)   |  |   | (102,804)  
|                                                  |                  |               |     |            |            |               |   |             |  |      |           |       |   |         |  |   |             |  |   |            
|Balance July 31, 2009                             | -                |               |     | -          | 44,400,000 |               |   | 44,400      |  |      | 67,975    |       |   | -       |  |   | (111,893)   |  |   | 482        
|Common stock issued for cash:                     | -                |               |     | -          | 400,000    |               |   | 400         |  |      | 99,600    |       |   | -       |  |   | -           |  |   | 100,000    
|                                                  | -                |               |     | -          | 220,000    |               |   | 220         |  |      | 219,780   |       |   | -       |  |   | -           |  |   | 220,000    
|                                                  | -                |               |     | -          | 33,333     |               |   | 33          |  |      | 49,967    |       |   | -       |  |   | -           |  |   | 50,000     
|                                                  | -                |               |     | -          | 105,932    |               |   | 106         |  |      | 124,894   |       |   | -       |  |   | -           |  |   | 125,000    
|Unrealized loss on foreign exchange               | -                |               |     | -          | -          |               |   | -           |  |      | -         |       |   | (2,802) |  |   | -           |  |   | (2,802)    
|Capital contribution by former president - Note 7 | -                |               |     | -          | -          |               |   | -           |  |      | 6,967,429 |       |   | -       |  |   | -           |  |   | 6,967,429  
|Net loss                                          | -                |               |     | -          | -          |               |   | -           |  |      | -         |       |   | -       |  |   | (7,495,347) |  |   | (7,495,347)
|                                                  |                  |               |     |            |            |               |   |             |  |      |           |       |   |         |  |   |             |  |   |            
|Balance July 31, 2010                             | -                |               | $   | -          | 45,159,265 |               | $ | 45,159      |  | $    | 7,529,645 |       | $ | (2,802) |  | $ | (7,607,240) |  | $ | (35,238)   

The accompanying notes are an integral part of these consolidated financial statements.  35   SOURCE GOLD CORP. (An Exploration Stage Company) Consolidated Statement of Stockholders Equity (Deficit) - (Contd) (Audited)


|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |             |  |  |  |  |  |  |  |  |  |  |  |  | 
|--------------------------------------------------------------------------------------------- | ---------------- | ------------- | --- | ---------- | ---------- | ------------- | - | ----------- |  | ------ | ---------- | ----- | - | ------- |  | - | ------------ |  | - | ----------- |  |  |  |  |  |  |  |  |  |  |  |  | 
|                                                                                              |                  |               |     |            |            |               |   | Deficit     |  |       
|                                                                                              |                  |               |     |            |            | Accumulated   |   | Accumulated |  |       
|                                                                                              |                  |               |     | Additional |            | Other         |   | During the  |  |       
|                                                                                              | Preferred Shares | Common Shares |     | Paid In    |            | Comprehensive |   | Exploration |  |       
|                                                                                              | Number           |               | Par | Number     |            | Par           |   | Capital     |  | Income |            | Stage |   | Total  
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|Balance July 31, 2010                                                                         | -                |               | $   | -          | 45,159,265 |               | $ | 45,159      |  | $      | 7,529,645  |       | $ | (2,802) |  | $ | (7,607,240)  |  | $ | (35,238)   
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|Common stock issued for mineral property                                                      | -                |               |     | -          | 4,000,000  |               |   | 4,000       |  |        | 1,996,000  |       |   | -       |  |   | -            |  |   | 2,000,000  
|Common stock issued for cash:                                                                 | -                |               |     | -          | 100,000    |               |   | 100         |  |        | 49,900     |       |   | -       |  |   | -            |  |   | 50,000     
|                                                                                              | -                |               |     | -          | 31,250     |               |   | 31          |  |        | 19,969     |       |   | -       |  |   | -            |  |   | 20,000     
|                                                                                              | -                |               |     | -          | 281,250    |               |   | 281         |  |        | 89,719     |       |   | -       |  |   | -            |  |   | 90,000     
|                                                                                              | -                |               |     | -          | 275,000    |               |   | 275         |  |        | 109,725    |       |   |         |  |   |              |  |   | 110,000    
|Unrealized loss on foreign exchange                                                           | -                |               |     | -          | -          |               |   | -           |  |        | -          |       |   | (4,653) |  |   | -            |  |   | (4,653)    
|Capital contribution by former president - Note 7                                             | -                |               |     | -          | -          |               |   | -           |  |        | 3,992,571  |       |   | -       |  |   | -            |  |   | 3,992,571  
|Net loss                                                                                      | -                |               |     | -          | -          |               |   | -           |  |        | -          |       |   | -       |  |   | (6,304,842)  |  |   | (6,304,842)
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|Balance, July 31, 2011                                                                        | -                |               |     | -          | 49,846,765 |               |   | 49,846      |  |        | 13,787,529 |       |   | (7,455) |  |   | (13,912,082) |  | $ | (82,162)   
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|Common stock issued for cash:                                                                 | -                |               |     | -          | 160,000    |               |   | 160         |  |        | 39,840     |       |   | -       |  |   | -            |  |   | 40,000     
|Common stock issued for cash:                                                                 | -                |               |     | -          | 250,000    |               |   | 250         |  |        | 24,750     |       |   | -       |  |   | -            |  |   | 25,000     
|Common stock issued for cash:                                                                 | -                |               |     | -          | 125,000    |               |   | 125         |  |        | 9,875      |       |   | -       |  |   | -            |  |   | 10,000     
|Common stock issued for mineral property                                                      | -                |               |     | -          | 1,000,000  |               |   | 1,000       |  |        | 79,000     |       |   | -       |  |   | -            |  |   | 80,000     
|Intrinsic value of the beneficial conversion feature of the convertible debentures - Note 6)- | -                |               |     | -          | -          |               |   | -           |  |        | 30,000     |       |   | -       |  |   | -            |  |   | 30,000     
|Unrealized gain on foreign exchange                                                           | -                |               |     | -          | -          |               |   | -           |  |        | -          |       |   | 6,927   |  |   | -            |  |   | 6,927      
|Net loss                                                                                      | -                |               |     | -          | -          |               |   | -           |  |        | -          |       |   | -       |  |   | (298,289)    |  |   | (298,289)  
|                                                                                              |                  |               |     |            |            |               |   |             |  |        |            |       |   |         |  |   |              |  |   |            
|Balance, July 31, 2012                                                                        | -                |               | $   | -          | 51,381,765 |               | $ | 51,381      |  | $      | 13,970,994 |       | $ | (528)   |  | $ | (14,210,371) |  | $ | (188,524)  

The accompanying notes are an integral part of these consolidated financial statements.  36   SOURCE GOLD CORP. (An Exploration Stage Company)  Consolidated Statements of Cash Flows (Audited)


|                                                                           |             |           |                |   |             |  |   |             
|-------------------------------------------------------------------------- | ----------- | --------- | -------------- | - | ----------- |  | - | ------------
|                                                                           |             |           | From Inception
|                                                                           |             |           | (June 4, 2008)
|                                                                           | Years Ended |           | to            
|                                                                           | July 31,    |           | July 31       
|                                                                           | 2012        |           | 2011           |   | 2012       
|Cash flows used in operating activities                                    |             |           |                |   |             |  |   |             
|Net loss                                                                   | $           | (298,289) |                | $ | (6,304,842) |  | $ | (14,210,371)
|Adjustments to reconcile net loss to net cash used by operating activities |             |           |                |   |             |  |   |             
|Accretion of discount on convertible notes and interest                    |             | 38,425    |                |   | -           |  |   | 38,425      
|Interest expense - beneficial conversion feature of convertible notes      |             | 30,000    |                |   | -           |  |   | 30,000      
|Depreciation                                                               |             | 124       |                |   | -           |  |   | 124         
|Mineral property option costs                                              |             | -         |                |   | -           |  |   | 1,842       
|Impairment loss on mineral property option                                 |             | -         |                |   | 2,000,000   |  |   | 2,199,894   
|Management fees from stock options                                         |             | -         |                |   | 3,992,571   |  |   | 10,960,000  
|Changes in operating assets and liabilities                                |             |           |                |   |             |  |   |             
|Accrued interest                                                           |             | 2,165     |                |   | -           |  |   | 2,165       
|Prepaid expenses                                                           |             | 340       |                |   | 26,488      |  |   | (140)       
|Accounts payable and accrued liabilities                                   |             | 2,366     |                |   | 35,395      |  |   | 132,114     
|                                                                           |             |           |                |   |             |  |   |             
|Net cash used in operating activities                                      |             | (224,869) |                |   | (250,388)   |  |   | (845,947)   
|                                                                           |             |           |                |   |             |  |   |             
|Cash flows from investing activities                                       |             |           |                |   |             |  |   |             
|Acquisition of computer equipment                                          |             | (1,973)   |                |   | -           |  |   | (1,973)     
|Mineral property option acquisition                                        |             | (5,000)   |                |   | -           |  |   | (204,894)   
|                                                                           |             |           |                |   |             |  |   |             
|Net cash used in investing activities                                      |             | (6,973)   |                |   | -           |  |   | (206,867)   
|                                                                           |             |           |                |   |             |  |   |             
|Cash flows from financing activities                                       |             |           |                |   |             |  |   |             
|Proceeds from sale of common stock, net cash commission                    |             | 75,000    |                |   | 270,000     |  |   | 952,375     
|Proceeds from  promissory notes                                            |             | 115,000   |                |   | -           |  |   | 113,158     
|Due to related party                                                       |             | 3,429     |                |   | (20,000)    |  |   | 3,429       
|                                                                           |             |           |                |   |             |  |   |             
|Net cash provided by financing activities                                  |             | 193,429   |                |   | 250,000     |  |   | 1,068,962   
|                                                                           |             |           |                |   |             |  |   |             
|Effect of foreign exchange on cash                                         |             | 6,927     |                |   | (4,653)     |  |   | (528)       
|                                                                           |             |           |                |   |             |  |   |             
|Increase (decrease) in cash during the year                                |             | (31,486)  |                |   | (5,041)     |  |   | 15,620      
|                                                                           |             |           |                |   |             |  |   |             
|Cash, beginning of the year                                                |             | 47,106    |                |   | 52,147      |  |   | -           
|                                                                           |             |           |                |   |             |  |   |             
|Cash, end of the year                                                      | $           | 15,620    |                | $ | 47,106      |  | $ | 15,620      
|                                                                           |             |           |                |   |             |  |   |             
|Supplementary disclosure for non-cash investing and financing activities   |             |           |                |   |             |  |   |             
|Shares issued for mineral property                                         | $           | 80,000    |                | $ | 2,000,000   |  | $ | 2,080,000   

The accompanying notes are an integral part of these consolidated financial statements.  37   Source Gold Corp. (An Exploration Stage Company)  Notes to the Consolidated Financial Statements   Note 1 Nature of Operations and Ability to Continue as a Going Concern  The Company was incorporated in the state of Nevada, United States of America on June 4, 2008.  The Company is an exploration stage company and was formed for the purpose of acquiring exploration and development stage mineral properties.  The Companys year-end is July 31. On August 31, 2009, the Company changed its name to Source Gold Corp. in order to reflect the current focus of the Corporation.  Effective September 10, 2009, the Company increased the number of authorized common shares of the Company from 90,000,000 to 180,000,000 shares and its authorized preferred shares from 10,000,000 to 20,000,000 shares per directors resolution dated August 31, 2009.  The Company also conducted a four to one forward stock split of the Companys issued and outstanding common shares per directors resolution. Following this stock split, the number of outstanding shares of the Companys common stock increased from 11,100,000 shares to 44,400,000 shares. All share and per share information in these financial statements has been retro-actively restated for all periods presented to give effect of this stock split.  During the year ended July 31, 2009, the Company acquired via its subsidiary company IRC Exploration Ltd. (IRC), a mineral claim located in British Columbia, Canada. During the year ended July 31, 2010, the mineral property option agreement for the claim in British Columbia was abandoned.  During the year ended July 31, 2010, the Company acquired two additional mineral properties located in Ontario, Canada.  The Company also incorporated two new subsidiary companies, Northern Bonanza Inc. (NBI) to hold its mineral properties located in Ontario, Canada, and Source Bonanza LLC (SB) to hold its mineral properties located in the USA.  The Company also transferred its Ontario mineral properties to NBI during the year ended July 31, 2010.  On August 7, 2010, the Company acquired a 100% interest in Vulture Gold LLC, (Vulture) a Nevada Limited Liability Company.  (Note 8c)  On March 28, 2012, the Company entered into a property option agreement to acquire a 100% undivided right in three tenures comprising 2,785 acres in northern British Columbia, Canada. (Note 8d)  The Company intends on exploring its mineral properties and has not yet determined the existence of economically recoverable reserves.  The recoverability of amounts incurred on its mineral properties is dependent upon the existence of economically recoverable reserves in the property, confirmation of the Companys interest in the underlying mineral claims, the ability of the Company to obtain the necessary financing to complete their development, and the attainment and maintenance of future profitable production or disposition thereof.  These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.  Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.  38  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   The Company has yet to achieve profitable operations, has accumulated losses of $14,210,371 since inception, has working capital deficiency of $275,373, has no source of recurring revenues, and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Companys ability to continue as a going concern.  The Companys ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due.  Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.   Note 2 Summary of Significant Accounting Policies  The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and are stated in US dollars.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates.  Principles of Consolidation  These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary companies IRC Exploration Ltd., (IRC) a company incorporated in Alberta, Canada on August 1, 2008; Northern Bonanza Inc, (NBI) a company incorporated in Ontario, Canada on June 30, 2010; Source Bonanza LLC, (SB) a Limited Liability Company incorporated in Nevada, USA on June 18, 2010 and Vulture Gold LLC, (Vulture) a Nevada Limited Liability Company which was acquired on August 7, 2010.  All significant inter-company transactions and balances have been eliminated.  Cash and Cash Equivalents  For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.  Exploration Stage Company  The Company has not commenced any significant operations and, in accordance with ASC Topic 915, the Company is considered an exploration stage company.  All losses accumulated since inception have been considered as part of the Companys exploration stage activities.   39  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Mineral Properties  The Company is primarily engaged in the acquisition, exploration, and development of mineral properties.  Mineral property acquisition costs are capitalized in accordance with FASB ASC 930-805, Extractive Activities-Mining, when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures.  Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met.  In the event that mineral property acquisition costs are paid with Company shares, those shares are recorded at the estimated fair value at the time the shares are due in accordance with the terms of the property agreements.  When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized.  Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis.  Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards.  Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred.  To date the Company has not established any proven or probable reserves on its mineral properties.  Computer equipment  Computer equipment is stated at the lower of cost or fair value.  Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets.  The cost of repairs and maintenance is charged to expense as incurred.  Expenditures for property betterments and renewals are capitalized.  Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).  The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of its office equipment or whether the remaining balance of office equipment should be evaluated for possible impairment.  Depreciation has been charged using the following estimates of useful lives:  Computer equipment2 years straight line   40  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Foreign Currency Translation  The Companys functional currency is the US dollar as a substantial part of the Companys operations is based in Arizona. IRCs and NBIs functional currency is the Canadian dollar.  The functional currency of SB and Vulture is the US dollar as its activities are in the USA. The Company uses the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (SEC).  Assets and liabilities denominated in a foreign currency are translated into US dollar reporting currency at the exchange rate in effect at the balance sheet date and capital accounts are translated at historical rates.  Income statement accounts are translated at the average rates of exchange prevailing during the period.  Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date.  Any exchange gains and losses are included in other comprehensive loss.  Diluted and Basic Loss per Share  Basic loss per share is computed using the weighted average number of shares outstanding during the period.  Diluted earnings per share are computed similar to basic income per share except that the denominator is increased to include the number of common stock equivalents. Common stock equivalents represent the dilutive effect of the assumed exercise of any outstanding stock equivalents, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Companys net income (loss) position at the calculation date.  There are no common stock equivalents outstanding and, thus, diluted and basic loss per share is the same.  Income Taxes  The Company uses the asset and liability method of accounting for income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change.  A valuation allowance is recorded when it is more likely-than-not that a deferred tax asset will not be realized.  Comprehensive Loss  The Company is required to report comprehensive loss, which includes net loss as well as changes in equity from non-owner sources.    41  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Fair Value of Financial Instruments  Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of July 31, 2012 and July 31, 2011. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.  Stock-Based Compensation  The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expense related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.  Stock based compensation for non-employees is accounted for using the Stock Based Compensation Topic of the FASB ASC 505. We use the fair value method for equity instruments granted to non-employees and will use the Black-Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.  Use of estimates  The preparation of financial statements in conformity with generally accepted accounting principles 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 amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.  Newly Issued Accounting Pronouncements  The Company has reviewed issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.    42  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Note 3 Computer equipment


|                         |         |         |   |  
|------------------------ | ------- | ------- | - | -
|                         | July 31 | July 31
|                         | 2012    | 2011   
|Cost                     |         |        
|Computer equipment       | $       | 1,973   | $ | -
|                         |         |         |   |  
|Accumulated depreciation |         | (124)   |   | -
|                         |         |         |   |  
|Net book value           | $       | 1,849   | $ | -

Note 4 Financial Instruments  Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.  The fair value hierarchy for valuation inputs prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.  Each fair value measurement is reported in one of three levels; the level is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:  Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.  Level 2 - inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  Level 3 - inputs are generally unobservable and typically reflect managements estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.  The carrying value of the Companys financial assets and liabilities which consist of cash, and accounts payable and accrued liabilities, in managements opinion approximate their fair value due to the short maturity of such instruments.  These financial assets and liabilities are valued using level 3 inputs, except for cash which is at level 1.  Unless otherwise noted, it is managements opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments.   43  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Note 5 Related Party Transactions  All related party transactions have been measured at the exchange value which was the amount of consideration established and agreed to by the related parties.  On June 30, 2010, the Company purchased from the Company president 13 mineral property claims in the Thunder Bay mining division of Ontario, Canada.  As consideration for the purchase the Company issued an unsecured, non-interest bearing promissory note for $20,000 due on November 30, 2010.  During the year ended July 31, 2011 this promissory note was settled by payment of $20,000 cash to the president.  As at July 31, 2012, due to related party includes $3,429 (July 31, 2011 - $nil) owing to the President.  During the year ended July 31, 2010, the former president of the Company granted an option to the current president of the Company to acquire up to 20,000,000 common shares of the Company as detailed in Note 7, common stock.  During the year ended July 31, 2012, the Company incurred management fees of $72,000 (2011 - $62,000) charged by the Companys president.  In addition, as a result of the stock options granted, the Company incurred additional management fees of $nil and $3,992,571 for the years ended July 31, 2012 and 2011, respectively.  On November 1, 2009, the Company entered into a Corporate Management Services Agreement with the President of the Company for management services.  Pursuant to the agreement the President would receive a signing bonus of $7,500 (paid November 1, 2009) and $5,000 per month beginning December 1, 2009 for services rendered plus reimbursement of the Companys expenses.  The agreement may be terminated by either party upon 30 days written notice.  On June 21, 2011, the Company amended the agreement by issuing a resolution to reflect a payment of $6,000 per month for services rendered.   Note 6 Convertible Notes Payable


|                   |          |         |         |   |  
|------------------ | -------- | ------- | ------- | - | -
|                   | July 31, |         | July 31
|                   | 2012     |         | 2011   
|                   |          |         |        
|Promissory Note #1 | $        | 32,500  |         | $ | -
|Promissory Note #2 |          | 30,000  |         |   | -
|Promissory Note #3 |          | 52,500  |         |   | -
|                   |          |         |         |   |  
|                   |          | 115,000 |         |   | -
|Interest           |          | 2,165   |         |   | -
|Accretion expense  |          | 38,425  |         |   | -
|                   |          |         |         |   |  
|                   | $        | 155,590 |         | $ | -

44  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Promissory Note #1  On February 1, 2012, the Company received funding pursuant to a convertible promissory note in the amount of $32,500 dated January 23, 2012.  The promissory note is unsecured, bears interest at 8% per annum, and matures on October 25, 2012.  During the year ended July 31, 2012 the Company accrued $1,268 (2011 - $nil) in interest expense.  The note may be converted at the option of the holder into Common stock of the Company.  The conversion price is 51% of the market price, where market price defined as the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.  As at July 31, 2012 and July 31, 2011, the convertible note payable was recorded net of unamortized debt and accrued interest discount of $11,029 and $nil, respectively.  Promissory Note #2  On March 19, 2012, the Company received $30,000 cash and the Company issued a convertible promissory note in the amount of $30,000.  The promissory note is unsecured, interest free and repayable upon demand.  The note may be converted at the option of the holder into Common stock of the Company.  The fixed conversion price is $0.01 per share.  Accordingly the note may be converted into 3,000,000 common shares of the Company.  The Company determined that this Promissory note should be accounted for in accordance with FASB ASC 470-20 which addresses Accounting for Convertible Securities with Beneficial Conversion Features".The beneficial conversion feature is calculated at its intrinsic value (that is, the difference between the conversion price $0.01 and the fair value of the common stock into which the debt is convertible at the commitment date (being $0.08), multiplied by the number of shares into which the debt is convertible. The valuation of the beneficial conversion feature recorded cannot be greater than the face value of the note issued.  A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital.  Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance  During the year ended July 31, 2012 interest expense relating to the beneficial conversion feature of this convertible note of $30,000 (2011 - $nil) was recorded in the financial statements, with a corresponding increase to additional paid in capital.  Promissory Note #3  On May 14, 2012, the Company received funding pursuant to a convertible promissory note in the amount of $52,500 dated May 14, 2012.  The promissory note is unsecured, bears interest at 8% per annum, and matures on February 18, 2013.  During the year ended July 31, 2012 the Company accrued $897 (2011 - $nil) in interest expense.  45  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   The note may be converted at the option of the holder into Common stock of the Company.  The conversion price is 51% of the market price, where market price defined as the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.  As at July 31, 2012 and July 31, 2011, the convertible note payable was recorded net of unamortized debt and accrued interest discount of $34,316 and $nil, respectively.   Note 7 Common Stock  The Company is authorized to issue 20,000,000 shares of it $0.001 par value preferred stock and 180,000,000 shares of its $0.001 par value common stock.  On June 16, 2008, the Company issued 24,000,000 common shares to the Companys former president at $0.002 per share for total proceeds of $48,000.  On July 31, 2008, the Company issued 20,400,000 common shares at $0.0035 per share for total proceeds of $71,400 pursuant to a private placement. The Company paid commissions of $7,025 for net proceeds of $64,375.  On October 26, 2009, the Company issued 200,000 common shares at $0.25 per share for total proceeds of $50,000 pursuant to a private placement.  On October 30, 2009, the Company issued 200,000 common shares at $0.25 per share for total proceeds of $50,000 pursuant to a private placement.  On November 26, 2009, the Company issued 100,000 common shares at $1.00 per share for total proceeds of $100,000 pursuant to a private placement.  On March 5, 2010, the Company issued 120,000 common shares at $1.00 per share for total proceeds of $120,000 pursuant to a private placement.  On April 30, 2010, the Company issued 33,333 common shares at $1.50 per share for total proceeds of $50,000 pursuant to a private placement.  On June 16, 2010, the Company issued 105,932 common shares at $1.18 per share for total proceeds of $125,000 pursuant to a private placement.  On August 7, 2010, the Company issued 4,000,000 common shares with an aggregate fair value of $2,000,000 pursuant to the acquisition of Vulture Gold LLC.  On September 29, 2010, the Company issued 100,000 common shares at $0.50 per share for total proceeds of $50,000 pursuant to a private placement.  On October 22, 2010, the Company issued 31,250 common shares at $0.64 per share for total proceeds of $20,000 pursuant to a private placement.   46  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   On December 14, 2010, the Company issued 156,250 common shares at $0.32 per share for total proceeds of $50,000 pursuant to a private placement.  On February 25, 2011, the Company issued 50,000 common shares at $0.40 for total proceeds of $20,000 pursuant to a private placement.  On March 29, 2011, the Company issued 125,000 common shares at $0.40 for total proceeds of $50,000 pursuant to a private placement.  On April 28, 2011, the Company issued 125,000 common shares at $0.32 for total proceeds of $40,000 pursuant to a private placement.  On June 17, 2011, the Company issued 100,000 common shares at $0.40 for total proceeds of $40,000 pursuant to a private placement.  On September 7, 2011, the Company issued 160,000 common shares at $0.25 for total proceeds of $40,000 pursuant to a private placement.  On November 29, 2011, the Company issued 250,000 common shares at $0.10 for total proceeds of $25,000 pursuant to a private placement.  On January 6, 2012, the Company issued 125,000 common shares at $0.08 for total proceeds of $10,000 pursuant to a private placement.  On May 10, 2012, the Company issued 1,000,000 common shares pursuant to a mineral property option agreement with a fair value of $80,000.  Capital Contribution  During the year ended July 31, 2010, the former president of the Company granted an option to the current president of the Company to acquire up to 20,000,000 common shares of the Company, held by the former president, at a price of $0.0025 per share effective December 20, 2010 until May 1, 2011.  The Company has recorded compensation under management fees and a capital contribution of $nil (2011 - $3,992,571) (2010 - $6,967,429) aggregating $10,960,000 using the Black-Scholes valuation model based on the following inputs; exercise price $0.0025; dividend rate Nil; current stock price of $0.55; term 1.5 years; and volatility 137.75%.  Warrants and Options  As of July 31, 2012 and 2011, there were no warrants or options outstanding to acquire any additional shares of common stock.    47  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   Note 8 Mineral Properties  a)  On October 26, 2009, the Company entered into a property option agreement whereby the Company was granted an option to earn up to a 50% interest in 19 mineral claims (the KRK West claims) located in the Thunder Bay Mining Division of Ontario.  The option agreement is denominated in Canadian dollars.  Consideration for the option was the issuance of 2,000,000 common shares of the Company, cash payments totalling $103,718 (CDN$110,000), and aggregate exploration expenditures of $969,268 (CDN$1,000,000) as follows:  i) Cash payments:  * $46,640 (CDN$50,000) upon execution of the Option agreement (paid); * $57,078(CDN$60,000) on or before December 1, 2009 (paid)  ii) Exploration expenditures of $484,768 (CDN$500,000) on or before December 31, 2010, and $969,268 (CDN$1,000,000) in aggregate on or before December 31, 2011.  In aggregate to July 31, 2011, the Company incurred exploration expenditures aggregating $32,080 (CDN$32,836) (See below regarding status of the agreement)  iii) The issuance of 2,000,000 common shares (none issued) to the shareholders of the optionor, as directed by the optionor.  Upon earning its 50% interest in the option, the Company was to enter into a joint venture agreement to develop and operate the property.  Pursuant to the agreement, if commercial production had been achieved and the Company sold or otherwise disposed of metals and minerals that had been produced and removed from the KRK West properties, the Company would pay Thunder Bay a 3% Net Smelter Return royalty.  In the event the Company sold or caused the sale of products other than to a smelter or refinery or otherwise caused the removal of products from the Property, the Company would pay a 2% Net Smelter Return Royalty. Alternatively, the Company could buy back the royalty right for $1,000,000 for each breccia pipe that reached commercial production.  The property option agreement was stated in Canadian dollars.  The US dollar equivalent was converted using the foreign exchange rate at July 31, 2010 for all future commitments.  During the year ended July 31, 2010, the Company learned that the optionor had allowed the underlying claims to lapse, and therefore the option agreement was null and void.    48  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   The Company, and a director of the Company (The Company subsequently purchased these claims from the director), purchased the claims from persons who re-staked the claims for an aggregate amount of $27,577.  Subsequent to acquisition, the claims were transferred to the Companys wholly owned subsidiary, Northern Bonanza Inc.  Due to the lapse of the underlying claims the Company impaired a total of $131,295 of acquisition costs incurred as of July 31, 2010 made up of the initial $103,718 payment and the additional payment of $27,577.  The original optionor represents that control of the claims remains with the optionor and that the Company has no right to further explore the property.  The Company disagrees with this assertion and accordingly, ownership to the claims is in dispute.  On January 6, 2011 the Ministry of Northern Development, Mines and Forestry, Canada, was to adjudicate upon the ownership of the claims.  The hearing did not occur as the other party filed for a change of venue.  A determination regarding the change of venue has not yet been made and a date for rendering the decision has not yet been established.  Mediation regarding the matter was deferred until late 2011 and prior to the hearing the optionor cancelled the mediation.  In October 2011, the Company, as a result of the cancellation of the mediation hearing with William J. Wheeler regarding the Thunder Bay claims, decided the best course of action was to file suit.  Accordingly, a suit was filed against Thunder Bay and Wheeler in Ontario Superior Court of Justice. In the suit we detail the breach of the Agreement by Thunder Bay and Wheeler and request:  * An order transferring an application regarding mining claims pending before the Office of the Mining and Lands Commissioner to the  Ontario Superior Court of Justice to be consolidated with this action; * A declaration regarding our ownership and Thunder Bay and Wheelers ownership with respect to certain mining claims; and * $1,200,000 in damages from Thunder Bay and Wheeler.  b) During the year ended July 31, 2010, the Company entered into a property purchase agreement, which was formalized on May 4, 2010, to acquire a 100% interest in 21 mining claims located in the Northern Ontario for $50,767 (Cdn$51,800).  During the year ended July 31, 2010, the Company incurred an additional $17,741 in staking costs in relation to these claims.  Subsequent to acquisition the claims and exploration costs were transferred to NBI at cost.  During the year ended July 31, 2010, the Company made exploration advances to the operator amounting to $47,806.  As at July 31, 2010 the operator had incurred exploration expenses aggregating $20,118 resulting in net advances held being $26,968.  During the year ended July 31, 2011, the Company made further advances to the operator of $7,040.  During the year ended July 31, 2011 the operator incurred exploration expenditures of $34,008 and the Company also incurred direct exploration expenditures of $47,335.  As at July 31, 2012, the operator held exploration advances amounting to $nil (2011 - $nil). Due to lack of funding, the Company has no immediate plans to explore these mines to determine resources available and consequently the costs incurred of $68,599 for these mineral properties was deemed to be fully impaired as of July 31, 2011.   49  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   c) On August 7, 2010, the Company acquired a 100% interest in Vulture Gold LLC, (Vulture) a Nevada limited Liability Company.  Vulture holds 27 mineral claims in Maricopa County, Arizona, known as the Vulture Mine.  As consideration for the acquisition the Company issued 4,000,000 common shares with a fair value of $2,000,000.  This transaction has been recorded as an asset acquisition and the fair value paid has been allocated to the cost of acquisition of the mineral property.  During the year ended July31, 2012, the Company incurred exploration expenditures of $3,317 (2011 - $2,221) on the property.  Due to lack of funding, the Company has no immediate plans to explore these mines to determine resources available and consequently the costs of $2,000,000 incurred for these mineral properties is deemed to be fully impaired.  d) On March 28, 2012, the Company entered into a property option agreement whereby the Company was granted an option to earn a 100% interest in 3 mineral tenures located in Northern British Columbia.  The option agreement is denominated in US dollars.  Consideration for the option was the issuance of 1,000,000 common shares of the Company on March 28, 2012 valued at $80,000, (issued) and cash payment of $5,000 by April 2, 2012 (paid) and aggregate exploration expenditures of $25,000 by September 15, 2013.  As at July 31, 2012, no exploration expenditures have been incurred on the property.   Note 9 Income Taxes  The following table presents income before taxes and income tax expense as well as the taxes charged to stockholders equity:


|                         |            |            |   |            
|------------------------ | ---------- | ---------- | - | -----------
|                         | Year Ended | Year Ended
|                         | July 31,   | July 31,  
|                         | 2011       | 2011      
|                         |            |            |   |            
|Loss before income taxes | $          | (298,289)  | $ | (6,304,842)

A reconciliation of the expected consolidated income expense, computed by applying a 35% U.S. Federal corporate income tax rate to income before taxes to income tax expense is as follows:


|                                                                 |   |           |   |            
|---------------------------------------------------------------- | - | --------- | - | -----------
|Expected approximate tax recovery on net loss, before income tax | $ | (104,400) | $ | (2,206,695)
|Share-based compensation                                         |   | -         |   | 1,397,400  
|Mineral property acquisition and exploration                     |   | -         |   | 728,470    
|Changes in valuation allowance                                   |   | 104,400   |   | 80,823     
|                                                                 |   |           |   |            
|Deferred income tax recovery                                     | $ | -         | $ | -          

50  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   At July 31, 2012, and 2011 the Company incurred net operating losses carry forward for U.S. Federal tax purposes of approximately $837,000 and $538,000, respectively which may be applied against future taxable income, if any, at various times through 2032. Certain significant changes in ownership of the Company may restrict future utilization of these tax loss carry-forwards. The total deferred tax asset is as follows:


|                               |   |           |  |   |          
|------------------------------ | - | --------- |  | - | ---------
|Deferred tax asset             |   |           |  |   |          
|NOL Carryforward               | $ | 292,800   |  | $ | 188,400  
|Changes in valuation allowance |   | (292,800) |  |   | (188,400)
|                               |   |           |  |   |          
|Deferred income tax recovery   | $ | -         |  | $ | -        

The amount taken into income as deferred tax assets must reflect that portion of the income tax loss carry-forwards that is more-likely-than-not to be realized from future operations.  The Company has chosen to provide an allowance of 100% against all available income tax loss carry-forwards, regardless of their time of expiry.  Uncertain Tax Positions  The Company files income tax returns in the U.S. federal jurisdiction, various state and foreign jurisdictions.  The Companys tax returns are subject to tax examinations by U.S. federal and state tax authorities, or examinations by foreign tax authorities until respective statute of limitation.  It is subject to tax examinations by tax authorities for all taxation years commencing on or after 2008.  Provision has not been made for U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries. Such earnings have been and will continue to be reinvested but could become subject to additional tax if they were remitted as dividends, or were loaned to the Company affiliate. It is not practicable to determine the amount of additional tax, if any, that might be payable on the undistributed foreign earnings.   Note 10 Commitments  The Company has an ongoing agreement with a director of the company to provide management services for $6,000 per month.  Either party may terminate the agreement with one months written notice.   Note 11 Subsequent event  Subsequent to the year end the Company:  a) Issued an aggregate of 9,585,054 common shares were issued with a fair value of $34,300 upon the conversion into common stock of the convertible note payable which fell due on October 25, 2012.    51  Source Gold Corp. (An Exploration Stage Company) Notes to the Consolidated Financial Statements   b) On October 5, 2012, the Company received $42,500 cash and the Company issued a convertible promissory note in the amount of $42,500.  The promissory note is unsecured, bears interest at 8% per annum, and matures on July 13, 2012.  The note may be converted at the option of the holder into Common stock of the Company.  The conversion price is defined as 51% multiplied by Market Price where market price is calculated as the average of the lowest 3 closing bid prices in the ten days prior to conversion for the Companys shares as quoted on the OTCBB .  c) On October 31, 2012, the President of the Company acquired 10,000,000 common shares of the Company in a private transaction.  As of October 31, 2012, the President holds a 16.4% interest in the common stock of the Company.                               52    Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure  No events occurred requiring disclosure under Item 304 of Regulation S-K during the fiscal year ending July 31, 2012.   Item 9A(T). Controls and Procedures  As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report, being July 31, 2012. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.  Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our companys reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.  Based upon that evaluation, including our Chief Executive Officer and Chief Financial Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this annual report.  Managements Report on Internal Control over Financial Reporting  Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). Management has assessed the effectiveness of our internal control over financial reporting as of July 31, 2012 based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of July 31, 2012, our internal control over financial reporting was not effective. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.    53  We plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we hope to implement the following changes during our fiscal year ending July 31, 2012: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.  This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Managements report was not subject to attestation by our registered public accounting firm pursuant to an exemption for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act.   Item 9B. Other Information  None  PART III   Item 10. Directors, Executive Officers and Corporate Governance  The following information sets forth the names of our current director and executive officer, her age as of July 31, 2012 and her present positions.  NameAgePosition(s) and Office(s) HeldLauren Notar52President, Chief Executive Officer, Chief Financial Officer, and Director  Set forth below is a brief description of the background and business experience of each of our current executive officers and directors.     54  Lauren Notar. Ms. Notar is our CEO, CFO, President, and sole director.  She has served in these capacities since November 2009. During 2009, Ms. Notar also operated her own independent sales and marketing company. From 2008 to 2009, she was with Dolphin Enterprises in the sales department.  From 2007-2008, she worked with investor relations at Ryland Oil and Gas.  From 2005 to 2007 she was an investment advisor at Global Securities Corporation.  From 2002 to 2005, she was an investment advisor with Canaccord Capital Corporation.  Term of Office  Our Directors are appointed for a one year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.  Involvement in Certain Legal Proceedings  To the best of our knowledge, during the past ten years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended, or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.  Committees of the Board  Our company currently does not have nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation or audit committee charter. Our directors believe that it is not necessary to have such committees, at this time, because the functions of such committees can be adequately performed by the board of directors.Our Board of Directors, which performs the functions of an audit committee, does not have a member who would qualify as an audit committee financial expert within the definition of Item 407(d)(5)(ii) of Regulation S-K. We believe that, at our current size and stage of development, the addition of a special audit committee financial expert to the Board is not necessary.  Our company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for directors. The board of directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our company does not currently have any specific or minimum criteria for the election of nominees to the board of directors and we do not have any specific process or procedure for evaluating such nominees. The board of directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.  55   A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our President and CEO, Ms. Notar, at the address appearing on the first page of this annual report.  Code of Ethics  As of July 31, 2012, we had not adopted a Code of Ethics for Financial Executives, which would include our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.   Item 11. Executive Compensation  Compensation Discussion and Analysis  Compensation of our sole officer and director, Lauren Notar, is governed by a Corporate Management Services Agreement dated November 1, 2009.  Under this agreement, Ms. Notar provides us with accounting, administrative, management, and corporate record-keeping services.  Ms. Notar received a $7,500 signing bonus per the agreement, and a monthly stipend of $5,000 together with reimbursement of any company expenses incurred. On June 21, 2011, the Board of Directors passed a Resolution increasing the Presidents monthly salary to $6,000 per month. Our President took the increased salary beginning in June of 2011. The agreement may be terminated by either party upon 30 days written notice.  The goal of our current compensation arrangement is to provide our sole officer with such compensation for her time and efforts as is feasible and appropriate for a small, exploration stage mineral resource company.   As our business and operations expand and mature, we may expand our compensation package designed to attract, retain and motivate talented executives.  Summary Compensation Table  The table below summarizes all compensation awarded to, earned by, or paid both to our officers and to our directors for all services rendered in all capacities to us for our fiscal years ended July 31, 2012 and 2011.


|                                                      |           |                    |           |                  |                   |                                            |                                                 |                            |          
|----------------------------------------------------- | --------- | ------------------ | --------- | ---------------- | ----------------- | ------------------------------------------ | ----------------------------------------------- | -------------------------- | ---------
|SUMMARY COMPENSATION TABLE                           
|Name and
principal position                           | Year      | Management fee
($) | Bonus
($) | Stock
Awards
($) | Option
Awards
($) | Non-Equity
Incentive Plan
Compensation
($) | Nonqualified
Deferred
Compensation
Earnings ($) | All Other
Compensation
($) | Total
($)
|                                                      |           |                    |           |                  |                   |                                            |                                                 |                            |          
|Lauren Notar, CEO, CFO, President, Secretary-Treasure | 2012
2011 | 72,000
62,000      | 0
0       | 0
0              | 0
0               | 0
0                                        | 0
0                                             | 0
0                        | 0
0      

56   Narrative Disclosure to the Summary Compensation Table  Pursuant to the agreement discussed above, our current sole officer and director, Lauren Notar, received a total of $72,000 during the year ended July 31, 2012.  Stock Option Grants  We have not granted any stock options to the executive officers or directors since our inception.  Outstanding Equity Awards at Fiscal Year-End  The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of July 31, 2012.


|                                                       |                                                                     |                                                                       |                                                                                                 |                            |                        |                                                             |                                                                   |                                                                                                          |                                                                                                                        
|------------------------------------------------------ | ------------------------------------------------------------------- | --------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | -------------------------- | ---------------------- | ----------------------------------------------------------- | ----------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------
|OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END          
|OPTION AWARDS                                          | STOCK AWARDS                                                       
|Name                                                   | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive  Plan Awards: Number of Securities Underlying Unexercised
Unearned Options (#) | Option Exercise Price  ($) | Option Expiration
Date | Number
Of Shares or Units
Of Stock That Have Not Vested (#) | Market Value Of Shares Or Units of Stock That Have Not Vested
($) | Equity Incentive
Plan Awards: Number of Unearned  Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned
Shares, Units or Other Rights That Have Not
Vested (#)
|Lauren Notar, CEO, CFO, President Secretary, Treasurer | -                                                                   | -                                                                     | -                                                                                               | -                          | -                      | -                                                           | -                                                                 | -                                                                                                        | -                                                                                                                      

57   Director Compensation  The table below summarizes all compensation of our directors as of July 31, 2012.  DIRECTOR COMPENSATIONNameFees Earned or Paid in Cash ($)Stock Awards
($)Option Awards
($)Non-Equity Incentive Plan Compensation
($)Non-Qualified Deferred Compensation
Earnings ($)All Other Compensation
($)Total
($)Lauren Notar, CEO, CFO, President Secretary, Treasurer-------  Narrative Disclosure to the Director Compensation Table  We do not compensate our directors for their service at this time.   Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters  The following table sets forth, as of October 10, 2011 the beneficial ownership of our common stock by each executive officer and director, by each person known by us to beneficially own more than 5% of the our common stock and by the executive officers and directors as a group:  Title of className and address of beneficial owner (1)Amount of
beneficial ownershipPercent
of class(2)Executive Officers & Directors:CommonLauren Notar
2 Toronto Street, Suite 234
Toronto, Ontario, Canada M5C 2B510,000,000(3)16.40%Total of All Directors and Executive Officers (one person):10,000,000 Shares16.40%Other More Than 5% Beneficial Owners:CommonHarry Bygdnes
C/O Thanyarat Inla
Moo 5
Baan donyanang
T. Nakha O. Moung
J. Udon Thani 41000, Thailand14,000,000(3)22.96%   58   1. As used in this table, "beneficial ownership" means the sole or shared power to vote, or to direct the voting of, a security, or the sole or shared investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). In addition, for purposes of this table, a person is deemed, as of any date, to have "beneficial ownership" of any security that such person has the right to acquire within 60 days after such date. 2. The percent of class is based on 60,846,819 shares of common stock issued and outstanding as of October 23, 2012. 3. Lauren Notar, was party to a Purchase Option Agreement dated November 6, 2009 (the Agreement). Under the Agreement, Ms. Notar acquired the option to purchase up to 20,000,000 shares of our common stock from our former President and CEO, Harry Bygdnes, for a price of $0.0025 per share. Under the Agreement, Ms. Notars options to purchase common stock from Mr. Bygdnes first became exercisable on December 20, 2010 and remained exercisable through May 1, 2011. Effective as of April 30, 2011, Ms. Notar and Mr. Bygdnes executed an extension of the Agreement entitled Extension of Purchase Option Agreement (the Extension). As a result of the Extension, Ms. Notar retained the option to purchase the foregoing shares through May 1, 2012. Ms. Notar ultimately did not exercise the option to purchase Mr. Bygdnes shares.  Ms. Notar and Mr. Bygdnes did enter into a Stock Purchase Agreement on June 12, 2012, in which Ms. Notar acquired 10,000,000 shares of common stock from Mr. Bygdnes for a price of $0.001 per share. The foregoing description of the Stock Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Stock Purchase Agreement attached hereto as Exhibit 10.6 and incorporated herein by reference.   Item 13. Certain Relationships and Related Transactions, and Director Independence  Except as set forth below, none of the following parties has, since our date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:  · Any of our directors or officers; · Any person proposed as a nominee for election as a director; · Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached · to our outstanding shares of common stock; · Any of our promoters; · Any relative or spouse of any of the foregoing persons who has the same house address as such person.  All related party transactions have been measured at the exchange value which was the amount of consideration established and agreed to by the related parties.   59   On June 16, 2008, we received and accepted a subscription to purchase 24,000,000 common shares at $0.002 per share for aggregate proceeds of $48,000 from our former president. The subscription agreement permitted us to accept US$48,000 or CDN$48,000 in full settlement of the share subscription. The share subscription was settled in Canadian dollars. On June 16, 2008 the shares were issued.  On July 1, 2008, we entered into a Corporate Management Services Agreement with our president at the time for management services. Pursuant to the agreement the former President received $1,000 per month plus expenses for services rendered. The agreement was terminated effective November 1, 2009, and the former President resigned on November 6, 2009.  On November 1, 2009, we entered into a Corporate Management Services Agreement with our President for management services. Pursuant to the agreement the President would receive a signing bonus of $7,500 (paid November 1, 2009) and $5,000 per month from December 1, 2009 for services rendered plus reimbursement of companys expenses. On June 21, 2011, the Board of Directors passed a resolution increasing the Presidents salary to $6,000 per month. The agreement may be terminated by either party upon 30 days written notice.  During the year ended July 31, 2012, we incurred management fees of $72,000 charged by our president.  On June 30, 2010, we purchased from our president 13 mineral property claims in the Thunder Bay mining division of Ontario, Canada. As consideration for the purchase we issued an unsecured, non-interest bearing promissory note for $20,000 due on November 30, 2010. During the period ended January 31, 2011 this promissory note was settled by payment of $20,000 cash to our President.   Director Independence  We are not a listed issuer within the meaning of Item 407 of Regulation S-K and there are no applicable listing standards for determining the independence of our directors. Applying the definition of independence set forth in Rule 4200(a)(15) of The Nasdaq Stock Market, Inc., we do not have any independent directors.  Item 14. Principal Accounting Fees and Services  Below is the table of Audit Fees (amounts in US$) billed by our auditor in connection with the audit of the Companys annual financial statements for the years ended:  Financial Statements for the
Year Ended July 31Audit
ServicesAudit Related
FeesTax FeesOther Fees2012$23,000$0$0$02011$20,250$0$0$0     60  PART IV   Item 15. Exhibits, Financial Statements Schedules  (a)Financial Statements and Schedules  The following financial statements and schedules listed below are included in this Form 10-K.  Financial Statements (See Item 8)  (b)Exhibits  Exhibit NumberDescription3.1Articles of Incorporation (1)3.2Bylaws (1)3.3Extension of Option Agreement (2)3.4Resolution Increasing Management Compensation Agreement (2)10.1Promissory Note dated January 23, 2012 (3)10.2Promissory Note dated March 19, 2012 (4)10.3Property Option Agreement dated March 28, 2012 (4)10.4Promissory Note dated May 14, 2012 (4)10.5Promissory Note dated October 5, 201210.6Stock Purchase Agreement31.1Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 200231.2Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002101.INSXBRL Instance Document (5)101.SCHXBRL Taxonomy Extension Schema Document (5)101.CALXBRL Taxonomy Extension Calculation Linkbase Document (5)101.LABXBRL Taxonomy Extension Labels Linkbase Document (5)101.PREXBRL Taxonomy Extension Presentation Linkbase Document (5)101.DEFXBRL Taxonomy Extension Definition Linkbase Document (5)  (1).Incorporated by reference to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on October 7, 2008(2)Incorporate by reference to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 15, 2011.(3)Incorporate by reference to the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on March 15, 2012.(4)Incorporate by reference to the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on June 14, 2012.(5)Incorporated by reference to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 7, 2012.   SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


| |                                                                               
| | ------------------------------------------------------------------------------
| | SOURCE GOLD CORP.                                                             
| |                                                                               
| | By: /s/ Lauren Notar                                                          
| | Lauren Notar
President, Chief Executive Officer, and Director
November 6, 2012

In accordance with Section 13 or 15(d) of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:


| |                                                                               
| | ------------------------------------------------------------------------------
| | By: /s/ Lauren Notar                                                          
| | Lauren Notar
President, Chief Executive Officer, and Director
November 6, 2012

62         CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Amended Annual Report of Source Gold Corp. (the Company) on Form 10-K/A for the year ending July 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Jon Fullenkamp, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.    /s/Lauren Notar By: Lauren Notar Principal Executive Officer and Principal Financial Officer Dated: February 4, 2013  A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.                      63        CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14  I, Jon Fullenkamp, certify that:  1. I have reviewed this Amended Annual Report on Form 10-K/A of Source Gold Corp.;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and  5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.    Date: February 4, 2013 /s/ Lauren Notar  64  By: Lauren Notar Its: Principal Executive Officer     CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14  I, Jon Fullenkamp, certify that:  1. I have reviewed this Amended Annual Report on Form 10-K /A of Source Gold Corp.;  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;  4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  (b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  (c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and  (d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and  5. The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.    Date: February 4, 2013 /s/Lauren Notar  65  By: Lauren Notar Its: Principal Financial Officer      66