----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|   | For the quarterly period ended January 31, 2012 |
|--------|-------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

----

| Nevada                                                         |   | N/A                                  |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 3040 North Campbell Avenue #110Tucson, Arizona                 |   |  85719                          |
| (Address of principal executive offices)                       |   | (Zip Code)                           |
|                                                           |   |                                 |
| (520) 299-0390                                                 |   |                                 |
| (Registrant’s telephone number, including area code)     |   |                                 |

| Large accelerated filer                       | o      | Accelerated filer         | o      |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         | o      | Smaller reporting company | x      |
| (Do not check if a smaller reporting company) |   |                      |   |

----

| PART I – FINANCIAL INFORMATION |  3                                                                                     |     |
|--------------------------------------|---------------------------------------------------------------------------------------------|----------|
|                                 |                                                                                        |     |
| Item 1.                              | Financial Statements                                                                        |  3  |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |  23 |   |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                  |  37 |   |
| Item 4.                              | Controls and Procedures                                                                     |  37 |   |
|                                 |                                                                                        |     |   |
| PART II – OTHER INFORMATION    |  38                                                                                    |     |
|                                 |                                                                                        |     |
| Item 1.                              | Legal Proceedings                                                                           |  38 |   |
| Item 1A.                             | Risk Factors                                                                                |  38 |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                 |  38 |   |
| Item 3.                              | Defaults Upon Senior Securities                                                             |  38 |   |
| Item 4.                              | Mine Safety Disclosure                                                                      |  38 |   |
| Item 5.                              | Other Information                                                                           |  38 |   |
| Item 6.                              | Exhibits                                                                                    |  39 |   |

----

|                                                                                                                                                                                                                          | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Interim Consolidated Balance Sheets as at January 31, 2012 (unaudited) and April 30, 2011 (audited)                                                                                                                           | 4      |
|                                                                                                                                                                                                                          |   |
| Interim Consolidated Statements of Operations and Comprehensive Loss for the three and nine months periods ended January 31, 2012 and January 31, 2011 and for the period from inception (April 20, 2004) to January 31, 2012 | 5      |
|                                                                                                                                                                                                                          |   |
| Interim Consolidated Statements of Cash Flows for the nine months ended January 31, 2012 and January 31, 2011 and for the period from inception (April 20, 2004) to January 31, 2012                                | 6      |
|                                                                                                                                                                                                                          |   |
| Interim Consolidated Statement of Stockholders’ Equity and Deficiency for the period from inception (April 20, 2004) to January 31, 2012                                                                                | 7 - 8  |
|                                                                                                                                                                                                                          |   |
| Condensed Notes to the Interim Consolidated Financial Statements                                                                                                                                                              | 9      |

----

|                                                                                       |   | January 31,2012$ |            |   | April 30,2011$ |   |
|--------------------------------------------------------------------------------------------|--------|------------------|-----------------|--------|----------------|--------|
|                                                                                       |   |             |            |   |           |   |
| CURRENT ASSETS                                                                             |   |             |            |   |           |   |
| Cash                                                                                       |   |             | 282,860         |   |           |   | 81,161 |   |
| Other receivables and pre paid expenses                                                    |   |             | 6,460           |   |           |   | 8,413 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Total Current Assets                                                                       |   |             | 289,320         |   |           |   | 89,574 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| EQUIPMENT (Note 4)                                                                         |   |             | 38,841          |   |           |   | 81,555 |   |
| MINERAL PROPERTIES                                                                         |   |             | 8               |   |           |   | 8 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| TOTAL ASSETS                                                                               |   |             | 328,169         |   |           |   | 171,137 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIENCY                                             |   |             |            |   |           |   |   |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Current Liabilities                                                                        |   |             |            |   |           |   |   |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Accounts payable and accrued liabilities                                                   |   |             | 774,655         |   |           |   | 805,637 |   |
| Promissory notes payable (Note 6)                                                          |   |             | 23,057          |   |           |   | 21,997 |   |
| Liabilities payable in capital stock (Note 8)                                              |   |             | 1,600,000       |   |           |   | - |   |
| Convertible Notes (Note 6)                                                                 |   |             | 200,000         |   |           |   | 201,691 |   |
| Derivative Financial Instruments (Note 6)                                                  |   |             | 0               |   |           |   | 47,382 |   |
| Due to related parties (Note 5)                                                            |   |             | 191,681         |   |           |   | 864,508 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Total Current Liabilities                                                                  |   |             | 2,789,393       |   |           |   | 1,941,215 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
|  Total Liabilities                                                                    |   |             |  2,789,393 |   |           |   | 1,941,215 |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Stockholders’ Deficiency                                                             |   |             |            |   |           |   |   |   |
|                                                                                       |   |             |            |   |           |   |   |   |
|  Capital stock (Note 7) 180,000,000 common shares authorized, $0.00001 par value |   |             |            |   |           |   |   |   |
|  57,448,200 shares issued and outstanding (April 30, 2011 – 36,971,108)         |   |             | 1,399           |   |           |   | 1,195 |   |
|  Additional paid-in capital                                                           |   |             | 21,782,227      |   |           |   | 19,003,080 |   |
|  Subscriptions received                                                               |   |             | 35,000          |   |           |   | - |   |
|  Donated capital                                                                      |   |             | 34,500          |   |           |   | 34,500 |   |
|  Deficit accumulated during the exploration stage                                     |   |             | (24,314,350     | )      |           |   | (20,808,853 | ) |
|                                                                                       |   |             |            |   |           |   |   |   |
|                                                                                       |   |             |            |   |           |   |   |   |
| Total Stockholders’ Deficiency                                                       |   |             | (2,461,224      | )      |           |   | (1,770,078 | )  |
|                                                                                       |   |             |            |   |           |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY                                       |   |             | 328,169         |   |           |   | 171,137 |   |

----

|                                                                        |   | For the Three months Ended January 31, 2012 |       |   | For the Three months Ended January 31, 2011 (Note 10) |   |       | For theNine monthsEnded January 31, 2012 |   |   | For the Nine monthsEnded January 31, 2011 (Note 10) |   |   | Cumulative since inception to January 31, 2012 |       |
|-----------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------|-------------------------------------------------------|--------|------------|------------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                                                        |   | $                                           |       |   | $                                                     |   |       | $                                        |   |   | $                                                             |   |   | $                                              |       |
| Expenses                                                                    |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
|     Bad Debt                                            |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 136,250 |   |
|     Depreciation                                        |   |                                        | 14,238     |   |                                                  |   | 14,537     |                                     |   |   | 42,714                                                        |   |   |                                           | 43,996     |   |   |   | 357,562 |   |
|     Donated services                                    |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 25,500 |   |
|     Filing and transfer agent fees                      |   |                                        | 6,366      |   |                                                  |   | 3,151      |                                     |   |   | 15,119                                                        |   |   |                                           | 13,257     |   |   |   | 69,697 |   |
|     Impairment of mineral property costs                |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 10,756,200 |   |
|     Interest expense                                    |   |                                        | 12,998     |   |                                                  |   | 28,961     |                                     |   |   | 52,622                                                        |   |   |                                           | 93,426     |   |   |   | 343,640 |   |
|     Investor relations                                  |   |                                        | 4,526      |   |                                                  |   | 122,499    |                                     |   |   | 20,200                                                        |   |   |                                           | 238,630    |   |   |   | 392,691 |   |
|     Management and administration fees                  |   |                                        | 315,441    |   |                                                  |   | 140,472    |                                     |   |   | 503,828                                                       |   |   |                                           | 443,479    |   |   |   | 2,875,963 |   |
|     Mineral exploration costs (Note 3)                  |   |                                        | 2,000,466  |   |                                                  |   | 98,540     |                                     |   |   | 2,220,107                                                     |   |   |                                           | 316,693    |   |   |   | 7,601,059 |   |
|     Office and general                                  |   |                                        | 13,603     |   |                                                  |   | 23,632     |                                     |   |   | 41,593                                                        |   |   |                                           | 110,868    |   |   |   | 770,959 |   |
|     Professional fees                                   |   |                                        | 69,119     |   |                                                  |   | 5,576      |                                     |   |   | 149,899                                                       |   |   |                                           | 70,085     |   |   |   | 798,349 |   |
|     Salaries and consulting fees                        |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | 450,000                                                       |   |   |                                           | -          |   |   |   | 450,000 |   |
|                                                                        |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
|                                                                        |   |                                        | (2,436,757 | )      |                                                  |   | (437,368   | )                                        |   |   | (3,496,082                                                    | )      |   |                                           | (1,330,434 | ) |   |   | (24,577,870 | ) |
| Other income                                                                |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
|     Federal income tax recovery                         |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 216,208 |   |
|     Gain on sale of fixed assets                        |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 23,891 |   |
|     Derivative Gain (Loss) (Note 6)                     |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | (9,415                                                        | )      |   |                                           | 881        |   |   |   | 103 |   |
|     Extinguishment Loss on Debt  Modification |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | (126,875 | ) |
|     Gain on Debt Settlement                             |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 82,147 |   |
|     Interest income                                     |   |                                        | -          |   |                                                  |   | -          |                                     |   |   | -                                                             |   |   |                                           | -          |   |   |   | 68,046 |   |
|                                                                        |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
| Net loss and comprehensive loss                                             |   |                                        | (2,436,757 | )      |                                                  |   | (437,368   | )                                        |   |   | (3,505,497                                                    | )      |   |                                           | (1,329,553 | ) |   |   | (24,314,350 | ) |
|                                                                        |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
| Basic and diluted  loss per common share                          |   |                                        | (0.05      | )      |                                                  |   | (0.02      | )                                        |   |   | (0.08                                                         | )      |   |                                           | (0.05      | ) |   |   |   |   |
|                                                                        |   |                                        |       |   |                                                  |   |       |                                     |   |   |                                                          |   |   |                                           |       |   |   |   |   |   |
| Weighted average number of common shares outstanding - basic and diluted    |   |                                        | 53,614,761 |   |                                                  |   | 28,651,536 |                                     |   |   | 43,775,215                                                    |   |   |                                           | 28,499,362 |   |   |   |   |   |

----

|                                                                                                                                       |   | For the Nine MonthsEnded January 31,2012$ |       |   | For the Nine MonthsEnded January 31, 2011$ (Revised Note 10) |   |       | FromApril 20, 2004(Date of Inception)to January 31, 2012$ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|-------------------------------------------------------------------|--------|------------|-----------------------------------------------------------|--------|
| Cash Flows Used In Operating Activities                                                                                                    |   |                                      |       |   |                                                              |   |       |                                                      |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |
| Net loss                                                                                                                                   |   |                                      | (3,505,497 | )      |                                                              |   | (1,329,553 | )                                                         |   |   | (24,314,350 | ) |
| Adjustments to reconcile net loss to cash used in operating activities:                                                                    |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
|    Federal income tax recovery                                                                                              |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (216,208 | ) |
|    Extinguishment loss on debt modification                                                                                 |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 126,875 |   |
|    Adjustment to fair value of derivative instruments                                                                       |   |                                      | 9,415      |   |                                                              |   | (881       | )                                                         |   |   | (103 | ) |
|    Amortization of debt discount                                                                                            |   |                                      | 12,146     |   |                                                              |   | -          |                                                      |   |   | 13,838 |   |
|    Depreciation                                                                                                             |   |                                      | 42,714     |   |                                                              |   | 43,996     |                                                      |   |   | 357,562 |   |
|    Non-cash management fees                                                                                                 |   |                                      | -          |   |                                                              |   | 143,582    |                                                      |   |   | 429,293 |   |
|    Accrued interest income                                                                                                  |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (11,250 | ) |
|    Shares issued for services                                                                                               |   |                                      | 450,000    |   |                                                              |   | -          |                                                      |   |   | 450,000 |   |
|    Gain on sale of fixed assets                                                                                             |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (23,891 | ) |
|    Accretion of interest on convertible note                                                                                |   |                                      | -          |   |                                                              |   | 6,726      |                                                      |   |   | 32,121 |   |
|    Bad debt                                                                                                                 |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 136,250 |   |
|    Impairment of mineral properties                                                                                         |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 10,756,200 |   |
|    Gain on debt settlement                                                                                                  |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (82,147 | ) |
|    Donated rent                                                                                                             |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 9,000 |   |
|    Donated services                                                                                                         |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 25,500 |   |
| Change in operating assets and liabilities:                                                                                                |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Decrease (increase) in other receivables and prepaid expenses                                                                              |   |                                      | 1,953      |   |                                                              |   | (6,750     | )                                                         |   |   | (6,460 | ) |
| Increase in due to related parties                                                                                                         |   |                                      | 417,909    |   |                                                              |   | 464,592    |                                                      |   |   | 3,461,345 |   |
| Increase (decrease) in accounts payable and accrued liabilities                                                                            |   |                                      | 1,570,078  |   |                                                              |   | 566,793    |                                                      |   |   | 3,016,616 |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Net Cash Used in Operating Activities                                                                                                      |   |                                      | (1,001,282 | )      |                                                              |   | (111,495   | )                                                         |   |   | (5,839,809 | ) |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Cash Flows Used In Investing Activities                                                                                                    |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
|       Purchase of equipment                                                                                  |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (518,513 | ) |
|       Proceeds from Sale of Equipment                                                                        |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 146,000 |   |
|       Loan receivable                                                                                        |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (125,000 | ) |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Net Cash Used In Investing Activities                                                                                                      |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | (497,513 | ) |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Cash Flows From Financing Activities                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
|               Promissory note payable                                |   |                                      | -          |   |                                                              |   | 84,874     |                                                      |   |   | 927,611 |   |
|       Convertible note                                                                                            |   |                                      | -          |   |                                                              |   | -          |                                                      |   |   | 242,500 |   |
|               Proceeds from common stock issuances and subscriptions |   |                                      | 1,202,981  |   |                                                              |   | -          |                                                      |   |   | 5,450,071 |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Net Cash From Financing Activities                                                                                                         |   |                                      | 1,202,981  |   |                                                              |   | 84,874     |                                                      |   |   | 6,620,182 |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Increase (Decrease) in Cash                                                                                                                |   |                                      | 201,699    |   |                                                              |   | (26,621    | )                                                         |   |   | 282,860 |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Cash – Beginning                                                                                                                     |   |                                      | 81,161     |   |                                                              |   | 34,790     |                                                      |   |   | – |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Cash – Ending                                                                                                                        |   |                                      | 282,860    |   |                                                              |   | 8,169      |                                                      |   |   | 282,860 |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Supplemental Disclosures                                                                                                                   |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |
| Interest paid                                                                                                                              |   |                                      | –    |   |                                                              |   | –    |                                                      |   |   | – |   |
| Income taxes paid                                                                                                                          |   |                                      | –    |   |                                                              |   | –    |                                                      |   |   | – |   |
| Shares issued for services                                                                                                                 |   |                                      | 450,000    |   |                                                              |   | 143,332    |                                                      |   |   | – |   |
|                                                                                                                                       |   |                                      |       |   |                                                              |   |       |                                                      |   |   |   |   |

----

|                                                             |   |         |       |   |    |   |   | AdditionalPaid-in |   |   | Common Stock Subscrip- |   |   | Deficit Accumulated During the Exploration |       |   | Don-ated |   |       |   |   |
|------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|--------------------------------------------|------------|--------|----------|--------|------------|--------|--------|
|                                                             |   | Common Stock |       |   | Capital |   |   | tions             |   |   | Stage                  |   |   | Capital                                    |       |   | Total    |   |
|                                                             |   | #            |       |   | $       |   |   | $                 |   |   | $                      |   |   | $                                          |       |   | $        |   |       | $      |   |
| Balance – April 20, 2004 (Date of Inception)               |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | - |   |
| Issuance of common shares for cash  at $.0002/share    |   |         | 7,200,000  |   |    |   | 1,440  |              |   |   | (1,400                 | )      |   |                                       | (40        | )      |     |   | -          |   |   |   | - |   |   |   | - |   |
| Net loss for the period                                          |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (1,858     | )      |   |   | - |   |   |   | (1,858 | ) |
| Balance – April 30, 2004                                   |   |         | 7,200,000  |   |    |   | 1,440  |              |   |   | (1,400                 | )      |   |                                       | (40        | )      |     |   | (1,858     | )      |   |   | - |   |   |   | (1,858 | ) |
| Issuance of common shares for cash  at $.0002/share    |   |         | 1,800,000  |   |    |   | 360    |              |   |   | (350                   | )      |   |                                       | (10        | )      |     |   | -          |   |   |   | - |   |   |   | - |   |
| Share subscriptions received                                     |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | 40         |   |     |   | -          |   |   |   | - |   |   |   | 40 |   |
| Donated rent and services                                        |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | -          |   |   |   | 10,500 |   |   |   | 10,500 |   |
| Net loss for the year                                            |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (32,480    | )      |   |   | - |   |   |   | (32,480 | ) |
| Balance – April 30, 2005                                   |   |         | 9,000,000  |   |    |   | 1,800  |              |   |   | (1,750                 | )      |   |                                       | (10        | )      |     |   | (34,338    | )      |   |   | 10,500 |   |   |   | (23,798 | ) |
| Share subscriptions received                                     |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | 10         |   |     |   | -          |   |   |   | - |   |   |   | 10 |   |
| Donated rent and services                                        |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | -          |   |   |   | 12,000 |   |   |   | 12,000 |   |
| Net loss for the year                                            |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (12,690    | )      |   |   | - |   |   |   | (12,690 | ) |
| Balance – April 30, 2006                                   |   |         | 9,000,000  |   |    |   | 1,800  |              |   |   | (1,750                 | )      |   |                                       | -          |   |     |   | (47,028    | )      |   |   | 22,500 |   |   |   | (24,478 | ) |
| Issuance of common shares for cash at $0.0544/share              |   |         | 1,822,500  |   |    |   | 364    |              |   |   | 100,886                |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | 101,250 |   |
| Share subscriptions received                                     |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | 2,600,000  |   |     |   | -          |   |   |   | - |   |   |   | 2,600,000 |   |
| Donated rent and services                                        |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | -          |   |   |   | 12,000 |   |   |   | 12,000 |   |
| Net loss for the year                                            |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (220,450   | )      |   |   | - |   |   |   | (220,450 | ) |
| Balance – April 30, 2007                                   |   |         | 10,822,500 |   |    |   | 2,164  |              |   |   | 99,136                 |   |   |                                       | 2,600,000  |   |     |   | (267,478   | )      |   |   | 34,500 |   |   |   | 2,468,322 |   |
| Shares and warrants issued for private placement at $25 per unit |   |         | 157,514    |   |    |   | 32     |              |   |   | 3,765,908              |   |   |                                       | (2,600,000 | )      |     |   | -          |   |   |   | - |   |   |   | 1,165,940 |   |
| Share cancellation                                               |   |         | (6,642,500 | )      |    |   | (1,328 | )                 |   |   | 1,328                  |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | - |   |
| Fair value of warrants issued for mineral properties             |   |         | -          |   |    |   | -      |              |   |   | 840,000                |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | 840,000 |   |
| Fair value of warrants issued for services                       |   |         | -          |   |    |   | -      |              |   |   | 209,293                |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | 209,293 |   |
| Net loss                                                         |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (3,539,499 | )      |   |   | - |   |   |   | ( 3,539,499 | ) |
| Balance – April 30, 2008                                   |   |         | 4,337,514  |   |    |   | 868    |              |   |   | 4,915,665              |   |   |                                       | -          |   |     |   | (3,806,977 | )      |   |   | 34,500 |   |   |   | 1,144,056 |   |
| Issuance of common shares for services                           |   |         | 7,500      |   |    |   | 1      |              |   |   | 119,999                |   |   |                                       | -          |   |     |   | -          |   |   |   | - |   |   |   | 120,000 |   |
| Net loss                                                         |   |         | -          |   |    |   | -      |              |   |   | -                      |   |   |                                       | -          |   |     |   | (3,391,459 | )      |   |   | - |   |   |   | (3,391,459 | ) |
| Balance – April 30, 2009                                   |   |         | 4,345,014  |   |    |   | 869    |              |   |   | 5,035,664              |   |   |                                       | -          |   |     |   | (7,198,436 | )      |   |   | 34,500 |   |   |   | (2,127,403 | ) |

----

| Shares issued in exchange for retirement of notes and other debt      |   |   | 4,366,522  |   |   |   | 45     |   |   |   | 1,746,563  |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 1,746,608   |   |
|-----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|
| Shares issued for private placement at $0.50 per unit                 |   |   | 290,000    |   |   |   | 3      |   |   |   | 134,847    |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 134,850     |   |
| Shares issued for mineral properties at $.50                          |   |   | 19,400,000 |   |   |   | 193    |   |   |   | 9,699,807  |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 9,700,000   |   |
| Net loss                                                              |   |   | -          |   |   |   | -      |   |   |   | -          |   |   |   | -      |   |   |   | (11,617,028 | )      |   |   | -      |   |   |   | (11,617,028 | )      |
| Balance – April 30, 2010                                        |   |   | 28,401,536 |   |   |   | 1,110  |   |   |   | 16,616,881 |   |   |   | -      |   |   |   | (18,815,464 | )      |   |   | 34,500 |   |   |   | (2,162,973  |   |
| Issuance of common shares for services                                |   |   | 250,000    |   |   |   | 2      |   |   |   | 99,998     |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 100,000     |   |
| Shares issued in exchange for retirement of notes and other debt      |   |   | 7,094,572  |   |   |   | 71     |   |   |   | 1,915,463  |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 1,915,534   |   |
| Loss on settlement of related party debt                              |   |   |       |   |   |   |   |   |   |   | (1,125     | )      |   |   |   |   |   |   | -           |   |   |   | -      |   |   |   | (1,125      | )      |
| Modification of convertible note                                      |   |   | -          |   |   |   | -      |   |   |   | 126,875    |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 126,875     |   |
| Shares issued for private placement at $0.20 per unit                 |   |   | 1,225,000  |   |   |   | 12     |   |   |   | 244,988    |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 245,000     |   |
| Net loss                                                              |   |   | -          |   |   |   | -      |   |   |   | -          |   |   |   | -      |   |   |   | (1,993,389  | )      |   |   | -      |   |   |   | (1,993,389  | )      |
| Balance – April 30, 2011                                        |   |   | 36,971,108 |   |   |   | 1,195  |   |   |   | 19,003,080 |   |   |   |   |   |   |   | (20,808,853 | )      |   |   | 34,500 |   |   |   | (1,770,078  | )      |
| Convertible note converted to shares                                  |   |   | 1,067,312  |   |   |   | 11     |   |   |   | 70,623     |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 70,634      |   |
| Shares issued to officers as compensation                             |   |   | 5,000,000  |   |   |   | 50     |   |   |   | 449,950    |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 450,000     |   |
| Gain on stock issued on related party debt settlements (Note 11) |   |   |       |   |   |   |   |   |   |   | 436,425    |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 436,425     |   |
| Shares issued in exchange for retirement of notes and other debt      |   |   | 6,543,114  |   |   |   | 66     |   |   |   | 654,245    |   |   |   |   |   |   |   | -           |   |   |   | -      |   |   |   | 654,311     |   |
| Shares issued for private placement at $0.15 per unit                 |   |   | 7,866,666  |   |   |   | 77     |   |   |   | 1,167,904  |   |   |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | 1,167,981   |   |
| Share subscriptions received                                          |   |   |       |   |   |   |   |   |   |   |       |   |   |   | 35,000 |   |   |   |        |   |   |   |   |   |   |   | 35,000      |   |
| Net loss                                                              |   |   |       |   |   |   |   |   |   |   |       |   |   |   | -      |   |   |   | (3,505,497  | )      |   |   | -      |   |   |   | (3,505,497  | )      |
| Balance – January 31, 2012                                      |   |   | 57,448,200 |   |   |   | 1,399  |   |   |   | 21,782,227 |   |   |   | 35,000 |   |   |   | (24,314,350 | )      |   |   | 34,500 |   |   |   | (2,461,224  | )      |

----

| 1.  | Nature of Operations and Basis of Consolidation |
|----------|-------------------------------------------------|

----

| 2.  | Going Concern |
|----------|---------------|

| 3. | Mineral Properties |
|----|--------------------|

|                                 |   | Nine months ended January 31, 2012 |      |   | Nine months ended January 31, 2011 |   |
|--------------------------------------|--------|------------------------------------|-----------|--------|------------------------------------|--------|
| Chile                                |   |                               |      |   |                               |   |
|  Drilling                       |   | $                                  | -         |   |                               | $      | - |   |
|  Field supplies                 |   |                               | 3,544     |   |                               |   | 3,325 |   |
|  Geological, mapping and survey |   |                               | 95,918    |   |                               |   | 3,247 |   |
|  Property maintenance           |   |                               | 2,481     |   |                               |   | 2,333 |   |
|  Site administration            |   |                               | 270,413   |   |                               |   | 262,898 |   |
|  Travel                         |   |                               | 52,185    |   |                               |   | 29,890 |   |
|                                 |   |                               | 424,541   |   |                               |   | 301,693 |   |
| Peru                                 |   |                               |      |   |                               |   |   |   |
|  Field supplies                 |   |                               | 16,677    |   |                               |   | - |   |
|  Geological, mapping and survey |   |                               | 122,639   |   |                               |   | - |   |
|  Property maintenance           |   |                               | 67,302    |   |                               |   | - |   |
|  Site administration            |   |                               | 1,557,545 |   |                               |   | 15,000 |   |
|  Travel                         |   |                               | 31,403    |   |                               |   | - |   |
|                                 |   |                               | 1,795,566 |   |                               |   | 15,000 |   |
|                                 |   |                               |      |   |                               |   |   |   |
| Total                                |   | $                                  | 2,220,107 |   |                               | $      | 316,693 |   |

----

| 4.  | Equipment |
|----------|-----------|

|                   |   |   Cost |    |   |   AccumulatedDepreciation |   | Net Book Value |   |   |   Net Book Value |   |   |
|------------------------|--------|-------------|---------|--------|--------------------------------|--------|----------------|--------|--------|-----------------------|--------|--------|
|                   |   | January 31, |    |   | January 31,                    |   | January 31,    |   |   | April 30,             |   |   |
|                   |   | 2012        |    |   | 2012                           |   | 2012           |   |   | 2011                  |   |   |
| North America          |   |        |    |   |                           |   |           |   |   |                  |   |   |
| Computers              |   | $           | 7,020   |   |                           | $      | 7,020          |   | $      | -                     |   |   | $ | - |   |   |
| South America          |   |        |    |   |                           |   |           |   |   |                  |   |   |   |   |   |   |
| Computers              |   |        | 3,315   |   |                           |   | 3,299          |   |   | 16                    |   |   |   | 17 |   |   |
| Furniture              |   |        | 12,639  |   |                           |   | 10,606         |   |   | 2,033                 |   |   |   | 3,873 |   |   |
| Exploration equipment  |   |        | 14,204  |   |                           |   | 12,353         |   |   | 1,851                 |   |   |   | 3,753 |   |   |
| Vehicles               |   |        | 105,752 |   |                           |   | 82,811         |   |   | 22,941                |   |   |   | 37,912 |   |   |
| Earth moving equipment |   |        | 159,999 |   |                           |   | 147,999        |   |   | 12,000                |   |   |   | 36,000 |   |   |
|                   |   |        | 295,909 |   |                           |   | 257,068        |   |   | 38,841                |   |   |   | 81,555 |   |   |
|                   |   |        |    |   |                           |   |           |   |   |                  |   |   |   |   |   |   |
| Total                  |   | $           | 302,929 |   |                           | $      | 264,088        |   | $      | 38,841                |   |   | $ | 81,555 |   |   |

| a) | incurred $67,500 (January 31, 2011: $67,500) to a director and officer of the Company for geological services rendered.  An aggregate of $6,250 (April 30, 2011: $105,000) was owed this director at January 31, 2012 for unpaid services and reimbursement of expenses, with such costs recorded as mineral exploration costs; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | incurred to a director and officer of the Company $67,500 (January 31, 2011: $67,500) for management of South American exploration with such costs recorded as administrative costs.  An aggregate of $101,714 (April 30, 2011: $405,696) was owed to this director for unpaid fees and reimbursement of expenses; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | incurred to a former director and officer of the Company $90,217 (January 31, 2011: $106,033) for management services with respect to the administration of the Company.  An aggregate of $48,562 (April 30, 2011: $134,929) was owed to this officer at January 31, 2011 for unpaid services and reimbursement of expenses; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | paid an officer of the Company $17,993 (January 31, 2011: $30,850) for administrative services; |
|----|-------------------------------------------------------------------------------------------------|

| e) | the Company incurred a total of $177,333 (January 31, 2011: $190,875) to a private Chilean company with a director in common that provides exploration services to the Company in Chile, with such costs recorded as exploration costs in Chile, South America.  An aggregate of $15,232 (April 30, 2011: $139,754) was owing at January 31, 2012. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f) | paid an officer of the Company $19,237 (2011: $37,119) for accounting services; |
|----|---------------------------------------------------------------------------------|

| g) | incurred to a company managed by an officer and director $22,500 (2011: $7,500) for administrative services. An aggregate of $19,923 (April 30, 2011: $Nil) was owed to this company at January 31, 2011 for unpaid services and unreimbursed expenses; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h) | issued 5,000,000 shares of common stock under restricted share agreements to various officers and directors: 2,000,000 shares were issued a director and officer; 2,000,000 shares were issued to a former officer and director; and 500,000 shares were issued each to two officers. (Note 7) |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i) | gain on debt settlement in the amount of $436,425 included in additional paid in capital (see Note 7a) |
|----|--------------------------------------------------------------------------------------------------------|

----

| 6.  | Convertible and Promissory Notes and Derivative Financial Instruments |
|----------|-----------------------------------------------------------------------|

| Convertible Notes                                                     |   | January 31, 2012 |     |   | April 30, 2011 |   |
|-----------------------------------------------------------------------|--------|------------------|----------|--------|----------------|--------|
| $200,000 face value convertible note due January 31, 2011             |   | $                | (200,000 | )      |           | $      | (200,000 | ) |
| $  42,500 face value convertible note due November 16, 2011 |   |             | --       |   |           |   | (1,691 | ) |
|                                                                  |   | $                | (200,000 | )      |           | $      | (201,691 | ) |

----

| 6.  | Convertible and Promissory Notes and Derivative Financial Instruments - continued |
|----------|-----------------------------------------------------------------------------------|

| Convertible Notes            |   | $200,000 Face Value |     |   | $42,500 Face Value |   |
|------------------------------|--------|---------------------|----------|--------|--------------------|--------|
| Proceeds                     |   | $                   | (200,000 | )      |               | $      | (42,500 | ) |
| Compound embedded derivative |   |                | 14,400   |   |               |   | 54,631 |   |
| Day-one derivative loss      |   |                | -        |   |               |   | (12,131 | ) |
| Carrying value               |   | $                   | 185,600  |   |               | $      | - |   |

----

| 6.  | Convertible and Promissory Notes and Derivative Financial Instruments - continued |
|----------|-----------------------------------------------------------------------------------|

|                                                                  |   | January 31, 2012 |   |   | April 30, 2011 |   |
|-----------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
| The financings giving rise to derivative financial instruments        |   | IndexedShares    |   |   | FairValues     |   |   | IndexedShares |   |   | FairValues |   |
| $200,000 face value convertible note due January 31, 2011             |   |             | -      |   |           | $      | - |   |   |   | - |   |   | $ | - |   |
| $  42,500 face value convertible note due November 16, 2011 |   |             | -      |   |           |   | - |   |   |   | 423,055 |   |   |   | 47,382 |   |
|                                                                  |   |             | -      |   |           | $      | - |   |   |   | 423,055 |   |   | $ | 47,382 |   |

| The financings giving rise to derivative financial instruments and the income effects: |   | Three Months EndedJanuary 31, 2012 |   |   | Three Months EndedJanuary 31, 2011 |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|------------------------------------|--------|
| $200,000 face value convertible note due January 31, 2011                              |   | $                                  | -      |   |                               | $      | - |   |
| $  42,500 face value convertible note due November 16, 2011                  |   |                               | -      |   |                               |   | - |   |
|                                                                                   |   |                               | -      |   |                               |   | - |   |
| Day-one derivative loss:                                                               |   |                               |   |   |                               |   |   |   |
| $  42,500 face value convertible note due November 16, 2011                  |   |                               | -      |   |                               |   | - |   |
|                                                                                   |   |                               |   |   |                               |   |   |   |
| Total derivative gain (loss)                                                           |   | $                                  | -      |   |                               | $      | - |   |

| The financings giving rise to derivative financial instruments and the income effects: |   | Nine MonthsEndedJanuary 31, 2012 |   |   | Nine MonthsEndedJanuary 31, 2011 |   |
|----------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| $200,000 face value convertible note due January 31, 2011                              |   | $                                | -      |   |                             | $      | 881 |   |
| $  42,500 face value convertible note due November 16, 2011                  |   |                             | (9,415 | )      |                             |   | - |   |
|                                                                                   |   |                             | (9,415 | )      |                             |   | 881 |   |
| Day-one derivative loss:                                                               |   |                             |   |   |                             |   |   |   |
| $  42,500 face value convertible note due November 16, 2011                  |   |                             | -      |   |                             |   | - |   |
|                                                                                   |   |                             |   |   |                             |   |   |   |
| Total derivative gain (loss)                                                           |   | $                                | (9,415 | )      |                             | $      | 881 |   |

----

| 7.  | Capital Stock |
|----------|---------------|

|   | a) | During the nine months ended January 31, 2012; |
|--------|----|------------------------------------------------|

|                 |   | Number of Warrants |      |    | Weighted Average Exercise Price per Share($) |   | Weighted Average Contractual Life Remaining (in Years) |
|---------------------------|--------|--------------------|-----------|---------|----------------------------------------------|--------|--------------------------------------------------------|
| Balance, April 30, 2007   |   |               | -         |    |                                         |   | -                                                      |   | - |
| Granted during the year   |   |               | 436,060   |    |                                         |   | 21.37                                                  |   | 2.00 |
| Balance, April 30, 2008   |   |               | 436,060   |    |                                         |   | 21.37                                                  |   | 1.22 |
| Granted during the year   |   |               | -         |    |                                         |   | -                                                      |   | - |
| Balance, April 30, 2009   |   |               | 436,060   |    |                                         |   | 21.37                                                  |   | 0.22 |
| Granted during the year   |   |               | 306,800   |    |                                         |   | .75                                                    |   | 1.58 |
| Expired during the year   |   |               | (436,060  | )       |                                         |   | 14.00                                                  |   | - |
| Balance, April 30, 2010   |   |               | 306,800   |    |                                         |   | .75                                                    |   | 0.50 |
| Granted during the year   |   |               | 1,225,000 |    |                                         |   | .30                                                    |   | 2.00 |
| Balance, April 30, 2011   |   |               | 1,531,800 |    |                                         |   | .39                                                    |   | 1.25 |
| Granted during the period |   |               | 4,013,333 |    |                                         |   | .25                                                    |   | 1.9 |
| Expired during the period |   |               | (306,800  | )  |                                         |   | .75                                                    |   | - |
| Balance, January 31, 2012 |   |               | 5,238,333 |    |                                         |   | .26                                                    |   | 1.7 |

----

| 7.  | Capital Stock - continued |
|----------|---------------------------|

|    c)  | Share options: On February 7, 2008, the Company adopted a stock option plan (the “2008 Stock Incentive Plan”) including both qualified and non-qualified share options not to exceed 15% of the issued and outstanding shares at any date.  No share options have been granted at the date of these financial statements. |
|-----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | 1. | Earn-In Requirement. To earn the 70% interest, LDC must commence, pay for and complete qualifying Earn-In Expenditures totaling at least five hundred thousand dollars (US$500,000) within one (1) year of the date of the LOI (“Earn-In Term”). Earn-In Expenditures are defined as all the costs and expenses to complete an initial exploration, drilling, sampling and metallurgical testing program as set forth in the LOI (the “Initial Exploration Program”), and include, in addition, all tax payments and related costs of maintaining the mineral titles to Escondida during the Earn-In Term (“Holding Costs”) and payments for overhead expenses. Harold Gardner, a director of the Company and a principal within LDC, shall have oversight responsibility for the Initial Exploration Program, and LDC shall be the operator under the LOI. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Declaration of Earn-In. At any time prior to or at the end of the Earn-In Term, LDC can elect to give notice in writing to the Company that it has completed the Initial Exploration Program and has successfully incurred the Earn-in Expenditures for Escondida (the “Earn-In”). At such time, to the extent not previously done, LDC shall furnish the Company with copies of all reports, information and data developed during the Initial Exploration Program, and satisfactory evidence of the incurrence and payment of the Earn-In Expenditures, which the Company shall reasonably accept, and LDC shall be deemed to have earned an undivided 70% interest in Escondida. Upon reasonable request from LDC, the Company shall cause the transfer of this 70% interest to LDC, or, alternatively, 100% of the property to the Joint Venture described below. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Joint Venture and Joint Operating Agreement. At the time that Earn-In is achieved, the parties will form a Joint Venture and finalize and execute a Joint Operating Agreement (“JOA”) to govern their interests in Escondida, whereby LDC will be the Operator, and the parties shall fund their respective shares of expenses going forward. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | All of the rights, titles and interests to the Zoro Properties, Fortuna claims, and related assets, and the balance of the properties in the Yura District, are being conveyed to Formacion Yura Exploracion S.A.C. (“Yura Exploracion”) |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | To earn an undivided 50% indirect interest in the Yura District, Zoro has the responsibility under the Yura Agreement to complete a minimum $5.0 million exploration program within 30 months |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provided that the exploration program produces a minimum 600,000 ounce gold measured and indicated resource estimate at Yura, Zoro has the option to purchase an additional undivided 25% indirect interest in the Yura District for a minimum of $30 million |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Minex has contributed or has caused to be contributed US$1.6 million for exploration, and concession and permitting maintenance expenses, and related overhead at the Zoro Properties |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Minex has absolved the Company from the shares and monies otherwise payable to the Fortuna Vendors with respect to the acquisition of the Fortuna Properties totalling approximately 1,500 hectares of exploration concessions, which have now been contributed to the Yura Project |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Minex has agreed to use its best efforts to raise an additional $1.2 million for Zoro, to fund the first phase exploration programs on the consolidated Yura Project |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company and Minex agreed that the value of the Minex contributions is US$3 million and the Company has agreed to issue 18 million shares of its common stock to Minex or to those designated by Minex, subject to satisfying applicable securities law |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Minex shall have the right to appoint two members to the Company’s Board of Directors |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | the agreed value of the Minex contributions under the original Minex Agreement is US$1.6 million instead of US$3 million and that the Company agrees to issue 10 million shares of common stock instead of 18 million shares of common stock to Minex or to those designated by Minex, subject to satisfying applicable securities laws. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Level 1 valuations:   | Quoted prices in active markets for identical assets and liabilities. |
|--------|---------------------------------|-----------------------------------------------------------------------|

|   | Level 2 valuations: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 valuations: | Significant inputs to valuation model are unobservable. |
|--------|--------------------------|---------------------------------------------------------|

|                   |   | January 31, 2012                         |   |
|------------------------|--------|------------------------------------------|--------|
|                   |   | Fair Value Measurements Using:           |   |   |   |
|                   |   | Quoted Prices in Active Markets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | Assets (Liabilities) at Fair Value |   |
| Derivative liabilities |   | $                                        | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

|                   |   | April 30, 2011                           |   |
|------------------------|--------|------------------------------------------|--------|
|                   |   | Fair Value Measurements Using:           |   |   |   |
|                   |   | Quoted Prices in Active Markets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | Assets (Liabilities) at Fair Value |   |
| Derivative liabilities |   | $                                        | -      |   |   | $ | - |   |   | $ | (47,382 | ) |   | $ | (47,382 | ) |

----

| The financings giving rise to derivative financial instruments |   | August 18, 2011 |    |   | September 12, 2011 |   |    | September 19, 2011 |   |   | September 19, 2011 |   |   | April 30, 2011 |    |
|----------------------------------------------------------------|--------|-----------------|---------|--------|--------------------|--------|---------|--------------------|--------|--------|--------------------|--------|--------|----------------|---------|
| Conversion price                                               |   | $               | .0553   |   |               | $      | .0400   |               |   | $      | .0396              |   |   | $              | .0295   |   |   | $ | .1353 |   |
| Volatility                                                     |   |            | 101.92% |   |               |   | 100.52% |               |   |   | 98.67%             |   |   |           | 102.01% |   |   |   | 93.75% |   |
| Term (years)                                                   |   |            | 0.25    |   |               |   | 0.18    |               |   |   | 0.16               |   |   |           | 0.15    |   |   |   | 0.55 |   |
| Risk-free rate                                                 |   |            | 0.01%   |   |               |   | 0.01%   |               |   |   | 0.01%              |   |   |           | 0.01%   |   |   |   | 0.11% |   |
| Vesting date                                                   |   | 08/14/2011      |    |   | 08/14/2011         |   |    | 08/14/2011         |   |   | 08/14/2011         |   |   | 08/14/2011     |    |

|                                            |   | Derivative Financial Instruments |    |
|-------------------------------------------------|--------|----------------------------------|---------|
|                                            |   | January 31, 2012                 |    |   | April 30, 2011 |   |
| Beginning Balance                               |   | $                                | (47,382 | ) |   | $ | (881 | ) |
| Total gains or losses (realized or unrealized): |   |                             |    |   |   |   |   |   |
| Included in earnings                            |   |                             | 9,415   |   |   |   | 8,130 |   |
| Convertible note conversions                    |   |                             | 37,967  |   |   |   | 8,130 |   |
| Convertible note issuances                      |   |                             | -       |   |   |   | (54,631 | ) |
| Ending Balance                                  |   | $                                | -       |   |   | $ | (47,382 | ) |

----

|                                                                                   |   | 3 Months Ended              |     |   | 9 Months Ended                         |   |
|----------------------------------------------------------------------------------------|--------|-----------------------------|----------|--------|----------------------------------------|--------|
|                                                                                   |   | January 31, 2011(Unaudited) |     |   | January 31, 2011 (Unaudited) |   |
|                                                                                   |   | Prior to Restatement        |     |   | Restated                               |   |   | Prior to Restatement |   |   | Restated |   |
| Consolidated Statements of Operations and Comprehensive Loss                           |   |                        |     |   |                                   |   |   |   |   |   |   |   |
| Interest expense (related to debt discount & 6% coupon)                            |   |                        | 3,371    |   |                                   |   | 3,025 |   |   |   | 65,122 |   |   |   | 12,776 |   |
| Total operating expenses                                                               |   |                        | 440,393  |   |                                   |   | 437,368 |   |   |   | 1,385,459 |   |   |   | 1,330,434 |   |
| Loss from operations                                                                   |   |                        | (440,393 | )      |                                   |   | (437,368 | ) |   |   | (1,385,459 | ) |   |   | (1,330,434 | ) |
| Derivative income                                                                      |   |                        |     |   |                                   |   | - |   |   |   | - |   |   |   | 881 |   |
| Total other income                                                                     |   |                        | -        |   |                                   |   | - |   |   |   | - |   |   |   | 881 |   |
| Net loss                                                                               |   |                        | 440,393  | )      |                                   |   | (437,368 | ) |   |   | (1,385,459 | ) |   |   | (1,329,553 | ) |
| Loss per weighted average number of shares outstanding – basis and fully diluted |   |                        | (0.02    | )      |                                   |   | (0.02 | ) |   |   | (0.05 | ) |   |   | (0.05 | ) |
|                                                                                   |   |                        |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Statement of Cash Flows:                                                  |   |                        |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                               |   |                        |     |   |                                   |   |   |   |   |   | (1,385,459 | ) |   |   | (1,329,553 | ) |
| Adjustment for:                                                                        |   |                        |     |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|      Derivative income                                        |   |                        |     |   |                                   |   |   |   |   |   |   |   |   |   | (881 | ) |
|      Interest expense                                         |   |                        |     |   |                                   |   |   |   |   |   |   |   |   |   | (55,025 | ) |
| Net cash used in operating activities                                                  |   |                        |     |   |                                   |   |   |   |   |   | (111,495 | ) |   |   | (111,495 | ) |

----

| Location             |   | Project               |   | Exploration Target          |   | Concession Hectares/Acres |   |
|----------------------|--------|-----------------------|--------|-----------------------------|--------|---------------------------|--------|
| Chile, South America |   | The Escondida Project |   | Gold, Platinum              |   | 2,700/6,668               |   |
| Chile, South America |   | Don Beno Project      |   | Gold, Copper                |   | 5,400/13,337              |   |
| Chile, South America |   | Sierra Fritis Project |   | Gold, Copper                |   | 2,300/5,683               |   |
| Chile, South America |   | Piedra Parada Project |   | Gold, platinum group metals |   | 3,600/8,895(1)(2)         |   |
| Peru, South America  |   | The Yura Project      |   | Gold                        |   | 7,200/17,792(3)           |   |
|                 |   |                  |   | Total Net Hectares/Acres:   |   | 21,200/52,375             |   |

| (1) | Gareste Limitada, the vendor at Piedra Parada, owned and conveyed to Zoro senior concession rights on over 2,100 hectares (5,189 acres), and also conveyed overstaked concessions on 1,500 additional hectares (3,706 acres) which are subject to the senior rights of a third party. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | All concessions at Piedra Parada owned by Zoro are subject to pre-existing contractual rights granted from Gareste to a third-party to extract and exploit lithium, light metals and commercial salts. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3) | Zoro’s initial Yura Project interests are now subsumed within the Yura Agreement described in note 8 above, whereby Zoro can earn up to a 75% indirect interest in the 7,200 hectare Yura District. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | An aeromagnetic compilation of the entire property |
|--------|----|----------------------------------------------------|

|   | 2. | Concurrent with the aeromagnetic survey, conduct a radiometrics survey |
|--------|----|------------------------------------------------------------------------|

|   | 3. | A ground magnetic survey of the entire property |
|--------|----|-------------------------------------------------|

|   | 4. | Geologic mapping of the entire property at a scale of 1:5,000 or 1:10,000 |
|--------|----|---------------------------------------------------------------------------|

|   | 5. | Sufficient geochemical sampling to establish a property-wide trace element distribution |
|--------|----|-----------------------------------------------------------------------------------------|

| Activity                                |   | Description             |   | Total  |    |
|-----------------------------------------|--------|-------------------------|--------|--------|---------|
| Geology                                 |   |                    |   |   |    |
| Geologic Mapping                        |   | 60days @ $700/day       |   | $      | 42,500  |   |
| Structural Analysis                     |   | 10days @ $700/day       |   | $      | 7,000   |   |
| Landsat Imagery & thematic analysis |   | Est. $25,000            |   | $      | 25,000  |   |
|                                    |   |                    |   |   |    |   |
| Geochemistry                            |   |                    |   |   |    |   |
| Rock chip sampling                      |   | 45 days @ $500/day      |   | $      | 22,500  |   |
| Rock chip analyses                      |   | 15 smpls/day x 45 x $35 |   | $      | 23,625  |   |
|                                    |   |                    |   |   |    |   |
| Geophysical Surveys                     |   |                    |   |   |    |   |
| Aeromagnetic Survey                     |   | 15 days est. $35,000    |   |   | 35,000  |   |
| Radiometrics Survey                     |   | Est. $50,000            |   | $      | 50,000  |   |
| Ground magnetometry+report              |   | 20 days @ $ 700/day     |   | $      | 14,000  |   |
| SubTotal                                |   |                    |   | $      | 219,625 |   |
| Contingency @ 10%                       |   |                    |   |   | 21,962  |   |
| Phase 1 Total                           |   |                    |   | $      | 241,587 |   |

----

| Activity                        |   | Description                 |                   |   | Total  |    |
|---------------------------------|--------|-----------------------------|------------------------|--------|--------|---------|
| Drill Program                   |   |                        |                   |   |   |    |
| Drill Mobilization Costs        |   |                        |                   |   | $      | 25,000  |   |
| Core Drilling                   |   | $                           | 3000 m’s x 100/m |   |   | $       | 300,000 |   |
|                            |   |                        |                   |   |   |    |   |   |
| Geological & supervision    |   | 35 days @ $700              |                   |   | $      | 24,500  |   |
| Analyses – rock           |   | 1500 samples at $35/sample  |                   |   | $      | 52,500  |   |
|                            |   |                        |                   |   |   |    |   |   |
| Support                         |   |                        |                   |   |   |    |   |   |
| Misc. supplies & materials  |   | Estimate                    |                   |   | $      | 5,000   |   |
| Food & Lodging, 2 personnel |   | Estimate 60 days @ $300/day |                   |   | $      | 18,000  |   |
| Vehicles                        |   | Estimate 70 days @ $200/day |                   |   | $      | 14,000  |   |
|                            |   | Subtotal                    |                   |   | $      | 439,000 |   |
| Contingency @ 10%               |   |                        |                   |   |   | $       | 43,900 |   |
| Total                           |   |                        |                   |   |   | $       | 482,900 |   |

----

| Description           | Explanation                      | Mth 1  | Mth 2  | Mth 3  | Mth 4  | Mth5     | Mth 6  |   | SbTot  |   |
|-----------------------|----------------------------------|--------|--------|--------|--------|----------|--------|--------|--------|--------|
| Personnel             |                             |   |   |   |   |     |   |   |   |   |
|                  | Sr.Geol-2mos, $750/day           | 7500   | 7500   |   | 7500   |     |   |   | $      | 22,500 |   |
|                  | Jr. Geol-4mos,$350/day           |   | 7000   | 7000   | 7000   |     |   |   | $      | 21,000 |   |
| Logistics             |                             |   |   |   |   |     |   |   |   |   |   |
|                  | Food & Lodging est$25/day    | 250    | 1000   | 500    | 750    |     |   |   | $      | 2,500  |   |
|                  | Travel-Sr. Geol expat            | 2000   |   |   |   |     |   |   | $      | 2,000  |   |
|                  | Travel-Jr. Geol                  |   | 500    | 500    |   |     |   |   | $      | 1,000  |   |
|                  | Vehicle-est $1500/mo             | 1500   | 1500   | 1500   | 1500   |     |   |   | $      | 6,000  |   |
| FieldActivities       |                             |   |   |   |   |     |   |   |   |   |   |
|                  | Mapping- purch imagery est $2500 | 2500   |   |   |   |     |   |   | $      | 2,500  |   |
|                  | Thin sections/Microprobe         |   |   | 2500   |   |     |   |   | $      | 2,500  |   |
|                  | Trenching- excavator             |   | 10000  | 10000  |   |     |   |   | $      | 20,000 |   |
|                  | Geochemistry-est 100smpls, $25ea |   |   | 1250   | 1250   |     |   |   | $      | 2,500  |   |
| Office & Analysis |                             |   |   |   |   |     |   |   |   |   |   |
|                  | Computer entry & analysis    |   |   |   | 1,000  |     |   |   | $      | 1,000  |   |
|                  | Report & Recommend-Sr Geol   |   |   |   | 1,000  |     |   |   | $      | 1,000  |   |
|                  |                             |   |   |   |   |     |   |   |   |   |   |
|                  |                             |   |   |   |   |     |   |   |   |   |   |
|                  |                             |   |   |   |   |     |   |   |   |   |   |
|                  |                             |   |   |   |   | Sbtot    |   |   | $      | 84,500 |   |
|                  |                             |   |   |   |   | 10%cont  |   |   | $      | 8,450  |   |
|                  |                             |   |   |   |   | Ph 1 Tot |   |   | $      | 92,950 |   |

| Description           | Explanation                           | Mth 1  | Mth 2  | Mth 3  | Mth 4  | Mth5     | Mth 6  |   | SbTot  |    |
|-----------------------|---------------------------------------|--------|--------|--------|--------|----------|--------|--------|--------|---------|
| Personnel             |                                  |   |   |   |   |     |   |   |   |    |
|                  | Sr.Geol-1/2mos, $750/day              |   |   |   |   | 3750     | 3750   |   | $      | 7,500   |   |
|                  | Jr. Geol-1mos,$350/day                |   |   |   |   | 7000     |   |   | $      | 7,000   |   |
| Logistics             |                                  |   |   |   |   |     |   |   |   |    |   |
|                  | Food & Lodging est$25/day         |   |   |   |   | 500      |   |   | $      | 500     |   |
|                  | Travel-Sr. Geol expat                 |   |   |   |   | 2000     |   |   | $      | 2,000   |   |
|                  | Travel-Jr. Geol                       |   |   |   |   | 500      |   |   | $      | 500     |   |
|                  | Vehicle-est $1500/mo                  |   |   |   |   | 1500     | 1500   |   | $      | 3000    |   |
| FieldActivities       |                                  |   |   |   |   |     |   |   |   |    |   |
|                  | Drilling – 2500m H core@ $125/m |   |   |   |   | 312500   |   |   | $      | 312,500 |   |
|                  | Drill Geochem-2500smpls, $25ea        |   |   |   |   |     | 62,500 |   | $      | 62,500  |   |
|                  |                                  |   |   |   |   |     |   |   |   |    |   |
| Office & Analysis |                                  |   |   |   |   |     | 1000   |   | $      | 1,000   |   |
|                  | Computer entry & analysis         |   |   |   |   |     | 1000   |   | $      | 1,000   |   |
|                  | Report & Recommend-Sr Geol        |   |   |   |   |     |   |   |   |    |   |
|                  |                                  |   |   |   |   | Sbtot    |   |   | $      | 397,500 |   |
|                  |                                  |   |   |   |   | 10% cont |   |   | $      | 39,750  |   |
|                  |                                  |   |   |   |   | Ph 2 Tot |   |   | $      | 437,250 |   |
|                  |                                  |   |   |   |   | Tot Prgm |   |   | $      | 530,200 |   |

----

|   | 1. | Earn-In Requirement. To earn the 70% interest, LDC must commence, pay for and complete qualifying Earn-In Expenditures totaling at least five hundred thousand dollars (US$500,000) within one (1) year of the date of the LOI (“Earn-In Term”). Earn-In Expenditures are defined as all the costs and expenses to complete an initial exploration, drilling, sampling and metallurgical testing program as set forth in the LOI (the “Initial Exploration Program”), and include, in addition, all tax payments and related costs of maintaining the mineral titles to Escondida during the Earn-In Term (“Holding Costs”) and payments for overhead expenses. Harold Gardner, a director of our Company and a principal within LDC, shall have oversight responsibility for the Initial Exploration Program, and LDC shall be the operator under the LOI. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Declaration of Earn-In. At any time prior to or at the end of the Earn-In Term, LDC can elect to give notice in writing to the Company that it has completed the Initial Exploration Program and has successfully incurred the Earn-in Expenditures for Escondida (the “Earn-In”). At such time, to the extent not previously done, LDC shall furnish our Company with copies of all reports, information and data developed during the Initial Exploration Program, and satisfactory evidence of the incurrence and payment of the Earn-In Expenditures, which our Company shall reasonably accept, and LDC shall be deemed to have earned an undivided 70% interest in Escondida. Upon reasonable request from LDC, our Company shall cause the transfer of this 70% interest to LDC, or, alternatively, 100% of the property to the Joint Venture described below. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Joint Venture and Joint Operating Agreement. At the time that Earn-In is achieved, the parties will form a Joint Venture and finalize and execute a Joint Operating Agreement (“JOA”) to govern their interests in Escondida, whereby LDC will be the Operator, and the parties shall fund their respective shares of expenses going forward. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Activity                                 |   | Description             |   | Total  |    |
|------------------------------------------|--------|-------------------------|--------|--------|---------|
| Geology                                  |   |                    |   |   |    |
| Geologic Mapping                         |   | 60days @ $700/day       |   | $      | 42,000  |   |
| Aerial photography detailed mapping      |   | 15days@$700/day         |   | $      | 10,500  |   |
| Landsite & thematic imagery analysis |   | Acq., analysis          |   | $      | 32,500  |   |
| Geochemistry                             |   |                    |   |   |    |   |
| collection                               |   | 2geos-120days@ $500     |   | $      | 60,000  |   |
| analysis                                 |   | 1500smpls@$50ea         |   | $      | 75,000  |   |
| Trenching & Roads                    |   |                    |   |   |    |   |
| Trenching                                |   | 30days@$125/hr          |   | $      | 30,000  |   |
| Roads                                    |   | 30days@$125/hr          |   | $      | 30,000  |   |
| Bulk Sample                              |   |                    |   |   |    |   |
| Collection                               |   | 500kg est               |   | $      | 2,500   |   |
| Analysis                                 |   | Mult testwork est       |   | $      | 15,000  |   |
| Logistics                                |   |                    |   |   |    |   |
| Vehicles                                 |   | Assume 3, 1500/mo*3     |   | $      | 13,500  |   |
| Food & Lodging                       |   | 90days, 2geos, $125/day |   | $      | 22,500  |   |
| Field Supplies                           |   | Estimate                |   | $      | 5,500   |   |
| Office- report & target defin.       |   | 15days@$700/day         |   | $      | 10,500  |   |
| Subtotal                                 |   |                    |   | $      | 349,500 |   |
| 10%contingency                           |   |                    |   | $      | 34,950  |   |
| Phase 1 total                            |   |                    |   | $      | 384,450 |   |

| Activity                        |   | Description                 |                   | Total  |    |
|---------------------------------|--------|-----------------------------|------------------------|--------|---------|
| Drill Program                   |   |                        |                   |   |    |
| Drill Mobilization Costs        |   |                        |                   | $      | 25,000  |   |
| Core Drilling                   |   | $                           | 5000 m’s x 100/m |   | $       | 500,000 |   |
|                            |   |                        |                   |   |    |   |   |
| Geological & supervision    |   | 60 days @ $700              |                   | $      | 42,000  |   |
| Analyses – rock           |   | 2,500 samples at $35/sample |                   | $      | 87,500  |   |
|                            |   |                        |                   |   |    |   |   |
| Support                         |   |                        |                   |   |    |   |   |
| Misc. supplies & materials  |   | Estimate                    |                   | $      | 5,000   |   |
| Food & Lodging, 2 personnel |   | Estimate 60 days @ $300/day |                   | $      | 18,000  |   |
| Vehicles                        |   | Estimate 70 days @ $200/day |                   | $      | 14,000  |   |
|                            |   | Subtotal                    |                   | $      | 691,500 |   |
| Contingency @ 10%               |   |                        |                   |   | $       | 69,150 |   |
| Total                           |   |                        |                   |   | $       | 760,650 |   |

----

|                                                 |   | For theThree months EndedJanuary 31, 2012 |       |   | For theThree months EndedJanuary 31, 2011(Note 10) |   |     | For theNine months EndedJanuary 31, 2012 |   |   | For theNine months EndedJanuary 31, 2011(Note 10) |   |   | Cumulative since inception to January 31, 2012 |       |
|------------------------------------------------------|--------|-------------------------------------------|------------|--------|----------------------------------------------------|--------|----------|------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                                 |   | $                                         |       |   | $                                                  |   |     | $                                        |   |   | $                                                 |   |   | $                                              |       |
| Expenses                                             |   |                                      |       |   |                                               |   |     |                                     |   |   |                                              |   |   |                                           |       |
|   Bad Debt                                 |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 136,250 |   |
|   Depreciation                             |   |                                      | 14,238     |   |                                               |   | 14,537   |                                     |   |   | 42,714                                            |   |   |                                           | 43,996     |   |   |   | 357,562 |   |
|   Donated services                         |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 25,500 |   |
|   Filing and transfer agent fees           |   |                                      | 6,366      |   |                                               |   | 3,151    |                                     |   |   | 15,119                                            |   |   |                                           | 13,257     |   |   |   | 69,697 |   |
|   Impairment of mineral property costs     |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 10,756,200 |   |
|   Interest expense                         |   |                                      | 12,998     |   |                                               |   | 28,961   |                                     |   |   | 52,622                                            |   |   |                                           | 93,426     |   |   |   | 343,640 |   |
|     Investor relations           |   |                                      | 4,526      |   |                                               |   | 122,499  |                                     |   |   | 20,200                                            |   |   |                                           | 238,630    |   |   |   | 392,691 |   |
|   Management and administration fees       |   |                                      | 315,441    |   |                                               |   | 140,472  |                                     |   |   | 503,828                                           |   |   |                                           | 443,479    |   |   |   | 2,875,963 |   |
|   Mineral exploration costs (note 3)       |   |                                      | 2,000,466  |   |                                               |   | 98,540   |                                     |   |   | 2,220,107                                         |   |   |                                           | 316,693    |   |   |   | 7,601,059 |   |
|   Office and general                       |   |                                      | 13,603     |   |                                               |   | 23,632   |                                     |   |   | 41,593                                            |   |   |                                           | 110,868    |   |   |   | 770,959 |   |
|   Professional fees                        |   |                                      | 69,119     |   |                                               |   | 5,576    |                                     |   |   | 149,899                                           |   |   |                                           | 70,085     |   |   |   | 798,349 |   |
|   Salaries and consulting fees             |   |                                      | -          |   |                                               |   | -        |                                     |   |   | 450,000                                           |   |   |                                           | -          |   |   |   | 450,000 |   |
|                                                 |   |                                      | (2,436,757 | )      |                                               |   | (437,368 | )                                        |   |   | (3,496,082                                        | )      |   |                                           | (1,330,434 | ) |   |   | (24,577,870 | ) |
| Other income                                         |   |                                      |       |   |                                               |   |     |                                     |   |   |                                              |   |   |                                           |       |   |   |   |   |   |
|   Federal income tax recovery              |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 216,208 |   |
|   Gain on sale of fixed assets             |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 23,891 |   |
|   Derivative Gain (Loss) (Note 6)          |   |                                      | -          |   |                                               |   | -        |                                     |   |   | (9,415                                            | )      |   |                                           | 881        |   |   |   | 103 |   |
|   Extinguishment Loss on Debt Modification |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | (126,875 | ) |
|   Gain on Debt Settlement                  |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 82,147 |   |
|    Interest income                    |   |                                      | -          |   |                                               |   | -        |                                     |   |   | -                                                 |   |   |                                           | -          |   |   |   | 68,046 |   |
| Net loss                                             |   |                                      | (2,436,757 | )      |                                               |   | (437,368 | )                                        |   |   | (3,505,497                                        | )      |   |                                           | (1,329,553 | ) |   |   | (24,314,350 | ) |

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|   | (a) | approximately $720,000 in the aggregate for the Phase I exploration programs at each of the Don Beno, Escondida and Yura properties; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | approximately $1,000,000 for management and administration fees, professional fees, and other general expenses over the next twelve months. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Earn-In Requirement. To earn the 70% interest, LDC must commence, pay for and complete qualifying Earn-In Expenditures totaling at least five hundred thousand dollars (US$500,000) within one (1) year of the date of the LOI (“Earn-In Term”). Earn-In Expenditures are defined as all the costs and expenses to complete an initial exploration, drilling, sampling and metallurgical testing program as set forth in the LOI (the “Initial Exploration Program”), and include, in addition, all tax payments and related costs of maintaining the mineral titles to Escondida during the Earn-In Term (“Holding Costs”) and payments for overhead expenses. Harold Gardner, a director of the Company and a principal within LDC, shall have oversight responsibility for the Initial Exploration Program, and LDC shall be the operator under the LOI. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Declaration of Earn-In. At any time prior to or at the end of the Earn-In Term, LDC can elect to give notice in writing to the Company that it has completed the Initial Exploration Program and has successfully incurred the Earn-in Expenditures for Escondida (the “Earn-In”). At such time, to the extent not previously done, LDC shall furnish the Company with copies of all reports, information and data developed during the Initial Exploration Program, and satisfactory evidence of the incurrence and payment of the Earn-In Expenditures, which the Company shall reasonably accept, and LDC shall be deemed to have earned an undivided 70% interest in Escondida. Upon reasonable request from LDC, the Company shall cause the transfer of this 70% interest to LDC, or, alternatively, 100% of the property to the Joint Venture described below. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Joint Venture and Joint Operating Agreement. At the time that Earn-In is achieved, the parties will form a Joint Venture and finalize and execute a Joint Operating Agreement (“JOA”) to govern their interests in Escondida, whereby LDC will be the Operator, and the parties shall fund their respective shares of expenses going forward. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | All of the rights, titles and interests to the Zoro Properties, Fortuna Properties, and related assets, and the balance of the properties in the Yura District, are being conveyed to Formacion Yura Exploracion S.A.C. (“Yura Exploracion”) |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | To earn an undivided 50% indirect interest in the Yura District, Zoro has the responsibility under the Yura Agreement to complete a minimum $5.0 million exploration program within 30 months |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Provided that the exploration program produces a minimum 600,000 ounce gold measured and indicated resource estimate at Yura, the Company has the option to purchase an additional undivided 25% indirect interest in the Yura District for a minimum of $30 million |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A copy of the Yura Agreement is attached hereto as Exhibit 10.21. |
|--------|-------------------------------------------------------------------|

| · | Minex has contributed or has caused to be contributed US$1.6 million for exploration, and concession and permitting maintenance expenses, and related overhead at the Zoro Properties |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Minex has absolved the Company from the shares and monies otherwise payable to the Fortuna Vendors with respect to the acquisition of the Fortuna Properties totalling approximately 1,500 hectares of exploration concessions, which have now been contributed to the Yura Project |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Minex has agreed to use its best efforts to raise an additional $1.2 million for the Company, to fund the first phase exploration programs on the consolidated Yura Project |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Company and Minex agreed that the value of the Minex contributions is US$3 million and the Company has agreed to issue 18 million shares of its common stock to Minex or to those designated by Minex, subject to satisfying applicable securities law |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Minex shall have the right to appoint two members to the Company’s Board of Directors |
|--------|---------------------------------------------------------------------------------------------|

|   | A copy of the Minex Agreement is attached hereto as Exhibit 10.22. |
|--------|--------------------------------------------------------------------|

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| Exhibit No. | Document                                                                                                                                                                                                                                                                                                        |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles of Incorporation (1)                                                                                                                                                                                                                                                                                   |
| 3.1.2       | Certificate of Change effective February 9, 2007 (2)                                                                                                                                                                                                                                                            |
| 3.1.3       | Articles of Merger effective March 19, 2007 (2)                                                                                                                                                                                                                                                                 |
| 3.1.4       | Certificate of Change effective April 22, 2009 (3)                                                                                                                                                                                                                                                              |
| 3.2         | Bylaws (1)                                                                                                                                                                                                                                                                                                      |
| 10.1        | Mineral Assets Option Agreement dated September 23, 2009 among each of Gareste Limitada, Twaine Assets SA, Agosto Corporation Limited, Yu Cui, Zhao Heng, Ye Bin, Sun Suzhuan, Chen Zou and Zoro Mining Corp. (4)                                                                                               |
| 10.2        | Asset Purchase Agreement dated February 22, 2010 between Zoro Mining Corp. and South American Inmobilaria S.A.C. and Donald Le Roy Stiles (5)                                                                                                                                                                   |
| 10.3        | Binding Letter of Intent for Participation in the Escondida Project dated March 31, 2011(6)                                                                                                                                                                                                                     |
| 10.4        | Settlement Agreement between the Company and Andrew Brodkey, dated August 15, 2009(8)                                                                                                                                                                                                                           |
| 10.5        | Settlement Agreement between the Company and Harold Gardner, dated August 15, 2009(8)                                                                                                                                                                                                                           |
| 10.6        | Settlement Agreement between the Company and Harold Gardner, dated August 15, 2009(8)                                                                                                                                                                                                                           |
| 10.7        | Settlement Agreement between the Company and Sage Associates Inc., dated August 15, 2009(8)                                                                                                                                                                                                                     |
| 10.8        | Settlement Agreement between the Company and Pro Business Trust, dated August 15, 2009(8)                                                                                                                                                                                                                       |
| 10.9        | Debt Assignment Agreement among the Company, Gareste Limitada, and Harold Gardner, dated August 17, 2009(8)                                                                                                                                                                                                     |
| 10.10       | Mineral Property Acquisition Agreement, dated for reference as fully executed on April 12, 2007, as entered into as entered between Zoro Mining Corp. and each of Eduardo Esteffan M., Fresia Sepulveda H., Eduardo Esteffan S., Gretchen Esteffan S., Claudio Esteffan S. and Integrity Capital Group, LLC (7) |
| 10.11       | Corporate Support Agreement between the Company and Sweetwater Capital Corp., dated May 1, 2007(8)                                                                                                                                                                                                              |
| 10.12       | Convertible Note in the principal amount of $200,000, dated November 7, 2008(8)                                                                                                                                                                                                                                 |
| 10.13       | Promissory Note between the Company and Sweetwater Capital, dated September 12, 2008(8)                                                                                                                                                                                                                         |
| 10.14       | Promissory Note between the Company and Woodburn Holdings Ltd., dated October 2, 2009(8)                                                                                                                                                                                                                        |
| 10.15       | Promissory Note from the Company to 1218716 Alberta Ltd., dated September 16, 2009(8)                                                                                                                                                                                                                           |
| 10.16       | Promissory Note between the Company and WestPeak Ventures of Canada Ltd., dated September 17, 2008(8)                                                                                                                                                                                                           |
| 10.17       | Promissory Note between the Company and Timothy Brock., dated November 28, 2008(8)                                                                                                                                                                                                                              |
| 10.18       | Advisory Services Agreement between the Company and Viewpoint Securities, LLC, dated January 8, 2010(8)                                                                                                                                                                                                         |
| 10.19       | Form of Restricted Stock Agreement, dated August 29, 2011(9)                                                                                                                                                                                                                                                    |
| 10.20       | Form of Settlement Agreement, dated October 11, 2011(9)                                                                                                                                                                                                                                                         |
| 10.21       | Binding Letter of Intent for Participation in Yebecahas Mineral Concessions, dated September 27, 2011*                                                                                                                                                                                                          |
| 10.22       | Agreement between the Company and Minex Ventures II, LLC, dated September 27, 2011*                                                                                                                                                                                                                             |
| 10.23       | Consulting Agreement between the Company and Minex Ventures II, LLC, dated December 22, 2011, but having an effective date of September 26, 2011.*                                                                                                                                                              |
| 10.24       | Amendment Agreement between the Company and Minex Ventures II, LLC, dated March 15, 2012*                                                                                                                                                                                                                       |
| 31.1        | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act.*                                                                                                                                                                                               |
| 31.2        | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act.*                                                                                                                                                                                               |
| 32.1        | Certification of Chief Executive Officer and Chief Financial Officer Under Section 1350 as Adopted Pursuant to Section 906 of the Securities Exchange Act.*                                                                                                                                                     |

| * | Filed herewith. |
|---|-----------------|

| (1) | Incorporated by reference from Form SB-2 filed with the SEC on August 10, 2005. |
|-----|---------------------------------------------------------------------------------|

| (2) | Incorporated by reference from Form 8-A Registration Statement filed with the SEC on April 5, 2007. |
|-----|-----------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference from Form 8-K filed with the SEC on April 22, 2009. |
|-----|-------------------------------------------------------------------------------|

| (4) | Incorporated by reference from Form 8-K/A filed with the SEC on October 19, 2009. |
|-----|-----------------------------------------------------------------------------------|

| (5) | Incorporated by reference from Form 8-K filed with the SEC on February 26, 2010. |
|-----|----------------------------------------------------------------------------------|

| (6) | Incorporated by reference from Form 8-K filed with the SEC on April 6, 2011. |
|-----|------------------------------------------------------------------------------|

| (7)  | Incorporated by reference from Form 8-K filed with the SEC on April 16, 2007. |
|-----------|-------------------------------------------------------------------------------|

| (8)  | Incorporated by reference from Form 10-K filed with the SEC on August 17, 2011. |
|-----------|---------------------------------------------------------------------------------|

| (9)  | Incorporated by reference from Form 10-Q filed with the SEC on December 20, 2011. |
|-----------|-----------------------------------------------------------------------------------|

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|   | ZORO MINING CORP. |                                                      |
|--------|-------------------|-----------------------------------------------------------|
|   |              |                                                      |   |
|   | By:               | /s/ Harold Gardner                                        |   |
|   |              | Harold Gardner                                            |   |
|   |              | Interim Chief Executive Officer, President and a director |   |
|   |              |                                                      |   |
|   |              |  Date: March 21, 2012                                |   |

|   |   |                       |
|--------|--------|----------------------------|
|   |   |                       |   |
|   | By:    | /s/ Frank Garcia           |   |
|   |   | Frank Garcia               |   |
|   |   | Chief Financial Officer    |   |
|   |   |                       |   |
|   |   |  Date: March 21, 2012 |   |
|   |   |                       |   |

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