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

|   | OR  |
|--------|----------|

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

|   | For the fiscal year ended: September 30, 2010  |
|--------|-----------------------------------------------------|

|   | OR  |
|--------|----------|

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

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

|   | OR  |
|--------|----------|

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

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

----

| Indicate by check mark if the registrant is a well-known, seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes [  ] | No [X] |
|--------------------------------------------------------------------------------------------------------------------------|---------------|--------|

| If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | Yes [  ] | No [X] |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|

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

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer: |
|-------------------------------------------------------------------------------------------------------------------------------|
| (Check one):                                                                                                                  | Large accelerated filer [  ] | Accelerated filer [ ] | Non-accelerated filer [X] |

| Indicate by check mark which basis of accounting registrant has used to prepare financial statements included in this filing: |
|-------------------------------------------------------------------------------------------------------------------------------|
| U.S. GAAP [ ]                                                                                                                 | International Financial Reporting Standards as issued by International Accounting Standards Board  [ ] | Other [X] |

| If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: | Item 17 [  ] | Item 18 [X] |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|-------------|

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

----

| FORWARD-LOOKING STATEMENTS                                                             | 1  |
|----------------------------------------------------------------------------------------|----|
| PART I                                                                                 | 1  |
| ITEM 1. Identity of Directors, Senior Management, and Advisors                         | 1  |
| ITEM 2. Offer Statistics and Expected Timetable                                        | 1  |
| ITEM 3. Key Information                                                                | 1  |
| Risk Factors                                                                           | 3  |
| ITEM 4                                                                                 | 5  |
| A. Information on the Company                                                          | 5  |
| B. Business Overview and progress of the Company                                       | 5  |
| C. Organizational Structure                                                            | 6  |
| D. Property, Plant and Equipment                                                       | 6  |
| E. Mineral Properties - Gold Buck, British Columbia, Canada                            | 6  |
| F. Mineral Properties - White Channel, British Columbia, Canada                        | 7  |
| ITEM 5                                                                                 | 14 |
| Operating and Financial Review and Prospects                                           | 14 |
| Results of Operations                                                                  | 15 |
| Liquidity and Capital Resources                                                        | 15 |
| Capital Disclosures                                                                    | 16 |
| Financial Instruments and Risks                                                        | 16 |
| Research and Development                                                               | 17 |
| Off Balance Sheet Arrangements                                                         | 17 |
| Legal Proceedings                                                                      | 17 |
| Tabular Disclosure of Contractual Obligations                                          | 17 |
| ITEM 6                                                                                 | 18 |
| Directors, Senior Management, and Employees                                            | 18 |
| ITEM 7                                                                                 | 19 |
| Major Shareholders and Related Party Transactions                                      | 19 |
| Related Party Transactions                                                             | 20 |
| ITEM 8                                                                                 | 20 |
| Financial Information                                                                  | 20 |
| ITEM 9                                                                                 | 21 |
| The Offer and Listing                                                                  | 21 |
| ITEM 10                                                                                | 21 |
| Additional Information                                                                 | 21 |
| Taxation - Certain Canadian Income Tax Consequences to United States Investors         | 26 |
| ITEM 11 - Quantitative and Qualitative Disclosures about Market Risk                   | 26 |
| ITEM 12 - Description of Securities Other Than Equity Securities                       | 26 |
| PART II                                                                                | 27 |
| ITEM 13 - Defaults, Dividends Arrearages and Delinquencies                             | 27 |
| ITEM 14 - Material Modifications to the Rights of Security Holders and Use of Proceeds | 27 |
| ITEM 15. CONTROLS AND PROCEDURES                                                       | 27 |
| ITEM 16.A - Audit Committee Financial Expert                                           | 29 |
| ITEM 16.B - Code of Ethics                                                             | 29 |
| ITEM 16.C - Principal Accountant Fees and Services                                     | 29 |
| ITEM 16.D - Exemptions from the Listing Standards for Audit Committees                 | 29 |
| ITEM 16.E - Purchases of Equity Securities by the Issuer and Affiliated Purchasers     | 30 |
| ITEM 16.F - Changes in Registrant's Certifying Accountant                              | 30 |
| ITEM 16.G - Corporate Governance                                                       | 30 |
| PART III                                                                               | 30 |
| ITEM 17 - Financial Statements                                                         | 30 |
| ITEM 18 - Financial Statements                                                         | 30 |
| ITEM 19 - Exhibits                                                                     | 30 |

----

----

|                                |   | Year endedSeptember 30, 2010 |       |   | Year endedSeptember 30, 2009 |   |       | Year endedSeptember 30, 2008 |   |   | Year endedSeptember 30, 2007 |   |   | Year endedSeptember 30, 2006 |       |
|-------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|------------|------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|------------|
| Canadian GAAP:                      |   |                         |       |   |                         |   |       |                         |   |   |                         |   |   |                         |       |
| Revenue                             |   | $                            | Nil        |   |                         | $      | Nil        |                         |   | $      | Nil                          |   |   | $                            | Nil        |   |   | $ | Nil |   |
| Loss for the year                   |   |                         | (236,714   | )      |                         |   | (999,218   | )                            |   |   | (518,856                     | )      |   |                         | (600,851   | ) |   |   | (507,426 | ) |
| Basic and diluted loss per share    |   |                         | (0.01      | )      |                         |   | (0.03      | )                            |   |   | (0.02                        | )      |   |                         | (0.03      | ) |   |   | (0.03 | ) |
| Weighted average shares outstanding |   |                         | 37,374,498 |   |                         |   | 32,268,780 |                         |   |   | 21,396,073                   |   |   |                         | 17,315,172 |   |   |   | 15,036,926 |   |
| Dividends                           |   | Nil                          |       |   | Nil                          |   |       | Nil                          |   |   | Nil                          |   |   | Nil                          |       |
| Total assets                        |   |                         | 13,759     |   |                         |   | 10,725     |                         |   |   | 852,889                      |   |   |                         | 107,926    |   |   |   | 83,482 |   |
| Shareholder equity (Deficiency)     |   |                         | (101,220   | )      |                         |   | (197,757   | )                            |   |   | 726,533                      |   |   |                         | (73,756    | ) |   |   | (566,735 | ) |
|                                |   |                         |       |   |                         |   |       |                         |   |   |                         |   |   |                         |       |   |   |   |   |   |
| U.S. GAAP:                          |   |                         |       |   |                         |   |       |                         |   |   |                         |   |   |                         |       |   |   |   |   |   |
| Loss for the year                   |   |                         | (236,714   | )      |                         |   | (975,491   | )                            |   |   | (518,856                     | )      |   |                         | (600,851   | ) |   |   | (534,750 | ) |
| Basic and diluted loss per share    |   |                         | (0.01      | )      |                         |   | (0.03      | )                            |   |   | (0.02                        | )      |   |                         | (0.03      | ) |   |   | (0.04 | ) |
| Weighted average shares outstanding |   |                         | 37,374,498 |   |                         |   | 32,268,780 |                         |   |   | 21,396,073                   |   |   |                         | 17,315,172 |   |   |   | 15,036,926 |   |
| Total Assets                        |   |                         | 10,725     |   |                         |   | 10,725     |                         |   |   | 829,162                      |   |   |                         | 84,199     |   |   |   | 5,751 |   |
| Shareholder Equity (Deficiency)     |   |                         | (101,220   | )      |                         |   | (197,757   | )                            |   |   | 702,806                      |   |   |                         | (97,483    | ) |   |   | (644,466 | ) |

|                         |   | Average |   |   | High   |   |   | Low    |   |   | Close  |   |
|------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                         |   |    |   |   |   |   |   |   |   |   |   |   |
| December 2010                |   |    | .9912  |   |   |   | 1.0023 |   |   |   | .9720  |   |   |   | 1.0001 |   |
| November 2010                |   |    | .9881  |   |   |   | 1.0021 |   |   |   | .9741  |   |   |   | .9802 |   |
| October 2010                 |   |    | .9823  |   |   |   | 1.0017 |   |   |   | .9645  |   |   |   | .9815 |   |
| September 2010               |   |    | .9666  |   |   |   | .9808  |   |   |   | .9368  |   |   |   | .9719 |   |
| August 2010                  |   |    | .9628  |   |   |   | .9888  |   |   |   | .9374  |   |   |   | .9500 |   |
| July 2010                    |   |    | .9573  |   |   |   | .9748  |   |   |   | .9367  |   |   |   | .9690 |   |
|                         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal Year Ended 09/30/2010 |   |    | .9606  |   |   |   | 1.0068 |   |   |   | .9123  |   |   |   | .9719 |   |
| Fiscal Year Ended 09/30/2009 |   |    | .8508  |   |   |   | .9593  |   |   |   | .7653  |   |   |   | .9211 |   |
| Fiscal Year Ended 09/30/2008 |   |    | .9917  |   |   |   | 1.0908 |   |   |   | .9262  |   |   |   | .9437 |   |
| Fiscal Year Ended 09/30/2007 |   |    | .9002  |   |   |   | 1.0041 |   |   |   | .8437  |   |   |   | 1.0041 |   |
| Fiscal Year Ended 09/30/2006 |   |    | .8754  |   |   |   | .9148  |   |   |   | .8345  |   |   |   | .8979 |   |

----

----

----

----

| (i)   | payment of $25,000 on or before January 31, 2011 ($13,000 paid); |
|-------|------------------------------------------------------------------|
| (ii)  | payment of $25,000 on or before February 28, 2011;               |
| (iii) | payment of $25,000 on or before March 31, 2011;                  |
| (iv)  | payment of $100,000 on or before June 15, 2011;                  |
| (v)   | payment of $100,000 on or before June 15, 2012;                  |
| (vi)  | payment of $100,000 on or before June 15, 2013;                  |
| (vii) | payment of $100,000 on or before June 15, 2014.                  |

----

----

----

| White Channel Cobble Crush Test |   |
|---------------------------------|--------|
|                            |   |   |   |   |   |   |   |   | Assay |   |   |   |   |
| Certificate                     |   | Sample |   |   |   |    Assay |   |   | Wt |   |   | Weighted |   |
| Number                          |   | Name |   |   Assay |   |   | Wtg |   |   | Kg |   |   | Average |   |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 0V0681RA                        |   | Cobble#(1-5) + 1 inch |   |   |   |   | 152 |   |   |   |   |   |   | 0.17 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 1/2 inch |   |   |   |   |   |   |   |   | 28.4 |   |   |   | 32.55 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 3/8 inch |   |   |   |   |   |   |   |   | 10.9 |   |   |   | 12.49 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 1/4 inch |   |   |   |   |   |   |   |   | 38.1 |   |   |   | 43.67 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 10 mesh |   |   |   |   |   |   |   |   | 27.7 |   |   |   | 31.75 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 20 mesh |   |   |   |   |   |   |   |   | 8.7 |   |   |   | 9.97 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 40 mesh |   |   |   |   |   |   |   |   | 6.3 |   |   |   | 7.22 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 80 mesh |   |   |   |   |   |   |   |   | 4.4 |   |   |   | 5.04 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 100 mesh |   |   |   |   | 945.2 |   |   |   |   |   |   |   | 1.08 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 150 mesh |   |   |   |   | 372.5 |   |   |   |   |   |   |   | 0.43 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 200 mesh |   |   |   |   | 390.6 |   |   |   |   |   |   |   | 0.45 | % |
| 0V0681RA                        |   | Cobble#(1-5) + 400 mesh |   |   |   |   | 249.8 |   |   |   |   |   |   |   | 0.29 | % |
| 0V0681RA                        |   | Cobble#(1-5) - 400 mesh |   |   |   |   | 89.9 |   |   |   |   |   |   |   | 0.10 | % |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |   |   |   |   |   | 2,200.0 |   |   |   | 124.5 |   |   |   |   |   |

----

----

----

----

----

----

----

----

| Description                          |   | Level 1 |   |   | Level 2 |   |    | Level 3 |   |   | September 31, 2010 |   |
|--------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|--------|--------------------|--------|
| Assets:                              |   |    |   |   |    |   |    |    |   |   |               |   |
| Cash                                 |   | $       | 641    |   |    | $      | — |    |   | $      | —            |   |   | $ | 641 |   |
| Total financial assets at fair value |   | $       | 641    |   |    | $      | — |    |   | $      | —            |   |   | $ | 641 |   |

----

| Name                   |   | Position                                               |   | Year in Which Elected or Appointed |
|------------------------|--------|--------------------------------------------------------|--------|------------------------------------|
|                   |   |                                                   |   |                               |
| Casey Forward          |   | President, CEO & Director, Chief Financial Officer |   | 2003                               |
| Dr. Kanwaljit Sachdeva |   | Director                                               |   | 2004                               |
| Ian Bartholomew        |   | Director                                               |   | 2006                               |
| Bradley Barnett        |   | Director                                               |   | 2010                               |

----

| Name            |   | Securities Under Options Granted |   | Exercise or Base Price of Security |   | Market Value of Securities Underlying Options on the Date of Grant |   |   | Expiry Date       |
|-----------------|--------|----------------------------------|--------|------------------------------------|--------|--------------------------------------------------------------------|--------|--------|-------------------|
|            |   |                             |   |                               |   |                                                               |   |   |              |
| Casey Forward   |   | 600,000                          |   | $0.15                              |   | $0.16                                                              |   |   | December 20, 2010 |
| Dr. Sachdeva    |   | 600,000                          |   | $0.15                              |   | $0.16                                                              |   |   | December 20, 2010 |
| Ian Bartholomew |   | 200,000                          |   | $0.15                              |   | $0.16                                                              |   |   | December 20, 2010 |

----

| Title of Class |   | Name of Beneficial Owner(1)  |   | Amount and Natureof Beneficial Ownership |       |   | Percent of Total |   |
|----------------|--------|------------------------------|--------|------------------------------------------|------------|--------|------------------|--------|
|           |   |                         |   |                                     |       |   |             |   |
| Common Shares  |   | Cede & Co                |   |                                     | 11,297,794 |   |             |   | 24.09 | % |
|           |   | CDS & Co                 |   |                                     | 6,479,329  |   |             |   | 13.81 | % |
|           |   | Rahn & Bodmer Co         |   |                                     | 6,000,000  |   |             |   | 12.79 | % |
|           |   | La Caleta Holdings Inc.      |   |                                     | 5,964,000  |   |             |   | 12.71 | % |
|           |   | Zesi Investments $ Trade Inc |   |                                     | 4,848,200  |   |             |   | 10.34 | % |
|           |   | Oloris Investments Corp.     |   |                                     | 2,500,000  |   |             |   | 5.33 | % |
|           |   | Officers and directors       |   |                                     | 1,715,000  |   |             |   | 3.7 | % |

|                                                          |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |   |   |   |
| Management or consulting fees to officers of the Company      |   | $      | 36,000 |   |   | $      | 36,000 |   |   | $ | 72,000 |   |
| Consulting fees to a director(s)                              |   |   | 3⁄4 |   |   |   | 18,000 |   |   |   | 34,000 |   |
| Paid or accrued accounting fees to an ex-officer and director |   |   | 24,815 |   |   |   |   |   |   |   |   |   |
|                                                          |   | $      | 60,815 |   |   | $      | 54,000 |   |   | $ | 106,000 |   |

----

|               |   | US Dollars |   |
|--------------------|--------|------------|--------|
|  Period Ended |   |       | High   |   |   | Low |   |   | Closing |   |
|               |   |       |   |   |   |   |   |   |   |
| Monthly            |   |       |   |   |   |   |   |   |   |
| December 2010      |   | $          | 0.04   |   |   | $ | 0.02 |   |   | $ | 0.02 |   |
| November 2010      |   |       | 0.05   |   |   |   | 0.04 |   |   |   | 0.04 |   |
| October 2010       |   |       | 0.05   |   |   |   | 0.03 |   |   |   | 0.05 |   |
| September 2010     |   |       | 0.05   |   |   |   | 0.02 |   |   |   | 0.05 |   |
| August 2010        |   |       | 0.04   |   |   |   | 0.01 |   |   |   | 0.02 |   |
| July 2010          |   |       | 0.06   |   |   |   | 0.02 |   |   |   | 0.03 |   |
|               |   |       |   |   |   |   |   |   |   |   |   |   |
| Quarterly          |   |       |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010  |   |       | 0.05   |   |   |   | 0.02 |   |   |   | 0.02 |   |
| September 30, 2010 |   |       | 0.06   |   |   |   | 0.01 |   |   |   | 0.05 |   |
| June 30, 2010      |   |       | 0.08   |   |   |   | 0.02 |   |   |   | 0.02 |   |
| March 31, 2010     |   |       | 0.08   |   |   |   | 0.02 |   |   |   | 0.04 |   |
| December 31, 2009  |   |       | 0.05   |   |   |   | 0.01 |   |   |   | 0.03 |   |
| September 30, 2009 |   |       | 0.08   |   |   |   | 0.03 |   |   |   | 0.04 |   |
| June 30, 2009      |   |       | 0.16   |   |   |   | 0.06 |   |   |   | 0.06 |   |
| March 31, 2009     |   |       | 0.17   |   |   |   | 0.02 |   |   |   | 0.13 |   |
|               |   |       |   |   |   |   |   |   |   |   |   |   |
| Annually           |   |       |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010 |   |       | 0.08   |   |   |   | 0.01 |   |   |   | 0.05 |   |
| September 30, 2009 |   |       | 0.17   |   |   |   | 0.01 |   |   |   | 0.04 |   |
| September 30, 2008 |   |       | 0.34   |   |   |   | 0.07 |   |   |   | 0.08 |   |
| September 30, 2007 |   |       | 0.32   |   |   |   | 0.17 |   |   |   | 0.27 |   |
| September 30, 2006 |   |       | 0.82   |   |   |   | 0.19 |   |   |   | 0.21 |   |

----

|   | (i) | We may by ordinary resolution increase the share capital, and cancel any shares which at the date of the passing of the resolution have not been taken or agreed to be taken by any person. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | By special resolution that requires a three-fourths majority, we may consolidate and divide all or any of the share capital into shares of larger amount, sub-divide the shares into shares of smaller amount. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Any member can transfer shares by delivering an instrument of transfer to our transfer agent. |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (i) | Our business is managed by the Directors who may exercise all powers subject to the provisions of the Articles of Association and the Business Corporations Act of British Columbia. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The number of Directors shall be not less than four. At our last annual general meeting, the number of directors was five. A Director shall not be required to hold any shares in the capital of our Company. At each annual general meeting of our Company, all of the board of directors retire and our shareholders elect a new board. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | A Director shall not vote but can be counted in the quorum present on any motion in respect of any contract, arrangement, transaction or any other proposal in which he has an interest that is to his knowledge a material interest. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | The Directors shall be paid for their services as Directors such sums (if any) as the Directors may from time to time determine. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | The Directors may be paid all reasonable travelling, hotel and other expenses properly incurred by them in attending and returning from meetings of the Directors or any committee of the Directors or general meetings or otherwise in connection with our business. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Directors can vote to remove a director at a directors meeting. |
|--------|------|-----------------------------------------------------------------|

|   | (i) | The Directors may exercise all of the powers to borrow money and to mortgage or charge its undertakings, properties, assets and uncalled capital, or any part thereof, and, subject to the provisions of the Articles of Association, to issue debentures, debenture stock and other securities whether outright or as security for any debt, liability or obligation of us or of any third party. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The Directors may declare dividends, and need not give notice to any member. Subject to any priority, preference or special rights, all dividends shall be declared and paid according to the number of shares held on a specified date with respect of the period of which the dividend is paid. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The Directors may pay such interim dividends as they may determine. |
|--------|------|---------------------------------------------------------------------|

|   | (iii) | No dividend shall bear interest. |
|--------|-------|----------------------------------|

|   | (i) | Each year we hold a general meeting as the annual general meeting in addition to any other meetings in that year, and not more than 13 months shall elapse between the date of one annual general meeting and that of the next. The annual general meeting shall be held at such time and place, as the Directors shall appoint. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | All general meetings other than annual general meetings are extraordinary general meetings. The Directors may, whenever they think fit, convene an extraordinary general meeting. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | Casey Forward |
|--------|----|---------------|

|   | 2. | Dr. Kanwaljit Sachdeva – independent director with financial experience |
|--------|----|-------------------------------------------------------------------------------|

|   | 3. | Ian Bartholomew  – independent director with financial experience |
|--------|----|-----------------------------------------------------------------------------------|

|   | 1. | Casey Forward |
|--------|----|---------------|

|   | 2. | Bradley Barnett |
|--------|----|-----------------|

----

----

----

----

----

| Audit fees (Davidson & Company LLP) 2010 |   | $ | 25,000 |   |
|----------------------------------------------|--------|---|--------|--------|
| Other fees in 2010                           |   | $ | Nil    |   |
| Audit fees (Davidson & Company LLP) 2009 |   | $ | 35,560 |   |
| Other fees in 2009                           |   | $ | Nil    |   |
| Audit fees (MacKay LLP) 2008                 |   | $ | 30,502 |   |
| Other fees in 2008                           |   | $ | Nil    |   |

----

----

----

----

| Vancouver, Canada | Chartered Accountants |
|-------------------|-----------------------|
|              |                  |
| January 26, 2011  |                  |

| Vancouver, Canada | Chartered Accountants |
|-------------------|-----------------------|
|              |                  |
| January 26, 2011  |                  |

----

|                                  |   | “MacKay LLP” |
|---------------------------------------|--------|--------------------------|
|                                  |   |                     |
| Vancouver, Canada                     |   |                     |
| January 16, 2009, except as to Note 3 |   | Chartered Accountants    |
| which is as of March 25, 2010         |   |                     |

----

|                                  |   | “MacKay LLP” |
|---------------------------------------|--------|--------------------------|
|                                  |   |                     |
| Vancouver, Canada                     |   |                     |
| January 16, 2009, except as to Note 3 |   | Chartered Accountants    |
| which is as of March 25, 2010         |   |                     |

----

----

|                                                                |   | 2010   |         |   | 2009   |   |
|---------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
|                                                                |   |   |         |   |   |   |
| ASSETS                                                              |   |   |         |   |   |   |
|                                                                |   |   |         |   |   |   |
| Current                                                             |   |   |         |   |   |   |
| Cash                                                                |   | $      | 641          |   |   | $      | 546 |   |
| Receivables                                                         |   |   | 118          |   |   |   | 179 |   |
|                                                                |   |   |         |   |   |   |   |   |
| Total current assets                                                |   |   | 759          |   |   |   | 725 |   |
|                                                                |   |   |         |   |   |   |   |   |
| Mineral properties (Note 4)                                         |   |   | 13,000       |   |   |   | 10,000 |   |
|                                                                |   |   |         |   |   |   |   |   |
| Total assets                                                        |   | $      | 13,759       |   |   | $      | 10,725 |   |
|                                                                |   |   |         |   |   |   |   |   |
|                                                                |   |   |         |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' DEFICIENCY                            |   |   |         |   |   |   |   |   |
|                                                                |   |   |         |   |   |   |   |   |
| Current                                                             |   |   |         |   |   |   |   |   |
| Accounts payable and accrued liabilities                            |   | $      | 69,240       |   |   | $      | 96,734 |   |
| Due to related parties (Note 7)Loan payable (Note 6)                |   |   | 30,73915,000 |   |   |   | 111,748- |   |
|                                                                |   |   |         |   |   |   |   |   |
| Total current liabilities                                           |   |   | 114,979      |   |   |   | 208,482 |   |
|                                                                |   |   |         |   |   |   |   |   |
| Shareholders' deficiency                                            |   |   |         |   |   |   |   |   |
| Capital stock                                                       |   |   |         |   |   |   |   |   |
| Authorized                                                          |   |   |         |   |   |   |   |   |
| Unlimited common shares with no par value                           |   |   |         |   |   |   |   |   |
| Issued and outstanding (2010 - 46,906,563; 2009 – 32,494,363) |   |   | 36,729,782   |   |   |   | 36,396,531 |   |
| Contributed surplus                                                 |   |   | 2,925,087    |   |   |   | 2,925,087 |   |
| Deficit                                                             |   |   | (38,845,906  | )      |   |   | (38,845,906 | ) |
| Deficit accumulated during the exploration stage                    |   |   | (910,183     | )      |   |   | (673,469 | ) |
|                                                                |   |   |         |   |   |   |   |   |
| Total shareholders’ deficiency                                |   |   | (101,220     | )      |   |   | (197,757 | ) |
|                                                                |   |   |         |   |   |   |   |   |
| Total liabilities and shareholders’ deficiency                |   | $      | 13,759       |   |   | $      | 10,725 |   |

| On behalf of the Board: |     |   |     |
|-------------------------|----------|--------|----------|
|                    |     |   |     |
|                    |     |   |     |
|                    |     |   |     |
|                    | Director |   | Director |
|                    |     |   |     |

----

----

|                                                 |   | Cumulativefrom the startof theexploration stage beginningJuly 1, 2009 toSeptember 30, 2010 |     |   | Year ended September 30, 2010 |   |       | Year ended September 30, 2009 |   |   | Year ended September 30, 2008 |   |
|------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|----------|--------|-------------------------------|--------|------------|-------------------------------|--------|--------|-------------------------------|--------|
| EXPENSES                                             |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |
| Accounting and legal (Note 7)                        |   | $                                                                                               | 83,623   |   |                          | $      | 59,123     |                          |   | $      | 54,207                        |   |   | $ | 42,502 |   |
| Amortization                                         |   |                                                                                            | 1,519    |   |                          |   | —    |                          |   |   | 2,316                         |   |   |   | 887 |   |
| Consulting fees                                      |   |                                                                                            | 10,745   |   |                          |   | 10,745     |                          |   |   | 87,128                        |   |   |   | 135,965 |   |
| Interest and bank charges                            |   |                                                                                            | 720      |   |                          |   | 720        |                          |   |   | 2,098                         |   |   |   | 790 |   |
| Management fees (Note 7)                             |   |                                                                                            | 36,000   |   |                          |   | 36,000     |                          |   |   | 36,000                        |   |   |   | 72,000 |   |
| Office and miscellaneous                             |   |                                                                                            | 19,110   |   |                          |   | 13,110     |                          |   |   | 30,179                        |   |   |   | 27,239 |   |
| Public relations                                     |   |                                                                                            | 6,053    |   |                          |   | 6,053      |                          |   |   | 2,231                         |   |   |   | 1,445 |   |
| Regulatory and transfer agent fees                   |   |                                                                                            | 11,724   |   |                          |   | 10,690     |                          |   |   | 7,844                         |   |   |   | 3,988 |   |
| Stock-based compensation (Note 8)                    |   |                                                                                            | —  |   |                          |   | —    |                          |   |   | —                       |   |   |   | 223,209 |   |
| Telephone                                            |   |                                                                                            | —  |   |                          |   | —    |                          |   |   | —                       |   |   |   | 200 |   |
| Travel and promotion                                 |   |                                                                                            | 3,295    |   |                          |   | 3,295      |                          |   |   | —                       |   |   |   | 1,724 |   |
| Website maintenance fees                             |   |                                                                                            | —  |   |                          |   | —    |                          |   |   | 27,568                        |   |   |   | 9,000 |   |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
|                                                 |   |                                                                                            | 172,789  |   |                          |   | 139,736    |                          |   |   | 249,571                       |   |   |   | 518,949 |   |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| Net loss before other items                          |   |                                                                                            | (172,789 | )      |                          |   | (139,736   | )                             |   |   | (249,571                      | )      |   |   | (518,949 | ) |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| OTHER ITEMS                                          |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| Foreign exchange                                     |   |                                                                                            | 22       |   |                          |   | 22         |                          |   |   | —                       |   |   |   | — |   |
| Interest income                                      |   |                                                                                            | 7        |   |                          |   | 7          |                          |   |   | —                       |   |   |   | 93 |   |
| Gain on settlement of debt                           |   |                                                                                            | 84,584   |   |                          |   | —    |                          |   |   | 84,584                        |   |   |   | — |   |
| Write-down of mineral properties (Note 4)            |   |                                                                                            | (97,007  | )      |                          |   | (97,007    | )                             |   |   | (109,231                      | )      |   |   | — |   |
| Write-down of website license (Note 5)               |   |                                                                                            | (725,000 | )      |                          |   | —    |                          |   |   | (725,000                      | )      |   |   | — |   |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
|                                                 |   |                                                                                            | (737,394 | )      |                          |   | (96,978    | )                             |   |   | (749,647                      | )      |   |   | 93 |   |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| Net loss for the period                              |   | $                                                                                               | (910,183 | )      |                          | $      | (236,714   | )                             |   | $      | (999,218                      | )      |   | $ | (518,856 | ) |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| Basic and diluted loss per common share              |   | $                                                                                               |     |   |                          | $      | (0.01      | )                             |   | $      | (0.03                         | )      |   | $ | (0.02 | ) |
|                                                 |   |                                                                                            |     |   |                          |   |       |                          |   |   |                          |   |   |   |   |   |
| Weighted average number of common shares outstanding |   |                                                                                            |     |   |                          |   | 37,374,498 |                          |   |   | 32,268,780                    |   |   |   | 21,396,073 |   |

----

----

|                              |   |   Number of Shares |       |   | CommonShares Issued and Fully Paid |   |       |   Contributed Surplus |   |   |    Deficit |   |   | Deficit accumulated during the exploration stage |        |   |    Total |   |
|-----------------------------------|--------|------------------------------|------------|--------|------------------------------------|--------|------------|---------------------------------|--------|--------|---------------------------|--------|--------|--------------------------------------------------|-------------|--------|-------------------------|--------|
|                              |   |                         |       |   |                               |   |       |                            |   |   |                      |   |   |                                             |        |   |                    |   |
| Balance, September 30, 2007       |   |                         | 20,321,879 |   |                               | $      | 35,225,667 |                            |   | $      | 2,701,878                 |   |   | $                                                | (38,001,301 | )      |                    | $      | — |   |   | $ | (73,756 | ) |
| Issuance of shares for cash:      |   |                         |       |   |                               |   |       |                            |   |   |                      |   |   |                                             |        |   |                    |   |   |   |   |   |   |   |
| Private placements                |   |                         | 3,000,000  |   |                               |   | 150,000    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 150,000 |   |
| Acquisition of Gladys Lake option |   |                         | 100,000    |   |                               |   | 15,000     |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 15,000 |   |
| Issued on conversion of debt      |   |                         | 2,608,484  |   |                               |   | 330,936    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 330,936 |   |
| Acquisition of technology         |   |                         | 6,000,000  |   |                               |   | 600,000    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 600,000 |   |
| Stock-based compensation          |   |                         | —    |   |                               |   | —    |                            |   |   | 223,209                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 223,209 |   |
| Loss for the year                 |   |                         | —    |   |                               |   | —    |                            |   |   | —                   |   |   |                                             | (518,856    | )      |                    |   | — |   |   |   | (518,856 | ) |
|                              |   |                         |       |   |                               |   |       |                            |   |   |                      |   |   |                                             |        |   |                    |   |   |   |   |   |   |   |
| Balance, September 30, 2008       |   |                         | 32,030,363 |   |                               |   | 36,321,603 |                            |   |   | 2,925,087                 |   |   |                                             | (38,520,157 | )      |                    |   | — |   |   |   | 726,533 |   |
| Issued for services               |   |                         | 850,000    |   |                               |   | 138,175    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 138,175 |   |
| Treasury shares to be cancelled   |   |                         | (375,000   | )      |                               |   | (60,937    | )                               |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | (60,937 | ) |
| Shares cancelled                  |   |                         | (11,000    | )      |                               |   | (2,310     | )                               |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | (2,310 | ) |
| Loss for the year                 |   |                         | —    |   |                               |   | —    |                            |   |   | —                   |   |   |                                             | (325,749    | )      |                    |   | (673,469 | ) |   |   | (999,218 | ) |
|                              |   |                         |       |   |                               |   |       |                            |   |   |                      |   |   |                                             |        |   |                    |   |   |   |   |   |   |   |
| Balance, September 30, 2009       |   |                         | 32,494,363 |   |                               |   | 36,396,531 |                            |   |   | 2,925,087                 |   |   |                                             | (38,845,906 | )      |                    |   | (673,469 | ) |   |   | (197,757 | ) |
| Private Placement                 |   |                         | 12,312,200 |   |                               |   | 246,244    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 246,244 |   |
| Acquisition of Gold Buck option   |   |                         | 2,100,000  |   |                               |   | 87,007     |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | — |   |   |   | 87,007 |   |
| Loss for the year                 |   |                         | —    |   |                               |   | —    |                            |   |   | —                   |   |   |                                             | —     |   |                    |   | (236,714 | ) |   |   | (236,714 | ) |
|                              |   |                         |       |   |                               |   |       |                            |   |   |                      |   |   |                                             |        |   |                    |   |   |   |   |   |   |   |
| Balance, September 30, 2010       |   |                         | 46,906,563 |   |                               | $      | 36,729,782 |                            |   | $      | 2,925,087                 |   |   | $                                                | (38,845,906 | )      |                    | $      | (910,183 | ) |   | $ | (101,220 | ) |

----

----

|                                       |   | Cumulativefrom the startof theexploration stagebeginningJuly 1, 2009 toSeptember 30, 2010 |     |   | Year ended September 30, 2010 |   |     | Year ended September 30, 2009 |   |   | Year ended September 30, 2008 |   |
|--------------------------------------------|--------|-------------------------------------------------------------------------------------------|----------|--------|-------------------------------|--------|----------|-------------------------------|--------|--------|-------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |
| Net loss for the year                      |   | $                                                                                         | (910,183 | )      |                          | $      | (236,714 | )                             |   | $      | (999,218                      | )      |   | $ | (518,856 | ) |
| Items not involving cash                   |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Amortization                               |   |                                                                                      | 1,519    |   |                          |   | —  |                          |   |   | 2,316                         |   |   |   | 887 |   |
| Gain on settlement of debt                 |   |                                                                                      | (84,584  | )      |                          |   | —  |                          |   |   | (84,584                       | )      |   |   | — |   |
| Write-down of mineral properties           |   |                                                                                      | 97,007   |   |                          |   | 97,007   |                          |   |   | 109,231                       |   |   |   | — |   |
| Write-down of website license              |   |                                                                                      | 725,000  |   |                          |   | —  |                          |   |   | 725,000                       |   |   |   | — |   |
| Shares issued for services                 |   |                                                                                      | —  |   |                          |   | —  |                          |   |   | 74,928                        |   |   |   | — |   |
| Stock-based compensation                   |   |                                                                                      | —  |   |                          |   | —  |                          |   |   | —                       |   |   |   | 223,209 |   |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Changes in non-cash working capital items: |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Receivables                                |   |                                                                                      | 318      |   |                          |   | 61       |                          |   |   | 904                           |   |   |   | 11,408 |   |
| Accounts payable and accrued liabilities   |   |                                                                                      | 11,898   |   |                          |   | (27,494  | )                             |   |   | 65,827                        |   |   |   | 206,119 |   |
| Due to related parties                     |   |                                                                                      | (102,139 | )      |                          |   | (94,009  | )                             |   |   | 90,883                        |   |   |   | (15,093 | ) |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Net cash used in operating activities      |   |                                                                                      | (261,164 | )      |                          |   | (261,149 | )                             |   |   | (14,713                       | )      |   |   | (92,326 | ) |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Shares issued for cash                     |   |                                                                                      | 246,244  |   |                          |   | 246,244  |                          |   |   | —                       |   |   |   | 150,000 |   |
| Loan proceeds                              |   |                                                                                      | 15,000   |   |                          |   | 15,000   |                          |   |   | —                  |   |   |   | — |   |
| Net cash provided by financing activities  |   |                                                                                      | 261,244  |   |                          |   | 261,244  |                          |   |   | —                       |   |   |   | 150,000 |   |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Acquisition of website license             |   |                                                                                      | —  |   |                          |   | —  |                          |   |   | —                       |   |   |   | (40,416 | ) |
| Purchase of equipment                      |   |                                                                                      | —  |   |                          |   | —  |                          |   |   | —                       |   |   |   | (2,127 | ) |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Net cash used in investing activities      |   |                                                                                      | —  |   |                          |   | —  |                          |   |   | —                       |   |   |   | (42,543 | ) |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Change in cash during the year             |   |                                                                                      | 80       |   |                          |   | 95       |                          |   |   | (14,713                       | )      |   |   | 15,131 |   |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Cash, beginning of year                    |   |                                                                                      | 561      |   |                          |   | 546      |                          |   |   | 15,259                        |   |   |   | 128 |   |
|                                       |   |                                                                                      |     |   |                          |   |     |                          |   |   |                          |   |   |   |   |   |
| Cash, end of year                          |   | $                                                                                         | 641      |   |                          | $      | 641      |                          |   | $      | 546                           |   |   | $ | 15,259 |   |

----

----

|   | Globetech Ventures Corp. ("the Company") was incorporated under the laws of British Columbia, Canada. During the year ended September 30, 2008, the Company entered into a website software licensing agreement for the use of online dating services.  To acquire the website license the Company was required to pay an initial fee of $125,000 and issue 6,000,000 of its common shares.  During fiscal 2008 the Company paid and/or accrued $125,000 and issued the 6,000,000 common shares which had a fair value of $600,000. During the fourth quarter of fiscal 2009 the Company reviewed the traffic to the website and determined that it was not being populated as contemplated and decided not to continue pursuing this venture. As a result the Company wrote-off its investment in the web site license in the fourth quarter of fiscal 2009.  During the fourth quarter of fiscal 2009 the Company decided to change its business focus and entered into a mineral property option agreement to acquire a 100% interest in the Gold Buck claims located in the Williams Lake area of British Columbia, Canada, by paying a total of $350,000 over a period of three years and issuing 2,100,000 common shares of the Company. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company is in the process of exploring its mineral properties and has not yet determined whether the properties contain ore reserves that are economically recoverable.  The recoverability of the amounts shown for mineral properties and related deferred exploration costs is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | These consolidated financial statements have been prepared assuming the Company will continue on a going-concern basis.  The Company has incurred losses since inception and the ability of the Company to continue as a going-concern depends upon its ability to develop profitable operations and to continue to raise adequate financing.  Management is actively targeting sources of additional financing through alliances with financial, exploration and mining entities, or other business and financial transactions which would assure continuation of the Company’s operations and exploration programs.  In order for the Company to meet its liabilities as they come due and to continue its operations, the Company is solely dependent upon its ability to generate such financing. These circumstances lead to significant doubt as to the ability of the Company to meet its obligations and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | 2010   |        |    | 2009   |   |
|--------------------------------------------------|--------|--------|-------------|---------|--------|--------|
|                                             |   |   |        |    |   |   |
| Working capital (deficiency)                |   | $      | (114,220    | )  |   | $      | (207,757 | )  |
| Deficit                                          |   |   | (38,845,906 | )       |   |   | (38,845,906 | ) |
| Deficit accumulated during the exploration stage |   | $      | (910,183    | )       |   | $      | (673,469 | ) |

----

----

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

|   | These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles. A summary of the significant accounting policies are as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Sacolco (Pty) Ltd. ("Sacolco"), Glowing Green Minerals Ltd. ("Glowing"), and its 60% owned subsidiary Qasim Mining Enterprises Ltd. ("QMEL"). These consolidated financial statements also include the accounts of the wholly owned subsidiaries of Sacolco, Impro Metals (Pty) Ltd. and Sachemco (Pty) Ltd. All significant inter-company balances and transactions have been eliminated. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company’s financial instruments consist of cash, receivables, accounts payable and accrued liabilities, due to related parties, and loan payable. The fair value of the Company’s current assets and current liabilities are estimated by management to approximate their carrying values due to their immediate or short-term maturity. It is management’s opinion that the Company is not exposed to significant interest, or credit risks arising from these financial instruments. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company has classified its cash as “held for trading” financial assets, and its receivables as loans and receivables, and accounts payable and accrued liabilities, due to related parties and loan payable as "other financial liabilities". |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All other financial instruments will be recorded at cost or amortized cost, subject to impairment reviews.  The criteria for assessing an other-than-temporary impairment remain unchanged.  Transaction costs incurred to acquire financial instruments are included in the underlying balance. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Mineral properties |
|--------|--------------------|

|   | All costs related to the acquisition, exploration and development of mineral properties are capitalized by property.  If economically recoverable ore reserves are developed, capitalized costs of the related property are reclassified as mining assets and amortized using the unit of production method.  When a property is abandoned, all related costs are written off to operations.  If, after management review, it is determined that the carrying amount of a mineral property is impaired, that property is written down to its estimated net realizable value.  A mineral property is reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|   | Canadian generally accepted accounting principles require long-lived assets and intangibles held and used by the Company to be reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  If changes in circumstances indicate that the carrying amount of an asset that an entity expects to hold and use may not be recoverable, future cash flows expected to result from the use of the asset and its disposition must be estimated.  If the undiscounted value of the future cash flows is less than the carrying amount of the asset, impairment is recognized. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company follows the Canadian Institute of Chartered Accountants Handbook section 3870, Stock-based Compensation and Other Stock-based Payments, and accounts for all grants of options to employees, non-employees and directors in accordance with the fair value method for accounting for stock-based compensation as defined by accounting principles generally accepted in Canada. The fair value of stock-based compensation awards are calculated using the Black-Scholes option pricing model ("Black-Scholes"). All options granted vest immediately. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company is using the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments.  The treasury stock method assumes that proceeds received from in-the-money stock options are used to repurchase common shares at the prevailing market rate. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | 2010   |       |   | 2009   |   |      | 2008   |   |
|---------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
|          |   |   |       |   |   |   |      |   |   |
| Stock options |   |   | 1,600,000  |   |   |   | 1,800,000 |   |   |   | 1,800,000 |   |
| Warrants      |   |   | 12,312,200 |   |   |   | 3⁄4    |   |   |   | 3,000,000 |   |

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

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

|   | The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. These estimates are subject to measurement uncertainty.  Actual results could differ from these estimates.  Significant areas requiring the use of management estimates relate to the determination of impairment of mineral property interests and website license and the determination of fair value for stock based transactions.  Where estimates have been used financial results as determined by actual events could differ from those estimates. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In January 2009, the CICA issued Handbook Sections 1582 “Business Combinations”, 1601 “Consolidated Financial Statements” and 1602 “Non-controlling Interests” which replace CICA Handbook Sections 1581 “Business Combinations” and 1600 “Consolidated Financial Statements”. Section 1582 establishes standards for the accounting for business combinations that is equivalent to the business combination accounting standard under IFRS. Section 1582 is applicable for the Company’s business combinations with acquisition dates on or after October 1, 2011. Section 1601 together with Section 1602 establishes standards for the preparation of consolidated financial statements. Section 1601 is applicable for the Company’s interim and annual consolidated financial statements for its fiscal year beginning October 1, 2011. Early adoption of these Sections is permitted and all three Sections must be adopted concurrently. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | During the year ended September 30, 2009, the Company restated the following reconciled financial statements under United States GAAP (Note 13): |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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| For the year ended September 30, 2010               |   | Gold Buck |    |   | White Channel |   |    | Total  |   |
|-----------------------------------------------------|--------|-----------|---------|--------|---------------|--------|---------|--------|--------|
|                                                |   |      |    |   |          |   |    |   |   |
| Acquisition costs, beginning of year                |   | $         | 10,000  |   |          | $      | — |   |   | $ | 10,000 |   |
| Cash paid                                           |   |      | — |   |          |   | 13,000  |   |   |   | 13,000 |   |
| Shares issued                                       |   |      | 87,007  |   |          |   | — |   |   |   | 87,007 |   |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Acquisition costs, end of year                      |   |      | 97,007  |   |          |   | 13,000  |   |   |   | 110,007 |   |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Deferred exploration expenditures,beginning of year |   |      | — |   |          |   | — |   |   |   | — |   |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Deferred exploration expenditures,end of year       |   |      | — |   |          |   | — |   |   |   | — |   |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Total                                               |   |      | 97,007  |   |          |   | 13,000  |   |   |   | 110,007 |   |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Written-off                                         |   |      | (97,007 | )      |          |   | — |   |   |   | (97,007 | ) |
|                                                |   |      |    |   |          |   |    |   |   |   |   |   |
| Balance, end of year                                |   | $         | — |   |          | $      | 13,000  |   |   | $ | 13,000 |   |

| For the year ended September 30, 2009                |   | Gold Buck |    |   | Gladys Lake |   |     | Total  |   |
|------------------------------------------------------|--------|-----------|---------|--------|-------------|--------|----------|--------|--------|
|                                                 |   |      |    |   |        |   |     |   |   |
| Acquisition costs, beginning of year                 |   | $         | — |   |        | $      | 85,504   |   |   | $ | 85,504 |   |
| Cash paid                                            |   |      | 10,000  |   |        |   | —  |   |   |   | 10,000 |   |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Acquisition costs, end of year                       |   |      | 10,000  |   |        |   | 85,504   |   |   |   | 95,504 |   |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Deferred exploration expenditures, beginning of year |   |      | — |   |        |   | 23,727   |   |   |   | — |   |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Deferred exploration expenditures, end of year       |   |      | — |   |        |   | 23,727   |   |   |   | 23,727 |   |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Total                                                |   |      | 10,000  |   |        |   | 109,231  |   |   |   | 119,231 |   |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Written-off                                          |   |      | — |   |        |   | (109,231 | )      |   |   | (109,231 | ) |
|                                                 |   |      |    |   |        |   |     |   |   |   |   |   |
| Balance, end of year                                 |   | $         | 10,000  |   |        | $      | —  |   |   | $ | 10,000 |   |

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|   | On June 15, 2010, the Company entered into an option agreement whereby the Company can earn a 100% interest in the White Channel claim located east of Williams Lake, British Columbia. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In order to earn a 100% interest, the Company is required to pay a total of $475,000, in ascending payments over a period of four years. The agreement also calls for the issuing of 2,000,000 shares of the Company before January 31, 2011.  The vendor would retain a 2% Net Smelter Return Royalty, half of which can be purchased by the Company for the sum of $1,000,000 at any time within five years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On September 30, 2009, the Company entered into an option agreement whereby the Company can earn a 100% interest in the Gold Buck claim located east of Williams Lake, British Columbia. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In order to earn a 100% interest, the Company is required to pay a total of $350,000 ($10,000 paid), in ascending payments over a period of three years. The agreement also calls for the issuing of 2,100,000 shares of the Company (issued and valued at $87,007).  The vendor would retain a 3% Net Smelter Return Royalty, half of which can be purchased by the Company for the sum of $1,000,000 at any time within five years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|   | On March 21, 2005, the Company entered into an option agreement whereby the Company can earn a 100% interest in the Gladys Lake porphyry molybdenum property located in the Atlin area of the Province of British Columbia, by paying a total of $95,000 and issuing 400,000 shares over a period of four years. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the year ended September 30, 2009, the Company decided not to proceed with the development of the property and has written off accumulated costs of $109,231. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company entered into an agreement to license proprietary website software.  The Company agreed to pay an initial fee of $125,000 and issue six million shares (issued at a price of $0.10 per share) in consideration of the license and the basic system. The Company has paid $40,418 towards the initial fee with the balance payable on or before December 31, 2009. The Company also agreed to pay a maintenance fee of $6,000 per month which provides ongoing services. The initial term was for one year where after the Company had the right to renew on an annual basis unless terminated by the Company by giving three month's notice. The licensor was to provide a basic host of services, and was to provide or write additional program services at cost plus 20% plus royalties. The Company reviewed the traffic to the site and decided that the website service was not being populated as contemplated and decided not to continue pursuing this venture. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Balance at September 30, 2007 |   | $      | —  |   |
|-------------------------------|--------|--------|----------|--------|
| License fee                   |   |   | 725,000  |   |
|                          |   |   |     |   |
| Balance at September 30, 2008 |   |   | 725,000  |   |
| Write-down of website license |   |   | (725,000 | )      |
|                          |   |   |     |   |
| Balance, September 30, 2009   |   | $      | —  |   |

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|   | The Company has entered into the following transactions with related parties which were in the normal course of operations and have been valued in these financial statements at the exchange amount which is the amount of consideration established and agreed to by the related parties. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | September 30,2010 |    |   | September 30,2009 |   |    | September 30,2008 |   |
|---------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|---------|-------------------|--------|
|                                                          |   |              |    |   |              |   |    |              |   |
| Management fees to an officer and director                    |   | $                 | 36,000  |   |              | $      | 36,000  |              |   | $ | 72,000 |   |
| Consulting fees paid to a director                            |   |              | — |   |              |   | — |              |   |   | 16,000 |   |
| Paid or accrued accounting fees to an ex-officer and director |   |              | 24,815  |   |              |   | 18,000  |              |   |   | 18,000 |   |
|                                                          |   |              |    |   |              |   |    |              |   |   |   |   |
|                                                          |   | $                 | 60,815  |   |              | $      | 54,000  |              |   | $ | 106,000 |   |

|   | Amounts due to related parties do not bear interest, are unsecured, and have no fixed payment terms. |
|--------|------------------------------------------------------------------------------------------------------|

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|   | The Company is authorized to grant options to directors, employees and consultants.  Stock option transactions and the number of stock options outstanding are summarized as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   |  Number of Options |       |   | Weighted Average Exercise Price |   |  Aggregate Intrinsic Value |
|-----------------------------------------------------------|--------|-------------------------|------------|--------|---------------------------------|--------|---------------------------------|
|                                                      |   |                    |       |   |                            |   |                            |
| Outstanding and exercisable at September 30, 2007         |   |                    | 1,200,000  |   |  US                        | $      | 0.78                            |   |   |
| Options granted                                           |   |                    | 1,800,000  |   |                            |   | 0.16                            |   |   |
| Options cancelled/expired                                 |   |                    | (1,200,000 | )      |  US                        | $      | 0.78                            |   |   |
|                                                      |   |                    |       |   |                            |   |                            |   |   |
| Outstanding and exercisable at September 30, 2008 and2009 |   |                    | 1,800,000  |   |                            | $      | 0.16                            |   |   |
| Options expired                                           |   |                    | (200,000   | )      |                            | $      | 0.20                            |   |   |
|  Outstanding and exercisable at September 30, 2010   |   |                    | 1,600,000  |   |                            | $      | 0.15                            |   |  $                 — |

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----

|                                       |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                       |   |   |    |   |   |   |    |   |   |
| Risk free interest rate                    |   |   | — |   |   |   | — |   |   |   | 3.8 | % |
| Expected life                              |   |   | — |   |   |   | — |   |   | 2.86 years |   |
| Expected annual volatility                 |   |   | — |   |   |   | — |   |   |   | 145.35 | % |
| Expected dividend                          |   |   | — |   |   |   | — |   |   |   | — |   |
| Weighted average fair value of each option |   |   | — |   |   |   | — |   |   | $ | 0.12 |   |

|   | Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company's stock options. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| d)   | Warrants |
|----------------|----------|

|                                                       |   | Number of Warrants |       |   | WeightedAverage ExercisePrice |   |
|------------------------------------------------------------|--------|--------------------|------------|--------|-------------------------------|--------|
|                                                       |   |               |       |   |                          |   |
| Outstanding and exercisable at September 30, 2007          |   |               | —    |   |                          | $      | — |   |
| Warrants granted                                           |   |               | 3,000,000  |   |                          |   | 0.10 |   |
|                                                       |   |               |       |   |                          |   |   |   |
| Outstanding and exercisable at September 30, 2008          |   |               | 3,000,000  |   |                          | $      | 0.10 |   |
| Warrants expired                                           |   |               | (3,000,000 | )      |                          | $      | 0.10 |   |
|                                                       |   |               |       |   |                          |   |   |   |
| Outstanding and exercisable at September 30, 2009          |   |               | —    |   |                          | $      | — |   |
|        Warrants granted |   |               | 12,312,200 |   |                          | $      | 0.03 |   |
|  Outstanding and exercisable at September 30, 2010    |   |               | 12,312,200 |   |                          | $      | 0.03 |   |

|                                       |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|--------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                       |   |   |     |   |   |   |     |   |   |
| Loss before income taxes                   |   | $      | (236,714 | )      |   | $      | (999,218 | )      |   | $ | (518,856 | ) |
|                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Income tax recovery at statutory rates     |   | $      | (68,351  | )      |   | $      | (301,014 | )      |   | $ | (165,567 | ) |
| Non-deductible expenses                    |   |   | 28,011   |   |   |   | 33,603   |   |   |   | 71,501 |   |
| Unrecognized benefit of non-capital losses |   |   | 40,340   |   |   |   | 267,411  |   |   |   | 94,066 |   |
|                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Future income tax recovery                 |   | $      | —  |   |   | $      | —  |   |   | $ | — |   |

|                          |   | 2010   |       |   | 2009   |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|
|                          |   |   |       |   |   |   |
| Future income tax assets      |   |   |       |   |   |   |
| Property, plant and equipment |   | $      | 8,000      |   |   | $      | 8,000 |   |
| Mineral properties            |   |   | 371,000    |   |   |   | 365,000 |   |
| Net capital losses available  |   |   | 2,730,000  |   |   |   | 2,730,000 |   |
| Non-capital losses available  |   |   | 803,000    |   |   |   | 570,000 |   |
|                          |   |   |       |   |   |   |   |   |
|                          |   |   | 3,912,000  |   |   |   | 3,673,000 |   |
| Valuation allowance           |   |   | (3,912,000 | )      |   |   | (3,673,000 | ) |
|                          |   |   |       |   |   |   |   |   |
|                          |   | $      | —    |   |   | $      | — |   |

----

----

|                                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                             |   |   |    |   |   |   |    |   |   |
|  Cash paid during the year for interest     |   | $      | — |   |   | $      | — |   |   | $ | — |   |
|                                             |   |   |    |   |   |   |    |   |   |   |   |   |
|  Cash paid during the year for income taxes |   | $      | — |   |   | $      | — |   |   | $ | — |   |

|                                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Shares issued for:                               |   |   |    |   |   |   |    |   |   |
| Website costs                                    |   | $      | — |   |   | $      | — |   |   | $ | 600,000 |   |
| Mineral property                                 |   |   | 87,007  |   |   |   | — |   |   |   | 15,000 |   |
| Debt settlement                                  |   |   | — |   |   |   | — |   |   |   | 330,938 |   |
|                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Mineral property costs in due to related parties |   |   | 13,000  |   |   |   | 10,000  |   |   |   | — |   |
|                                             |   |   |    |   |   |   |    |   |   |   |   |   |
| Website costs in accounts payable                |   |   | — |   |   |   | — |   |   |   | 84,584 |   |

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|   | The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetaryassets and liabilities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

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| Description                          |   |   | Level 1 |   |   | Level 2 |    |   | Level 3 |   |    | September 31,2010 |   |
|--------------------------------------|--------|--------|---------|--------|--------|---------|---------|--------|---------|--------|---------|-------------------|--------|
| Assets:                              |   |   |    |   |   |    |    |   |    |   |    |              |
| Cash                                 |   | $      | 641     |   |   | $       | — |   |    | $      | — |              |   | $ | 641 |   |
| Total financial assets at fair value |   | $      | 641     |   |   | $       | — |   |    | $      | — |              |   | $ | 641 |   |
|                                 |   |   |    |   |   |    |    |   |    |   |    |              |   |   |   |   |

| 13. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES |
|-----|-----------------------------------------------------------------------------------------|

|                           |   | 2010                 |     |   | 2009        |   |
|--------------------------------|--------|----------------------|----------|--------|-------------|--------|
|                           |   | Balance,CanadianGAAP |     |   | Adjustments |   |   | Balance,United StatesGAAP |   |   | Balance,CanadianGAAP |   |   | Adjustments |   |   | Balance,United StatesGAAP |   |
|                           |   |                 |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                 |   | $                    | 759      |   |        | $      | — |   |   | $ | 759 |   |   | $ | 725 |   |   | $ | — |   |   | $ | 725 |   |
| Equipment                      |   |                 | —  |   |        |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Website costs                  |   |                 | —  |   |        |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Mineral properties             |   |                 | 13,000   |   |        |   | — |   |   |   | 13,000 |   |   |   | 10,000 |   |   |   | — |   |   |   | 10,000 |   |
|                           |   |                 |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                    | 13,759   |   |        | $      | — |   |   | $ | 13,759 |   |   | $ | 10,725 |   |   | $ | — |   |   | $ | 10,725 |   |
|                           |   |                 |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities            |   | $                    | 114,979  |   |        | $      | — |   |   | $ | 114,979 |   |   | $ | 208,482 |   |   | $ | — |   |   | $ | 208,482 |   |
| Shareholders’ deficiency |   |                 | (101,220 | ))     |        |   | — |   |   |   | (101,220 | ) |   |   | (197,757 | ) |   |   | — |   |   |   | (197,757 | ) |
|                           |   |                 |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                    | 13,759   |   |        | $      | — |   |   | $ | 13,759 |   |   | $ | 10,725 |   |   | $ | — |   |   | $ | 10,725 |   |

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| 13. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d...) |
|-----|---------------------------------------------------------------------------------------------------------------|

|                                                                    |   | Period fromJuly 1, 2009toSeptember 30,2010 |     |   | 2010   |   |       | 2009   |   |   | 2008       |   |
|-------------------------------------------------------------------------|--------|--------------------------------------------|----------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                    |   |                                       |     |   |   |   |       |   |   |   | (restated) |   |
| Loss for the period, Canadian GAAP                                      |   | $                                          | (910,183 | )      |   | $      | (236,714   | )      |   | $      | (999,218   | )      |   | $ | (518,856 | ) |
| Adjustments:                                                            |   |                                       |     |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Mineral properties and deferred exploration costs                       |   |                                       | —  |   |   |   | —    |   |   |   | 23,727     |   |   |   | — |   |
|                                                                    |   |                                       |     |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss for the period, United States GAAP                                 |   | $                                          | (910,183 | )      |   | $      | (236,714   | )      |   | $      | (975,491   | )      |   | $ | (518,856 | ) |
|                                                                    |   |                                       |     |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic and diluted loss per common share, United States GAAP             |   |                                       |     |   |   | $      | (0.01      | )      |   | $      | (0.01      | )      |   | $ | (0.02 | ) |
|                                                                    |   |                                       |     |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted average number of common shares outstanding,United States GAAP |   |                                       |     |   |   |   | 37,374,498 |   |   |   | 32,268,780 |   |   |   | 21,396,073 |   |

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| 13. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d...) |
|-----|---------------------------------------------------------------------------------------------------------------|

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| 13. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d...) |
|-----|---------------------------------------------------------------------------------------------------------------|

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