----

| Vancouver, Canada | “Morgan LLP” |
|-------------------|--------------------------|
|              |                     |
| June 27, 2013     | Chartered Accountants    |

|   |
|--------|

|  |  |
|--|--|

----

|                                                             |   | March 31, |         |   | March 31, |   |
|------------------------------------------------------------------|--------|-----------|--------------|--------|-----------|--------|
|                                                             |   | 2013      |         |   | 2012      |   |
|                                                             |   |      |         |   |      |   |
| Assets                                                           |   |      |         |   |      |   |
|                                                             |   |      |         |   |      |   |
| Current Assets                                                   |   |      |         |   |      |   |
| Cash                                                             |   | $         | 79,464       |   |      | $      | 292,501 |   |
| Short-term investments                                           |   |      | 100,043      |   |      |   | 175,429 |   |
| Amounts receivable and prepaid expenses (Note 5)                 |   |      | 47,428       |   |      |   | 87,679 |   |
| Total Current Assets                                             |   |      | 226,935      |   |      |   | 555,609 |   |
| Non-current Assets                                               |   |      |         |   |      |   |   |   |
|    Deposits, related party (Note 10)         |   |      | --           |   |      |   | 189,963 |   |
|    Exploration and evaluation assets (Note 6)     |   |      | --           |   |      |   | 97,080 |   |
|    Foreign value-added taxes recoverable (Note 7) |   |      | 11,806       |   |      |   | 497,865 |   |
|    Equipment (Note 8)                             |   |      | 8,888        |   |      |   | 59,566 |   |
|    Investment in associate (Note 4)                    |   |      | --           |   |      |   | 1 |   |
|    Reclamation deposits                                |   |      |  13,000 |   |      |   |  15,000 |   |
| Total Non-current Assets                                         |   |      | 33,694       |   |      |   | 859,475 |   |
| Total Assets                                                     |   | $         | 260,629      |   |      | $      | 1,415,084 |   |
|                                                             |   |      |         |   |      |   |   |   |
| Liabilities                                                      |   |      |         |   |      |   |   |   |
|                                                             |   |      |         |   |      |   |   |   |
| Current Liabilities                                              |   |      |         |   |      |   |   |   |
| Accounts payable and accrued liabilities (Note 9)                |   | $         | 221,072      |   |      | $      | 157,941 |   |
| Accounts payable, related parties (Note 10)                      |   |      | 257,472      |   |      |   | 88,890 |   |
| Total Liabilities                                                |   |      | 478,544      |   |      |   | 246,831 |   |
|                                                             |   |      |         |   |      |   |   |   |
| (Deficiency) Equity                                              |   |      |         |   |      |   |   |   |
| Share capital (Note 12)                                          |   |      | 33,066,916   |   |      |   | 32,589,847 |   |
| Warrant reserve                                                  |   |      | 2,174,973    |   |      |   | 2,836,637 |   |
| Share-based payments reserve (Note 12)                           |   |      | 5,266,158    |   |      |   | 4,506,782 |   |
| Deficit                                                          |   |      | (40,725,962  | )      |      |   | (38,765,013 | ) |
| Total (Deficiency) Equity                                        |   |      | (217,915     | )      |      |   | 1,168,253 |   |
| Total Liabilities and Equity                                     |   | $         | 260,629      |   |      | $      | 1,415,084 |   |

| /s/ Michael O’Connor |   | /s/ Robin Merrifield |   |   |
|----------------------------|--------|----------------------|--------|--------|
| Director                   |   | Director             |   |   |

----

|                                                                    |   | For the years ended March 31, |        |
|-------------------------------------------------------------------------|--------|-------------------------------|-------------|
|                                                                    |   | 2013                          |        |   | 2012 |   |   | 2011 |   |
| Revenue                                                                 |   |                          |        |   |   |   |   |   |   |
| Interest (Note 10)                                                      |   | $                             | 3,797       |   |   | $ | 40,918 |   |   | $ | 13,575 |   |
| Gain on marketable securities                                           |   |                          | --          |   |   |   | -- |   |   |   | 3,571 |   |
| Total Revenue                                                           |   |                          | 3,797       |   |   |   | 40,918 |   |   |   | 17,146 |   |
| Expenses                                                                |   |                          |        |   |   |   |   |   |   |   |   |   |
| Consulting and director fees (Note 10)                                  |   |                          | 85,262      |   |   |   | 81,767 |   |   |   | 30,000 |   |
| Exploration and evaluation costs (Notes 10, 17)                         |   |                          | 717,186     |   |   |   | 2,763,119 |   |   |   | 1,702,150 |   |
| Finance costs                                                           |   |                          | --          |   |   |   | -- |   |   |   | 32,428 |   |
| Foreign exchange                                                        |   |                          | 1,053       |   |   |   | 12,638 |   |   |   | 14,438 |   |
| General and administrative (Notes 10, 11)                               |   |                          | 134,585     |   |   |   | (8,828 | ) |   |   | 177,951 |   |
| Professional fees                                                       |   |                          | 154,245     |   |   |   | 176,405 |   |   |   | 109,125 |   |
| Takeover defense                                                        |   |                          | --          |   |   |   | -- |   |   |   | 524,212 |   |
| Salaries and benefits (Note 10)                                         |   |                          | 395,947     |   |   |   | 453,463 |   |   |   | 381,433 |   |
| Shareholder communications (Note 10)                                    |   |                          | 193,257     |   |   |   | 522,007 |   |   |   | 297,859 |   |
| Share-based payments                                                    |   |                          | 3,811       |   |   |   | 480,229 |   |   |   | 1,339,990 |   |
| Loss on marketable securities                                           |   |                          | --          |   |   |   | 2,596 |   |   |   | -- |   |
| Write-down of exploration and evaluation assets  (Note 6)     |   |                          | 97,080      |   |   |   | 440,812 |   |   |   | 12,806 |   |
| Total expenses                                                          |   |                          | 1,782,426   |   |   |   | 4,924,208 |   |   |   | 4,622,392 |   |
| Loss before equity loss in investment in associate                      |   |                          | (1,778,629  | ) |   |   | (4,883,290 | ) |   |   | (4,622,392 | ) |
| Equity loss in investment in associate (Note 4)                    |   |                          | (16,000     | ) |   |   | -- |   |   |   | -- |   |
| Net Loss and Comprehensive Loss for the Year                            |   | $                             | (1,794,629  | ) |   | $ | (4,883,290 | ) |   | $ | (4,605,246 | ) |
|                                                                    |   |                          |        |   |   |   |   |   |   |   |   |   |
| Loss per Common Share, Basic and Diluted                                |   | $                             | (0.01       | ) |   | $ | (0.03 | ) |   | $ | (0.06 | ) |
|                                                                    |   |                          |        |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Shares Outstanding – Basic and Diluted |   |                          | 153,417,802 |   |   |   | 152,114,579 |   |   |   | 74,757,958 |   |

----

|                                        |   | Common SharesWithout Par Value |        |   |   |   |       |               |   |   |           |   |   |                         |      |   |    |   |
|---------------------------------------------|--------|--------------------------------|-------------|--------|--------|--------|------------|--------------------|--------|--------|----------------|--------|--------|------------------------------|-----------|--------|---------|--------|
|                                        |   | Shares                         |        |   | Amount |   |       | ShareSubscriptions |   |   | WarrantReserve |   |   | Share-based Payments Reserve |      |   | Deficit |   |   | Total (Deficiency) Equity |   |
| Balance, March 31, 2010                     |   |                           | 64,716,988  |   |   | $      | 24,652,771 |               |   | $      | 873,475        |   |   | $                            | 170,613   |   |    | $      | 2,276,786 |   |   | $ | (29,276,477 | ) |   | $ | (1,302,832 | ) |
| Private placement, net of share issue costs |   |                           | 60,463,214  |   |   |   | 3,923,200  |               |   |   | (873,475       | )      |   |                         | 2,964,974 |   |    | --     |   |   | -- |   |   |   | 6,014,699 |   |
| Finders’ shares issued                |   |                           | 144,000     |   |   |   | 12,960     |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | -- |   |   |   | 12,960 |   |
| Warrants exercised                          |   |                           | 23,680,143  |   |   |   | 3,464,469  |               |   |   | --             |   |   |                         | (198,455  | )      |    |   | -- |   |   |   | -- |   |   |   | 3,266,014 |   |
| Warrants expired, unexercised               |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | (14,576   | )      |    |   | 14,576 |   |   |   | -- |   |   |   | -- |   |
| Exploration and evaluation assets           |   |                           |        |   |   |   |       |               |   |   |           |   |   |                         |      |   |    |   |   |   |   |   |   |   |   |   |   |   |
|   Blueberry claims                |   |                           | 40,000      |   |   |   | 6,400      |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | -- |   |   |   | 6,400 |   |
| Options exercised                           |   |                           | 420,000     |   |   |   | 50,400     |               |   |   | --             |   |   |                         | --        |   |    |   | (36,851 | ) |   |   | -- |   |   |   | 13,549 |   |
| Share-based payments                        |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | 1,780,814 |   |   |   | -- |   |   |   | 1,780,814 |   |
| Net loss for the year                       |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | (4,605,246 | ) |   |   | (4,605,246 | ) |
| Balance, March 31, 2011                     |   |                           | 149,464,345 |   |   |   | 32,110,200 |               |   |   | --             |   |   |                         | 2,922,556 |   |    |   | 4,035,325 |   |   |   | (33,881,723 | ) |   |   | 5,186,358 |   |
| Warrants exercised                          |   |                           | 2,998,571   |   |   |   | 437,275    |               |   |   | --             |   |   |                         | (85,919   | )      |    |   | -- |   |   |   | -- |   |   |   | 351,356 |   |
| Exploration and evaluation assets           |   |                           |        |   |   |   |       |               |   |   |           |   |   |                         |      |   |    |   |   |   |   |   |   |   |   |   |   |   |
|   Blueberry claims                |   |                           | 80,000      |   |   |   | 21,600     |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | -- |   |   |   | 21,600 |   |
| Options exercised                           |   |                           | 100,000     |   |   |   | 20,772     |               |   |   | --             |   |   |                         | --        |   |    |   | (8,772 | ) |   |   | -- |   |   |   | 12,000 |   |
| Share-based payments                        |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | 480,229 |   |   |   | -- |   |   |   | 480,229 |   |
| Net loss for the year                       |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | (4,883,290 | ) |   |   | (4,883,290 | ) |
| Balance, March 31, 2012                     |   |                           | 152,642,916 |   |   |   | 32,589,847 |               |   |   | --             |   |   |                         | 2,836,637 |   |    |   | 4,506,782 |   |   |   | (38,765,013 | ) |   |   | 1,168,253 |   |
| Warrants exercised                          |   |                           | 2,697,666   |   |   |   | 477,069    |               |   |   | --             |   |   |                         | (72,419   | )      |    |   | -- |   |   |   | -- |   |   |   | 404,650 |   |
| Warrants expired, unexercised               |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | (755,565  | )      |    |   | 755,565 |   |   |   | -- |   |   |   |   |   |
| Warrants, revalued                          |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | 166,320   |   |    |   | -- |   |   |   | (166,320 | ) |   |   | -- |   |
| Share-based payments                        |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | 3,811 |   |   |   | -- |   |   |   | 3,811 |   |
| Net loss for the year                       |   |                           | --          |   |   |   | --         |               |   |   | --             |   |   |                         | --        |   |    |   | -- |   |   |   | (1,794,629 | ) |   |   | (1,794,629 | ) |
|                                        |   |                           |        |   |   |   |       |               |   |   |           |   |   |                         |      |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2013                     |   |                           | 155,340,582 |   |   | $      | 33,066,916 |               |   | $      | --             |   |   | $                            | 2,174,973 |   |    | $      | 5,266,158 |   |   | $ | (40,725,962 | ) |   | $ | (217,915 | ) |

----

|                                                                       |   | For the years ended March 31, |       |
|----------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                       |   | 2013                          |       |   | 2012 |   |   | 2011 |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |
| Cash provided by (used in):                                                |   |                          |       |   |   |   |   |   |   |
| Operations                                                                 |   |                          |       |   |   |   |   |   |   |
| Net (loss) for the year                                                    |   | $                             | (1,794,629 | ) |   | $ | (4,883,290 | ) |   | $ | (4,605,246 | ) |
| Items not involving cash                                                   |   |                          |       |   |   |   |   |   |   |   |   |   |
| Depreciation                                                               |   |                          | 50,678     |   |   |   | 15,518 |   |   |   | (10,961 | ) |
| Share-based payments                                                       |   |                          | 3,811      |   |   |   | 480,229 |   |   |   | 1,780,814 |   |
| Foreign exchange                                                           |   |                          | 24,329     |   |   |   | 19,749 |   |   |   | 1,139 |   |
| Finance costs                                                              |   |                          | --         |   |   |   | -- |   |   |   | (44,455 | ) |
| Loss (gain) on marketable securities                                       |   |                          | --         |   |   |   | 2,596 |   |   |   | (3,571 | ) |
| Write-off of exploration and evaluation assets                             |   |                          | 97,080     |   |   |   | 440,812 |   |   |   | 12,806 |   |
| Equity loss on investment in associate                                     |   |                          | 16,000     |   |   |   | -- |   |   |   | -- |   |
| Changes in non-cash operating assets and liabilities                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Amounts receivable and prepaid expenses                                    |   |                          | 40,251     |   |   |   | (1,135 | ) |   |   | (31,459 | ) |
|     Foreign value-added taxes recoverable              |   |                          | 461,730    |   |   |   | (383,359 | ) |   |   | 4,162 |   |
| Accounts payable and accrued liabilities                                   |   |                          | 63,133     |   |   |   | (94,293 | ) |   |   | (267,459 | ) |
| Accounts payable, related parties                                          |   |                          | 342,544    |   |   |   | (231,099 | ) |   |   | (384,476 | ) |
| Cash used in operating activities                                          |   |                          | (695,073   | ) |   |   | (4,634,272 | ) |   |   | (3,548,706 | ) |
| Investing activities                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Exploration and evaluation assets                                          |   |                          | --         |   |   |   | (32,687 | ) |   |   | (46,821 | ) |
| Proceeds (purchase) of short-term     investments |   |                          | 75,429     |   |   |   | 4,161,906 |   |   |   | (4,325,000 | ) |
| Proceeds on sale of marketable securities                                  |   |                          | --         |   |   |   | 5,587 |   |   |   | -- |   |
| Reclamation bonds recovered                                                |   |                          | 2,000      |   |   |   | 3,000 |   |   |   | -- |   |
| Interest on short-term investments                                         |   |                          | (43        | ) |   |   | (429 | ) |   |   | (11,906 | ) |
| Equipment acquisitions                                                     |   |                          | --         |   |   |   | (22,069 | ) |   |   | (36,455 | ) |
| Cash provided by investing activities                                      |   |                          | 77,386     |   |   |   | 4,115,308 |   |   |   | (4,420,182 | ) |
| Financing activities                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Common shares                                                              |   |                          | 404,650    |   |   |   | 363,356 |   |   |   | 9,317,022 |   |
| Net settlements with related party                                         |   |                          | --         |   |   |   | -- |   |   |   | (1,128,131 | ) |
| Cash provided by financing activities                                      |   |                          | 404,650    |   |   |   | 363,356 |   |   |   | 8,188,891 |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| (Decrease) increase in cash during the year                                |   |                          | (213,037   | ) |   |   | (155,608 | ) |   |   | 220,003 |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Cash, beginning of year                                                    |   |                          | 292,501    |   |   |   | 448,109 |   |   |   | 228,106 |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Cash, end of year                                                          |   | $                             | 79,464     |   |   | $ | 292,501 |   |   | $ | 448,109 |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Supplemental information                                                   |   |                          |       |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Interest paid                                                              |   | $                             | --         |   |   | $ | -- |   |   | $ | -- |   |
| Income taxes paid                                                          |   | $                             | --         |   |   | $ | -- |   |   | $ | -- |   |
| Non-cash portion of warrants exercised                                     |   | $                             | 72,419     |   |   | $ | 85,919 |   |   | $ | 198,455 |   |
| Non-cash portion of warrants exercised                                     |   | $                             | 72,419     |   |   | $ | 85,919 |   |   | $ | 198,455 |   |
| Non-cash portion of options exercised                                      |   | $                             | --         |   |   | $ | 8,772 |   |   | $ | 36,851 |   |
| Finders’ shares issued                                               |   | $                             | --         |   |   | $ | -- |   |   | $ | 12,960 |   |

----

| 1.  | Nature of Operations and Going Concern |
|----------|----------------------------------------|

|   | The consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern.  This assumes the Company will operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations.  The Company has incurred operating losses since inception, has no source of operating cash flow, minimal income from short-term investments, and there can be no assurances that sufficient funding, including adequate financing, will be available to explore its mineral properties and to cover general and administrative expenses necessary for the maintenance of a public company.  The ability of the Company to arrange additional financing in the future depends in part, on the prevailing capital market conditions and mineral property exploration success.  These factors cast substantial doubt on the Company’s ability to continue as a going concern. Accordingly, the financial statements do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments other than in the normal course of business and at amounts different from those in the financial statements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.  | Significant Accounting Policies |
|----------|---------------------------------|

|   | (a) | Statement of Compliance |
|--------|-----|-------------------------|

|   | (b) | Basis of Measurement and Presentation |
|--------|-----|---------------------------------------|

----

| 2. |  Significant Accounting Policies (Continued) |
|----|---------------------------------------------------|

|   | (c) | Basis of Consolidation |
|--------|-----|------------------------|

|   | (d) | Short-term Investments |
|--------|-----|------------------------|

|   | (e) | Exploration and Evaluation Assets |
|--------|-----|-----------------------------------|

----

| 2. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | (f) | Financial Instruments and Risk Management |
|--------|-----|-------------------------------------------|

|   | (g) | Equipment |
|--------|-----|-----------|

----

| 2. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | (h) | Impairment of Tangible and Intangible Assets |
|--------|-----|----------------------------------------------|

----

| 2. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | (i) | Investment in Associate |
|--------|-----|-------------------------|

|   | (j) | Income Taxes |
|--------|-----|--------------|

|   | (k) | Foreign Currency Translation |
|--------|-----|------------------------------|

|   | (l) | Share-based Payments |
|--------|-----|----------------------|

----

| 2. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | (m) | Net Loss per Common Share |
|--------|-----|---------------------------|

|   | (n) | Flow-through Shares |
|--------|-----|---------------------|

----

| 2. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

| — IFRS 9             | New financial instruments standard that replaces IAS 39 for classification and measurement of financial assets(iii)                                         |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| — IFRS 10            | New standard to establish principles for the presentation and preparation of consolidated financial statements when an entity controls multiple entities(i) |
| — IFRS 11            | New standard to account for the rights and obligations in accordance with a joint agreement(i)                                                              |
| — IFRS 12            | New standard for the disclosure of interests in other entities not within the scope of IFRS 9/IAS 39(i)                                                     |
| — IFRS 13            | New standard on the measurement and disclosure of fair value(i)                                                                                             |
| — IAS 1 (Amendment)  | Presentation of other comprehensive income(ii)                                                                                                              |
| — IAS 19 (Revised)   | Revised standard on employee benefits(i)                                                                                                                    |
| — IAS 28 (Amendment) | New standard issued that supersedes IAS 28 (2003) to prescribe the accounting for investments in associates and joint ventures(i)                           |

|   | (i) | Effective for annual periods beginning on or after January 1, 2013 |
|--------|-----|--------------------------------------------------------------------|

|   | (ii) | Effective for annual periods beginning on or after July 1, 2012 |
|--------|------|-----------------------------------------------------------------|

|   | (iii) | Effective for annual periods beginning on or after January 1, 2015 |
|--------|-------|--------------------------------------------------------------------|

----

| 3. | Critical Accounting Judgments and Estimates |
|----|---------------------------------------------|

|   | a) | Foreign Value-added Taxes Recoverable |
|--------|----|---------------------------------------|

|   | b) | Intangible Exploration and Evaluation Assets |
|--------|----|----------------------------------------------|

|   | — | the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Determination of Cash Generating Units |
|--------|----|----------------------------------------|

|   | d) | Foreign Currency |
|--------|----|------------------|

----

| 3. | Critical Accounting Judgments and Estimates (Continued) |
|----|---------------------------------------------------------|

|   | e) | Accrued Liabilities |
|--------|----|---------------------|

| 4.  | Investment in Associate |
|----------|-------------------------|

| 5.  | Amounts Receivable and Prepaid Expenses |
|----------|-----------------------------------------|

|                               |   | March 31, |   |   | March 31, |   |
|------------------------------------|--------|-----------|--------|--------|-----------|--------|
|                               |   | 2013      |   |   | 2012      |   |
| Harmonized Sales Tax receivable    |   | $         | 30,268 |   |      | $      | 35,597 |   |
| Prepayments and amounts receivable |   |      | 17,160 |   |      |   | 52,082 |   |
| Total                              |   | $         | 47,428 |   |      | $      | 87,679 |   |

| 6.  | Exploration and Evaluation Assets |
|----------|-----------------------------------|

|                    |   | Goldsmith And Other Properties BC (b) |     |   | Manitoba Properties, Manitoba (c) |   |     | Kaslo Silver Property, BC (d) |   |   | Total Acquisition Costs |   |
|-------------------------|--------|---------------------------------------|----------|--------|-----------------------------------|--------|----------|-------------------------------|--------|--------|-------------------------|--------|
| Balance, March 31, 2011 |   | $                                     | 213,237  |   |                              | $      | 270,367  |                          |   | $      | 1                       |   |   | $ | 483,605 |   |
| Additions               |   |                                  | 287      |   |                              |   | 54,000   |                          |   |   | --                      |   |   |   | 54,287 |   |
| Write-downs             |   |                                  | (213,524 | )      |                              |   | (227,287 | )                             |   |   | (1                      | )      |   |   | (440,812 | ) |
| Balance, March 3l, 2012 |   |                                  | --       |   |                              |   | 97,080   |                          |   |   | --                      |   |   |   | 97,080 |   |
| Write-downs             |   |                                  | --       |   |                              |   | (97,080  | )                             |   |   | --                      |   |   |   | (97,080 | ) |
| Balance, March 31, 2013 |   | $                                     | --       |   |                              | $      | --       |                          |   | $      | --                      |   |   | $ | -- |   |

----

| 6. | Exploration and Evaluation Assets (Continued) |
|----|-----------------------------------------------|

----

| 7.  | Foreign Value-added Taxes Recoverable |
|----------|---------------------------------------|

| 8.  | Equipment |
|----------|-----------|

|                                    |   | Vehicles |    |   | Office Equipment |   |   | ComputerEquipment |   |   | Total  |   |
|-----------------------------------------|--------|----------|---------|--------|------------------|--------|--------|-------------------|--------|--------|--------|--------|
| Cost                                    |   |     |    |   |             |   |   |              |   |   |   |   |
| Balance, March 31, 2011                 |   | $        | 76,263  |   |             | $      | 1,150  |              |   | $      | 11,706 |   |   | $ | 89,119 |   |
|      Additions |   |     | 12,758  |   |             |   | 1,079  |              |   |   | 8,232  |   |   |   | 22,069 |   |
| Balance, March 31, 2012                 |   |     | 89,021  |   |             |   | 2,229  |              |   |   | 19,938 |   |   |   | 111,188 |   |
| Additions (disposals)                   |   |     | (17,208 | )      |             |   | --     |              |   |   | (6,006 | )      |   |   | (23,214 | ) |
| Balance, March 31, 2013                 |   | $        | 71,813  |   |             | $      | 2,229  |              |   | $      | 13,932 |   |   | $ | 87,974 |   |
|  Accumulated depreciation          |   |     |    |   |             |   |   |              |   |   |   |   |   |   |   |   |
| Balance, March 31, 2011                 |   | $        | 25,535  |   |             | $      | 919    |              |   | $      | 9,650  |   |   | $ | 36,104 |   |
|    Depreciation          |   |     | 12,079  |   |             |   | 258    |              |   |   | 3,181  |   |   |   | 15,518 |   |
| Balance, March 31, 2012                 |   |     | 37,614  |   |             |   | 1,177  |              |   |   | 12,831 |   |   |   | 51,622 |   |
|    Depreciation          |   |     | 30,066  |   |             |   | 234    |              |   |   | (2,836 | )      |   |   | 27,464 |   |
| Balance, March 31, 2013                 |   | $        | 67,680  |   |             | $      | 1,411  |              |   | $      | 9,995  |   |   | $ | 79,086 |   |
|  Carrying amounts                  |   |     |    |   |             |   |   |              |   |   |   |   |   |   |   |   |
| As at March 31, 2012                    |   | $        | 51,407  |   |             | $      | 1,052  |              |   | $      | 7,107  |   |   | $ | 59,566 |   |
|    As at March 31, 2013  |   | $        | 4,133   |   |             | $      | 818    |              |   | $      | 3,937  |   |   | $ | 8,888 |   |

| 9.  | Accounts Payable and Accrued Liabilities |
|----------|------------------------------------------|

|                |   | March 31,2013 |    |   | March 31,2012 |   |
|---------------------|--------|---------------|---------|--------|---------------|--------|
| Trade payables      |   | $             | 188,439 |   |          | $      | 42,760 |   |
| Accrued liabilities |   |          | 32,633  |   |          |   | 115,181 |   |
| Totals              |   | $             | 221,072 |   |          | $      | 157,941 |   |

----

| 10.  | Related Party Transactions and Balances |
|-----------|-----------------------------------------|

|                                      |   |                          |    |   |   |   |    |   |   |
|-------------------------------------------|--------|-------------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                      |   | For the years ended March 31, |    |
|                                      |   | 2013                          |    |   | 2012   |   |    | 2011   |   |
| Cream Minerals Limited                    |   |                          |    |   |   |   |    |   |   |   |   |   |
|     Salaries and benefits* |   | $                             | 260,790 |   |   | $      | 295,412 |   |   | $ | 311,942 |   |
| General and administration**              |   |                          | --      |   |   |   | --      |   |   |   | 32,500 |   |
| Directors fees (1)                        |   |                          | 83,500  |   |   |   | 58,500  |   |   |   | 30,000 |   |
| Share-based payments (1)                  |   |                          | --      |   |   |   | 254,949 |   |   |   | 528,988 |   |
| Cream Minerals de Mexico, S.A. de C.V.    |   |                          |    |   |   |   |    |   |   |   |   |   |
| Salaries and benefits (2)                 |   |                          | 120,000 |   |   |   | 120,000 |   |   |   | 141,838 |   |
| Share-based payments (2)                  |   |                          | --      |   |   |   | --      |   |   |   | 235,106 |   |

|   | (1) | Directors are entitled to director fees and stock options for their services. |
|--------|-----|-------------------------------------------------------------------------------|

|   | (2) | Salaries and benefits and share-based payments have been recorded as exploration costs related to the Nuevo Milenio project. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|                                                                          |   |                          |    |   |   |   |    |   |   |
|-------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                          |   | For the years ended March 31, |    |
|                                                                          |   | 2013                          |    |   | 2012   |   |    | 2011   |   |
|   Consulting and director fees (b)                                  |   | $                             | --      |   |   | $      | 22,500  |   |   | $ | 30,000 |   |
|   Exploration and evaluation costs                                  |   |                          | 144     |   |   |   | --      |   |   |   | 9,077 |   |
|   Equipment                                                         |   |                          | --      |   |   |   | 5,483   |   |   |   | -- |   |
|   General and administration                                        |   |                          | 89,376  |   |   |   | (82,047 | )      |   |   | 144,077 |   |
|   Interest                                                          |   |                          | --      |   |   |   | (19,963 | )      |   |   | -- |   |
|   Professional fees                                                 |   |                          | --      |   |   |   | (1,260  | )      |   |   | -- |   |
|   Salaries and benefits                                             |   |                          | 218,584 |   |   |   | 570,353 |   |   |   | 338,945 |   |
|   Shareholder communications                                        |   |                          | 4,452   |   |   |   | 70,253  |   |   |   | 7,335 |   |
| Quorum Management and Administrative Services Inc. (“Quorum”) (a) |   | $                             | 312,556 |   |   | $      | 565,319 |   |   | $ | 529,434 |   |
| Finance costs                                                                 |   | $                             | --      |   |   | $      | --      |   |   | $ | 19,545 |   |

| Balances at:                 |   | March 31, 2013 |    |   | March 31, 2012 |   |
|------------------------------|--------|---------------------|---------|--------|---------------------|--------|
| Deposits                     |   |                |    |   |                |   |
|    Quorum (a) |   | $                   | --      |   |                | $      | 189,963 |   |
| Payables:                    |   |                |    |   |                |   |   |   |
| Quorum (a, b)                |   |                | 102,472 |   |                |   | 59,008 |   |
| Directors and Officers (c)   |   |                | 155,000 |   |                |   | 29,882 |   |

----

|   | (a) | Management, administrative, and other services were provided by Quorum, a private company held jointly, with a one-third interest each; by the Company and two other public companies with common directors. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Consulting and director fees incurred during the years ended March 31, 2012 and March 31, 2011 were to a private company controlled by a director.  These fees were billed through Quorum, and are also included in the balance for services provided by Quorum.  The balance owing to/(receivable from) Quorum includes $23,469 (2012 - $(130,955)) with respect to the private company fees. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The directors and officers balance includes fees and expenses owing to directors and officers including any salaries accrued to the Sole Administrator and Director General of  Cream Minerals de Mexico, S.A. de C.V., for administrative and geological services rendered. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.  | Expenses by Nature |
|-----------|--------------------|

|                      |   | For the years ended March 31, |    |
|---------------------------|--------|-------------------------------|---------|
|                      |   | 2013                          |    |   | 2012 |   |   | 2011 |   |
| Depreciation              |   | $                             | 2,978   |   |   | $ | 2,382 |   |   | $ | 865 |   |
| Office and administration |   |                          | 131,315 |   |   |   | 139,690 |   |   |   | 169,200 |   |
| Credit for Quorum fees*   |   |                          | --      |   |   |   | (218,144 | ) |   |   | -- |   |
| Travel and conferences    |   |                          | 292     |   |   |   | 67,244 |   |   |   | 7,886 |   |
| Totals                    |   | $                             | 134,585 |   |   | $ | (8,828 | ) |   | $ | 177,951 |   |

----

----

|                          | Years ended March 31, |
|-------------------------------|-----------------------|
|                          | 2013                  | 2012 | 2011 |
| Risk free interest rate       | --                    | 2.09% - 2.30% | 2.7% |
| Expected life (years)         | --                    | 5 | 5.0 |
| Expected volatility           | --                    | 108% - 113% | 104% |
| Fair value per option granted | --                    | $0.13 - $0.17 | $0.29 |

|  Exercise Price | Number Outstandingand Exercisable | Average RemainingContractual Life |
|----------------------|-----------------------------------|-----------------------------------|
| $0.12                | 1,560,000                         |                              | 0.83 years |
| $0.38                | 5,375,000                         |                              | 2.88 years |
| $0.22                | 600,000                           |                              | 3.13 years |
| $0.23                | 500,000                           |                              | 3.13 years |
| $0.16                | 1,200,000                         |                              | 3.19 years |
|                 | 9,235,000                         |                              | 2.61 years |

----

|                                                    |   |  Number of Shares |       |   | Weighted Average Exercise Price($) |   |
|---------------------------------------------------------|--------|------------------------|------------|--------|------------------------------------|--------|
| Balance, March 31, 2010                                 |   |                   | 4,851,500  |   |                               |   | 0.29 |   |
| Granted                                                 |   |                   | 6,575,000  |   |                               |   | 0.38 |   |
| Exercised                                               |   |                   | (420,000   | )      |                               |   | 0.12 |   |
| Expired                                                 |   |                   | (715,000   | )      |                               |   | 0.17 |   |
| Forfeited                                               |   |                   | (385,000   | )      |                               |   | 0.45 |   |
| Balance, March 31, 2011                                 |   |                   | 9,906,500  |   |                               |   | 0.36 |   |
| Granted                                                 |   |                   | 2,300,000  |   |                               |   | 0.19 |   |
| Exercised                                               |   |                   | (100,000   | )      |                               |   | 0.12 |   |
| Cancelled/forfeited                                     |   |                   | (720,000   | )      |                               |   | 0.48 |   |
| Balance, March 31, 2012                                 |   |                   | 11,386,500 |   |                               |   | 0.32 |   |
| Expired                                                 |   |                   | (1,151,500 | )      |                               |   | 0.50 |   |
| Cancelled/forfeited                                     |   |                   | (1,000,000 | )      |                               |   | 0.38 |   |
| Balance, fully vested and exercisable at March 31, 2013 |   |                   | 9,235,000  |   |                               |   | 0.29 |   |

| Number of Warrants | Exercise Price | Expiry Dates      |
|--------------------|----------------|-------------------|
| 24,114,000         | $0.10          | December 20, 2013 |
|  13,036,000   | $0.24          | December 20, 2013 |
| 37,150,000         |           |              |

|                    |   |  Number of Warrants |        |   | Weighted Average Exercise Price ($) |   |
|-------------------------|--------|--------------------------|-------------|--------|------------------------------------------|--------|
| Balance, March 31, 2010 |   |                     | 9,834,400   |   |                                     |   | 0.20 |   |
| Issued                  |   |                     | 68,107,214  |   |                                     |   | 0.19 |   |
| Exercised               |   |                     | (23,680,143 | )      |                                     |   | 0.19 |   |
| Expired                 |   |                     | (854,400    | )      |                                     |   | 0.20 |   |
| Balance, March 31, 2011 |   |                     | 53,407,071  |   |                                     |   | 0.22 |   |
| Exercised               |   |                     | (2,998,571  | )      |                                     |   | 0.16 |   |
| Balance, March 31, 2012 |   |                     | 50,408,500  |   |                                     |   | 0.22 |   |
| Exercised               |   |                     | (2,697,666  | )      |                                     |   | 0.16 |   |
| Repriced and Extended   |   |                     | (24,114,000 | )      |                                     |   | 0.24 |   |
| Repriced and Extended   |   |                     | 24,114,000  |   |                                     |   | 0.10 |   |
| Expired                 |   |                     | (10,560,834 | )      |                                     |   | 0.19 |   |
| Balance, March 31, 2013 |   |                     | 37,150,000  |   |                                     |   | 0.15 |   |

----

| Statement of Financial Position March 31, 2013 |   | Canada |    |   | Mexico |   |   | Total  |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Total Assets                                   |   | $      | 214,466 |   |   | $      | 46,164 |   |   | $ | 260,630 |   |
| Current Assets                                 |   | $      | 196,901 |   |   | $      | 30,034 |   |   | $ | 226,935 |   |
| Long-term Assets                               |   | $      | 17,564  |   |   | $      | 16,130 |   |   | $ | 33,694 |   |

| Statement of Financial Position March 31, 2012 |   | Canada |    |   | Mexico |   |    | Total  |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Total Assets                                   |   | $      | 786,334 |   |   | $      | 628,750 |   |   | $ | 1,415,084 |   |
| Current Assets                                 |   | $      | 476,747 |   |   | $      | 78,862  |   |   | $ | 555,609 |   |
| Long-term Assets                               |   | $      | 309,587 |   |   | $      | 549,888 |   |   | $ | 859,475 |   |

| Year ended March 31, 2013        |   | Canada |      |   | Mexico |   |    | Total  |   |
|----------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|
| Exploration and evaluation costs |   | $      | 368,265   |   |   | $      | 348,921 |   |   | $ | 717,186 |   |
| Other expenses                   |   |   | 1,081,240 |   |   |   | --      |   |   |   | 1,081,240 |   |
| Total expenses                   |   | $      | 1,449,505 |   |   | $      | 348,921 |   |   | $ | 1,798,426 |   |

----

| Year ended March 31, 2012        |   | Canada |      |   | Mexico |   |      | Total  |   |
|----------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Exploration and evaluation costs |   | $      | 236,221   |   |   | $      | 2,526,898 |   |   | $ | 2,763,119 |   |
| Other expenses                   |   |   | 2,161,089 |   |   |   | --        |   |   |   | 2,161,089 |   |
| Total expenses                   |   | $      | 2,397,310 |   |   | $      | 2,526,898 |   |   | $ | 4,924,208 |   |

| Year ended March 31, 2011 |   | Canada |      |   | Mexico |   |    | Total  |   |
|---------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|
| Exploration costs         |   | $      | 714,237   |   |   | $      | 987,913 |   |   | $ | 1,702,150 |   |
| Other expenses            |   |   | 2,920,242 |   |   |   | --      |   |   |   | 2,920,242 |   |
| Total expenses            |   | $      | 3,634,479 |   |   | $      | 987,913 |   |   | $ | 4,622,392 |   |

|                                    |   | 2013   |      |   | 2012   |   |       | 2011   |   |
|-----------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
| Loss for the year                       |   | $      | 1,794,629 |   |   | $      | 4,883,290  |   |   | $ | 4,604,246 |   |
| Statutory tax rate                      |   |   | 25        | %      |   |   | 26.13      | %      |   |   | 28.01 | % |
| Expected income tax recovery            |   |   | 453,000   |   |   |   | 1,276,000  |   |   |   | 1,291,000 |   |
| Decrease to income tax recovery due to: |   |   |      |   |   |   |       |   |   |   |   |   |
| Non-deductible permanent differences    |   |   | (96,000   | )      |   |   | (183,000   | )      |   |   | (552,000 | ) |
| Losses not recognized                   |   |   | (443,000  | )      |   |   | (1,061,000 | )      |   |   | (823,000 | ) |
| Other                                   |   |   | 86,000    |   |   |   | (32,000    | )      |   |   | 84,000 |   |
| Income tax recovery                     |   | $      | --        |   |   | $      | --         |   |   | $ | -- |   |

|                                        |   | March 31,2013 |       |   | March 31,2012 |   |
|---------------------------------------------|--------|---------------|------------|--------|---------------|--------|
| Mineral property interests                  |   | $             | 2,471,000  |   |          | $      | 2,536,000 |   |
| Share issue costs                           |   |          | 59,000     |   |          |   | 93,000 |   |
| Equipment                                   |   |          | 84,000     |   |          |   | -- |   |
| Operating losses carried forward            |   |          | 3,968,000  |   |          |   | 3,510,000 |   |
| Total deferred tax assets                   |   |          | 6,582,000  |   |          |   | 6,139,000 |   |
| Valuation allowance for deferred tax assets |   |          | (6,582,000 | )      |          |   | (6,139,000 | ) |
|                                        |   | $             | --         |   |          | $      | -- |   |

----

| Expiry date | $         |
|-------------|-----------|
| 2014        | 405,000   |   |
| 2015        | 424,000   |   |
| 2026        | 564,000   |   |
| 2027        | 618,000   |   |
| 2028        | 928,000   |   |
| 2029        | 908,000   |   |
| 2030        | 706,000   |   |
| 2031        | 1,704,000 |   |
| 2032        | 1,339,000 |   |
| 2033        | 1,108,000 |   |
| Total       | 8,704,000 |   |

|                                        |   |   |   |   | March 31, 2013 |   |    | March 31, 2012 |   |
|---------------------------------------------|--------|--------|--------|--------|----------------|--------|---------|----------------|--------|
|                                        |   |   |   |   | Carrying       |   |    | Fair           |   |   | Carrying |   |   | Fair |   |
|                                        |   | Level  |   |   | Value          |   |    | Value          |   |   | Value |   |   | Value |   |
| Cash (a)                                    |   |   | 1      |   |           | $      | 79,464  |           |   | $ | 79,464 |   |   | $ | 292,501 |   |   | $ | 292,501 |   |
| Short-term investments (a)                  |   |   | 1      |   |           |   | 100,043 |           |   |   | 100,043 |   |   |   | 175,429 |   |   |   | 175,429 |   |
| Amounts receivable and prepaid expenses (a) |   |   | 1      |   |           |   | 47,428  |           |   |   | 47,428 |   |   |   | 87,679 |   |   |   | 87,679 |   |
| Investment in associate (b)                 |   |   | 3      |   |           |   | --      |           |   |   | -- |   |   |   | 1 |   |   |   | 1 |   |
| Accounts payable and accrued liabilities    |   |   | 2      |   |           |   | 221,072 |           |   |   | 221,072 |   |   |   | 157,941 |   |   |   | 157,941 |   |
| Accounts payable, related parties (a)       |   |   | 2      |   |           |   | 257,472 |           |   |   | 257,472 |   |   |   | 88,890 |   |   |   | 88,890 |   |

----

|   | a) | Fair value approximates the carrying amounts due to the short-term nature. |
|--------|----|----------------------------------------------------------------------------|

|   | b) | Investment relates to Quorum (Note 4). |
|--------|----|----------------------------------------|

|                                       |   | March 31, 2013 |    |   | March 31, 2012 |   |
|--------------------------------------------|--------|----------------|---------|--------|----------------|--------|
| Amounts receivable                         |   |           |    |   |           |   |
|     Due within 90 days |   | $              | 33,283  |   |           | $      | 35,624 |   |
| Deposits, related party                    |   |           | --      |   |           |   | 189,963 |   |
|                                       |   |           | 33,283  |   |           |   | 225,587 |   |
| Cash                                       |   |           | 79,464  |   |           |   | 292,501 |   |
| Short-term investments                     |   |           | 100,043 |   |           |   | 175,429 |   |
|                                       |   | $              | 212,790 |   |           | $      | 693,517 |   |

----

|                                                                                                |   | March 31, 2013 |     |   | March 31, 2012 |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------|----------|--------|---------------------|--------|
| Cash                                                                                                |   | $              | 79,464   |   |                | $      | 292,501 |   |
| Short-term investments                                                                              |   |           | 100,043  |   |                |   | 175,429 |   |
| Amounts receivable -                                                                                |   |           |     |   |                |   |   |   |
|     Within 90 days or less                                                      |   |           | 33,283   |   |                |   | 35,624 |   |
| Deposits from related party -                                                                       |   |           |     |   |                |   |   |   |
|      In later than 90 days, not less than on year                          |   |           | --       |   |                |   | 189,963 |   |
| Accounts payable and accrued liabilities with contractual maturities – Within 90 days or less |   |           | (221,073 | )      |                |   | (157,941 | ) |
| Due to related parties with contractual maturities -  Within 90 days or less              |   |           | (257,472 | )      |                |   | (88,890 | ) |

|                                     |   | March 31, 2013 |    |   | March 31, 2012 |   |
|------------------------------------------|--------|----------------|---------|--------|----------------|--------|
| U.S. Dollars                             |   |           |    |   |           |   |
| Cash                                     |   | $              | 3,762   |   |           | $      | 146,487 |   |
| Accounts payable and accrued liabilities |   |           | (17,777 | )      |           |   | (14,137 | ) |
| Mexican Pesos                            |   |           |    |   |           |   |   |   |
| Cash                                     |   |           | 27,102  |   |           |   | 8,316 |   |
| Value-added taxes recoverable            |   |           | 11,806  |   |           |   | 497,865 |   |
| Accounts payable and accrued liabilities |   |           | (3,219  | )      |           |   | (10,881 | ) |

----

| 15. | Financial Instruments and Risk Management (Continued) |
|-----|-------------------------------------------------------|

| 16.  | Management of Capital |
|-----------|-----------------------|

|                                 |   | March 31, 2013 |        |   | March 31, 2012 |   |
|--------------------------------------|--------|----------------|-------------|--------|----------------|--------|
| Equity (deficiency) is comprised of: |   |           |        |   |           |   |
| Share capital                        |   | $              | 33,066,916  |   |           | $      | 32,589,847 |   |
| Warrant reserve                      |   |           | 2,174,973   |   |           |   | 2,836,637 |   |
| Share-based payments reserve         |   |           | 5,266,158   |   |           |   | 4,506,782 |   |
| Deficit                              |   |           | (40,725,962 | )      |           |   | (38,765,013 | ) |

----

| 17.  | Exploration and Evaluation Costs |
|-----------|----------------------------------|

| Year ended March 31, 2013     |   | Kaslo Silver Property, British Columbia |    |   | ManitobaProperties,Manitoba |   |   | Nuevo Milenio Property, Mexico |   |   | TotalMarch 31, 2013 |   |
|-------------------------------|--------|----------------------------------------------|---------|--------|-----------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------|--------|
| Incurred during the year      |   |                                         |    |   |                        |   |   |                                          |   |   |                |   |
| Assays and analysis           |   | $                                            | --      |   |                        | $      | --     |                                          |   | $      | 2,624               |   |   | $ | 2,624 |   |
| Geological and geophysical    |   |                                         | 9,625   |   |                        |   | 3,900  |                                          |   |   | 382,860             |   |   |   | 396,385 |   |
| Site activities               |   |                                         | 9,148   |   |                        |   | 35     |                                          |   |   | 302,995             |   |   |   | 312,178 |   |
| Travel and accommodation      |   |                                         | --      |   |                        |   | --     |                                          |   |   | 17,707              |   |   |   | 17,707 |   |
| Government assistance         |   |                                         | (11,708 | )      |                        |   | --     |                                          |   |   | --                  |   |   |   | (11,708 | ) |
| Total Expenses March 31, 2013 |   | $                                            | 7,065   |   |                        | $      | 3,935  |                                          |   | $      | 706,186             |   |   | $ | 717,186 |   |

| Year ended March 31, 2012     |   | Kaslo Silver Property, British Columbia |   |   | ManitobaProperties,Manitoba |   |   | Nuevo Milenio Property, Mexico |   |   | TotalMarch 31,2012 |   |
|-------------------------------|--------|----------------------------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------|--------|
| Incurred during the year      |   |                                         |   |   |                        |   |   |                                          |   |   |               |   |
| Assays and analysis           |   | $                                            | --     |   |                        | $      | --     |                                          |   | $      | 142,656            |   |   | $ | 142,656 |   |
| Drilling                      |   |                                         | --     |   |                        |   | --     |                                          |   |   | 1,997,886          |   |   |   | 1,997,886 |   |
| Geological and geophysical    |   |                                         | 19,800 |   |                        |   | 2,300  |                                          |   |   | 284,690            |   |   |   | 306,790 |   |
| Site activities               |   |                                         | 3,536  |   |                        |   | --     |                                          |   |   | 277,023            |   |   |   | 280,559 |   |
| Travel and accommodation      |   |                                         | 15,691 |   |                        |   | --     |                                          |   |   | 19,537             |   |   |   | 35,228 |   |
| Total Expenses March 31, 2012 |   | $                                            | 39,027 |   |                        | $      | 2,300  |                                          |   | $      | 2,721,792          |   |   | $ | 2,763,119 |   |

| Year ended March 31, 2011     |   | Kaslo Silver Property, British Columbia |   |   | Goldsmith and Other Properties, British Columbia |   |   | Manitoba Properties, Manitoba |   |   | Nuevo Milenio Property, Mexico |   |   | TotalMarch 31,2011 |      |
|-------------------------------|--------|-----------------------------------------|--------|--------|--------------------------------------------------|--------|--------|-------------------------------|--------|--------|--------------------------------|--------|--------|--------------------|-----------|
| Incurred during the period    |   |                                    |   |   |                                             |   |   |                          |   |   |                           |   |   |               |      |
| Assays and analysis           |   | $                                       | --     |   |                                             | $      | --     |                          |   | $      | --                             |   |   | $                  | 8,827     |   |   | $ | 8,827 |   |
| Drilling                      |   |                                    | --     |   |                                             |   | --     |                          |   |   | --                             |   |   |               | 714,320   |   |   |   | 714,320 |   |
| Geological and geophysical    |   |                                    | 408    |   |                                             |   | 68,451 |                          |   |   | 7,078                          |   |   |               | 241,170   |   |   |   | 317,107 |   |
| Site activities               |   |                                    | 172    |   |                                             |   | 2,210  |                          |   |   | 178                            |   |   |               | 167,941   |   |   |   | 170,501 |   |
| Stock-based compensation      |   |                                    | --     |   |                                             |   | --     |                          |   |   | --                             |   |   |               | 440,824   |   |   |   | 440,824 |   |
| Travel and accommodation      |   |                                    | --     |   |                                             |   | 9,358  |                          |   |   | --                             |   |   |               | 41,213    |   |   |   | 50,571 |   |
| Total Expenses March 31, 2011 |   | $                                       | 580    |   |                                             | $      | 80,019 |                          |   | $      | 7,256                          |   |   | $                  | 1,614,295 |   |   | $ | 1,702,150 |   |

----

| 18.  | Subsequent Events |
|-----------|-------------------|

|   | a) | In March 2006, the Company entered into an option agreement, subsequently amended, to acquire 100% interest in the Wine Claim, MB 3964 and Wine 1 Claim, all located approximately 60 kilometres southeast of Flin Flon, Manitoba.  The property was written down to $Nil as there were no future plans to continue with exploration.  Subsequent to the year ended March 31, 2013 the Company sold the property for $50,000 cash. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | The Company holds a 100% interest in the Goldsmith Property comprised of the Goldsmith and Lucky Jack Properties located near Kaslo, British Columbia.  The property has been written down to $Nil as there are no plans to continue with exploration. Subsequent to the year ended March 31, 2013 the claims comprising the Goldsmith and Lucky Jack properties were returned to the respective optionors. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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