----

| FORM 10-K |
|-----------|

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

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

| Commission file number: 000-52372 |
|-----------------------------------|

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| Nevada                                                         |   | 20-3366333                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State of other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 7425 Arbutus Street                                            |   |                                 |
| Vancouver, British Columbia, Canada                            |   | V6P 5T2                              |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

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| Large Accelerated Filer  ̈ | Accelerated Filer  ̈               |
|-------------------------------------|----------------------------------------|
| Non-Accelerated Filer  ̈        | Smaller Reporting Company  x |

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| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS |                                                                                                               | 1      |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                 |                                                                                                               |   |   |
| PART I                                               |                                                                                                               |   | 2 |
|                                                 |                                                                                                               |   |   |
| ITEM 1.                                              | BUSINESS                                                                                                           |   | 2 |
|                                                 |                                                                                                               |   |   |
| ITEM 1A.                                             | RISK FACTORS.                                                                                                      |   | 6 |
|                                                 |                                                                                                               |   |   |
| ITEM 1B.                                             | UNRESOLVED STAFF COMMENTS.                                                                                         |   | 14 |
|                                                 |                                                                                                               |   |   |
| ITEM 2.                                              | PROPERTIES.                                                                                                        |   | 14 |
|                                                 |                                                                                                               |   |   |
| ITEM 3.                                              | LEGAL PROCEEDINGS.                                                                                                 |   | 18 |
|                                                 |                                                                                                               |   |   |
| ITEM 4.                                              | [REMOVED AND RESERVED.]                                                                                            |   | 18 |
|                                                 |                                                                                                               |   |   |
| PART II                                              |                                                                                                               |   | 19 |
|                                                 |                                                                                                               |   |   |
| ITEM 5.                                              | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |   | 19 |
|                                                 |                                                                                                               |   |   |
| ITEM 6.                                              | SELECTED FINANCIAL DATA.                                                                                           |   | 22 |
|                                                 |                                                                                                               |   |   |
| ITEM 7.                                              | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.                       |   | 22 |
|                                                 |                                                                                                               |   |   |
| ITEM 7A.                                             | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MATERIAL RISK.                                                      |   | 27 |
|                                                 |                                                                                                               |   |   |
| ITEM 8.                                              | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.                                                                       |   | 28 |
|                                                 |                                                                                                               |   |   |
| ITEM 9.                                              | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.                              |   | 29 |
|                                                 |                                                                                                               |   |   |
| ITEM 9A.                                             | CONTROLS AND PROCEDURES.                                                                                           |   | 29 |
|                                                 |                                                                                                               |   |   |
| ITEM 9B.                                             | OTHER INFORMATION.                                                                                                 |   | 30 |
|                                                 |                                                                                                               |   |   |
| PART III                                             |                                                                                                               |   | 30 |
|                                                 |                                                                                                               |   |   |
| ITEM 10.                                             | DIRECTORS, EXECUTIVE OFFICES AND CORPORATE GOVERNANCE.                                                             |   | 30 |
|                                                 |                                                                                                               |   |   |
| ITEM 11.                                             | EXECUTIVE COMPENSATION.                                                                                            |   | 33 |
|                                                 |                                                                                                               |   |   |
| ITEM 12.                                             | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.                    |   | 36 |
|                                                 |                                                                                                               |   |   |
| ITEM 13.                                             | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.                                         |   | 38 |
|                                                 |                                                                                                               |   |   |
| ITEM 14.                                             | PRINCIPAL ACCOUNTANT FEES AND SERVICES.                                                                            |   | 39 |
|                                                 |                                                                                                               |   |   |
| PART IV                                              |                                                                                                               |   | 40 |
|                                                 |                                                                                                               |   |   |
| ITEM 15.                                             | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.                                                                        |   | 40 |
|                                                 |                                                                                                               |   |   |
| SIGNATURES                                           |                                                                                                               | 42     |

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|   | • | our failure to obtain additional financing; |
|--------|---------|---------------------------------------------|

|   | • | our inability to continue as a going concern; |
|--------|---------|-----------------------------------------------|

|   | • | the unique difficulties and uncertainties inherent in the mineral exploration business; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | the inherent dangers involved in mineral exploration; |
|--------|---------|-------------------------------------------------------|

|   | • | our officer’s inability or unwillingness to devote a sufficient amount of time to our business operations; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | environmental, health and safety laws in Peru; |
|--------|---------|------------------------------------------------|

|   | • | governmental regulations and processing licenses in Peru; |
|--------|---------|-----------------------------------------------------------|

|   | • | uncertainty as to the termination and renewal of our Peruvian mining concessions; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | our drilling and exploration program and Banking Feasibility Study; |
|--------|---------|---------------------------------------------------------------------|

|   | • | our development projects in Peru; |
|--------|---------|-----------------------------------|

|   | • | Peruvian economic and political conditions; |
|--------|---------|---------------------------------------------|

|   | • | the Peruvian legal system; |
|--------|---------|----------------------------|

|   | • | native land claims in Peru; |
|--------|---------|-----------------------------|

|   | • | natural hazards in Peru; and |
|--------|---------|------------------------------|

|   | • | our common stock. |
|--------|---------|-------------------|

----

| Item 1. | Business  |
|---------|----------------|

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| Item 1A. | Risk Factors. |
|----------|---------------|

----

----

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|   | · | The global credit/liquidity crisis could impact the cost and availability of financing and our overall liquidity; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | the volatility of ore prices may impact our future revenues, profits and cash flow; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | volatile energy prices, commodity and consumables prices and currency exchange rates impact potential production costs; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | the devaluation and volatility of global stock markets impacts the valuation of our equity securities, which may impact our ability to raise funds through the issuance of equity. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | • | the breadth of our stockholder base and extent to which securities professionals follow our common stock; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | investor perception of our Company and the mining industry, including industry trends; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | domestic and international economic and capital market conditions, including fluctuations in commodity prices; |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | • | responses to quarter-to-quarter variations in our results of operations; |
|--------|---------|--------------------------------------------------------------------------|

|   | • | announcements of significant acquisitions, strategic alliances, joint ventures or capital commitments by us or our competitors; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | • | additions or departures of key personnel; |
|--------|---------|-------------------------------------------|

|   | • | sales or purchases of our common stock by large stockholders or our insiders; |
|--------|---------|-------------------------------------------------------------------------------|

|   | • | accounting pronouncements or changes in accounting rules that affect our financial reporting; and |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | • | changes in legal and regulatory compliance unrelated to our performance. |
|--------|---------|--------------------------------------------------------------------------|

----

----

| Item 1B. | Unresolved Staff Comments. |
|----------|----------------------------|

| Item 2. | Properties. |
|---------|-------------|

----

| N° |         | CONCESSION                  |         | CODE       |         | INGEMMET                                       |         | PUBLIC REGISTRY |
|---------|--------------|-----------------------------|--------------|------------|--------------|------------------------------------------------|--------------|----------------------|
| 01      |         | ALTACOCHA MINE              |         | 0101292-07 |         | Resolution N° 3423 INGEMMET/PCD/PM        |         | 12125438             |
| 02      |         | ALTOCOCHA MINE 1            |         | 0101324-07 |         | Resolution N°002242-2007-INACC/J          |         | 12089171             |
| 03      |         | ALTOCOCHA  MINE 2 |         | 0101325-07 |         | Resolution N° 002666-2007-INGEMMET/PCD/PM |         | 12134767             |
| 04      |         | ALTOCOCHA MINE 3            |         | 0101326-07 |         | Resolution N°000071-2007-INGEMMET/PCD/PM  |         | 12089882             |
| 05      |         | ALTOCOCHA MINE 4            |         | 0101327-07 |         | Resolution N° 002099-2007-INACC/J         |         | 12089359             |
| 06      |         | ALTOCOCHA MINE 5            |         | 0101328-07 |         | Resolution N° 000310-2007-INGEMMET/PCD/PM |         | 12189875             |
| 07      |         | ALTOCOCHA MINE 7            |         | 0101598-07 |         | Resolution N° 002425-2007-INACC/J         |         | 12089522             |
| 08      |         | ALTOCOCHA MINE 8            |         | 0101597-07 |         | Resolution N° 002458-2007-INACC/J         |         | 12089420             |
| 09      |         | ALTOCOCHA MINE 9            |         | 0101664-07 |         | Resolution N° 002100-2007-INACC/J         |         | 12089424             |
| 10      |         | ALTOCOCHA MINE 10           |         | 0101665-07 |         | Resolution N° 002579-2007-INGEMMET/PCD/PM |         | 12135392             |
| 11      |         | ALTOCOCHA MINE 11           |         | 0101666-07 |         | Resolution N° 000402-2007-INGEMMET/PCD/PM |         | 12089535             |
| 12      |         | ALTOCOCHA MINE 12           |         | 0101667-07 |         | Resolution N° 001448-2007-INGEMMET/PCD/PM |         | 12089549             |
| 13      |         | ALTOCOCHA MINE 14           |         | 0104158-07 |         | Resolution N° 004169-2008-INGEMMET/PCD/PM |         | 12359543             |
| 14      |         | ALTOCOCHA MINE 15           |         | 0106330-07 |         | Resolution N° 001890-2008-INGEMMET/PCD/PM |         | 12359721             |
| 15      |         | ALTOCOCHA MINE 16           |         | 0106329-07 |         | Resolution N° 001705-2008-INGEMMET/PCD/PM |         | 12359751             |
| 16      |         | BLACK TUSK 1                |         | 0102020-09 |         | Resolution N°4919-2009- INGEMMET/PCD/PM   |         | 12477466             |
| 17      |         | BLACK TUSK 2                |         | 0102019-09 |         | Resolution N°0209-2010- INGEMMET/PCD/PM   |         | 12477470             |
| 18      |         | BLACK TUSK 3                |         | 0102018-09 |         | Resolution N° 0367-2010-INGEMMET/PCD/PM   |         | 12477475             |
| 19      |    | BLACK TUSK 4                |    | 0102021-09 |    | Resolution N° 0045-2010-INGEMMET/PCD/PM   |    | 12477483             |

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----

| Satellite Imagery                                            |   | $   | 25,000  |   |
|--------------------------------------------------------------|--------|---------------|---------|--------|
| Airborne geophysical survey (500 km @ $200/km)               |   | $             | 100,000 |   |
| Ground follow-up (geology, soil geochemistry, rock sampling) |   | $             | 100,000 |   |

| Item 3. | Legal Proceedings. |
|---------|--------------------|

| Item 4. | [Removed and Reserved.] |
|---------|-------------------------|

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

| FINRA OTC Bulletin Board(1)(2) |   |
|--------------------------------|--------|
| Quarter Ended                  |   | High($) |   |   | Low($) |   |
| May 31, 2011                   |   |   | 0.26 |   |   |   | 0.07 |   |
|                           |   |   |   |   |   |   |   |   |
| February 28, 2011              |   |   | 1.00 |   |   |   | 0.1 |   |
|                           |   |   |   |   |   |   |   |   |
| November 30, 2010              |   |   | 0.75 |   |   |   | 0.15 |   |
|                           |   |   |   |   |   |   |   |   |
| August 31, 2010                |   |   | 0.725 |   |   |   | 0.175 |   |
|                           |   |   |   |   |   |   |   |   |
| May 31, 2010                   |   | $ | 10.5 |   |   | $ | 0.56 |   |
|                           |   |   |   |   |   |   |   |   |
| February 28, 2010              |   | $ | 9.5 |   |   | $ | 2.75 |   |
|                           |   |   |   |   |   |   |   |   |
| November 30, 2009              |   | $ | 5.50 |   |   | $ | 2.50 |   |
|                           |   |   |   |   |   |   |   |   |
| August 31, 2009                |   | $ | 13.75 |   |   | $ | 4.00 |   |

|   | (1) | Over-the-counter market quotations reflect inter-dealer prices without retail mark-up, mark-down or commission, and may not represent actual transactions. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The pricing gives effect to the 50-1 reverse stock split that was effective on October 8, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------|

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|                                                     |   |                                                                                                         |       |   |                                                                      |   |   |                                                                                                                                                                                        |   |
|----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|------------|--------|---------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                     |   | Number of Securities tobe Issued Upon Exerciseof Outstanding Options |       |   | Weighted AverageExercise Price ofOutstanding Options, |   |   | Number of SecuritiesRemaining Available forFuture Issuance UnderEquity CompensationPlans (ExcludingSecurities Reflected inColumn (a) |   |
| Plan Category                                            |   | (a)                                                                                                          |       |   | (b)                                                                       |   |   | (c)                                                                                                                                                                                         |   |
| Equity CompensationPlans Approved BySecurity Holders(1)  |   |                                                                                                         | 750,000(2) |   |                                                                      |   | $0.53  |                                                                                                                                                                                        |   |   | 40,000 |   |
| Equity CompensationPlans Not Approved BySecurity Holders |   | Not Applicable                                                                                               |       |   | Not Applicable                                                            |   |   | Not Applicable                                                                                                                                                                              |   |

|   | (1) | The 2009 Plan was approved by the Company’s shareholders became effective on November 16, 2009; the 2011 Plan was approved by the consenting stockholders on April 29, 2011. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | 20,000 split adjusted stock options at an exercise price of $5.00 per share (split-adjusted) were cancelled effective as of the resignation of Michael McIsaac from his positions as director, secretary and treasurer; 20,000 split adjusted stock options at an exercise price of $5.00 per share (split-adjusted) were cancelled effective June 1, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 6. | Selected Financial Data. |
|---------|--------------------------|

| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

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|   | (1) | $350,000 for operating expenses, including general, legal, accounting and administrative expenses associated with our reporting obligations under the Securities Exchange Act of 1934, and general working capital expenditures; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | $550,000 for expenses related to the technical review and exploration of the Peru Properties, including, but not limited to, satellite imagery, the airborne geophysical survey, and geology, soil geochemistry, and rock sampling. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 7A. | Quantitative and Qualitative Disclosures About Material Risk. |
|----------|---------------------------------------------------------------|

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| Item 8. | Financial Statements and Supplementary Data. |
|---------|----------------------------------------------|

| Report of Independent Registered Public Accounting Firm    | F-1    |
|-----------------------------------------------------------------|--------|
|                                                            |   |
| Consolidated Balance Sheets                                | F-2    |
|                                                            |   |
| Consolidated Statements of Operations                      | F-3    |
|                                                            |   |
| Consolidated Statements of Cash Flows                      | F-4    |
|                                                            |   |
| Consolidated Statements of of Stockholders’ Deficit  | F-5    |
|                                                            |   |
| Notes to the Consolidated Financial Statements             | F-7    |

----

----

|                                                                                                                                   |   | May 31,2011$ |       |   | May 31,2010$ |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|
|                                                                                                                                   |   |         |       |   |         |   |
|                                                                                                                                   |   |         |       |   |         |   |
| ASSETS                                                                                                                                 |   |         |       |   |         |   |
|                                                                                                                                   |   |         |       |   |         |   |
| Current Assets                                                                                                                         |   |         |       |   |         |   |
|                                                                                                                                   |   |         |       |   |         |   |
| Cash                                                                                                                                   |   |         | 2          |   |         |   | 257 |   |
| Prepaid expenses                                                                                                                       |   |         | 964        |   |         |   | 140 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Current Assets                                                                                                                   |   |         | 966        |   |         |   | 397 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Equipment (Note 2(e))                                                                                                                  |   |         | 2,310      |   |         |   | – |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Assets                                                                                                                           |   |         | 3,276      |   |         |   | 397 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                            |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Current Liabilities                                                                                                                    |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Accounts payable                                                                                                                       |   |         | 85,872     |   |         |   | 33,283 |   |
| Accrued liabilities                                                                                                                    |   |         | 22,590     |   |         |   | 12,816 |   |
| Due to related parties (Note 3)                                                                                                        |   |         | 151,673    |   |         |   | 224,734 |   |
| Convertible notes and interest, current (Note 5)                                                                                       |   |         | 60,168     |   |         |   | – |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Current Liabilities                                                                                                              |   |         | 320,303    |   |         |   | 270,833 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Convertible Notes and Interest (Note 5)                                                                                                |   |         | 34,313     |   |         |   | 52,169 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Liabilities                                                                                                                      |   |         | 354,616    |   |         |   | 323,002 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Contingencies (Note 1)                                                                                                                 |   |         |       |   |         |   |   |   |
| Subsequent Events (Note 11)                                                                                                            |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Stockholders’ Deficit                                                                                                            |   |         |       |   |         |   |   |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Common Stock, 100,000,000 shares authorized, $0.001 par value4,000,000 shares issued and outstanding (2010 – 1,015,785) (Note 6) |   |         | 4,000      |   |         |   | 944 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Additional Paid-in Capital                                                                                                             |   |         | 2,596,294  |   |         |   | 2,359,006 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Donated Capital (Note 3)                                                                                                               |   |         | 51,750     |   |         |   | 42,750 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Deficit Accumulated During the Exploration Stage                                                                                       |   |         | (3,003,384 | )      |         |   | (2,725,305 | ) |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Stockholders’ Deficit                                                                                                      |   |         | (351,340   | )      |         |   | (322,605 | ) |
|                                                                                                                                   |   |         |       |   |         |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                      |   |         | 3,276      |   |         |   | 397 |   |
|                                                                                                                                   |   |         |       |   |         |   |   |   |

----

|                                                                |   | AccumulatedFromAugust 8, 2005 (Date of Inception) |       |   | For the YearEnded |   |      | For the YearEnded |   |
|---------------------------------------------------------------------|--------|---------------------------------------------------|------------|--------|-------------------|--------|-----------|-------------------|--------|
|                                                                |   | to May 31,                                        |       |   | May 31,           |   |      | May 31,           |   |
|                                                                |   | 2011$                                             |       |   | 2011$             |   |      | 2010$             |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Revenue                                                             |   |                                              | –    |   |              |   | –   |              |   |   | – |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Expenses                                                            |   |                                              |       |   |              |   |      |              |   |   |   |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Amortization                                                        |   |                                              | 538        |   |              |   | 538       |              |   |   | – |   |
| Donated rent (Note 3)                                               |   |                                              | 17,250     |   |              |   | 3,000     |              |   |   | 3,000 |   |
| Donated services (Note 3)                                           |   |                                              | 34,500     |   |              |   | 6,000     |              |   |   | 6,000 |   |
| General and administrative (Note 7)                                 |   |                                              | 950,999    |   |              |   | 145,662   |              |   |   | 633,547 |   |
| Impairment of mineral property costs (Note 4)                       |   |                                              | 1,452,208  |   |              |   | –   |              |   |   | 21,958 |   |
| Mineral property costs (Note 4)                                     |   |                                              | 69,340     |   |              |   | 23,197    |              |   |   | 42,143 |   |
| Professional fees                                                   |   |                                              | 416,903    |   |              |   | 86,982    |              |   |   | 113,862 |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Total Operating Expenses                                            |   |                                              | 2,941,738  |   |              |   | 265,379   |              |   |   | 820,510 |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Loss From Operations                                                |   |                                              | (2,941,738 | )      |              |   | (265,379  | )                 |   |   | (820,510 | ) |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Other Expenses                                                      |   |                                              |       |   |              |   |      |              |   |   |   |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Interest on convertible notes (Note 5)                              |   |                                              | (35,886    | )      |              |   | (12,700   | )                 |   |   | (20,426 | ) |
| Gain on settlement of debt                                          |   |                                              | –    |   |              |   | –   |              |   |   | – |   |
| Loss on conversion of accounts payable to convertible note (Note 5) |   |                                              | (25,760    | )      |              |   | –   |              |   |   | (878 | ) |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Total Other Expenses                                                |   |                                              | (61,646    | )      |              |   | (12,700   | )                 |   |   | (21,304 | ) |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Net Loss                                                            |   |                                              | (3,003,384 | )      |              |   | (278,079  | )                 |   |   | (841,814 | ) |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Net Loss Per Share – Basic and Diluted                        |   |                                              |       |   |              |   | (0.15     | )                 |   |   | (0.88 | ) |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |
| Weighted Average Shares Outstanding                                 |   |                                              |       |   |              |   | 1,833,000 |              |   |   | 941,000 |   |
|                                                                |   |                                              |       |   |              |   |      |              |   |   |   |   |

----

|                                                          |   | AccumulatedFrom August 8, 2005 (Date of Inception)to May 31,2011$ |       |   | For theYearEndedMay 31, 2011$ |   |     | For theYearEndedMay 31, 2010$ |   |
|---------------------------------------------------------------|--------|-------------------------------------------------------------------|------------|--------|------------------------------------|--------|----------|------------------------------------|--------|
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Operating Activities                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Net loss                                                      |   |                                                              | (3,003,384 | )      |                               |   | (278,079 | )                                  |   |   | (841,814 | ) |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Adjustments to reconcile net loss to cash:                    |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Amortization                                                  |   |                                                              | 538        |   |                               |   | 538      |                               |   |   | – |   |
| Impairment of mineral property                                |   |                                                              | 1,452,208  |   |                               |   | –  |                               |   |   | 21,958 |   |
| Loss on conversion of accounts payable to convertible note    |   |                                                              | 25,760     |   |                               |   | –  |                               |   |   | 878 |   |
| Donated services and rent                                     |   |                                                              | 51,750     |   |                               |   | 9,000    |                               |   |   | 9,000 |   |
| Common stock issued for services                              |   |                                                              | 4,000      |   |                               |   | –  |                               |   |   | – |   |
| Accretion of convertible debt                                 |   |                                                              | 32,045     |   |                               |   | 8,859    |                               |   |   | 20,426 |   |
| Stock – based compensation                              |   |                                                              | 635,903    |   |                               |   | 78,000   |                               |   |   | 557,903 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Changes in operating assets and liabilities:                  |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Prepaid expenses                                              |   |                                                              | (964       | )      |                               |   | (824     | )                                  |   |   | (59 | ) |
| Accounts payable and accrued liabilities                      |   |                                                              | 170,703    |   |                               |   | 71,384   |                               |   |   | 11,160 |   |
| Due to related parties                                        |   |                                                              | 145,775    |   |                               |   | 35,243   |                               |   |   | 104,097 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Net Cash Used in Operating Activities                         |   |                                                              | (485,666   | )      |                               |   | (75,879  | )                                  |   |   | (116,451 | ) |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Investing Activities                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|    Purchase of equipment                       |   |                                                              | (1,495     | )      |                               |   | (1,495   | )                                  |   |   | – |   |
|    Mineral property acquisition costs          |   |                                                              | (112,208   | )      |                               |   | –  |                               |   |   | (21,958 | ) |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Net Cash Used in Investing Activities                         |   |                                                              | (113,703   | )      |                               |   | (1,495   | )                                  |   |   | (21,958 | ) |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Financing Activities                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|    Bank indebtedness                           |   |                                                              | –    |   |                               |   | –  |                               |   |   | (149 | ) |
|    Proceeds from issuance of common stock      |   |                                                              | 431,937    |   |                               |   | 36,500   |                               |   |   | 5,000 |   |
| Proceeds from loans                                           |   |                                                              | 93,613     |   |                               |   | 43,500   |                               |   |   | 45,113 |   |
|    Repayment of loans                          |   |                                                              | (25,381    | )      |                               |   | (2,881   | )                                  |   |   | (22,500 | ) |
|    Share issuance costs                        |   |                                                              | (12,000    | )      |                               |   | –  |                               |   |   | – |   |
|    Advance from related party                  |   |                                                              | 111,202    |   |                               |   | –  |                               |   |   | 111,202 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Net Cash Provided by Financing Activities                     |   |                                                              | 599,371    |   |                               |   | 77,119   |                               |   |   | 138,666 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Increase (Decrease) In Cash                                   |   |                                                              | 2          |   |                               |   | (255     | )                                  |   |   | 257 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Cash - Beginning of Period                                    |   |                                                              | –    |   |                               |   | 257      |                               |   |   | – |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Cash - End of Period                                          |   |                                                              | 2          |   |                               |   | 2        |                               |   |   | 257 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Supplemental Disclosures                                      |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Interest paid                                                 |   |                                                              | 5,317      |   |                               |   | 3,958    |                               |   |   | 1,159 |   |
| Income tax paid                                               |   |                                                              | –    |   |                               |   | –  |                               |   |   | – |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Non-cash Investing and Financing Activities                   |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |
| Common shares issued upon the conversion of convertible notes |   |                                                              | 37,613     |   |                               |   | 10,000   |                               |   |   | 27,613 |   |
| Common shares issued for mineral property                     |   |                                                              | 1,330,000  |   |                               |   | –  |                               |   |   | – |   |
| Settlement of accounts payable for convertible notes          |   |                                                              | 64,381     |   |                               |   | –  |                               |   |   | 2,881 |   |
| Common shares issued for settlement of accounts payable       |   |                                                              | 3,254      |   |                               |   | 3,254    |                               |   |   | – |   |
| Common shares issued for settlement of due to related party   |   |                                                              | 112,978    |   |                               |   | 112,978  |                               |   |   | – |   |
| Issuance of convertible notes for mineral property costs      |   |                                                              | 34,113     |   |                               |   | –  |                               |   |   | 34,113 |   |
|                                                          |   |                                                              |       |   |                               |   |     |                               |   |   |   |   |

----

|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     | Deficit     |   |   |    |   |
|--------------------------------------------------------------------------------------------------------|--------|---------|----------|--------|---------|--------|---------|------------|--------|--------|---------------|--------|--------|-------------|---------|--------|----------|--------|----------|-------------|--------|--------|---------|--------|
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     | Accumulated |   |   |    |   |
|                                                                                                   |   |    |     |   |    |   |    | Additional |   |   | Stock         |   |   | Common      |    |   |     |   |     | During the  |   |   |    |   |
|                                                                                                   |   |    |     |   |    |   |    | Paid-in    |   |   | Subscriptions |   |   | Stock       |    |   | Donated  |   |     | Exploration |   |   |    |   |
|                                                                                                   |   | Shares# |     |   | Amount$ |   |    | Capital$   |   |   | Receivable$   |   |   | Subscribed$ |    |   | Capital$ |   |     | Stage$      |   |   | Total$  |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – August 8, 2005 (Date of Inception)                                                     |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| August 8, 2005 – common shares issued for cash at $0.0125 per share                              |   |    | 380,000  |   |    |   | 380     |       |   |   | 4,370         |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 4,750 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| March 24, 2006 – common shares issued for cash at $0.125 per share                               |   |    | 292,000  |   |    |   | 292     |       |   |   | 36,208        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 36,500 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| May 31, 2006 – common shares issued for cash at $3.038 per share                                 |   |    | 2,880    |   |    |   | 3       |       |   |   | 8,997         |   |   |        | (250    | )      |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 8,750 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                                              |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | 6,750   |   |   |   | – |   |   |   | 6,750 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the period                                                                                |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | (24,639 | ) |   |   | (24,639 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2006                                                                           |   |    | 674,880  |   |    |   | 675     |       |   |   | 49,575        |   |   |        | (250    | )      |     |   | –  |        |   |   | 6,750   |   |   |   | (24,639 | ) |   |   | 32,111 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| August 31, 2006 – common shares issued for services at $0.125 per share                          |   |    | 32,000   |   |    |   | 32      |       |   |   | 3,968         |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 4,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                                              |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | 9,000   |   |   |   | – |   |   |   | 9,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                                                                  |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | (47,215 | ) |   |   | (47,215 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2007                                                                           |   |    | 706,880  |   |    |   | 707     |       |   |   | 53,543        |   |   |        | (250    | )      |     |   | –  |        |   |   | 15,750  |   |   |   | (71,854 | ) |   |   | (2,104 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 1, 2007 - common shares issued for cash at $3.750 per share                                  |   |    | 25,123   |   |    |   | 25      |       |   |   | 94,186        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 94,211 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Share issuance costs                                                                                   |   |    | –  |   |    |   | – |       |   |   | (3,000        | )      |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | (3,000 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| February 8, 2008 - common shares issued for cash at $3.750 per share                                   |   |    | 4,260    |   |    |   | 4       |       |   |   | 15,971        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 15,975 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| April 24, 2008 – common shares issued for mineral property at a fair value of $3.325 per share   |   |    | 400,000  |   |    |   | 400     |       |   |   | 1,329,600     |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 1,330,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| April 24, 2008 – common shares returned for cancellation (Note 3)                                |   |    | (240,000 | )      |    |   | (240    | )          |   |   | (2,760        | )      |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | (3,000 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Subscriptions received                                                                                 |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | 250     |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 250 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Common stock subscribed                                                                                |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | 125,750  |        |   |   | – |   |   |   | – |   |   |   | 125,750 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                                              |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | 9,000   |   |   |   | – |   |   |   | 9,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                                                                  |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | (1,670,861 | ) |   |   | (1,670,861 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2008                                                                           |   |    | 896,263  |   |    |   | 896     |       |   |   | 1,487,540     |   |   |        | – |   |     |   | 125,750  |        |   |   | 24,750  |   |   |   | (1,742,715 | ) |   |   | (103,779 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| June 17, 2008 - common shares issued for cash at $0.110 per share                                      |   |    | 20,480   |   |    |   | 21      |       |   |   | 127,979       |   |   |        | – |   |     |   | (125,750 | )           |   |   | – |   |   |   | – |   |   |   | 2,250 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 8, 2008 – common shares issued for cash at $5.00 per share                             |   |    | 20,000   |   |    |   | 20      |       |   |   | 99,980        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 100,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Share issuance costs                                                                                   |   |    | –  |   |    |   | – |       |   |   | (9,000        | )      |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | (9,000 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| January 23, 2009 – intrinsic value of beneficial conversion feature on convertible debt (Note 6) |   |    | –  |   |    |   | – |       |   |   | 24,600        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 24,600 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| January 23, 2009 – fair value of warrants issued                                                 |   |    | –  |   |    |   | – |       |   |   | 24,882        |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | – |   |   |   | 24,882 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Common stock subscribed                                                                                |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | 2,000    |        |   |   | – |   |   |   | – |   |   |   | 2,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                                              |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | 9,000   |   |   |   | – |   |   |   | 9,000 |   |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                                                                  |   |    | –  |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | –  |        |   |   | – |   |   |   | (140,776 | ) |   |   | (140,776 | ) |
|                                                                                                   |   |    |     |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |     |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2009                                                                           |   |    | 936,743  |   |    |   | 937     |       |   |   | 1,755,981     |   |   |        | – |   |     |   | 2,000    |        |   |   | 33,750  |   |   |   | (1,883,491 | ) |   |   | (90,823 | ) |

----

|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    | Deficit     |   |   |    |   |
|-----------------------------------------------------------------------------------------|--------|---------|-----------|--------|---------|--------|---------|------------|--------|--------|---------------|--------|--------|-------------|---------|--------|----------|--------|---------|-------------|--------|--------|---------|--------|
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    | Accumulated |   |   |    |   |
|                                                                                    |   |    |      |   |    |   |    | Additional |   |   | Stock         |   |   | Common      |    |   |     |   |    | During the  |   |   |    |   |
|                                                                                    |   |    |      |   |    |   |    | Paid-in    |   |   | Subscriptions |   |   | Stock       |    |   | Donated  |   |    | Exploration |   |   |    |   |
|                                                                                    |   | Shares# |      |   | Amount$ |   |    | Capital$   |   |   | Receivable$   |   |   | Subscribed$ |    |   | Capital$ |   |    | Stage$      |   |   | Total$  |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2009                                                            |   |    | 936,743   |   |    |   | 937     |       |   |   | 1,755,981     |   |   |        | – |   |     |   | 2,000   |        |   |   | 33,750  |   |   |   | (1,883,491 | ) |   |   | (90,823 | ) |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| June 26, 2009 – fair value of warrants issued                                     |   |    | –   |   |    |   | – |       |   |   | 11,338        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 11,338 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| July 14, 2009 – loss on conversion of accounts payable to convertible note        |   |    | –   |   |    |   | – |       |   |   | 878           |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 878 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| August 25, 2009 – fair value of options issued                                    |   |    | –   |   |    |   | – |       |   |   | 457,184       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 457,184 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 1, 2009 – fair value of options issued                                  |   |    | –   |   |    |   | – |       |   |   | 21,851        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 21,851 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 7, 2009 – fair value of options issued                                  |   |    | –   |   |    |   | – |       |   |   | 18,868        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 18,868 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 11, 2009 – common shares issued for conversion of note                  |   |    | 3,200     |   |    |   | 3       |       |   |   | 13,699        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 13,702 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 11, 2009  – common shares issued for cash at $3.571 per share |   |    | 1,400     |   |    |   | 1       |       |   |   | 6,999         |   |   |        | – |   |     |   | (2,000  | )           |   |   | – |   |   |   | – |   |   |   | 5,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| December 31, 2009 – common shares issued for  conversion of note        |   |    | 2,442     |   |    |   | 3       |       |   |   | 12,208        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 12,211 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| January 4, 2010 – fair value of options issued                                    |   |    | –   |   |    |   | – |       |   |   | 60,000        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 60,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                               |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | 9,000   |   |   |   | – |   |   |   | 9,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Treasury shares issued but not paid                                                     |   |    | 72,000    |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                                                   |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | (841,814 | ) |   |   | (841,814 | ) |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2010                                                            |   |    | 1,015,785 |   |    |   | 944     |       |   |   | 2,359,006     |   |   |        | – |   |     |   | – |        |   |   | 42,750  |   |   |   | (2,725,305 | ) |   |   | (322,605 | ) |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| September 2, 2010 – Cancellation of treasury shares                               |   |    | (72,000   | )      |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| October 11, 2010 – Adjustment to number of shares outstanding after stock split   |   |    | 11        |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| February 8, 2011 – Shares issued to settle debt                                   |   |    | 2,259,537 |   |    |   | 2,259   |       |   |   | 110,719       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 112,978 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| February 8, 2011 – Common shares issued for cash at $0.05 per share               |   |    | 330,000   |   |    |   | 330     |       |   |   | 16,170        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 16,500 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| March 7, 2011 – common shares issued for cash at $0.075 per share                 |   |    | 200,000   |   |    |   | 200     |       |   |   | 14,800        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 15,000 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| March 11, 2011 – common shares issued for cash at $0.075 per share                |   |    | 66,667    |   |    |   | 67      |       |   |   | 4,933         |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 5,000 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| March 30, 2011 – common shares issued for  conversion of note           |   |    | 100,000   |   |    |   | 100     |       |   |   | 4,900         |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 5,000 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| March 31, 2011 – common shares issued for  conversion of note           |   |    | 100,000   |   |    |   | 100     |       |   |   | 4,900         |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 5,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| March 18, 2011 – fair value of options issued                                     |   |    | –   |   |    |   | – |       |   |   | 66,000        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 66,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| April 14, 2011 – fair value of options issued                                     |   |    | –   |   |    |   | – |       |   |   | 12,000        |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 12,000 |   |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Donated rent and services                                                               |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | 9,000   |   |   |   | – |   |   |   | 9,000 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| Gain on debt settlement                                                                 |   |    | –   |   |    |   | – |       |   |   | 2,866         |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | 2,866 |   |
|                                                                                    |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | – |   |   |   | – |   |
| Net loss for the year                                                                   |   |    | –   |   |    |   | – |       |   |   | –       |   |   |        | – |   |     |   | – |        |   |   | – |   |   |   | (278,079 | ) |   |   | (278,079 | ) |
|                                                                                    |   |    |      |   |    |   |    |       |   |   |          |   |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance – May 31, 2011                                                            |   |    | 4,000,000 |   |    |   | 4,000   |       |   |   | 2,596,294     |   |   |        | – |   |     |   | – |        |   |   | 51,750  |   |   |   | (3,003,384 | ) |   |   | (351,340 | ) |

----

| 1.  | Nature of Business and Continuance of Operations |
|----------|--------------------------------------------------|

| 2.  | Summary of Significant Accounting Policies |
|----------|--------------------------------------------|

|   | a) | Basis of Presentation |
|--------|----|-----------------------|

|   | b) | Use of Estimates |
|--------|----|------------------|

|   | c) | Comprehensive Loss |
|--------|----|--------------------|

----

| 2. | Summary of Significant Accounting Policies (continued) |
|----|--------------------------------------------------------|

|   | d) | Basic and Diluted Net Income (Loss) Per Share |
|--------|----|-----------------------------------------------|

|   | e) | Equipment |
|--------|----|-----------|

|   | f) | Cash and Cash Equivalents |
|--------|----|---------------------------|

|   | g) | Mineral Property Costs |
|--------|----|------------------------|

|   | h) | Long-Lived Assets |
|--------|----|-------------------|

|   | i) | Financial Instruments and Fair Value Measures |
|--------|----|-----------------------------------------------|

----

| 2. | Summary of Significant Accounting Policies (continued) |
|----|--------------------------------------------------------|

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

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

|   | l) | Stock-based Compensation |
|--------|----|--------------------------|

|   | m) | Recently Issued Accounting Pronouncements |
|--------|----|-------------------------------------------|

| 3.  | Related Party Transactions and Balances |
|----------|-----------------------------------------|

|   | a) | During the year ended May 31, 2011, the Company recognized $6,000 (2010 - $6,000) for donated services at $500 per month, and $3,000 (2010 - $3,000) for donated rent at $250 per month provided by a former director. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | At May 31, 2011, the Company paid $1,625 to a former director of the Company for returning 65,000 split-adjusted shares of common stock to the Company for cancellation. At May 31, 2011, the Company is indebted to a former director of the Company for $nil (May 31, 2010 - $1,625) |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | At May 31, 2011, the Company paid $1,375 to the former secretary, treasurer and director of the Company for returning 55,000 split-adjusted shares of common stock to the Company for cancellation. At May 31, 2011, the Company is indebted to the former secretary, treasurer and director of the Company for $nil (May 31, 2010 - $1,375). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | On February 8, 2011, the Company entered into a disgorgement and settlement agreement with Magellan Management Company, wholly owned and controlled by the President of the Company (Magellan). Pursuant to the agreement, the Company issued 5,163,313 units at $0.05 per unit (“Magellan Placement) to settle $261,032 of debt owed to the Related Company (“Magellan Debt”) as a result of cash advances made by the Magellan to the Company. A portion of the Magellan Placement was rescinded (Refer to Note 3(f) below).  Each unit consists of one share of common stock and one warrant to purchase an additional common share of the Company at $0.05. As a result of this issuance of units, the Magellan was subject to matching under section 16(b) of the Securities Exchange Act of 1934, due to sales of shares made by Magellan on August 13 and August 23, 2010. As a result of the matching transaction, Magellan was required to disgorge $2,866 in profits (refer to 3(f) below). The $2,866 was forgiven as part of the Magellan Debt (refer to Note 6(g)). |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Related Party Transactions and Balances (continued) |
|----|-----------------------------------------------------|

|   | e) | At May 31, 2011, the Company is indebted to a company owned by the president of the Company for $151,673 (May 31, 2010 - $221,734), of which $151,673 (May 31, 2010 - $110,532) represents expenses paid on behalf of the Company and $nil (May 31, 2010 - $111,202) represents net cash advances provided to the Company. Indebtedness of $3,164 is non-interest bearing, unsecured and has no specific repayment terms. The remaining indebtedness amount of $148,509 will be converted into units pursuant to a rescission and conditional purchase agreements entered into by the Company and the related party on March 30, 2011 and April 14, 2011 (Refer to Note 3(f) below for details on the Rescission and Conditional Purchase Agreement). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | The Company determined that it may have improperly effected a share consolidation and that the Company may not have sufficient authorized capital to satisfy the Company’s business objectives and obligations. On March 30, 2011 and April 14, 2011, the Company entered into a rescission and conditional purchase agreement with Magellan (the “Rescission and Conditional Purchase Agreements”) whereby Magellan and the Company agreed to rescind a portion of the Magellan Placement by rescinding and cancelling 2,703,509 and 266,667 (2,970,176 in the aggregate) shares of common stock and 2,703,509 and 266,667 (2,970,176 in the aggregate) share purchase warrants (collectively, the “Rescinded Units”) in consideration for the Company’s acknowledgement of the debt obligation in the amount of $135,176 and $13,333 ($148,509 in the aggregate) owed to Magellan in connection with the rescission of a portion of the Magellan Placement. The Company and Magellan also agreed that the Company would use commercially reasonable efforts to amend the Articles of Incorporation to increase the authorized capital of the Company, including obtaining shareholder approval for the amendment by a majority of the shareholders of the Company and a majority of the disinterested shareholders of the Company (shareholders excluding Magellan and Gavin Roy), and upon the increase in the authorized shares of common stock of the Company, the Company would permit Magellan to purchase the Rescinded Units under the Rescission and Conditional Purchase Agreements under the same terms as the Magellan Placement. On June 13, 2011, the Company issued to Magellan, 2,970,176 units with each unit consisting of one common share and one common share purchase warrant with an exercise price of $0.05 per share exercisable until February 8, 2016. Refer to Note 11(b). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Mineral Properties |
|----|--------------------|

----

| 5. | Convertible Notes |
|----|-------------------|

|   | a) | On January 23, 2009, the Company entered into two fee arrangement agreements to settle $61,500 of professional fees included in accounts payable. Pursuant to the agreement the Company issued two convertible notes with an aggregate principal amount of $61,500, bearing interest at 4% per annum, and convertible into the Company’s common shares at a conversion price of $5.00 and warrants to purchase 12,000 split-adjusted shares of the Company’s common stock at $5.00 per share until January 23, 2012. The note is due on the earlier of: (a) January 23, 2012, (b) the date the Company closes an Acquisition Transaction (defined as the sale of equity securities or securities convertible into equity securities, any merger, consolidation, statutory share exchange or acquisition transaction, any sale of substantially all of the assets of the Company or any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company, unless following the completion of such transaction, the then existing shareholders of the Company own or control, indirectly or directly at least 50% of the voting power or liquidation rights of the Company or the successor of such merger, consolidation or statutory share exchange) or (c) the date the Company raises financing of $250,000 or more. In accordance with ASC 470-20, Debt – Debt with Conversion and Other Options, the Company recognized the intrinsic value of the embedded beneficial conversion feature of $24,600 as additional paid-in capital and reduced the carrying value of the convertible notes to $36,900. The carrying value of the convertible notes is to be accreted over the term of the convertible notes up to their face value of $61,500. As at May 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $54,385 and $5,782, respectively. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On June 26, 2009, the Company issued four convertible notes in exchange for cash proceeds used to pay concession fees due on the Company’s principal mineral properties in Peru. The notes bear interest at 10% per annum and are convertible into the Company’s common shares at a conversion rate of $5.00 per share. The principal amounts and due dates are as follows: $12,500 due on September 26, 2009 and $37,613 on December 31, 2009. In conjunction with the convertible notes, the Company issued warrants to purchase 10,000 split-adjusted common shares of the Company at a price of $5.00 per share until January 23, 2012. On August 31, 2009, the maturity date of the $12,500 convertible note was amended from August 31, 2009 to September 26, 2009. The notes are due on the earlier of (a) the specified due date, (b) the date the Company closes an Acquisition Transaction (defined as the sale of equity securities or securities convertible into equity securities, any merger, consolidation, statutory share exchange or acquisition transaction or any sale of substantially all of the assets of the Company, any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company, unless following the completion of such transaction, the then existing shareholders of the Company own or control, indirectly or directly at least 50% of the voting power or liquidation rights of the Company or the successor of such merger, consolidation or statutory share exchange) or (c) the date the Company raises financing of $250,000 or more. In accordance with ASC 470-20, the Company determined that there was no intrinsic value or beneficial conversion feature on the convertible notes.  As a result, the Company recorded discounts equal to the relative fair value of the detachable warrants of $11,338 as additional paid-in capital and reduced the carrying value of the convertible notes to $38,775. The carrying values of the convertible notes were to be accreted over the term of the convertible notes up to their face value of $50,113. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On July 14, 2009, the Company entered into a fee arrangement agreement to settle $2,881 of professional fees included in accounts payable. Pursuant to the agreement the Company issued a convertible note with an aggregate principal amount of $2,881, bearing interest at 4% per annum, and convertible into the Company’s common stock at a conversion price of $5.00 and warrants to purchase 576 split-adjusted shares of the Company’s common stock at $5.00 per share until January 23, 2012. The note is due on the earlier of: (a) January 23, 2012, (b) the Company closing an Acquisition Transaction (defined as the sale of equity securities or securities convertible into equity securities, any merger, consolidation, statutory share exchange or acquisition transaction or any sale of substantially all of the assets of the Company, any similar |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | Convertible Notes (continued) |
|----|-------------------------------|

|   | d) | On February 8, 2011, the Company issued two convertible notes with an aggregate principal amount of $33,500, bearing interest at 7% per annum, and convertible into the Company’s common shares at a conversion price of $0.05 and warrants to purchase 670,000 shares of the Company’s common stock at $0.05 per share until March 1, 2016. The note is due on the earlier of: (a) March 1, 2016, (b) the date the Company closes an Acquisition Transaction (defined as (i) any sale of equity securities or securities convertible into equity securities of the Company; (ii) any merger, consolidation, statutory share exchange or acquisition transaction involving the Company or any material subsidiary of the Company; (iii), any sale of substantially all of the assets of the Company or any material subsidiary of the Company; or (iv) any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company, unless following the completion of such transaction, the then existing shareholders of the Company own or control, indirectly or directly at least 50% of the voting power or liquidation rights of the Company or the successor of such merger, consolidation or statutory share exchange. In the event of a contemplated change of control transaction, the Company shall provide the holder at least fifteen business days prior to the effective date of any change of control transaction, except as may otherwise be prohibited by law) In accordance with ASC 470-20, the Company did not recognize intrinsic value as there was no beneficial conversion feature. As at May 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $33,500 and $720, respectively. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | On February 10, 2011, the Company issued two convertible notes with an aggregate principal amount of $10,000, bearing interest at 7% per annum, and convertible into Units at $0.05 per unit, consisting of one share of common stock of the Company and one share purchase warrant exercisable to acquire one share of common stock of the Company at an exercise price of $0.05. The note is due on the earlier of: (a) March 1, 2016, (b) the date the Company closes an Acquisition Transaction (defined as (i) any sale of equity securities or securities convertible into equity securities of the Company; (ii) any merger, consolidation, statutory share exchange or acquisition transaction involving the Company or any material subsidiary of the Company; (iii), any sale of substantially all of the assets of the Company or any material subsidiary of the Company; or (iv) any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company, unless following the completion of such transaction, the then existing shareholders of the Company own or control, indirectly or directly at least 50% of the voting power or liquidation rights of the Company or the successor of such merger, consolidation or statutory share exchange. In the event of a contemplated change of control transaction, the Company shall provide the holder at least fifteen business days prior to the effective date of any change of control transaction, except as may otherwise be prohibited by law). In accordance with ASC 470-20, the Company did not recognize intrinsic value as there was no beneficial conversion feature. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Common Stock |
|----|--------------|

|   | a) | On September 11, 2009, the Company issued 1,400 split-adjusted common shares at $5.00 per share for gross proceeds of $7,000, of which $2,000 was included in common stock subscribed at May 31, 2009. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On September 11, 2009, the $16,000 convertible note was converted into 3,200 split-adjusted common shares at a conversion price of $5.00 per share. The balance of the unamortized discount of $2,298 was included in additional paid-in capital. See Note 5 (b). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On December 31, 2009, the $11,613 convertible note and accrued interest of $598 was converted into 2,442 split-adjusted common shares at a conversion price of $5.00 per share. See Note 5 (b). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | Common Stock (continued) |
|----|--------------------------|

|   | d) | On February 16, 2010, the Company effected a 2:1 forward stock-split of its issued and outstanding common stock. The issued and outstanding share capital increased from 25,394,631 shares of common stock to 50,789,262 shares of common stock. All per share amounts, number and exercise price of stock options, warrants and conversion price of convertible debt have been retroactively restated to reflect the forward stock-split. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | On May 3, 2010, the Company issued 72,000 split-adjusted shares of common stock in error that were held in treasury. No consideration was received for these shares, and these shares were cancelled on September 2, 2010. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | On October 11, 2010, the Company effected a 50:1 reverse stock-split of its issued and outstanding common stock. The issued and outstanding share capital decreased from 47,189,262 shares of common stock to 943,785 shares of common stock. All per share amounts, number and exercise price of stock options, warrants and conversion price of convertible debt have been retroactively restated to reflect the reverse stock-split. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | On February 8, 2011, the Company issued 5,163,313 units at $0.05 per unit to a company which is wholly owned and controlled by the President of the Company to settle $261,032 of debt. Each unit consists on one share of common stock and one warrant to purchase an additional share of the Company’s common stock price of $0.05 per share until February 8, 2016. The Company recorded a credit of $2,867 in additional paid in capital, pursuant to the Disgorgement Agreement. Pursuant to the Rescission and Conditional Purchase Agreements dated March 30, 2011 and April 14, 2011, respectively, the Company rescinded the purchase of 2,970,176 units issued to Magellan for a net issuance of 2,193,137 units to settle $109,657 of debt (Refer Note 3(d) and 3(f)). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | On February 8, 2011, the Company issued 66,400 units at $0.05 per unit to settle $3,321 of accounts payable. Each unit consists of one share of common stock and one warrant to purchase an additional share of common stock at a price of $0.05 per share until February 8, 2016. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | On February 8, 2011, the Company issued 330,000 units at $0.05 per unit for total proceeds of $16,500.    Each unit consists of one share of common stock and one warrant to purchase an additional share of common stock at a price of $0.05 per share until February 8, 2016. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j) | On March 9, 2011, the Company issued 200,000 split-adjusted shares of common stock at $0.075 per share for total proceeds of $15,000. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | k) | On March 14, 2011, the Company issued 66,667 split-adjusted shares of common stock at $0.075 per share for total proceeds of $5,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | l) | On March 30, 2011, the Company issued 200,000 split-adjusted units at $0.05 per unit upon the conversion of the two convertible notes as described in Note 5(e). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m) | On June 9, 2011, the Company increased the authorized common stock to 100,000,000 shares (see Note 11). |
|--------|----|---------------------------------------------------------------------------------------------------------|

| 7) | Stock-Based Compensation |
|----|--------------------------|

----

| 7) | Stock-Based Compensation (continued) |
|----|--------------------------------------|

|                            |   | YearEndedMay 31,2011 |   |   | YearEndedMay 31,2010 |   |
|---------------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                            |   |                 |   |   |                 |   |
| Expected dividend yield         |   |                 | 0      | %      |                 |   | 0 | % |
| Risk-free interest rate         |   |                 | 3.32   | %      |                 |   | 3.50 | % |
| Expected volatility             |   |                 | 482    | %      |                 |   | 177 | % |
| Expected option life (in years) |   |                 | 10     |   |                 |   | 10 |   |

|                      |   | Number of Options  |    |   | Weighted Average Exercise Price  |   |    | Weighted-Average Remaining Contractual Term (years)$ |   |   | Aggregate Intrinsic Value$ |   |
|---------------------------|--------|-------------------------|---------|--------|---------------------------------------|--------|---------|------------------------------------------------------|--------|--------|----------------------------|--------|
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |
| Outstanding, May 31, 2009 |   |                    | – |   |                                  |   | – |                                                 |   |   | –                    |   |   |   | – |   |
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |   |   |
| Granted                   |   |                    | 100,000 |   |                                  |   | 5.00    |                                                 |   |   |                       |   |   |   |   |   |
| Cancelled                 |   |                    | (20,000 | )      |                                  |   | 5.00    |                                                 |   |   |                       |   |   |   |   |   |
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |   |   |
| Outstanding, May 31, 2010 |   |                    | 80,000  |   |                                  |   | 5.00    |                                                 |   |   | 9.30                       |   |   |   | – |   |
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |   |   |
| Granted                   |   |                    | 650,000 |   |                                  |   | 0.12    |                                                 |   |   |                       |   |   |   |   |   |
| Cancelled                 |   |                    | (20,000 | )      |                                  |   | 5.00    |                                                 |   |   |                       |   |   |   |   |   |
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |   |   |
| Outstanding, May 31, 2011 |   |                    | 710,000 |   |                                  |   | 0.53    |                                                 |   |   | 9.69                       |   |   |   | – |   |
|                      |   |                    |    |   |                                  |   |    |                                                 |   |   |                       |   |   |   |   |   |
| Exercisable, May 31, 2011 |   |                    | 710,000 |   |                                  |   | 0.53    |                                                 |   |   | 9.69                       |   |   |   | – |   |

----

| 8) | Share Purchase Warrants |
|----|-------------------------|

|                         |   | Number of Warrants |      |   | Weighted Average ExercisePrice |   |
|------------------------------|--------|--------------------|-----------|--------|--------------------------------|--------|
|                         |   |               |      |   |                           |   |
|                         |   |               |      |   |                           |   |
| Balance – May 31, 2009 |   |               | 12,000    |   |                           | $      | 5.00 |   |
|                         |   |               |      |   |                           |   |   |   |
| Issued                       |   |               | 10,576    |   |                           | $      | 5.00 |   |
|                         |   |               |      |   |                           |   |   |   |
| Balance – May 31, 2010 |   |               | 22,576    |   |                           | $      | 5.00 |   |
|                         |   |               |      |   |                           |   |   |   |
| Issued                       |   |               | 2,789,537 |   |                           | $      | 0.05 |   |
|                         |   |               |      |   |                           |   |   |   |
| Balance – May 31, 2011 |   |               | 2,812,113 |   |                           | $      | 0.05 |   |

| 9) | Fair Value Measurements |
|----|-------------------------|

----

| 9) | Fair Value Measurements (continued) |
|----|-------------------------------------|

|         |   | Fair Value Measurements Using |   |   |        |   |
|--------------|--------|-------------------------------|--------|--------|-------------|--------|
|         |   |                          |   |   |        |   |   |   |   |   |   |   |
|         |   | Quoted Prices in              |   |   | Significant |   |   |   |   |   |   |   |
|         |   | Active Markets                |   |   | Other       |   |   | Significant |   |   |   |   |
|         |   | For Identical                 |   |   | Observable  |   |   | Unobservable |   |   |   |   |
|         |   | Instruments                   |   |   | Inputs      |   |   | Inputs |   |   | Balance as of |   |
|         |   | (Level 1)$                    |   |   | (Level 2)$  |   |   | (Level 3)$ |   |   | May 31, 2011$ |   |
|         |   |                          |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Assets:      |   |                          |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash         |   |                          | 2      |   |        |   | – |   |   |   | – |   |   |   | 2 |   |
| Total Assets |   |                          | 2      |   |        |   | – |   |   |   | – |   |   |   | 2 |   |

| 10) | Income Taxes |
|-----|--------------|

|                                                  |   | May 31,2011$ |    |   | May 31,2010$ |   |
|-------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
|                                                  |   |         |    |   |         |   |
| Net loss before income taxes per financial statements |   |         | 278,079 |   |         |   | 841,814 |   |
|                                                  |   |         |    |   |         |   |   |   |
| Income tax rate                                       |   |         | 35      | %      |         |   | 35 | % |
|                                                  |   |         |    |   |         |   |   |   |
| Expected income tax recovery                          |   |         | (97,328 | )      |         |   | (294,635 | ) |
|                                                  |   |         |    |   |         |   |   |   |
| Permanent differences                                 |   |         | 4,007   |   |         |   | 4,135 |   |
|                                                  |   |         |    |   |         |   |   |   |
| Valuation allowance change                            |   |         | 93,321  |   |         |   | 290,500 |   |
|                                                  |   |         |    |   |         |   |   |   |
| Provision for income taxes                            |   |         | – |   |         |   | – |   |

|                            |   | May 31,2011$ |       |   | May 31,2010$ |   |
|---------------------------------|--------|--------------|------------|--------|--------------|--------|
|                            |   |         |       |   |         |   |
| Net operating loss carryforward |   |         | 1,021,857  |   |         |   | 928,536 |   |
|                            |   |         |       |   |         |   |   |   |
| Valuation allowance             |   |         | (1,021,857 | )      |         |   | (928,536 | ) |
|                            |   |         |       |   |         |   |   |   |
| Net deferred income tax asset   |   |         | –    |   |         |   | – |   |

| 11) | Subsequent Events |
|-----|-------------------|

|   | a) | On June 9, 2011, the Company filed amended Articles of Incorporation to increase the number of authorized shares of the Company’s common stock to 100,000,000 shares. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On June 13, 2011, Black Tusk Minerals Inc. (the “Company”) issued to Magellan Management Company (“Magellan”), 2,970,176 units with each unit consisting of one common share and one common share purchase warrant with an exercise price of $0.05 per share exercisable until February 8, 2016. This issuance is in accordance with the rescission and conditional purchase agreements entered into by Magellan and the Company on March 30, 2011, and April 14, 2011. Pursuant to those rescission and conditional purchase agreements 2,703,509 units were rescinded on March 30, 2011 and 266,667 units were rescinded on April 14, 2011. Magellan is wholly owned and controlled by Gavin Roy, the President and a director of the Company. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures. |
|----------|--------------------------|

----

| Item 9B. | Other Information. |
|----------|--------------------|

| Item 10. | Directors, executive Offices and Corporate Governance. |
|----------|--------------------------------------------------------|

| Name          |         | Position                              |         | Age    |         | Date FirstElected/Appointed |
|---------------|--------------|---------------------------------------|--------------|--------|--------------|----------------------------------|
| Gavin Roy     |         | President, Secretary, and Director    |         | 44     |         | August 9, 2007                   |
|          |         |                                  |         |   |         |                             |
| Kurt Bordian  |         | Director                              |         | 42     |         | February 8, 2011                 |
|          |         |                                  |         |   |         |                             |
| James Bordian |         | Chief Financial Officer and Treasurer |         | 70     |         | March 30, 2011                   |
|          |         |                                  |         |   |         |                             |
| Robert Krause |         | Director                              |         | 53     |         | June 9, 2011                     |
|          |         |                                  |         |   |         |                             |
| Mark White    |    | Director                              |    | 49     |    | June 9, 2011                     |

----

|   | 1.          | any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; |
|--------|----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences); |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.          | being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or |
|--------|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.          | being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. |
|--------|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NAME AND NATUREOF AFFILIATION         |         | LATE REPORTS |         | LATE TRANSACTIONS |         | REPORTS NOT FILED |
|------------------------------------------------------|--------------|-------------------|--------------|------------------------|--------------|-----------------------------|
| Gavin Roy – President, Secretary, and Director |         | 6                 |         | 13                     |         | 0                           |
| James Bordian                                        |         | 1                 |         | 1                      |         | 0                           |
| Kurt Bordian                                         |         | 4                 |         | 5                      |         | 0                           |
| Robert Krause*                                       |         | n/a               |         | n/a                    |         | n/a                         |
| Mark White*                                          |    | n/a               |    | n/a                    |    | n/a                         |

----

| Item 11. | Executive Compensation. |
|----------|-------------------------|

| Name andPrincipalPosition(a)             |   | Year(b)      |   | Salary($)(c) |   | Bonus ($)(d) |   | StockAwards($)(e) |   | OptionAwards($)(f) |               | Non-EquityIncentive PlanCompensation($)(g) |   | NonqualifiedDeferredCompensationEarnings ($)(h) |   | All OtherCompensation($)(i) |       |   | Total ($)(j) |       |
|-----------------------------------------------|--------|--------------|--------|--------------|--------|-------------------|--------|-------------------|--------|--------------------|--------------------|-------------------------------------------------|--------|------------------------------------------------------|--------|----------------------------------|------------|--------|-------------------|------------|
| Gavin Roy, President, Secretary, and Director |   | May 31, 2011 |   | NIL          |   | NIL               |   | NIL               |   | 12,000(1)          |     | NIL                                             |   | NIL                                                  |   |                             | 112,657(1) |   |              | 124,657(1) |   |
| (former Vice President and former Treasurer)  |   | May 31, 2010 |   | NIL          |   | NIL               |   | NIL               |   | 260,000(1)         |               | NIL                                             |   | NIL                                                  |   |                             | 5,097(1)   |   |              | 265,097(1) |   |
| Michael McIsaac, Former                       |   | May 31, 2011 |   | NIL          |   | NIL               |   | NIL               |   | NIL                |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | NIL               |       |
| Secretary, Treasurer and Director             |   | May 31, 2010 |   | NIL          |   | NIL               |   | NIL               |   | NIL(2)             |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | NIL(2)            |       |
| Kurt BordianDirector, and Former              |   | May 31, 2011 |   | NIL          |   | NIL               |   | NIL               |   | 9,000(3)           |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | 9,000(3)          |       |
| Secretary, Treasurer                          |   | May 31, 2010 |   | NIL          |   | NIL               |   | NIL               |   | NIL                |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | NIL               |       |
| James Bordian                                 |   | May 31, 2011 |   | NIL          |   | NIL               |   | NIL               |   | 6,000(4)           |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | 6,000(4)          |       |
| Chief Financial Officer                       |   | May 31, 2010 |   | NIL          |   | NIL               |   | NIL               |   | NIL                |               | NIL                                             |   | NIL                                                  |   | NIL                              |       |   | NIL               |       |

| (1) | Magellan Management Company, of which Mr. Roy is a principal, has provided administrative and consulting services to the Company. On March 18, 2011, the Company granted Magellan 100,000 stock options pursuant to the 2011 Plan. On February 8, 2011,  the Company granted Magellan 2,193,137 units in order to pay off $109,657 of debt owed to the Magellan as a result the Magellan Debt. As a result of this issuance of units, Magellan was subject to disgorgement under Section 16(b) of the Securities Exchange Act of 1934, due to sales of shares made by Magellan on August 13 and August 23, 2010. Magellan was required to disgorge $2,866 in profits. Under the terms of the Disgorgement Agreement, Magellan disgorged $2,866 by forgiving that amount of the Magellan Debt. In addition, during the fiscal year ended May 31, 2011, the Company paid Magellan, $3,000 for administrative and consulting services. During the fiscal year ended May 31, 2010, the Company paid $5,097 to Magellan for administrative and consulting services and granted Magellan Management Company 40,000 split adjusted stock options on August 25, 2009, and 12,000 split adjusted options on January 4, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | On August 25, 2009, the Company granted Michael McIsaac 20,000 split adjusted stock options at an exercise price of $5.00, which were subsequently cancelled March 30, 2010 upon his resignation as director, secretary and treasurer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On March 18, 2011, Kurt Bordian was granted 75,000 options to purchase shares of common stock of the Company at an exercise price of $0.12 pursuant to the 2011 Plan. Kurt Bordian was not an officer of the Company when he received the options, but he was a director of the Company. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | On March 18, 2011, James Bordian was granted 50,000 options to purchase shares of common stock of the Company at an exercise price of $0.12 pursuant to the 2011 Plan. At the time, James Bordian was not an officer of the Company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Option awards                                                 |    | Stock awards |                                                                 |
|------------------------------------------------|--------|--------------------------------------------------------------------|---------|-------------------|----------------------------------------------------------------------|
| Name                                           |   | Number ofsecuritiesunderlyingunexercisedoptions(#)exercisable |    |              | Number ofsecuritiesunderlyingunexercisedoptions(#)unexercisable |   |   | Equityincentiveplanawards:Number ofsecuritiesunderlyingunexercisedunearnedoptions(#) |   |   | Optionexerciseprice($) |   | Optionexpirationdate |   | Numberof sharesor units ofstock thathave notvested(#) |   |   | Marketvalue ofshares ofunits ofstock thathave notvested($) |   |   | Equityincentiveplanawards:Number ofunearnedshares,units orotherrights thathave notvested(#) |   |   | Equityincentiveplanawards: Marketor payout valueof unearnedshares, units orothers rights thathave not vested($) |   |
| (a)                                            |   | (b)                                                                |    |              | (c)                                                                  |   |   | (d) |   |   | (e) |   | (f) |   | (g) |   |   | (h) |   |   | (i) |   |   | (j) |   |
| Gavin Roy, President,                          |   |                                                               | 40,000  |              |                                                                 |   |   |   |   |   |   |   | 5.00 |   | August 25, 2019 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                                                               |    |              |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Secretary,                                     |   |                                                               | 12,000  |              |                                                                 |   | - |   |   |   | - |   |   |   | 5.00 |   | January 4, 2020 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Treasurer and Director (former Vice President) |   |                                                               | 100,000 |              |                                                                 |   |   |   |   |   |   |   |   |   | 0.12 |   | March 18, 2021 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| James Bordian Chief Financial Officer          |   |                                                               | 50,000  |              |                                                                 |   | - |   |   |   | - |   |   |   | 0.12 |   | March 18, 2021 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| Name                        |   | Stock Options |   |   | Exercise Price |   |
|-----------------------------|--------|--------------------|--------|--------|---------------------|--------|
| Magellan Management Company |   |               | 40,000 |   |                | $      | 5.00 |   |
| Robert Krause               |   |               | 20,000 | (1)    |                | $      | 5.00 |   |
| Michael McIsaac             |   |               | 20,000 | (2)    |                | $      | 5.00 |   |

| Name                        |   | Stock Options |   |   | Exercise Price |   |
|-----------------------------|--------|--------------------|--------|--------|---------------------|--------|
| Magellan Management Company |   |               | 12,000 |   |                | $      | 5.00 |   |

| Name of Optionee |   | Number of Shares |       | Date of Grant |           | Exercise Price |   |
|----------------------------|--------|----------------------------|--------------------------------|-------------------------|----------------|---------------------|--------|
| James Bordian (i)          |   |                       | 50,000                         |                    | March 18, 2011 |                | $      | 0.12 |   |
| Robert G. Krause(ii)       |   |                       | 50,000                         |                    | March 18, 2011 |                | $      | 0.12 |   |
| Mark White (ii)            |   |                       | 25,000                         |                    | March 18, 2011 |                | $      | 0.12 |   |
| Kurt Bordian               |   |                       | 75,000                         |                    | March 18, 2011 |                | $      | 0.12 |   |
| Magellan Management Co.    |   |                       | 100,000                        |                    | March 18, 2011 |                | $      | 0.12 |   |

----

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

|   | · | each person who is known by us to beneficially own more than 5% of our issued and outstanding shares of common stock; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | our named executive officers; |
|--------|--------|-------------------------------|

|   | · | our directors; and |
|--------|--------|--------------------|

|   | · | all of our executive officers and directors as a group. |
|--------|--------|---------------------------------------------------------|

----

| Title of Class                                   | Name and Address ofBeneficial Owner                   |   | Amount and Nature ofBeneficial Owner |      |   | Percent of Class* |   |
|------------------------------------------------------------|---------------------------------------------------------------------------|--------|----------------------------------------------------------|-----------|--------|-----------------------------|--------|
| Directors and Named Executive Officers |                                                                      |   |                                                     |      |
| Common Stock                                               | Gavin Roy7425 Arbutus StreetVancouver, BCCanada V6P 5T2                   |   |                                                     | 5,417,713 | (1)    |                        |   | 76.28 | % |
| Common Stock                                               | Kurt Bordian408-1199 West Pender StreetVancouver, BCV6E 2R1               |   |                                                     | 675,880   | (2)    |                        |   | 9.04 | % |
| Common Stock                                               | James Bordian103-6109 Boundary Drive WestSurrey, BCV3X 2A4                |   |                                                     | 250,000   | (3)    |                        |   | 3.56 | % |
| Common Stock                                               | Robert Krause615-700 West Pender StreetVancouver, BCV6C 1G8               |   |                                                     | 250,587   | (4)    |                        |   | 3.54 | % |
| Common Stock                                               | Mark White925 Dickson StreetMarina Del Ray, CA90292                       |   |                                                     | 25,000    | (5)    |                        |   | ** |   |
| Directors and Named Executives as a Group                  |                                                                      |   | 7,219180                                                 |      |   |                        | 86.28  | % |
| 5% Shareholders                                            |                                                                      |
| Common Stock                                               | Magellan Management Company7425 Arbutus StreetVancouver, BCCanada V6P 5T2 |   |                                                     | 5,417,713 | (6)    |                        |   | 76.28 | % |

| (1) | Includes 80,000 shares held by Gavin Roy; 132,000 shares issuable to Magellan, a company solely owned and controlled by Gavin Roy, upon exercise of outstanding stock options; 5,205,713 shares of Common Stock held directly by Magellan. In addition, Magellan owns 5,163,313 share purchase warrants which may be exercised at $0.05 until February 8, 2016. Under the terms of the warrants, the warrants may not be exercised if the warrant holder would beneficially own more than 4.99% of the issued and outstanding Common Stock of the Company unless the warrant holder waived the restriction with 61 days written notice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes 165,880 shares of Common Stock; 165,000 share purchase warrants held by Kurt Bordian which may be converted to shares of Common Stock at exercise price of $0.05 per share and 75,000 shares issuable to Kurt Bordian upon exercise of outstanding stock options. Kurt Bordian also has the right to convert $21,750 in principal under a 7% convertible debentures into units, which would consist of 435,000 shares of Common Stock, par value $0.001 and 435,000 share purchase warrants exercisable at $0.05. Under the terms of the warrants, the warrants may not be exercised if the warrant holder would beneficially own more than 4.99% of the issued and outstanding Common Stock of the Company unless the warrant holder waived the restriction with 61 days written notice. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 200,000 shares of Common Stock and 50,000 shares issuable to James Bordian upon exercise of outstanding stock options. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (4) | The shares beneficial owned by Robert Krause are held in the name of 695809 BC Ltd, which owns 134,187 shares of Common stock; warrants exercisable to purchase 66,400 shares of Common Stock at an exercise price of $0.05, as part of units purchased on February 8, 2011. Also includes 50,000 shares issuable to Robert Krause upon exercise of outstanding stock options. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes 25,000 shares issuable to Mark White upon exercise of outstanding stock options. |
|-----|-------------------------------------------------------------------------------------------|

| (6) | Includes 80,000 shares held by Gavin Roy; 132,000 shares issuable to Magellan, a company solely owned and controlled by Gavin Roy, upon exercise of outstanding stock options; 5,205,713 shares of Common Stock held directly by Magellan. In addition, Magellan owns 5,163,313 share purchase warrants which may be exercised at $0.05 until February 8, 2016. Under the terms of the warrants, the warrants may not be exercised if the warrant holder would beneficially own more than 4.99% of the issued and outstanding Common Stock of the Company unless the warrant holder waived the restriction with 61 days written notice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
|----------|----------------------------------------------------------------------------|

|   | a) | During the year ended May 31, 2011, the Company recognized $6,000 (2010 - $6,000) for donated services at $500 per month, and $3,000 (2010 - $3,000) for donated rent at $250 per month provided by a former director. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | At May 31, 2011, the Company paid $1,625 to a former director of the Company for returning 65,000 split-adjusted shares of common stock to the Company for cancellation. At May 31, 2011, the Company is indebted to a former director of the Company for $nil (May 31, 2010 - $1,625) |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | At May 31, 2011, the Company paid $1,375 to the former secretary, treasurer and director of the Company for returning 55,000 split-adjusted shares of common stock to the Company for cancellation. At May 31, 2011, the Company is indebted to the former secretary, treasurer and director of the Company for $nil (May 31, 2010 - $1,375). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | On February 8, 2011, the Company entered into a disgorgement and settlement agreement with Magellan , wholly owned and controlled by Gavin Roy, the President of the Company. Pursuant to the agreement, the Company issued 5,163,313 units at $0.05 per unit (“Magellan Placement) to settle $261,302 of debt owed to the Related Company (“Magellan Debt”) as a result of cash advances made by the Magellan to the Company. A portion of the Magellan Placement was rescinded (Refer to (g) below).  Each unit consists of one share of common stock and one warrant to purchase an additional common share of the Company at $0.05. As a result of this issuance of units, the Magellan was subject to matching under section 16(b) of the Exchange Act, due to sales of shares made by Magellan on August 13 and August 23, 2010. As a result of the matching transaction, Magellan was required to disgorge $2,866 in profits (refer to (f) below). The $2,866 was forgiven as part of the Magellan Debt. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | At May 31, 2011, the Company is indebted to a company owned by the president of the Company for $151,673 (May 31, 2010 - $221,734), of which $151,673 (May 31, 2010 - $110,532) represents expenses paid on behalf of the Company and $nil (May 31, 2010 - $111,202) represents net cash advances provided to the Company. Indebtedness of $3,164 is non-interest bearing, unsecured and has no specific repayment terms. The remaining indebtedness amount of $148,509 was converted into units subsequent to year end on June 13, 2011, pursuant to the Rescission and Conditional Purchase Agreements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | On February 8, 2011, the Company and Magellan entered the Disgorgement Agreement. Magellan is wholly owned and controlled by Gavin Roy, the President and a director of the Company. As part of a private placement that occurred on February 8, 2011, the Company issued 5,163,313 units to Magellan in the Magellan Placement, in order to pay off the Magellan Debt. As a result of this issuance of units, Magellan was subject to disgorgement under Section 16(b) of the Exchange Act, due to sales of shares made by Magellan on August 13, 2010 and August 23, 2010. Magellan was required to disgorge $2,867 in profits. Under the terms of the Disgorgement Agreement, Magellan disgorged $2,867 by forgiving that amount of the Magellan Debt. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | The Company determined that it may have improperly effected a share consolidation and that the Company may not have sufficient authorized capital to satisfy the Company’s business objectives and obligations. On March 30, 2011 and April 14, 2011, the Company entered into the Rescission and Conditional Purchase Agreements whereby Magellan and the Company agreed to rescind Rescinded Units in consideration for the Company’s acknowledgement of the debt obligation in the amount of $135,176 and $13,333 ($148,509 in the aggregate) owed to Magellan in connection with the rescission of a portion of the Magellan Placement. The Company and Magellan also agreed that the Company would use commercially reasonable efforts to amend the Articles of Incorporation to increase the authorized capital of the Company, including obtaining shareholder approval for the amendment by a majority of the shareholders of the Company and a majority of the disinterested shareholders of the Company (shareholders excluding Magellan and Gavin Roy), and upon the increase in the authorized shares of common stock of the Company, the Company will permit Magellan to purchase the Rescinded Units under the Rescission and Conditional Purchase Agreements under the same terms as the Magellan Placement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | On June 13, 2011, in accordance with the Rescission and Conditional Purchase Agreements, the Company issued to Magellan, 2,970,176 units consisting of 2,970,176 shares of common stock of the Company and 2,970,176 common share purchase warrants of the Company which may be converted into shares of common stock of the Company, par value $0.001, at a conversion price of $0.05 per warrant share, until February 8, 2016. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | i) | During the fiscal year ending May 31, 2011, Magellan was paid $3,000 for consulting and administrative services. |
|--------|----|------------------------------------------------------------------------------------------------------------------|

| Item 14. | Principal Accountant Fees and Services. |
|----------|-----------------------------------------|

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| Item 15. | Exhibits and Financial Statement Schedules. |
|----------|---------------------------------------------|

| 3.1    |   | Articles of Incorporation (incorporated by reference from our SB-2 filed on September 28, 2006)                                                                                                                                                            |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                       |
| 3.2    |   | Certificate of Change (incorporated by reference from our Current Report on Form 8-K filed on September 11, 2007)                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                       |
| 3.3    |   | Bylaws (incorporated by reference from our Current Report on Form 8-K filed on June 13, 2011)                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                       |
| 3.4    |   | Certificate of Amendment (incorporated by reference from our Current Report on Form 8-K filed on June 13, 2011)                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                       |
| 10.1   |   | Property Acquisition Agreement, dated August 24, 2006, between Black Tusk Minerals Inc. and George E. Nicholson Limited (incorporated by reference from our SB-2 filed on September 28, 2006)                                                              |
|   |   |                                                                                                                                                                                                                                                       |
| 10.2   |   | Term Sheet, dated August 13, 2007, among Black Tusk Minerals Inc., Leonard Raymond De Melt and Marlene Ore Lamilla (incorporated by reference from our Current Report on Form 8-K filed on August 14, 2007)                                                |
|   |   |                                                                                                                                                                                                                                                       |
| 10.3   |   | Master Purchase Agreement, dated December 5, 2007, among Black Tusk Minerals Inc., Black Tusk Minerals Peru SAC, Leonard Raymond De Melt and Marlene Ore Lamilla (incorporated by reference from our Current Report on Form 8-K filed on December 7, 2007) |
|   |   |                                                                                                                                                                                                                                                       |
| 10.4   |   | Mining Concessions and Claims Transfer Agreement, dated December 5, 2007, between Black Tusk Minerals Peru SAC and Marlene Ore Lamilla (English Translation) (incorporated by reference from our Current Report on Form 8-K filed on April 28, 2008)       |
|   |   |                                                                                                                                                                                                                                                       |
| 10.5   |   | Fee Arrangement Agreement with Dorsey & Whitney LLP, dated May 29, 2009 (incorporated by reference from our 10-K filed on September 1, 2009)                                                                                                           |
|   |   |                                                                                                                                                                                                                                                       |
| 10.6   |   | Fee Arrangement Agreement with Rodrigo, Elías & Medrano Abogados, dated May 29, 2009 (incorporated by reference from our 10-K filed on September 1, 2009)                                                                                         |
|   |   |                                                                                                                                                                                                                                                       |
| 10.7   |   | Fee Arrangement Agreement with Forstrom Jackson, Barristers and Solicitors, dated July 14, 20092009 (incorporated by reference from our 10-K filed on September 1, 2009)                                                                                   |
|   |   |                                                                                                                                                                                                                                                       |
| 10.8   |   | Black Tusk Minerals Inc. 2009 Nonqualified Stock Option Plan (incorporated by reference from our Current Report on Form 8-K filed on August 29, 2009)                                                                                                      |

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| 10.9   |         | Black Tusk Minerals Inc. 2011 Nonqualified Stock Option Plan (incorporated by reference from our Current Report on Form 8-K filed on March 23, 2011)  |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                  |
| 10.10  |         | Section 16 Disgorgement and Settlement Agreement (incorporated by reference from our Current Report on Form 8-K filed on February 11, 2011)           |
|   |         |                                                                                                                                                  |
| 31.1   |         | Certification of Principal Executive Officer filed pursuant to Rule 13a-14(a) of the Exchange Act                                                     |
|   |         |                                                                                                                                                  |
| 31.2   |         | Certification of Principal Financial Officer filed pursuant to Rule 13a-14(a) of the Exchange Act                                                     |
|   |         |                                                                                                                                                  |
| 32.1   |         | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |         |                                                                                                                                                  |
| 32.2   |    | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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|            | BLACK TUSK MINERALS INC.           |
|-----------------|------------------------------------|
|            |                               |   |
| August 30, 2011 | By:                                | /s/  Gavin Roy |
|            | Gavin Roy, President and Secretary |
|            | (Principal Executive Officer)      |

| Signature         |   | Title                              |   | Date                 |
|-------------------|--------|------------------------------------|--------|----------------------|
|              |   |                               |   |                 |
| /s/ Gavin Roy     |   | President, Secretary, and Director |   | August 30, 2011      |
| Gavin Roy         |   | (Principal Executive Officer)      |   |                 |
|              |   |                               |   |                 |
| /s/ James Bordian |   | Chief Financial Officer            |   | August 30, 2011 |
| James Bordian     |   | (Principal Financial Officer)      |   |                 |
|              |   |                               |   |                 |
| /s/ Robert Krause |   | Director                           |   | August 30, 2011      |
| Robert Krause     |   |                               |   |                 |
|              |   |                               |   |                 |
| /s/ Mark White    |   | Director                           |   | August 30, 2011      |
| Mark White        |   |                               |   |                 |
|              |   |                               |   |                 |
| /s/ Kurt Bordian  |   | Director                           |   | August 30, 2011      |
| Kurt Bordian      |   |                               |   |                 |

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