---

**UNITED STATES 
  SECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549

**FORM 20-F/A**

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

OR

x  ANNUAL
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  
  For the fiscal year ended February 28, 2004

OR

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

Commission File Number 000-30084

Linux Gold Corp.
  (Exact name of registrant as specified in its charter)

British Columbia, Canada
  (Jurisdiction of incorporation or organization)

1103-11871 Horseshoe WayRichmond, British Columbia V7A 5H5, Canada
  (Address of principal executive offices)

Securities registered pursuant to Section 12(g) of the Act:
  Common Stock, no par value
  (Title of Class)

Securities for which there is a reporting obligation pursuant
  to Section 15(d) of the Act: None

Indicate the number of outstanding
  shares of each of the issuer's class of capital or common stock 
  as of the close of the period covered by the annual report.

|Title of Each Class         | Outstanding at February 29, 2004
|--------------------------- | --------------------------------
|Common Shares, no par value | 60,283,413                      

Indicate by check mark whether
  the registrant (1) has filed all reports required to be filed by Section 13
  or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
  (or for such shorter period that the registrant was required to file such reports),
  and (2) has been subject to such filing requirements for the past 90 days. 
  Yes x    No
   ̈

Indicate by check mark which financial statement the registrant
  has elected to follow. 
  Item 17.  ̈    Item
  18. x

---

EXPLANATORY NOTE

Linux Gold Corp. is filing this Amendment to our Annual Report on Form 20-F
  for its fiscal year ended February 28, 2004 in order to include disclosure including
  the requisite three years of audited financial statements and three years of
  Operating and Financial Review and Prospects. This disclosure speaks as of February
  28, 2004.

ITEM 5.            OPERATING
  AND FINANCIAL REVIEW AND PROSPECTS

The following discussion should be read in conjunction with the Consolidated
  Financial Statements and Notes thereto included elsewhere herein. The Consolidated
  Financial Statements have been prepared in accordance with US GAAP.

A.            OPERATING
  RESULTS

Fiscal Year Ended February 28, 2004 compared to Fiscal year Ended February
  28, 2003

Results of Operations

During fiscal 2004, we received no in revenues from operations as compared
  to $nil revenues in 2003.

Administrative expenses in 2004 totaled $354,000 as compared to $226,000
  in 2003. The expenses increased from the prior year due to the increased activity
  of the Company. Office, rent and telephone totaled $65,000compared to $13,000
  in 2003. Professional fees totaled $28,000 compared to $16,000 in 2003.
  We also incurred an imputed interest charge of $23,000 compared to $90,500
  in 2003. Imputed interest at 15% was charged to operations based on the advances
  from related parties and treated as donated capital. This amount decreased during
  3004 due to the settlement of debt in 2003. Filing and regulatory expenses increased
  due to increased reporting activities. Consulting and subcontract expenses increased
  to $174,000 in 2004 from $17,000 in 2003. This increase was due to a
  payment of $100,000 to Barry Clarke and a payment of $30,000 to Capital
  Research for financing consulting.

In 2003 we recorded an option payment of $80,000 which represented the
  200,000 shares we received pursuant to the joint venture agreement with Teryl
  Resources Corp. We paid $122,000 for mining acquisitions and related exploration
  work as compared to $4,000 in 2003. In 2003 we issued 3,000,000 shares to
  purchase a license from Mailprotek.com. The license value was valued at $238,000
  but Mailprotek.com’s were $25,000 which resulted in a deemed dividend
  of $213,800.

Fiscal Year Ended February 28, 2003 compared to Fiscal year Ended February
  28, 2002

Results of Operations

During fiscal 2003, we received no in revenues from operations as compared
  to $1,078 revenues in 2002.

Administrative expenses in 2003 totaled $226,000 as compared to $416,383
  in 2002. The expenses decreased from the prior year due to the inactivity of
  the Company. There were no financing costs compared to $25,272 in 2002.
  There was a foreign exchange gain of $33,854 compared to a foreign exchange
  loss of $3,547 in 2002. There was no interest on convertible debentures
  as compared to $6,913 in 2002. Office, rent and telephone totaled $13,448
  compared to $25,713 in 2002. Professional fees totaled $15,967 compared
  to $70,579 in 2002. In 2002, we wrote off obsolete inventory of $48,543.
  We also incurred an imputed interest charge of $90,500 compared to $115,000
  in 2003. Imputed interest at 15% was charged to operations based on the advances
  from related parties and treated as donated capital.

In 2003 we recorded an option payment of $80,000 which represented the
  200,000 shares we received pursuant to the joint venture agreement with Teryl
  Resources Corp. In 2003 we issued 3,000,000 shares to

- 2 -

---

purchase a license from Mailprotek.com. The license value was valued at $238,000
  but Mailprotek.com’s were $25,000 which resulted in a deemed dividend
  of $213,800.

Fiscal Year Ended February 28, 2002 compared to Fiscal year Ended February
  28, 2001

Results of Operations

During fiscal 2002, we discontinued the business operations of our wholly-owned
  subsidiary, LinuxWizardry, Inc. Prior to the discontinuance (a) we received
  $20,802 in revenues, as compared to $146,429 in 2001; (b) we incurred
  administrative expenses of $257,655 as compared to $622,548 in 2001;
  (c) we incurred research and development expenses of $63,729 as compared
  to $901,614 in 2001; and (d) we incurred selling and marketing expenses
  of $54,827 as compared to $554,198.

During fiscal 2002, we received $1,078 in revenues from operations as
  compared to no revenues in 2001.

Administrative expenses in 2002 totaled $416,383 as compared to $1,101,539.
  The decrease was due to inactivity of the Company as well as the discontinuance
  of the subsidiary's operations. Consulting and subcontract expenses totaled
  $13,689 compared to $301,106 in 2001. Investor relations totaled $6,719
  compared to $279,439 in 2001. Office, rent and telephone totaled $25,713
  compared to $104,132 in 2001. Travel and promotion totaled $6,990 compared
  to $94,727 in 2001. We also incurred an imputed interest charge of $115,000
  as compared to nil in 2001. Imputed interest, at 15% was charged to operations
  based on the advances from related parties and was treated as donated capital.
  Financing costs totaled $25,272 compared to $145,314 in 2001. We raised
  $127,680 in convertible debentures as compared to $1,217,440 in 2001
  and we also wrote off obsolete inventory of $48,543.

Due to the discontinuance of the subsidiary's operations as well as the inactivity
  of the Company, we incurred no research and development expenses nor any selling
  and marketing expenses as compared to $169,625 and $80,703 respectively,
  in 2001.

B.            LIQUIDITY
  AND CAPITAL RESOURCES

In the past, we have derived most of our development and operating capital
  primarily from the issuance of capital stock. Minor amounts were derived from
  oil and gas revenues, and interest.

We have been successful in the past in acquiring capital through the issuance
  of shares of our Common Stock, and through advances from related parties. Although
  we intend to continue utilizing these sources, there has been no assurance in
  the past that these sources and methods would continue to be available in the
  future. On July 16, 1999, we received from John G. Robertson, its then President,
  currently the Chairman of the Board, a "Commitment to Provide Financing to Flame
  Petro-Minerals Corp. as Required for Ongoing Operations". In substance, the
  Commitment states that if we are not able to obtain funds required for maintaining
  our ongoing operations and status as a publicly traded company, from other sources,
  Mr. Robertson agrees and commits to provide, and/or arrange for any such funds
  for us on either a loan, equity, or combination basis, on mutually agreeable
  terms, and which comply with any regulatory rules and regulations applicable
  to such transactions. Mr. Robertson further states that such maintenance funding
  requirements are estimated at approximately C$50,000 per year and that he
  is capable of arranging for such funding and/or is able to generate net earnings
  from revenues which will sustain our ongoing operations.

In the event that Mr. Robertson were not able to raise funds, and no other
  sources of capital were available to us in the future, on a reasonable financial
  basis, it would face the same obstacles as many small, undercapitalized companies
  do, and, in the worst case, we could be forced to reorganize or liquidate, either
  of which consequence would likely have an adverse financial effect upon our
  shareholders.

- 3 -

---

Fiscal Year Ended February 28, 2004 compared to Fiscal year Ended February
  28, 2003

Liquidity

During 2004 we financed our operations and received $479,000 by:

| | (i)  | receiving financial support from companies affiliated with the President
      of the Company in the amount of $179,000. These amounts are unsecured,
      non-interest bearing and due on demand;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                    
| | (ii) | issuing shares for $301,000.                                                                                                                                                                       

During 2004, we spent $333,000 of these funds on operating activities
  as discussed above under Results of Operation for the Year Ended February 29,
  2004 as compared to $144,000 the Year Ended February 28, 2003.

Our cash position has increased by $141,000 to $152,000 and our working
  capital deficit, as at February 29, 2004 is $136,000.

Fiscal Year Ended February 28, 2003 compared to Fiscal year Ended February
  28, 2002

Liquidity

During 2003 we financed our operations and received $152,000 by:

| | (i)  | receiving financial support from companies affiliated with the President
      of the Company in the amount of $84,000. These amounts are unsecured,
      non-interest bearing and due on demand;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                   
| | (ii) | issuing shares for $67,500.                                                                                                                                                                       

During 2003, we spent $144,000 of these funds on operating activities
  as discussed above under Results of Operation for the Year Ended February 28,
  2003 as compared to $363,000 the Year Ended February 29, 2002.

Our cash position has increased by $8,154 to $11,124 and our working
  capital deficit, as at February 28, 2003 was $514,235.

Fiscal Year Ended February 28, 2002 compared to Fiscal year Ended February
  28, 2001

Liquidity

During 2002 we financed our operations and received $376,000 by:

| | (i)  | receiving financial support from companies affiliated with the President
      of the Company in the amount of $248,000. These amounts are unsecured,
      non-interest bearing and due on demand; and
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                        
| | (ii) | issuing convertible debentures of $128,000.                                                                                                                                                            

During 2002, we spent $363,000 of these funds on operating activities
  as discussed above under Results of Operation for the Year Ended February 28,
  2002 as compared to the Year Ended February 29, 2001.

Our cash position increased by $13,000 to $3,000 and our working capital
  deficit, as at February 28, 2002 was $1,550,000.

- 4 -

---

ITEM 18.            FINANCIAL
  STATEMENTS

Reference is made to Item 19 for a list of all financial statements filed
  as part of this annual report.

Our consolidated financial statements are stated in Canadian Dollars (CDN$)
  and are prepared in accordance with U.S. Generally Accepted Accounting Principles
  (GAAP). The consolidated financial statements as required under Item 18 are
  included immediately following the text of this Report.

ITEM 19.           
  EXHIBITS

(a) The following consolidated financial statements, together with the report
  of Manning, Elliott, on the annual financial statements referred to below, are
  filed as part of this annual report, and are included immediately following
  the text of this 20-F/A:

Index to Consolidated Financial Statements 
  Independent Auditors’ Report
  Consolidated Balance Sheets 
  Consolidated Statements of Loss and Deficit 
  Consolidated Statements of Cash Flows 
  Notes to the Consolidated Financial Statements

(b) Documents filed as exhibits to this annual report:

|Number | Description                                                                                                                                                              
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                          
|12.1   | Certification pursuant to Title
      18, United States Code, Section 1350 as adopted pursuant to Section 302
      of the Sarbanes-Oxley Act of 2002 (John G. Robertson)
|12.2   | Certification pursuant to Title
      18, United States Code, Section 1350 as adopted pursuant to Section 302
      of the Sarbanes-Oxley Act of 2002 (Monique van Oord) 
|13.1   | Certification pursuant to Title 18,
      United States Code, Section 1350 as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002 (John G. Robertson)
|13.2   | Certification pursuant to Title 18,
      United States Code, Section 1350 as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002 (James Vandeberg)  

- 5 -

---

SIGNATURE PAGE

The Registrant hereby certifies that it meets all of the requirements for
  filing on Form 20-F and that it has duly caused and authorized the undersigned
  to sign this transitional report on its behalf.

LINUX GOLD CORP. 
  REGISTRANT

|Dated: April 14, 2005 | By: | /s/ John G. Robertson         
|--------------------- | --- | ------------------------------
|                      |     | John G. Robertson             
|                      |     | Chairman of the Board/Director

- 6 -

---



LINUX GOLD CORP.

CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004 
  (Stated in Canadian Dollars)



---

Independent Auditors'
          Report
        To the Stockholders and Board of Directors of
          Linux Gold Corp.
        We have audited the accompanying consolidated balance
          sheets of Linux Gold Corp. as at February 29, 2004 and February 28,
          2003 and the consolidated statements of operations and deficit, and
          cash flows for the years ended February 29, 2004, February 28, 2003
          and 2002. These consolidated financial statements are the responsibility
          of the Company’s management. Our responsibility is to express
          an opinion on these consolidated financial statements based on our audits.
        We conducted our audits in accordance with the Standards
          of the Public Company Accounting Oversight Board (United States). Those
          standards require that we plan and perform an audit to obtain reasonable
          assurance whether the financial statements are free of material misstatement.
          An audit includes examining, on a test basis, evidence supporting the
          amounts and disclosures in the financial statements. An audit also includes
          assessing the accounting principles used and significant estimates made
          by management as well as evaluating the overall financial statement
          presentation. We believe that our audits provide a reasonable basis
          for our opinion.
        In our opinion, these consolidated financial statements
          present fairly, in all material respects, the financial position of
          the Company as at February 29, 2004 and February 28, 2003 and the results
          of its operations and its cash flows for the years ended February 29,
          2004, February 28, 2003 and 2002 in accordance with generally accepted
          accounting principles used in the United States. As required by the
          British Columbia Company Act we report that, in our opinion, these principles
          have been applied on a consistent basis.
        The accompanying consolidated financial statements
          have been prepared assuming the Company will continue as a going concern.
          As discussed in Note 1 to the consolidated financial statements, the
          Company has not generated profitable operations since inception. These
          factors raise substantial doubt about the Company’s ability to
          continue as a going concern. Management’s plans in regard to these
          matters are also discussed in Note 1. These consolidated financial statements
          do not include any adjustments, which might result from the outcome
          of these uncertainties.
        /s/ "Manning Elliott"
        CHARTERED ACCOUNTANTS
        Vancouver, Canada
        May 26, 2004


---

LINUX GOLD CORP.

CONSOLIDATED BALANCE SHEETS(Stated in Canadian Dollars)

|                                                         |   | February 29, |   |   | February 28, |  
|-------------------------------------------------------- | - | ------------ | - | - | ------------ | -
|                                                         |   | 2004         |   |   | 2003         |  
|                                                         |   |              |   |   |              |  
|ASSETS                                                   |   |              |   |   |              |  
|Current                                                  |   |              |   |   |              |  
|Cash and cash equivalents                                | $ | 151,832      |   | $ | 11,134       |  
|Amounts receivable                                       |   | 7,569        |   |   | 1,583        |  
|Marketable securities (Note 3(a))                        |   | 80,000       |   |   | 80,000       |  
|Prepaid expenses and deposits                            |   | 33,209       |   |   |             |  
|                                                         |   | 272,610      |   |   | 92,717       |  
|Equipment                                                |   | 6,000        |   |   |             |  
|Mineral Properties(Notes 3 and 5(b))                     |   |             |   |   | 2            |  
|                                                         |   |              |   |   |              |  
|                                                         | $ | 278,610      |   | $ | 92,719       |  
|                                                         |   |              |   |   |              |  
|LIABILITIES                                              |   |              |   |   |              |  
|Current                                                  |   |              |   |   |              |  
|Accounts payable (Note 4)                                | $ | 115,146      |   | $ | 538,778      |  
|Accrued liabilities                                      |   | 14,758       |   |   | 16,118       |  
|Accrued liabilities to related
      parties (Note 5(b)) |   | 48,000       |   |   |             |  
|Due to related parties (Note 5(a))                       |   | 230,630      |   |   | 52,056       |  
|                                                         |   | 408,534      |   |   | 606,952      |  
|                                                         |   |              |   |   |              |  
|STOCKHOLDERS' DEFICIT                                    |   |              |   |   |              |  
|                                                         |   |              |   |   |              |  
|Common Stock(Note 7)                                     |   |              |   |   |              |  
|Authorized:                                              |   |              |   |   |              |  
|200,000,000
      common shares without par value        |   |              |   |   |              |  
|                                                         |   |              |   |   |              |  
|Issued:                                                  |   |              |   |   |              |  
|60,283,413
      common shares at February 29, 2004 and  |   |              |   |   |              |  
|57,458,413
      at February 28, 2003                    |   | 7,091,095    |   |   | 6,653,662    |  
|                                                         |   |              |   |   |              |  
|Donated capital (Note 5(a))                              |   | 228,460      |   |   | 205,500      |  
|                                                         |   |              |   |   |              |  
|Additional paid-in capital (Note
      7(h))             |   | 101,507      |   |   | 71,357       |  
|                                                         |   | 7,421,062    |   |   | 6,930,519    |  
|Deficit                                                  |   | (7,550,986   | ) |   | (7,444,752   | )
|                                                         |   | (129,924     | ) |   | (514,233     | )
|                                                         |   |              |   |   |              |  
|                                                         | $ | 278,610      |   | $ | 92,719       |  

|Approved by the Directors:   |  |                     
|---------------------------- |  | --------------------
|                             |  |                     
|/s/ J. Robertson             |  | /s/ J. Lorette      
|J. Robertson,
      Director |  | J. Lorette, Director

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

---

LINUX GOLD CORP.

CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT (Stated in Canadian Dollars)

|                                                         | Years Ended |             
|-------------------------------------------------------- | ----------- | ------------
|                                                         |             | February 29,
|                                                         |             | 2004        
|                                                         |             |             
|General and Administrative Expenses                      |             |             
|Amortization of property and
      equipment             | $           | –           
|Amortization of discount on
      convertible debentures |             | 30,150      
|Consulting and subcontract                               |             | 173,555     
|Filing and regulatory fees                               |             | 26,113      
|Financing costs                                          |             | –           
|Foreign exchange                                         |             | (38,254     
|Imputed interest (Note 5(a))                             |             | 22,960      
|Interest on convertible debentures                       |             | –           
|Investor relations                                       |             | –           
|Management and directors’
      fees (Note 5(b))         |             | 43,500      
|Office, rent and telephone
      (Note 5(b))             |             | 64,839      
|Professional fees                                        |             | 27,662      
|Travel                                                   |             | 3,902       
|Less: Interest income                                    |             | (624        
|                                                         |             | 353,803     
|                                                         |             |             
|Natural Resources                                        |             |             
|Exploration, drilling and annual
      lease costs       |             | 61,298      
|Mineral acquisition costs                                |             | 60,346      
|Less: Option payments (Note
      3(a))                  |             | –           
|                                                         |             | 121,644     
|                                                         |             |             
|Loss from Continuing Operations                          |             | (475,447    
|                                                         |             |             
|Income (Loss) from Discontinued Operations               |             | 369,213     
|                                                         |             |             
|Net Loss                                                 |             | (106,234    
|                                                         |             |             
|Deficit, Beginning Of Year                               |             | (7,444,752  
|                                                         |             |             
|Deemed Dividend(Note 5(b)(iv))                           |             | –           
|                                                         |             |             
|Deficit, End Of Year                                     | $           | (7,550,986  
|                                                         |             |             
|Loss Per Share from Continuing Operations                |             | (0.01       
|                                                         |             |             
|Income (Loss) Per Share from Discontinued Operations     |             | 0.01        
|                                                         |             |             
|Basic and Diluted Loss Per Share                         | $           | –           
|                                                         |             |             
|Weighted Average Number of Shares Outstanding            |             | 58,664,000  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

---

LINUX GOLD CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in Canadian Dollars)

|                                                          |   | Years Ended  |  
|--------------------------------------------------------- | - | ------------ | -
|                                                          |   | February 29, |  
|                                                          |   | 2004         |  
|                                                          |   |              |  
|Cash Flows To Operating Activities                        |   |              |  
|Net loss                                                  | $ | (106,234     | )
|                                                          |   |              |  
|Adjustments To Reconcile Net Loss To Cash                 |   |              |  
|Amortization of property and
      equipment              |   | –            |  
|Amortization of discount on
      convertible debentures  |   | 30,150       |  
|Impairment of license                                     |   | –            |  
|Imputed interest                                          |   | 22,960       |  
|Interest on convertible debentures
      paid with shares |   | –            |  
|Loss on disposal of property
      and equipment          |   | –            |  
|Shares issued for services                                |   | 100,000      |  
|Shares received for option
      payment                  |   | –            |  
|Shares issued for mineral properties                      |   | 17,500       |  
|Shares issued for settlement
      of rent obligation     |   | 19,200       |  
|Write-off of subsidiary’s
      accounts payable          |   | (369,213     | )
|                                                          |   | (285,637     | )
|Change in non-cash working
      capital items            |   | (46,972      | )
|                                                          |   | (332,609     | )
|Cash Flows To Investing Activities                        |   |              |  
|Acquisition of property and
      equipment               |   | (6,000       | )
|                                                          |   |              |  
|Cash Flows From Financing Activities                      |   |              |  
|Proceeds from convertible debentures                      |   | –            |  
|Advances from related parties                             |   | 178,574      |  
|Common stock issued                                       |   | 300,733      |  
|                                                          |   | 479,307      |  
|Increase in Cash and Cash Equivalents                     |   | 140,698      |  
|                                                          |   |              |  
|Cash and Cash Equivalents, Beginning of Year              |   | 11,134       |  
|                                                          |   |              |  
|Cash and Cash Equivalents, End of Year                    | $ | 151,832      |  

NON-CASH INVESTING AND FINANCING ACTIVITIES:

During the year ended February 29, 2004:

|i)   | 175,000 common shares were issued with a fair value
        of $17,500 as part consideration under the mineral property option
        agreements described in Note 3(c).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ii)  | 1,000,000 common shares were issued with a fair
        value of $100,000 pursuant to a consulting agreement.                                                            
|iii) | 200,000 common shares were issued with a fair value
        of $19,200 in settlement of a previous rental agreement.                                                     

During the year ended February 28, 2003:

|i)  | 19,295,567 shares were issued with a fair value of $964,778 to settle
      debt.                             
|--- | --------------------------------------------------------------------------------------------------------------
|ii) | 3,000,000 shares were issued with a fair value of $238,800 to purchase
      a license described in Note 5(b).

During the year ended February 28, 2002:

|i)  | 950,404 shares were issued for a fair value of $180,147 pursuant
      to a financial consulting services agreement.
|--- | --------------------------------------------------------------------------------------------------------------------
|ii) | 15,544,983 shares were issued with a fair value of $547,855 for convertible
      debentures converted.             

|SUPPLEMENTAL
      DISCLOSURES |  |   |  |  
|------------------------------ |  | - |  | -
|Income taxes paid              |  |  |  | 
|Interest paid                  |  |  |  | 
|                               |  |   |  |  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|1. | NATURE OF OPERATIONS AND CONTINUANCE
        OF BUSINESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | The Company was incorporated February
        27, 1979 in Canada under the British Columbia Company Act and was extraprovincially
        registered in the Province of Alberta on October 12, 1995.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|   | The Company voluntarily delisted from
        the Canadian Venture Exchange on December 14, 1999. The Company's stock
        currently trades on the Over the Counter Bulletin Board in the United
        States under the symbol "LNXWF".                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | On February 20, 2003, the shareholders
        approved a change of name to Linux Gold Corp. and increased the authorized
        share capital to 200,000,000 common shares without par value. The Company's
        principal business is the acquisition and exploration of various gold
        mineral resources. The Company is confining its activities to areas from
        which gold has been previously produced or to properties, which are contiguous
        to such areas and have demonstrated mineralization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | The Company is currently in the exploration
        stage and equity financing is required to provide working capital and
        to meet exploration commitments. As a result of the uncertainty that is
        typical in an exploration stage company, mounting losses, and the severe
        working capital deficiency, there is substantial doubt about the company's
        ability to continue as going concern. The continuation of the Company
        as a going concern is dependent upon the continued financial support from
        its shareholders, the ability of the Company to obtain necessary equity
        financing to continue operations and to determine the existence, discovery
        and successful exploitation of economically recoverable reserves in its
        resource properties, confirmation of the Company's interests in the underlying
        properties, and the attainment of profitable operations. These financial
        statements have been prepared on a going concern basis.
|  
|2. | SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|2. | SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ------------------------------------------
|  
|   | d)                                        
|  
|   |                                           
|  
|   | e)                                        
|  
|   |                                           
|  
|   | f)                                        
|  
|   |                                           
|  
|   | g)                                        
|  
|   |                                           
|  
|   | h)                                        
|  
|   |                                           

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|2. | SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ------------------------------------------
|  
|   | i)                                        
|  
|   |                                           
|  
|   | j)                                        
|  
|   |                                           
|  
|   | k)                                        
|  
|   |                                           
|  
|   | l)                                        
|  
|   |                                           
|  
|   |                                           



|YEAR OF |  |   |           |  | YEAR OF   
|------- |  | - | --------- |  | ----------
|LOSS    |  |   | AMOUNT    |  | EXPIRATION
|        |  |   |           |  |           
|1998    |  | $ | 99,000    |  | 2005      
|1999    |  |   | 114,000   |  | 2006      
|2000    |  |   | 164,000   |  | 2007      
|2001    |  |   | 1,223,000 |  | 2008      
|2002    |  |   | 239,000   |  | 2009      
|2003    |  |   | 28,000    |  | 2010      
|2004    |  |   | 347,000   |  | 2011      
|        |  |   |           |  |           
|        |  | $ | 2,214,000 |  |           

| |  | Pursuant to SFAS 109, the Company is required to
        compute tax asset benefits for non-capital losses carried forward. Potential
        benefit of non-capital losses have not been recognized in these financial
        statements because the Company cannot be assured it is more likely than
        not it will utilize the losses carried forward in future years.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|2. | SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ------------------------------------------
|  
|   | l)                                        
|  
|   |                                           

| |  |                        |   | February 29, |   |   | February 28, |  
| |  | ---------------------- | - | ------------ | - | - | ------------ | -
| |  |                        |   | 2004         |   |   | 2003         |  
| |  |                        |   |              |   |   |              |  
| |  | Non-capital loss       | $ | 347,000      |   | $ | 28,000       |  
| |  | Statutory tax rate     |   | 34%          |   |   | 34%          |  
| |  |                        |   |              |   |   |              |  
| |  | Effective tax rate     | $ |             |   |   |             |  
| |  | Deferred tax asset     |   | 118,000      |   |   | 9,000        |  
| |  | Valuation allowance    |   | (118,000     | ) |   | (9,000       | )
| |  |                        |   |              |   |   |              |  
| |  | Net deferred tax asset | $ |             |   | $ |             |  



| |    | The Company also has a Canadian net capital loss
        of $2,773,000, which is a result of writing off its investment in its
        US subsidiary. This loss can be used to offset future years taxable gains
        and has no expiry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    | The Company has US net operating losses of approximately
        US$1,320,000. These losses expire between 2015 and 2017 and can only be
        used against taxable US income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | m) | Comprehensive Loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |    | SFAS No. 130, "Reporting Comprehensive Income,"
        establishes standards for the reporting and display of comprehensive loss
        and its components in the financial statements. As at February 29, 2004,
        the Company has no items that represent a comprehensive loss and, therefore,
        has not included a schedule of comprehensive loss in the financial statements.                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | n) | Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |    | Equipment consists of computer equipment recorded
        at cost and will be amortized on a straight- line basis over a three year
        period once they are installed and operating in the new office premises.
        Refer to Note 8(c).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | o) | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |    | Financial instruments, which include cash, accounts
        payable, accrued liabilities, and due to related parties, were estimated
        to approximate their carrying values due to the immediate or short-term
        maturity of these financial instruments. The Company's operations are
        in Canada and China and virtually all of its assets and liabilities are
        giving rise to significant exposure to market risks from changes in foreign
        currency rates. The financial risk is the risk to the Company's operations
        that arise from fluctuations in foreign exchange rates and the degree
        of volatility of these rates. Currently, the Company does not use derivative
        instruments to reduce its exposure to foreign currency risk.

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|2. | SIGNIFICANT ACCOUNTING POLICIES(continued)
|-- | ------------------------------------------
|  
|   | p)                                        
|  
|   |                                           
|  
|3. | MINERAL PROPERTIES                        
|  
|   | a)                                        
|  
|   |                                           
|  
|   |                                           
|  
|   |                                           
|  
|   | b)                                        
|  
|   |                                           
|  
|   | c)                                        
|  
|   |                                           
|  
|   |                                           
|  
|   |                                           
|  
|   |                                           

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|3. | MINERAL PROPERTIES(continued)
|-- | -----------------------------
|  

| | c) | British Columbia Mineral Properties (continued)
      During the year, the Company staked an additional three
        mineral claims representing 35 units. The Company incurred acquisition
        costs of $32,844, which was charged to operations, as the property has
        no proven or probable reserves.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    | ii)                                                                                                                                                                                                                                                                                                                
|
| |    |                                                                                                                                                                                                                                                                                                                    
|
| |    |                                                                                                                                                                                                                                                                                                                    
|
| |    |                                                                                                                                                                                                                                                                                                                    
|

| |    | During the year, the Company staked an
        additional mineral claim representing 5 units. The Company incurred acquisition
        costs of $17,500, which was charged to operations, as the property has
        no proven or probable reserves.                                                                                                                                                                                                                                                                                                                          
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    | The President of the Company is the registered
        owner of the mineral properties. The Company is preparing a trust agreement
        stating that these mineral claims are held in trust on behalf of the Company.                                                                                                                                                                                                                                                                                                                                                       
|
| | d) | China Mineral Property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |    | On January 20, 2004 the Company acquired
        an option to purchase 100% of the shares of Ginyen Recovery Inc. Ginyen
        Recovery Inc. has an 85% interest in a co-operative joint venture with
        Bo Luo Neo Wang Yuan Gold Mine Company ("BLN Gold") of Heibei Province,
        China. BLN Gold holds an operational gold recovery mill; the right and
        license to operate all existing small mines in the district; the right
        to explore, develop and produce gold and silver in the district and options
        to expand to other districts.
|
| |    | During the year, the Company incurred acquisition
        costs of $10,000, which was charged to operations, as the property has
        no proven or probable reserves.                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |    | To complete the option agreement the Company must:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |    | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|3. | MINERAL PROPERTIES(continued)                                                                                                                                                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | d)                                                                                                                                                                                                                                                   
|  
|   |                                                                                                                                                                                                                                                      
|  
|4. | ACCOUNTS PAYABLE                                                                                                                                                                                                                                     
|  
|   | Included in accounts payable is US$38,726
        (CDN$51,726) owing to creditors of the Company's US subsidiary which discontinued
        operations on June 30, 2001. On February 29, 2004 the Company wrote off
        US$276,419 (CDN$369,213).
|  
|5. | RELATED PARTY BALANCES/TRANSACTIONS                                                                                                                                                                                                                  
|  
|   | a)                                                                                                                                                                                                                                                   
|  
|   |                                                                                                                                                                                                                                                      

| |  |                                   |   | February 28, |   |   |          |   |   | February 29, |  
| |  | --------------------------------- | - | ------------ | - | - | -------- | - | - | ------------ | -
| |  |                                   |   | 2003         |   |   | Advances |   |   | 2004         |  
| |  |                                   |   |              |   |   |          |   |   |              |  
| |  | 394754 B.C. Ltd.                  | $ | (1,580       | ) | $ |         |   | $ | (1,580       | )
| |  | Access Information Services, Inc. |   | 10,812       |   |   | 34,975   |   |   | 45,787       |  
| |  | IAS Communications Inc.           |   | (3,151       | ) |   |         |   |   | (3,151       | )
| |  | Imaging Technologies Inc.         |   | (4,587       | ) |   |         |   |   | (4,587       | )
| |  | Information Highway.com, Inc.     |   | 900          |   |   |         |   |   | 900          |  
| |  | JGR Petroleum, Inc.               |   | 10,425       |   |   | 54,174   |   |   | 64,599       |  
| |  | John Robertson, President and CEO |   | 29,630       |   |   | 2,276    |   |   | 31,906       |  
| |  | Rainbow Network                   |   | (3,245       | ) |   | 56,907   |   |   | 53,662       |  
| |  | Rand Energy                       |   |             |   |   | 16,783   |   |   | 16,783       |  
| |  | Reg Technologies Inc.             |   | 3,285        |   |   | (16,783  | ) |   | (13,498      | )
| |  | REGI U.S., Inc.                   |   | (38          | ) |   | -        |   |   | (38          | )
| |  | SMR Investments Ltd.              |   | 3,826        |   |   | 18,125   |   |   | 21,951       |  
| |  | Pavlik Travel Services Ltd.       |   | 1,762        |   |   |         |   |   | 1,762        |  
| |  | Teryl Resources Corp.             |   | 4,017        |   |   | 5,709    |   |   | 9,726        |  
| |  | Robertson Family Trust            |   |             |   |   | 6,408    |   |   | 6,408        |  
| |  |                                   |   |              |   |   |          |   |   |              |  
| |  |                                   | $ | 52,056       |   | $ | 178,574  |   | $ | 230,630      |  



---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|5. | RELATED PARTY BALANCES/TRANSACTIONS(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|6. | CONVERTIBLE DEBENTURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   | The Company had offered a private placement
        of convertible debentures and had secured a commitment thereto for up
        to US$1,100,000. During fiscal 2001, the Company drew down US$800,000
        in two tranches and during fiscal 2002 the Company drew down a further
        US$80,000. By the end of fiscal 2002 the convertible debentures were all
        converted into 19,558,532 shares. The Company also issued the following
        warrants in connection with the issuance of the convertible debentures:

|#       |  | $    |  | Expiry Date     
|------- |  | ---- |  | ----------------
|        |  |      |  |                 
|55,000  |  | 1.08 |  | October 18, 2005
|55,000  |  | 1.17 |  | October 18, 2005
|25,000  |  | .20  |  | October 18, 2005
|25,000  |  | .22  |  | October 18, 2005
|8,000   |  | .072 |  | July 6, 2006    
|8,000   |  | .078 |  | July 6, 2006    
|176,000 |  |      |  |                 

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|7. | COMMON STOCK                                              
|-- | ----------------------------------------------------------
|  
|   | Authorized:                                               
|  
|   | 200,000,000 common shares without par value.
      Issued:

| |                                                                  | Number of  |  |   |          
| | ---------------------------------------------------------------- | ---------- |  | - | ---------
| |                                                                  | Shares     |  |   | Amount   
| |                                                                  |            |  |   |          
| | Balance, February 28, 2002                                       | 34,487,846 |  | $ | 5,382,584
| |                                                                  |            |  |   |          
| | Issued during the year:                                          |            |  |   |          
| | Settlement of debt (d) below                                     | 19,295,567 |  |   | 964,778  
| | Purchase of license
      (Note 5(b)) (e) below                  | 3,000,000  |  |   | 238,800  
| | Cash pursuant to a private placement
      (f) below             | 675,000    |  |   | 67,500   
| |                                                                  |            |  |   |          
| | Balance, February 28, 2003                                       | 57,458,413 |  |   | 6,653,662
| |                                                                  |            |  |   |          
| | Issued during the year:                                          |            |  |   |          
| | Pursuant to mineral
      property option agreements (Note 3(c)) | 175,000    |  |   | 17,500   
| | For services rendered (c) below                                  | 1,000,000  |  |   | 100,000  
| | For settlement
      of rent obligation (c) below                | 200,000    |  |   | 19,200   
| | For cash                                                         |            |  |   |          
| | exercise of options                                              | 150,000    |  |   | 19,812   
| | exercise of warrants (f) below                                   | 425,000    |  |   | 53,702   
| | private placement (a) below                                      | 875,000    |  |   | 227,220  
| |                                                                  |            |  |   |          
| | Balance, February 29, 2004                                       | 60,283,413 |  | $ | 7,091,096

| | a) | On December 9, 2003 the Company completed a private
        placement and issued 875,000 units at a price of US$0.20 per unit for
        proceeds of US$175,000. Each unit consisted of one common share and one
        1⁄2 warrant. Two 1⁄2 warrants entitles the holder to purchase
        one additional common share at a price of US$0.20 per share for a one-year
        period.                                                                           
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) | During the year ended February 29, 2004, the Company
        issued 175,000 common shares at a value of $0.10 per share pursuant to
        the mineral property option agreements referred to in Note 3(c).                                                                                                                                                                                                                                                     
|
| | c) | During the year ended February 29, 2004, the Company
        issued 1,000,000 shares pursuant to a consulting agreement for services
        beginning April 2, 2003 for a period of six months. The Company was also
        obligated to issue 100,000 shares per month starting May 2, 2003. On July
        11, 2003, the Company terminated this agreement due to non-performance
        and has demanded return of the 1,000,000 shares previously issued.
|
| |    | The Company issued 200,000 shares to settle a prior
        year's rental agreement.                                                                                                                                                                                                                                                                                                                                                                             
|
| | d) | On November 12, 2002, the Company issued 19,295,567
        common shares in exchange for the extinguishment of US$578,867 in debt
        (US$0.03 per share). The market value of the shares on the date of exchange
        was $964,778.                                                                                                                                                                                                                     

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|7. | COMMON STOCK(continued)
|-- | -----------------------
|  
|   | e)                     
|  
|   | f)                     
|  
|   | g)                     
|  
|   |                        
|  
|   |                        

| |  |  |                   |            |   |   |          |   | Weighted 
| |  |  | ----------------- | ---------- | - | - | -------- | - | ---------
| |  |  |                   |            |   |   | Weighted |   | Average  
| |  |  |                   | Number of  |   |   | Average  |   | Remaining
| |  |  |                   | Shares     |   |   | Option   |   | Life of  
| |  |  |                   | Under      |   |   | Price    |   | Options  
| |  |  |                   | Option     |   |   | (us $)   |   | (months) 
| |  |  |                   |            |   |   |          |   |          
| |  |  | February 28, 2002 | 3,200,000  |   | $ | 0.08     |   | 43       
| |  |  |                   |            |   |   |          |   |          
| |  |  | Granted           | 1,350,000  |   |   | 0.10     |   |          
| |  |  | Cancelled         | (1,175,000 | ) |   | (0.13    | ) |          
| |  |  |                   |            |   |   |          |   |          
| |  |  | February 28, 2003 | 3,375,000  |   |   | 0.09     |   | 48       
| |  |  |                   |            |   |   |          |   |          
| |  |  | Granted           | 350,000    |   |   | 0.10     |   |          
| |  |  | Exercised         | (150,000   | ) |   | (0.10    | ) |          
| |  |  |                   |            |   |   |          |   |          
| |  |  | February 29, 2004 | 3,575,000  |   | $ | 0.09     |   | 40       



---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|7. | COMMON STOCK(continued)
|-- | -----------------------
|  
|   | g)                     
|  
|   |                        
|  
|   |                        
|  
|   |                        

| |  |  |                          |   | 2004    |  |   | 2003    | 
| |  |  | ------------------------ | - | ------- |  | - | ------- | 
| |  |  |                          |   |         |  |   |         | 
| |  |  | Net loss                 |   |         |  |   |         | 
| |  |  | As reported              | $ | 475,447 |  | $ | 150,020 | 
| |  |  | Pro-forma                | $ | 484,633 |  | $ | 150,145 | 
| |  |  |                          |   |         |  |   |         | 
| |  |  | Basic net loss per share |   |         |  |   |         | 
| |  |  | As reported              | $ | 0.01    |  | $ | 0.01    | 
| |  |  | Pro-forma                | $ | 0.01    |  | $ | 0.01    | 



| | h) | Additional paid-in capital represents the fair market value of 176,000
      warrants issued with the convertible debentures less a discount on the convertible
      debentures.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |                                                                      |   | 2004    |   |   | 2003    |  
| |  | -------------------------------------------------------------------- | - | ------- | - | - | ------- | -
| |  |                                                                      |   |         |   |   |         |  
| |  | Market value of warrants (Note 6)                                    | $ | 150,750 |   | $ | 150,750 |  
| |  | Discount on convertible debentures accreted to operations
      over |   |         |   |   |         |  
| |  | the life of the warrants being five years
      to October 18, 2005  |   | (49,243 | ) |   | (79,393 | )
| |  |                                                                      |   |         |   |   |         |  
| |  | Net carrying value                                                   | $ | 101,507 |   | $ | 71,357  |  



|8. | SUBSEQUENT EVENTS               
|-- | --------------------------------
|  
|   | Subsequent to February 29, 2004:
|  
|   | a)                              
|  
|   | b)                              

---

LINUX GOLD CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FEBRUARY 29, 2004(Stated in Canadian Dollars)

|8. | SUBSEQUENT EVENTS(continued)
|-- | ----------------------------
|  
|   | c)                          

| |  |                                       |   | 2005   |  |   | 2006   |  |   | 2007  | 
| |  | ------------------------------------- | - | ------ |  | - | ------ |  | - | ----- | 
| |  | Basic rent                            | $ | 10,180 |  | $ | 11,452 |  | $ | 1,272 | 
| |  | Property taxes and operating expenses |   | 13,260 |  |   | 14,466 |  |   | 1,205 | 
| |  |                                       | $ | 23,440 |  | $ | 25,918 |  | $ | 2,477 | 



---