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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2007

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

For the transition period from _____ to _____

COMMISSION FILE NUMBER**000-50033**

IRELAND INC.(Exact name
of registrant as specified in its charter)

|NEVADA                                                             | 91-2147049                                     
|------------------------------------------------------------------ | -----------------------------------------------
|State or other jurisdiction of incorporation or
      organization | (I.R.S. Employer Identification No.)           
|                                                                   |                                                
|2441 West Horizon Ridge Parkway, Suite 100                         |                                                
|Henderson, Nevada                                                  | 89052                                          
|(Address of principal executive offices)                           | (Zip Code)                                     
|                                                                   |                                                
|Registrants telephone number, including area code                 | (702) 932-0353                                 
|                                                                   |                                                
|Securities registered pursuant to Section 12(b) of the
      Act:  | NONE.                                          
|                                                                   |                                                
|Securities registered pursuant to Section 12(g) of the
      Act:  | Common Stock, $0.001 Par Value Per
      Share.

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

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act. Yes
[   ]   No [X]

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 if disclosure of delinquent filers pursuant
  to Item 405 of Regulation S-K (s229.405 of this chapter) is not contained herein,
  and will not be contained, to the best of the registrants knowledge, in
  definitive proxy or information statements incorporated by reference in Part
  III of this Form 10-K or any amendment to this Form 10-K. [   ]

Indicate by check mark whether the registrant is a large accelerated
  filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
  company. See the definitions of large accelerated filer, accelerated
  filer and smaller reporting company in Rule 12b-2 of the Exchange
  Act.

|Large accelerated filer [   ]                                                     | Accelerated filer [   ]      
|--------------------------------------------------------------------------------- | -----------------------------
|Non-accelerated filer   [  
      ] (Do not check if a smaller reporting company) | Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Act). Yes [   ]   No
  [X]

State the aggregate market value of the voting and non-voting
  common equity held by non-affiliates computed by reference to the price at which
  the common equity was sold, or the average bid and asked price of such common
  equity, as of the last business day of the registrants most recently completed
  second fiscal quarter: $42,467,800 based on a price of $2.05,being
  the average bid and asked price for the registrants common stock as quoted
  on the OTC Bulletin Board onJune 29, 2007.

Indicate the number of shares outstanding of each of the registrants
  classes of common stock, as of the latest practicable date. As of March
  25, 2008, the registrant had 97,010,087 shares of common stock outstanding.

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IRELAND INC.

ANNUAL REPORT ON FORM 10-KFOR THE YEAR ENDED
DECEMBER 31, 2007

TABLE OF CONTENTS

|           |             |                                                                                                                          | PAGE
|---------- | ----------- | ------------------------------------------------------------------------------------------------------------------------ | ----
|           |             |                                                                                                                          |     
|PART I     |             |                                                                                                                          | 3   
|           |             |                                                                                                                          |     
|           | ITEM 1.     | BUSINESS                                                                                                                 | 3   
|           | ITEM 1A.    | RISK FACTORS.                                                                                                            | 5   
|           | ITEM 2.     | PROPERTIES                                                                                                               | 9   
|           | ITEM 3.     | LEGAL PROCEEDINGS.                                                                                                       | 18  
|           | ITEM 4.     | SUBMISSION OF MATTERS TO
      A VOTE OF SECURITY HOLDERS                                                                | 18  
|           |             |                                                                                                                          |     
|PART II    |             |                                                                                                                          | 19  
|           |             |                                                                                                                          |     
|           | ITEM 5.     | MARKET FOR REGISTRANTS
      COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
      SECURITIES | 19  
|           | ITEM 7.     | MANAGEMENT'S DISCUSSION AND ANALYSIS OF
      FINANCIAL CONDITION AND RESULTS OF OPERATIONS                              | 21  
|           | ITEM 8.     | FINANCIAL STATEMENTS AND
      SUPPLEMENTARY DATA.                                                                       | 26  
|           | ITEM 9.     | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
      ON ACCOUNTING AND FINANCIAL DISCLOSURE.                              | 27  
|           | ITEM 9A(T). | CONTROLS AND PROCEDURES                                                                                                  | 27  
|           | ITEM 9B.    | OTHER INFORMATION                                                                                                        | 28  
|           |             |                                                                                                                          |     
|PART III   |             |                                                                                                                          | 29  
|           |             |                                                                                                                          |     
|           | ITEM 10.    | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
      GOVERNANCE.                                                            | 29  
|           | ITEM 11.    | EXECUTIVE COMPENSATION                                                                                                   | 31  
|           | ITEM 12.    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
      OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                     | 32  
|           | ITEM 13.    | CERTAIN RELATIONSHIPS AND
      RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.                                         | 35  
|           | ITEM 14.    | PRINCIPAL ACCOUNTANT FEES AND SERVICES.                                                                                  | 38  
|           |             |                                                                                                                          |     
|SIGNATURES | 40         

2

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PART I

Certain statements contained in this Annual Report on Form
10-K constitute "forward-looking statements. These statements, identified by
words such as plan, "anticipate, "believe, "estimate, "should," "expect"
and similar expressions include our expectations and objectives regarding our
future financial position, operating results and business strategy. These
statements reflect the current views of management with respect to future events
and are subject to risks, uncertainties and other factors that may cause our
actual results, performance or achievements, or industry results, to be
materially different from those described in the forward-looking statements.
Such risks and uncertainties include those set forth under the caption
"Management's Discussion and Analysis or Plan of Operation" and elsewhere in
this Annual Report. We advise you to carefully review the reports and documents
we file from time to time with the Securities and Exchange Commission (the
SEC), particularly our quarterly reports on Form 10-QSB and Form 10-Q and our
current reports on Form 8-K.

As used in this Annual Report, the terms "we, "us, "our,
Ireland, and the Company mean Ireland Inc. and its subsidiaries, unless
otherwise indicated. All dollar amounts in this Annual Report are expressed in
U.S. dollars, unless otherwise indicated.

ITEM
1.               
BUSINESS.

OVERVIEW

We were incorporated on February 20, 2001 under the laws of the
State of Nevada under the name Merritt Ventures Corp. On December 19, 2005, we
changed our name to Ireland Inc. On April 25, 2007, we effected a 4-for-1
stock split of our common stock. As a result, our authorized capital was
increased from 100,000,000 shares of common stock, par value $0.001 per share,
to 400,000,000 shares of common stock, par value $0.001 per share. Except as
otherwise stated, all references to shares and prices per share have been
adjusted to give retroactive effect to the stock split.

We are an exploration stage company engaged in the acquisition
and exploration of mineral properties.

On February 20, 2008, we completed the acquisition of Columbus
Brine Inc. (CBI). The acquisition of CBI was completed pursuant to the
Agreement and Plan of Merger entered into by us, CBI Acquisition, Inc., our
wholly owned subsidiary incorporated for the sole purpose of completing the
acquisition, (Ireland Sub), CBI, and CBIs directors and officers, John T.
Arkoosh, William Maghan and Lawrence E. Chizmar, Jr. (collectively referred to
as the CBI Principals) on December 14, 2007, and as amended on January 31,
2008 (the Agreement and Plan of Merger, as amended, is referred to as the
Merger Agreement). The acquisition of CBI was completed by merging CBI into
and with Ireland Sub, with Ireland Sub continuing as the surviving entity. In
order to complete the acquisition, we issued to the former shareholders of CBI
an aggregate of 10,440,087 shares of our common stock and an aggregate of
5,220,059 share purchase warrants. Each share purchase warrant entitles the
holder to purchase one additional share of our common stock at a price of $2.39
per share until February 19, 2013. We may accelerate the expiration date of the
share purchase warrants after August 19, 2010 if the average price of our common
stock over any 20 consecutive trading days is greater than or equal to 150% of
the exercise price. The share purchase warrants provide the holder with a
cashless exercise right.

As a result of our acquisition of CBI, we now hold a 100%
interest in a mineral project located in Esmeralda County, Nevada that we call
the Columbus Project. In addition to the Columbus Project, we have an interest
in a mineral project located in San Bernardino County and Kern County,
California that we refer to as the Red Mountain Project. In addition, we own a
100% interest in a mineral claim located in Clark County, Nevada that we refer
to as the Ireland Claim. A description of the Columbus Project, the Red Mountain
Project and the Ireland Claim is set out below under the heading Item 2 
Properties.

RECENT CORPORATE DEVELOPMENTS

We have experienced the following corporate developments since
  our quarter ended September 30, 2007:

|1. | On October 6, 2007, we received notice that Telford
      Sadovnick, P.L.L.C. had resigned as our auditors. Telford Sadovnick stated
      that their resignation was due to the fact that they had withdrawn
      their
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|   | registration with the Public Company Accountability
      Oversight Board (PCAOB) and were no longer able to audit US
    issuers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2. | On October 15, 2007, our Board of Directors appointed
      Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter
      Accountancy Corporation as our new independent registered public
      accounting firm following the resignation of Telford Sadovnick,
      P.L.L.C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|3. | On October 19, 2007, we completed the fourth tranche for
      each of the foreign private placement offering (the Foreign Offering)
      and the U.S. private placement offering (the U.S. Offering) announced by
      us on April 25, 2007. We issued a total of 1,126,500 units (each a Unit)
      under the Foreign Offering to non- US persons as contemplated under
      Regulation S of the Securities Act of 1933 (the Securities Act) at a
      price of $0.65 per Unit for total gross proceeds of $732,225. We agreed to
      pay an aggregate of $37,993 in commissions and issue an aggregate of
      25,050 Agents Warrants in connection with the sale of 835,000 of the
      Units sold in the fourth tranche of the Foreign Offering. We issued a
      total of 3,600,000 Units under the U.S. Offering to accredited investors
      pursuant to Rule 506 of Regulation D of the Securities Act also at a price
      of $0.65 per Unit for total gross proceeds of $2,340,000. We agreed to pay
      $4,550 in commissions and to issue an aggregate of 3,000 Agents Warrants
      in connection with the sale of 100,000 of the Units sold. A description of
      the Foreign Offering and the U.S. Offering is provided at Item 5. Market
      for Registrants Common Equity, Related Stockholder Matters and Issuer
      Purchases of Equity Securities: Recent Sales of Unregistered
      Securities.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|4. | On November 5, 2007, we entered into an agreement (the
      Consulting Agreement) with RJ Falkner & Company, Inc. (RJ Falkner)
      whereby RJ Falkner agreed to provide us with various investor relations
      services for a nine month period ending on August 15, 2008. In
      consideration of these services, we agreed to pay a retainer fee of $3,000
      per month to RJ Falkner and to grant R. Jerry Falkner an option to
      purchase 100,000 shares of our common stock at a price of $1.75. Unless we
      provide RJ Falkner with notice of our intent to cancel the Consulting
      Agreement by August 15, 2008, RJ Falkner will continue to act on a
      month-to-month basis until either party provides 60 days written notice of
      their intent to terminate the Consulting Agreement. In accordance with the
      terms of the Consulting Agreement, we granted an option to R. Jerry
      Falkner to purchase 100,000 shares of our common stock. The option granted
      is exercisable at a price of $1.75 per share and expires on August 15,
      2017.                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|5. | Effective December 14, 2007, we increased the size of our
      Board of Directors from one director to three directors and appointed
      Robert D. McDougal and Michael A. Steele to fill the vacancies created by
      the increase. Mr. McDougal has been acting as the Companys Chief
      Financial Officer since March 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|6. | On February 20, 2008, we completed the acquisition of
      CBI. See Overview above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|7. | Also on February 20, 2008, in connection with the
      acquisition of CBI, the size of our Board of Directors was increased to
      four and Lawrence E. Chizmar, Jr. was appointed to our Board of
      Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

COMPETITION

We are a mineral resource exploration and development company.
We compete with other mineral resource exploration and development companies for
the acquisition of new mineral properties, the services of contractors,
equipment and financing. Many of the mineral resource exploration and
development companies with whom we compete may have greater access to a limited
supply of qualified technical personnel and contractors and to specialized
equipment needed in the exploration, development and operation of mineral
properties. This could have an adverse effect on our ability to explore and
develop our properties in a timely manner. In addition, because many of our
competitors are more established and have a longer operating history than us,
they may have greater access to promising mineral properties.

In addition, many of our competitors have greater financial
resources than us. Accordingly, these competitors may be able to spend greater
amounts on acquisitions of mineral properties of merit, on exploration of their
mineral properties and on development of their mineral properties. In addition,
they may be able to afford greater geological expertise in the targeting and
exploration of mineral properties. This may make our competitors more

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attractive to potential investors and could adversely impact
our ability to obtain additional financing if and when needed.

GOVERNMENT REGULATIONS

The mining industry in the United States is highly regulated.
We intend to secure all necessary permits for the exploration of the Columbus
Project, the Red Mountain Project and Ireland Claim and, if development is
warranted on the properties, will file final plans of operation prior to
starting any mining operations. The consulting geologists that we hire are
experienced in conducting mineral exploration activities and are familiar with
the necessary governmental regulations and permits required to conduct such
activities. As such, we expect that our consulting geologists will inform us of
any government permits that we will be required to obtain prior to conducting
any planned activities on the Columbus Project, the Red Mountain Project and the
Ireland Claim. We are not able to estimate the full costs of complying with
environmental laws at this time since the full nature and extent of our proposed
mining activities cannot be determined until we complete our exploration
program.

If we enter into the development or production stages of any
mineral deposits found on the Columbus Project, the Red Mountain Project and the
Ireland Claim, of which there are no assurances, the cost of complying with
environment laws, regulations and permitting requirements will be substantially
greater than in the exploration phases because the impact on the project area is
greater. Permits and regulations will control all aspects of any mineral deposit
development or production program if the project continues to those stages
because of the potential impact on the environment. Examples of regulatory
requirements include:

|- | Water discharge will have to meet water standards;                                                                                
|- | ----------------------------------------------------------------------------------------------------------------------------------
|- | Dust generation will have to be minimal or otherwise
      re-mediated;                                                           
|- | Dumping of material on the surface will have to be
      re-contoured and re-vegetated;                                           
|- | An assessment of all material to be left on the surface
      will need to be environmentally benign;                             
|- | Ground water will have to be monitored for any potential
      contaminants;                                                      
|- | The socio-economic impact of the project will have to be
      evaluated and if deemed negative, will have to be re-mediated; and,
|- | There will have to be an impact report of the work on the
      local fauna and flora.                                            

EMPLOYEES

As of the date of this Annual Report on Form 10-K, other than
our officers and directors, we have one full-time employee. We do not have any
part-time employees.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have not incurred any research or development expenditures
since our incorporation.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or
trademarks.

ITEM
1A.             RISK
FACTORS.

The following are some of the important factors that could
affect our financial performance or could cause actual results to differ
materially from estimates contained in our forward-looking statements. We may
encounter risks in addition to those described below. Additional risks and
uncertainties not currently known to us, or that we currently deem to be
immaterial, may also impair or adversely affect our business, financial
condition or results of operation

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Although we intend to implement a pilot production module
for the Columbus Project, there is no assurance that this project is
commercially feasible.

We intend to begin our pilot production operations on the
Columbus Project in 2008. This pilot production module is designed to evaluate
the economic feasibility of the Columbus Project. However, we have not yet
established any probable or proven reserves and our activities continue to be
exploratory in nature. We can not provide any assurances that the Columbus
Project will turn out to be commercially viable.

If we do not obtain additional financing, we may not be able
to complete our exploration and development programs for our mineral projects.

Although we have obtained sufficient proceeds from our Foreign
and US Offerings to meet the anticipated costs of our exploration and
development programs during the next twelve months, the actual costs of
completing those programs may be greater than anticipated. If the actual costs
are significantly greater than anticipated or if we proceed with our exploration
and development programs beyond what we currently have planned for the next
twelve months, we will need to obtain additional financing. There are no
assurances that we will be able to obtain additional financing in an amount
sufficient to meet our needs or on terms that are acceptable to us.

Our ability to obtain additional financing will be subject to a
number of factors, including the variability of market prices for gold and
silver, investor interest in our mineral projects, and the performance of equity
markets in general. These factors may make the timing, amount, terms or
conditions of additional financing unavailable to us.

If we complete additional financings through the sale of
shares of our common stock, our existing stockholders will experience dilution.

The most likely source of future financing presently available
to us is through the issuance of our common stock. The only other anticipated
alternative for the financing of further exploration would be the offering by us
of an interest in our properties to be earned by another party or parties
carrying out further exploration thereof, which is not presently contemplated.
In addition, if our management decides to exercise the right to acquire a 100%
interest in the Red Mountain Project, we will be required to issue significantly
more shares of our common stock. Issuing shares of our common stock, for
financing purposes or otherwise, will dilute the interests of our existing
stockholders.

In order to maintain our rights to the Columbus Project, Red
Mountain Project and Ireland Claim, we will be required to make annual filings
with federal and state regulatory agencies and/or be required to complete
assessment work on those properties.

In order to maintain our rights to the Columbus Project, Red
Mountain Project and Ireland Claim, we will be required to make annual filings
with federal and state regulatory authorities. Currently the amount of these
fees is nominal; however, these maintenance fees are subject to adjustment. In
addition, we may be required by federal and/or state legislation or regulations
to complete minimum annual amounts of mineral exploration work on the Columbus
Project, Red Mountain Project and Ireland Claim. A failure by us to meet the
annual maintenance requirements under federal and state laws could cause our
rights to the Columbus Project, Red Mountain Project and Ireland Claim to lapse.

Because we are an exploration stage company, we face a high
risk of business failure.

To date, our primary business activities have involved the
acquisition of mineral claims and the exploration and development on these
claims. We have not earned any revenues as of the date of this Annual Report.
Potential investors should be aware of the difficulties normally encountered by
exploration stage companies and the high rate of failure of such enterprises.
The likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates.

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Because we anticipate our operating expenses will increase
prior to our earning revenues, we may never achieve profitability.

Prior to completion of our exploration stage, we anticipate
that we will incur increased operating expenses without realizing any revenues.
We therefore expect to incur significant losses into the foreseeable future. We
recognize that if we are unable to generate significant revenues from the
exploration of our mineral claims and the production of minerals thereon, if
any, we will not be able to earn profits or continue operations. There is no
history upon which to base any assumption as to the likelihood that we will
prove successful, and we may not be able to ever generate any operating revenues
or achieve profitable operations. If we are unsuccessful in addressing these
risks, our business will most likely fail.

Because of the speculative nature of exploration of mining
properties, there is substantial risk that no commercially exploitable minerals
will be found and our business will fail.

The search for valuable minerals as a business is extremely
risky. We may not find commercially exploitable reserves of gold or silver on
our mineral claims. Exploration for minerals is a speculative venture,
necessarily involving substantial risk. The expenditures to be made by us in the
upcoming exploration of our mineral projects may not result in the discovery of
commercial quantities of ore. Problems such as unusual or unexpected formations
and other conditions are involved in mineral exploration and often result in
unsuccessful exploration efforts. In such a case, we would be unable to complete
our business plan.

Because of the inherent dangers involved in mineral
exploration, there is a risk that we may incur liability or damages if and when
we conduct mineral exploration activities.

The search for valuable minerals involves numerous hazards. As
a result, if and when we conduct exploration activities we may become subject to
liability for such hazards, including pollution, cave-ins and other hazards
against which we cannot insure or against which we may elect not to insure. The
payment of such liabilities may have a material adverse effect on our financial
position.

Even if we discover commercial reserves of precious metals
on our optioned mineral claims, we may not be able to successfully obtain
commercial production.

Our optioned mineral claims do not contain any known bodies of
ore. If our exploration programs are successful in discovering ore of commercial
tonnage and grade, we will require additional funds in order to place those
mineral claims into commercial production. At this time, there is a risk that we
will not be able to obtain such financing as and when needed.

If we are unable to hire and retain key personnel, we may
not be able to implement our business plan and our business will fail.

Our success will largely depend on our ability to hire highly
qualified personnel with experience in geological exploration. These individuals
may be in high demand and we may not be able to attract the staff we need. In
addition, we may not be able to afford the high salaries and fees demanded by
qualified personnel, or may lose such employees after they are hired. Currently,
we have not hired any key personnel. An inability to hire key personnel when
needed could have a significant negative effect on our business.

Because our executive officers do not have formal training
specific to the technicalities of mineral exploration, there is a higher risk
our business will fail.

Our executive officers and directors do not have formal
training as geologists or in the technical aspects of management of a mineral
exploration company. Accordingly, we will have to rely on the technical services
of others trained in appropriate areas. If we are unable to contract for the
services of such individuals, it will make it difficult and maybe impossible to
pursue our business plan.

As we undertake exploration of our optioned mineral claims,
we will be subject to compliance with government regulation that may increase
the anticipated cost of our exploration program.

7

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There are several government regulations that materially
restrict the exploration of minerals. We may be required to obtain work permits,
post bonds and perform remediation work for any physical disturbance to the land
in order to comply with these laws. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program.

Certain work to be performed on our mineral projects may
require us to apply for permits from federal, state or local regulatory bodies.

If our applications for permits from the relevant regulatory
bodies are denied, we may not be able to proceed with our exploration and
development programs as disclosed above, which could have a negative affect on
our business.

If we receive positive results from our exploration program
and we decide to pursue commercial production, we may be subject to an
environmental review process that may delay or prohibit commercial
production.

If the results of our geological exploration program indicate
commercially exploitable reserves, and we decide to pursue commercial production
of our mineral claims, we may be subject to an environmental review process
under environmental assessment legislation. Compliance with an environmental
review process may be costly and may delay commercial production. Furthermore,
there is the possibility that we would not be able to proceed with commercial
production upon completion of the environmental review process if government
authorities did not approve our mine or if the costs of compliance with
government regulation adversely affected the commercial viability of the
proposed mine.

The market for our common stock is limited and investors may
have difficulty selling their stock.

Our shares are currently traded on the over the counter market,
with quotations entered for our common stock on the OTC Bulleting Board under
the symbol IRLD. However, the volume of trading in our common stock is
currently very limited. As a result, holders of our common stock may have
difficulty selling their shares.

Because our common stock is a penny stock, stockholders may
be further limited in their ability to sell their shares.

Our shares constitute a penny stock under the Securities
Exchange Act of 1934 (the Exchange Act) and are expected to remain classified
as a penny stock for the foreseeable future. Classification as a penny stock
makes it more difficult for a broker-dealer to sell the stock into a secondary
market, which makes it more difficult for a purchaser to liquidate his or her
investment. Any broker-dealer engaged by the purchaser for the purpose of
selling his or her shares will be subject to Rules 15g-2 through 15g-9 of the
Exchange Act. Rather than having to comply with these rules, some broker-dealers
will refuse to attempt to sell a penny stock.

No Assurance That Forward Looking Assessments Will Be
Realized.

Our ability to accomplish our objectives and whether or not we
are financially successful is dependent upon numerous factors, each of which
could have a material effect on the results obtained. Some of these factors are
in the discretion and control of management and others are beyond managements
control. The assumptions and hypothesis used in preparing any forward-looking
assessments contained herein are considered reasonable by management. There can
be no assurance, however, that any projections or assessments contained herein
or otherwise made by management will be realized or achieved at any level.

FOR ALL OF THE AFORESAID REASONS AND OTHERS SET-FORTH AND NOT
SET-FORTH HEREIN, AN INVESTMENT IN OUR SECURITIES INVOLVES A CERTAIN DEGREE OF
RISK. ANY PERSON CONSIDERING TO INVEST IN OUR SECURITIES SHOULD BE AWARE OF
THESE AND OTHER FACTORS SET-FORTH IN THIS ANNUAL REPORT ON FORM 10-K AND SHOULD
CONSULT WITH HIS/HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN
INVESTMENT IN OUR SECURITIES. AN INVESTMENT IN OUR SECURITIES SHOULD ONLY BE
ACQUIRED BY PERSONS WHO CAN AFFORD TO LOSE THEIR TOTAL INVESTMENT.

8

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ITEM
2.               
PROPERTIES.

We currently lease office space located at Suite 100, 2441 W.
Horizon Ridge Parkway, Henderson, NV 89052 at a rate of $2,200 per month. The
lease is for a term of one year and expires on August 31, 2008.

We currently own an interest in three mineral projects that we
refer to as the Columbus Project, the Red Mountain Project and the Ireland
Claim.

THE COLUMBUS PROJECT

Description of the Columbus Project

The Columbus Project is a potential gold, silver and calcium
  carbonate project that is currently made up of 128 mineral and millsite claims
  that we refer to as the CSM Claims and an option for an additional
  147 mineral claims that we refer to as the DDB Claims.

Location

The mineral claims that make up the Columbus Project are
located in the Columbus Salt Marsh, in Esmeralda County, Nevada, approximately
41 miles west of Tonopah, halfway between Las Vegas and Reno. The Columbus Salt
Marsh is an enclosed basin and is a dry lake bed for the majority of the year.
All surface drainage from the surrounding 300 square mile area flows into the
Columbus Salt Marsh.

Figure 1. Location of Columbus Project



9

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Title and Ownership Rights to the CSM Claims and the DDB
Claims

The CSM Claims are wholly owned by Columbus S.M., LLC (CSM).
CSM was a wholly owned subsidiary of CBI, and is now our wholly owned
subsidiary. The DDB Claims are wholly owned by a mining syndicate known as the
DDB Syndicate. Each of Douglas D.G. Birnie, our President and Chief Executive
Officer, and a member of our Board of Directors, and Lawrence E. Chizmar Jr.,
currently a member of our Board of Directors (and a former director of CBI), is
the owner of a 1/8 interest in the DDB Syndicate. The remaining members of the
DDB Syndicate are made up of the former officers and directors of CBI, the
brother of a former officer and director of CBI, Nanominerals Corp.
(Nanominerals) and certain affiliates of Nanominerals. Nanominerals is a
significant shareholder in our Company. The DDB Claims were located by the DDB
Syndicate in February, 2007, prior to Mr. Birnies, Nanominerals or Mr.
Chizmars involvement with Ireland.

Figure 2. Location of the CSM Claims and the DDB Claims



We acquired our interest in the CSM Claims and the DDB Claims
under the terms of a letter agreement (the Columbus Letter Agreement)
initially entered into by CBI, CSM and Nanominerals in July, 2006. In March,
2007, we entered into an assignment agreement (the Nano Agreement) with
Nanominerals, pursuant to which Nanominerals agreed to assign to us all of its
rights and interests under the Columbus Letter Agreement, and a letter agreement
entered into by it with the owners of the Red Mountain Project (the Red
Mountain Letter Agreement). On August 14, 2007, Nanominerals completed the
assignment of its rights and interests under the Columbus Letter Agreement and
the Red Mountain Letter Agreement to us, in consideration for which we:

| | (a) | issued an aggregate of 30,000,000 shares of our common
      stock to Nanominerals and certain business associates of Nanominerals
      (including 1,200,000 shares to Robert D. McDougal, our current Chief
      Financial Officer, Treasurer and a member of our Board of
    Directors);
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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| | (b) | granted Nanominerals a 5% royalty on any net smelter
      returns from either of the Columbus Project or the Red Mountain Project,
      or any other mineral projects that Nanominerals may assign or transfer to
      us in the future;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                            
| | (c) | assumed all of Nanominerals obligations under the
      Columbus Letter Agreement and the Red Mountain Letter Agreement;
  and                                                                                                             
| |     |                                                                                                                                                                                                                                            
| | (d) | agreed to reimburse Nanominerals for any properly
      documented expenditures made by it on either the Columbus Project or the
      Red Mountain Project.                                                                               

In addition to the consideration paid by us, Lorrie Ann
Archibald, then our Chief Executive Officer, Treasurer and sole director, and
our principal shareholder, sold to Nanominerals 18,200,000 shares of our common
stock, being all of the shares of our common stock owned by Ms. Archibald at
that time, for an aggregate of $45,500. Mr. Birnie was appointed as our Chief
Executive Officer, President and Secretary, and Mr. McDougal was appointed as
our Chief Financial Officer pursuant to the terms of the Nano Agreement.

Under the terms of the Columbus Letter Agreement, we had the
right to earn up to a 15% operating interest in the CSM Claims by:

| | (a) | paying $10,000 per month to CSM until December 31,
      2007;                                                                                                                        
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                       
| | (b) | spending a total of $3,000,000 on examining, testing,
      exploring or developing the Columbus Project before December 31, 2007 (the
      CP Expenditures); and                  
| |     |                                                                                                                                                                                       
| | (c) | paying $7,000 per month in consulting fees to each of
      John T. Arkoosh (the former President, and a former director of, CBI) and
      William Maghan (a former director of CBI).

By December, 2007, we had earned our 15% operating interest
under the terms of the Columbus Letter Agreement. As a result of completing the
acquisition of CBI on February 20, 2008, we now own 100% of the CSM Claims. See
Item 1.  Business: Overview for a description of our acquisition of CBI.

On November 30, 2007, CBI increased the size of the Columbus
Project by entering into a mining lease agreement with the DDB Syndicate (the
DDB Agreement). The DDB Agreement provided CSM with a 5 year lease on the DDB
Claims, ending on November 29, 2012, with an option to purchase the DDB Claims
at anytime during the lease period. In order to maintain its lease rights, CSM
must pay the DDB Syndicate $130,000 by June 30, 2008, with annual rental
payments thereafter of $30,000 per year, payable on June 30, 2009, 2010 and 2011
respectively. Under the option rights provided under the DDB Agreement, CSM may
purchase the DDB Claims by either:

| | (a) | paying the DDB Syndicate the purchase price of $400,000,
      less any rental payments made by CSM prior to exercise of the option
      right; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                    
| | (b) | paying the DDB Syndicate $10, plus granting the DDB
      Syndicate a royalty of 2% of net smelter returns on the DDB
  Claims.                    

Access and Infrastructure

The Columbus Project contains an existing mill site with power
generator sets and an onsite fresh water well. Water used for processing is
available from existing wells located on the surrounding basin (the Columbus
Basin), one of which is an artesian well. An artesian well is a confined
aquifer containing groundwater that flows upwards without the need for pumping.
There is also a high voltage grid located at the Candelaria Mines, approximately
three miles from the Columbus Project.

Permits have been obtained for the production of calcium
carbonate and the extraction of precious metals from an area of interest
consisting of approximately 380 acres, including millsite, roads and mineable
acreage.

11

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History

The Columbus Project is located in an area that has
historically been known as a well mineralized region. A gold and silver mining
operation known as the Candelaria Mine is located approximately three miles
northwest of the Columbus Project. The Clayton Valley Brine Project, a lithium
extraction project, is located approximately 25 miles southeast of the Columbus
Project.

The history of the area dates back to the 1860s upon the
discovery of significant deposits of silver. During this period, the Candelaria
Mine was established. To date, the Candelaria Mine has produced approximately 68
million ounces of silver.

The Clayton Valley Brine Project was established in the 1960s
and uses a brine aquifer to extract minerals. Clayton Valley has historically
been one of the largest sources of lithium in the United States.

Geology

The Columbus Basin is an enclosed basin that appears to be a
sediment-filled collapsed caldera of a volcano or a rift basin. A caldera is a
volcanic feature formed by the collapse of land following a volcanic eruption.
Surveys conducted on the area indicate that there appears to be a two mile wide
fault structure in the northwest section of the Columbus Basin. The subsurface
of the Columbus Basin contains an ash layer approximately 150 feet thick,
located at a depth of approximately 400 feet. This ash layer hosts a large brine
aquifer.

Sampling Results on the Columbus Project

In August, 2006, Nanominerals commissioned Arrakis, Inc., an
independent mining and metallurgical consulting engineering firm, to conduct
surface sampling studies on the Columbus Project. Fifty-nine surface samples
were taken by Arrakis and were processed at Arrakis laboratory in Englewood,
Colorado. The results from these samples indicated an anomaly containing an
average in-situ area wide grade of 0.078 ounces per ton (o.p.t.) of gold.
Readers are cautioned that these results are from surface samples only and are
not necessarily indicative of the mineralization found at depth.

In December, 2006, Arrakis returned to the Columbus Project and
took five additional surface samples, four borings and a two thousand pound bulk
sample. One boring went down to a depth of 10 feet, two borings went down to a
depth of 15 feet and the final boring when down to a depth of 20 feet. The
results of these additional samples fit the trend shown by the original surface
samples, with no significant variations at depth.

The bulk sample taken by Arrakis was used to conduct gravity
concentration tests. Most of the gold contained in the samples appear to be less
than 50 microns. Arrakis noted that the gravity concentration tests indicated
that more than 90% of the ore was made up of a clay matrix that would need to be
carefully de-agglomerated and diluted prior to effective gravity concentration.
A high grade calcium carbonate product is expected to be producible from these
clay tailings.

In the fourth quarter of 2007, a drill program was conducted by
Arrakis within the 320-acre permitted area of the Columbus Project. The program
consisted of 18 holes drilled to a maximum of 100 feet in depth. Independent
analyses of the 18 holes indicate an average gold grade as follows:

154 sample average = 0.074 opt Au
18 drill hole average = 0.070 opt Au

The drill program and sample analyses were completed under
chain-of-custody (COC) parameters by Arrakis. The samples were analyzed using
total acid digestion and graphite furnace atomic absorption.

Drilling was completed by using a split auger to collect 2-foot
composite samples every 10 feet down each hole. Holes were drilled to a maximum
depth of 100 feet, with some holes being shallower due to bedrock or drilling
conditions The drill program covered the 320-acre permitted mine site with 18
drill holes in a 6-hole by 3-hole evenly spaced grid.

12

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Composite Depth
    Hole A1 (Au opt)
    Hole A2 (Au opt)
    Hole A3 (Au opt)
    Hole A4 (Au opt)
    Hole A5 (Au opt)
    Hole A6 (Au opt)10  12
    0.082
    0.083
    0.087
    0.107
    0.129
    0.07020  22
    0.089
    0.071
    0.062
    0.086
    0.094
    0.06430  32
    0.080
    0.072
    0.081
    0.067
    0.080
    0.06640  42
    0.079
    0.070
    0.095
    0.096
    0.073
    0.06450  52
    0.089
    0.078
    0.083
    0.108
    0.088
    0.06460  62
    0.086
    0.069
    0.092
    0.097
    0.076
    0.06070  72
    0.074
    0.085
    0.089
    0.092
    0.072
    0.06080  82
    0.082
    0.047
    0.063
    0.092
    0.074
    0.05490  92
    0.086
    0.067
    0.074
    0.065
    0.071
    0.053100  102
    0.039
    
    0.063
    0.083
    0.060
    0.060Average
    0.079
    0.071
    0.079
    0.089
    0.082
    0.062


Composite Depth
    Hole A7 (Au opt)
    Hole A8 (Au opt)
    Hole A9 (Au opt)
    Hole A10 (Au opt)
    Hole A11 (Au opt)
    Hole A12 (Au opt)10  12
    0.062
    0.063
    0.086
    0.128
    0.116
    0.10320  22
    0.054
    0.044
    0.057
    0.089
    0.095
    0.08530  32
    0.077
    0.068
    0.078
    0.085
    0.053
    0.07740  42
    0.062
    0.062
    0.076
    0.110
    0.076
    0.07050  52
    0.054
    0.066
    0.077
    0.117
    0.108
    0.10460  62
    0.076
    0.065
    0.081
    0.109
    0.102
    0.08970  72
    
    0.069
    0.079
    0.100
    0.109
    0.10480  82
    
    0.061
    0.081
    0.089
    0.102
    0.10990  92
    
    
    0.068
    0.091
    0.078
    0.105100  102
    
    
    0.085
    0.095
    0.086
    0.101Average
    0.064
    0.062
    0.077
    0.101
    0.092
    0.095


Composite Depth
    Hole A13 (Au opt)
    Hole A14 (Au opt)
    Hole A15 (Au opt)
    Hole A16 (Au opt)
    Hole A17 (Au opt)
    Hole A18 (Au opt)10  12
    0.009
    0.076
    0.089
    0.092
    0.055
    0.07920  22
    0.035
    0.046
    0.063
    0.029
    0.047
    0.05930  32
    0.034
    0.100
    0.113
    0.093
    0.028
    0.04940  42
    
    0.058
    0.093
    0.085
    
    0.07250  52
    
    0.007
    0.066
    0.069
    
    0.06460  62
    
    
    0.047
    0.081
    
    0.05970  72
    
    
    0.029
    0.028
    
    0.06180  82
    
    
    0.035
    0.029
    
    0.05290  92
    
    
    
    0.021
    
    0.031100  102
    
    
    
    0.025
    
    0.043Average
    0.026
    0.057
    0.067
    0.055
    0.044
    0.057


Based on the test results on the samples taken from the
Columbus Project, Arrakis has recommended proceeding with (1) a pilot processing
installation at the existing mill site located on the property; and (2)
exploration drilling of an anomalous zone indicated by the samples in an effort
to determine the economic viability of the project. Readers are cautioned
that, although we believe that the results of our exploration activities to date
are sufficiently positive to proceed with the installation of a pilot processing
facility at the Columbus Project millsite, we have not yet established any
probable or proven reserves and our activities continue to be exploratory in
nature. There are no assurances that we will be able to establish any
commercially extractable ore reserves on the Columbus Project.

13

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Current Exploration and Development Program for the Columbus
Project

In early 2008, we completed the upgrade of the existing mill
  facilities located on the Columbus Project. The upgrade of the mill facilities
  consisted of bringing in the necessary equipment and other infrastructure required
  to implement our pilot operations. As a result of the upgrade, our mill facility
  is ready for installation of pilot production module.

Our exploration and development program for the Columbus
Project currently consists of the following:

|1. | Pilot Production Module: We plan to implement a
      pilot production module on the Columbus Project in order to evaluate the
      economic feasibility of the project. The pilot production module will
      consist of a full scale production and processing cycle that we will use
      to test the commercial viability of the project. If the operation of this
      pilot production module proves to our satisfaction that the Columbus
      Project is economically viable, we will seek to construct additional
      production modules of the mill site. The production model for the Columbus
      Project is anticipated to be a low grade, low cost, high volume mining
      operation.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | We have obtained a production permit from the Bureau of
      Land Management (BLM). The production permit allows us to commence
      calcium carbonate production and precious mineral extraction on the 270
      acre mine site and 60 acre mill sites located at the Columbus Project at a
      mine rate of up to 78,000 tons per year. In addition, the production
      permit allows us to use 50 acres of the Columbus Project for road
      access.                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | We plan to use an open pit mining method to extract
      minerals from the Columbus Project. The material will be mined and
      transported by truck to the project facility. Water will then be added to
      the extracted material to make a slurry. Once the material has been
      slurried, we will use a gravity and spiral concentration process to filter
      the minerals from the material. The final extraction method will involve
      acid leaching to recover the minerals from the materials.                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Once we commence production, we anticipate that we will
      continue our production with the pilot production module as long as the
      Columbus Project produces commercial minerals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Drilling Exploration Program: We plan to commence
      a drilling program on the Columbus Project in order to determine whether
      there are sufficient reserves on the Columbus Project for economic
      viability. We have applied for the required permit applications in
      connection with the next phase of our drilling exploration program on the
      Columbus Project. If we receive the necessary approvals from the BLM, of
      which there are no assurances, we expect to commence drilling in the
      second quarter of 2008. We anticipate that our total drilling program will
      take up to two years to complete.                                                         

We anticipate spending approximately $4,176,975 on the above
exploration and development program for the Columbus Project in 2008.

THE RED MOUNTAIN PROJECT

The Red Mountain Project is a potential gold, silver and
tungsten project that consists of 60 mineral claims covering approximately 7,500
acres, all located in San Bernardino County and Kern County, California. Title
to these mineral claims is currently recorded in the names of a number of
individuals who, together, make up a mining syndicate known as Red Mountain
Mining (RMM). We have been notified that some of the claims making up the Red
Mountain Project may conflict with other existing mineral claims and other
property rights covering the location of the project. We intend to work with RMM
to in order to resolve these issues.

Description of the Red Mountain Project

Rights to the Red Mountain Project

We acquired our rights to the Red Mountain Project on August
14, 2007, pursuant to an assignment to us by Nanominerals of its rights and
interests under the Red Mountain Letter Agreement between it and RMM. For a
description of the consideration paid by us to Nanominerals in exchange for the
assignment of its rights under

14

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the Red Mountain Letter Agreement, as well as its rights under
the Columbus Letter Agreement, please see our description of the Columbus
Project, provided above, and below at Item 13. Certain Relationships and
Related Transactions, and Director Independence.

The Red Mountain Letter Agreement provides that we are to:

| | (a) | pay $5,000 per month to RMM until December 31,
    2011;                                                                                                                
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                         
| | (b) | spend a total of $200,000 by December 31, 2008 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 1 Expenditures); and
| |     |                                                                                                                                                                         
| | (c) | spend a total of $1,000,000 by December 31, 2011 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 2 Expenditures).  

For each $100,000 spent by us on the RMP Phase 1 or RMP Phase 2
Expenditures, we will earn a 5% interest in the Red Mountain Project (or a
proportionate fractional interest for expenditures in denominations of less than
$100,000). We will earn a maximum 60% interest in the Red Mountain Project if we
spend the full $1,200,000 of the RMP Phase 1 and RMP Phase 2 Expenditures by the
deadlines set out above.

In addition, at anytime, we may acquire a 100% interest in the
Red Mountain Project (the RM Acquisition Rights) by:

| | (a) | paying and issuing to RMM the following
    consideration:                                                                               
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                          
| |     | (i)                                                                                                                                      
| |     |                                                                                                                                          
| |     | (ii)                                                                                                                                     
| |     |                                                                                                                                          
| |     | (iii)                                                                                                                                    
| |     |                                                                                                                                          
| | (b) | if the Red Mountain Project achieves commercial
      production, paying and issuing to RMM the following additional
      consideration:
| |     |                                                                                                                                          
| |     | (i)                                                                                                                                      
| |     |                                                                                                                                          
| |     | (ii)                                                                                                                                     
| |     |                                                                                                                                          
| |     | (iii)                                                                                                                                    

The Acquisition Price to be used to calculate the aggregate
number of shares and share purchase warrants to be issued to RMM under the terms
of the Red Mountain Letter Agreement will be the average closing price of our
common stock during the 60 days prior to the acquisition date, provided,
however, that the Acquisition Price shall not be lower than $0.25 and shall not
be greater than $5.00.

As of December 31, 2007, the date of our most recently available
  financial statements, we had spent $233,400 on the Red Mountain Project, meaning
  that, as of December 31, 2007, we owned an 11.6% interest in the project.

15

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Location and Access

The Red Mountain Project is located at the base of Red
Mountain, which is 27 miles south of Ridgecrest in San Bernardino County and
Kern County, California, approximately 75 miles northeast of Los Angeles. The
Red Mountain Project can be accessed by using a gravel road that bisects the
project from northwest to southeast.

The Red Mountain Project does not contain any useable
infrastructure other than a water well.

Figure 3. Location of the Red Mountain Project



History

The Red Mountain Project is east of and adjacent to the Rand
Mining District, initially discovered in 1894. The Rand Mining District was
mined off and on until just recently for gold, silver and tungsten. The majority
of the mines in the area consisted of small independent operations. There is
currently no commercial mining occurring on the Red Mountain Project site.

Geology

The area surrounding the Red Mountain Project is highly
mineralized with recorded production of gold, silver and tungsten.

Nanominerals had Arrakis review the Red Mountain Project,
including the existing reports on work previously done by RMM. RMM has excavated
over 100 test pits at the project site and has gravity concentrated the bulk
samples taken from these pits. The results of RMMs tests show values ranging
from less than 0.01 troy ounces of gold per ton to over 1.00 troy ounces of gold
per ton. Those test results reportedly show an average of 0.06 o.p.t. Arrakis
reported that the grades were similar to other grades that have been reported in
the area on similar mine sites.

Based on their review of the existing reports and a field visit
to the Red Mountain Project site, Arrakis has recommended that we proceed with
an exploration program to verify the reported gold grades in RMMs studies and
to test the recoverability in order to assess the economic viability of the Red
Mountain Project.

16

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Current Exploration

Our exploration and development program for the Red Mountain
Project currently consists of the following:

|1. | Comprehensive Project Report: We are currently in
      the process of having a comprehensive project report prepared by an
      independent geological consultant on the Red Mountain Project. This report
      is expected to include a review and summary of the mining history of the
      area and previous work done on the project area. We expect to receive a
      final draft of this report early in our second fiscal quarter of
    2008.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|2. | Sampling and Drilling Program: We have initiated a
      surface sampling program on the Red Mountain Project and we are planning
      to initiate a drilling program on the Red Mountain Project sometime in
      2008. We hope to submit our initial drill permit application in 2008. The
      drill locations will be determined by further analysis of the project
      data, which is currently underway.                                       

We anticipate that we will spend approximately $1,645,600 on
  our exploration program for the Red Mountain Project in 2008.

THE IRELAND CLAIM

Location and Access to the Ireland Claim

The Ireland Claim consists of one unpatented mineral lode claim
situated in the Yellow Pine Mining District in Clark County, Nevada, Section 24
of Township 25 south, range 58 east.

The Ireland Claim is located approximately 30 miles southwest
of Las Vegas, Nevada, and approximately 4 miles south of Goodsprings, Nevada on
the eastern slope of the Spring Mountains. Access to the Ireland Claim may be
obtained by traveling southwest along Interstate Highway No. 15 from Las Vegas
to the town of Jean, Nevada. Goodsprings is accessible from Jean by paved road
at a distance of approximately seven miles to the northeast. The Ireland Claim
is approximately four miles south of Goodsprings and may be accessed from
Goodsprings by gravel road.

Ownership Interest

We acquired ownership of the Ireland Claim from Multi Metal
Mining Corp. effective as of November 30, 2004 in exchange for the sum of
$6,000. The full purchase price has been paid to Multi Metal Mining Corp. and,
as such, we are the sole legal and beneficial owners of the Ireland Claim. A
copy of the purchase agreement was filed as an exhibit to our Annual Report for
the fiscal year ended December 31, 2004.

Geology of the Ireland Claim

The regional geography of the Spring Mountain Range consists
primarily of Paleozoic sediments that have undergone intense folding accompanied
by faulting. The Yellow Pine Mining District is underlain by a series of
Carboniferous sediments (i.e. relating to the Carboniferous Period) consisting
of limestone, pure crystalline limestone, and dolomite, with occasional
intercalated beds of fine-grained sandstone. These strata have a general west to
southwest dip from 15 to 45 degrees occasionally disturbed by local folds.
Igneous rocks (i.e. rocks formed by solidified magma) are scarce in this region
and are represented chiefly by quartz-monzonite porphyry dikes and sills.

History and Previous Operations on the Ireland Claim

The Ireland Claim is situated in an area that has historically
been known as a well mineralized region.

The history of the area surrounding the Ireland Claim dates
back to 1856 following the investigation of lead ore by Mormon missionaries. The
first ore was smelted in 1857 and a mill was built north of Goodsprings in 1898.
The completion of the San Pedro, Los Angeles and Salt Lake railroad in 1905 and
the recognition of oxidized zinc minerals in the ore found around this location
stimulated the development of mines in this region. The region was the subject
of intermittent mining activity up to around 1964. The area has remained
primarily

17

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dormant since 1964. A report on the area from 1931 indicated
that several cars of copper-bearing lead ore had been previously mined from the
area. To our knowledge, no recent work has been recorded on the Ireland Claim.

The Yellow Pine Mining District has been mined primarily for
lead, zinc and silver. However, an estimated 91,000 ounces of gold has also been
recovered in the region.

Current State of Exploration on the Ireland Claim

Our exploration program for the Ireland Claim consists of the
following:

|1. | Phase I: Phase I of the exploration program
      involves conducting a VLF electromagnetic survey that traces geological
      fracture and breccia zones. VLF electromagnetic surveying employs
      electromagnetic waves that are generated at the surface and directed into
      the earth. When these waves encounter electrically conductive mineral
      formations or ore bodies located underground, they induce currents in the
      conducting minerals which generate new electromagnetic waves that are then
      detected by instruments located at the surface. Using this method, we can
      detect the presence of underground mineral formations and ore
    bodies.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Phase II: Phase II of the exploration program,
      which has been completed, involved conducting a trench sampling survey of
      the Ireland Claim. Trench sampling involves dragging a shovel along the
      surface in a single direction to create a channel. Material for the sample
      is then taken at regular intervals along the channel. This procedure is
      repeated with several other channels in different directions until a
      suitable sample size has been procured. The cost of completing Phase II
      was $8,500.                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|3. | Phase III: Phase III of our exploration program
      will involve conducting a detailed geological mapping program of the
      Ireland Claim. The purpose of this phase of the exploration program would
      be to identify the geological environment underlying the mineral claims
      and to produce a detailed mineralization map.                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|4. | Phase IV: Phase IV of the exploration program will
      involve diamond drilling the Ireland Claim in order to obtain core samples
      of the underground mineralization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

Phase II of our exploration program was completed before Phase
I due to the unavailability of the equipment necessary to conduct a VLF
electromagnetic survey. Based upon the results of Phase II, our consulting
geologist has recommended that we proceed with the VLF electromagnetic survey
that was originally recommended for Phase I. We were not able to complete Phase
I of our exploration program on the Ireland Claim during 2006 due to the
unavailability of the necessary equipment and consultants. Phase I of our
exploration program for the Ireland Claim is expected to cost approximately
$5,500. The remainder of our exploration program is expected to cost
approximately $101,200 to complete.

Our exploration program for the Ireland Claim has been
deprioritized by our management based on the progress and potential of our
Columbus and Red Mountain Projects. As a result, our exploration program for the
Ireland Claim is expected to be delayed. We do not expect to make significant
progress on exploration of the Ireland Claim in 2008. If Phase I is completed,
our Board of Directors will make a determination whether to proceed with Phase
III of the exploration program. Upon the completion of each phase of our
exploration program, our Board of Directors will make an assessment to determine
whether the results of that phase are sufficiently favorable to justify
proceeding.

ITEM
3.               
LEGAL PROCEEDINGS.

We are not currently a party to any material legal proceedings
and, to our knowledge, no such proceedings are threatened or contemplated.

ITEM
4.               
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

18

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PART II

|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
      STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|------- | -------------------------------------------------------------------------------------------------------------------

Quotations for our common stock were entered on the OTC
Bulletin Board under the symbol IREL beginning on May 8, 2006. Our symbol was
changed to IRLD on April 25, 2007 upon completion of our 4-for-1 stock split.
As our common stock did not become eligible for quotation on the OTCBB prior to
May 8, 2006, no information is available for periods prior to that date. In
addition, the OTC Bulletin Board did not report any trading activity on our
common stock during the second, third or fourth quarters of 2006 and the high
and low bid information for our common stock was not available from the OTC
Bulletin Board for those quarters.

2007
      2006High
      Low
      High
      LowFirst Quarter ended March 31
      $ 0.05
      $ 0.00
      $ N/A
      $ N/ASecond Quarter ended June 30
      $ 2.30
      $ 0.00
      $ 0.00
      $ 0.00Third Quarter ended September 30
      $ 2.05
      $ 1.40
      $ 0.00
      $ 0.00Fourth Quarter ended December 31
      $ 2.10
      $ 1.60
      $ 0.00
      $ 0.00


The above quotations have been adjusted to reflect our 4-for-1
  stock split effective April 25, 2007. Quotations entered on the OTC Bulletin
  Board reflect inter-dealer prices, without retail mark-up, markdown or commission
  and may not represent actual transactions.

Penny Stock Rules

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities
registered on certain national securities exchanges or quoted on the NASDAQ
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or system. The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure
document prepared by the SEC, which:

| | (a) | contains a description of the nature and level of risk in
      the market for penny stocks in both public offerings and secondary
      trading;                                                                                        
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | contains a description of the broker's or dealer's duties
      to the customer and of the rights and remedies available to the customer
      with respect to a violation of such duties or other requirements of
      securities laws;
| | (c) | contains a brief, clear, narrative description of a
      dealer market, including bid and ask prices for penny stocks and the
      significance of the spread between the bid and ask price;                                           
| | (d) | contains a toll-free telephone number for inquiries on
      disciplinary actions;                                                                                                                                                       
| | (e) | defines significant terms in the disclosure document or
      in the conduct of trading in penny stocks; and                                                                                                                             
| | (f) | contains such other information and in such form as the
      SEC shall require by rule or regulation.                                                                                                                                   

The broker-dealer also must, prior to effecting any transaction
in a penny stock, provide the customer with:

| | (a) | bid and offer quotations for the penny stock;                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the compensation of the broker-dealer and its salesperson
      in the transaction;                                                                                           
| | (c) | the number of shares to which such bid and ask prices
      apply, or other comparable information relating to the depth and liquidity
      of the market for such stock; and
| | (d) | monthly account statements showing the market value of
      each penny stock held in the customer's account.                                                                 

In addition, the penny stock rules require that, prior to a
transaction in a penny stock that is not otherwise exempt from those rules, the
broker-dealer must:

| | (a) | make a special written determination that the penny stock
      is a suitable investment for the purchaser; and
| | --- | ---------------------------------------------------------------------------------------------------------------

19

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| | (b) | receive from the purchaser his or her written
      acknowledgement of receipt of the determination and a written agreement to
      the transaction.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

These disclosure requirements may have the effect of reducing
the trading activity in the secondary market for our common stock and therefore
stockholders may have difficulty selling those securities.

Holders of Common Stock

As of March 25, 2008, there were 248 stockholders of record of
our common stock. In addition, we believe that a number of stockholders hold
shares of our common stock on deposit with their brokers or investment bankers
and registered in the name of stock depositories.

Dividends

We have not declared any dividends on our common stock since
our inception. There are no dividend restrictions that limit our ability to pay
dividends on our common stock in our Articles of Incorporation or bylaws.
Chapter 78 of the Nevada Revised Statutes (the NRS), does provide certain
limitations on our ability to declare dividends. Section 78.288 of Chapter 78 of
the NRS prohibits us from declaring dividends where, after giving effect to the
distribution of the dividend:

| | (a) | we would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                                                                                                                                                                                                                                        
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (b) | except as may be allowed by our Articles of
      Incorporation, our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed, if we were to be
      dissolved at the time of the distribution, to satisfy the preferential
      rights upon dissolution of stockholders who may have preferential rights
      and whose preferential rights are superior to those receiving the
      distribution.

Recent Sales of Unregistered Securities

Foreign and US Private Placement Offerings

During the fiscal year ended December 31, 2007, we completed
two private placement offerings, one made solely to non-US persons as
contemplated under Regulation S of the Securities Act and another made solely to
US accredited investors as defined in Regulation D of the Securities Act. As
initially approved by our Board of Directors, each of the Foreign Offering and
US Offering consisted of an offering of 10,000,000 units (each a Unit) each,
at a price of $0.65 per Unit. Each Unit offered under the Foreign Offering and
the US Offering consisted of one share of our common stock and one share
purchase warrant entitling the holder to purchase one additional share of our
common stock at a price of $1.00 per share for a period of two (2) years from
the date of issuance. We may accelerate the expiry date for these warrants after
one year from the date of issuance if our common stock trades at a weighted
average price over $3.50 for twenty (20) consecutive trading days. If we choose
to exercise these acceleration rights, the accelerated expiry date will be 30
days after we send notice of the acceleration.

The total number of Units sold under the Foreign Offering and
the US Offering was 8,188,000 Units and 11,812,000 Units respectively. This
represents an over allotment of 1,812,000 Units from the total number of Units
originally approved by our Board of Directors for the US Offering. To account
for the over allotment, we decreased the number of Units. The aggregate number
of Units sold by us under both the Foreign Offering and the US Offering was
20,000,000 Units, for total gross proceeds of $13,000,000. We paid an aggregate
of $243,653 in cash commissions and issued an aggregate of 160,650 Agents
Warrants in connection with the sale of 5,355,000 Units under the US Offering
and the Foreign Offering, collectively. The Agents Warrants contain the same
rights and conditions as the other warrants issued in the Foreign Offering and
the US Offering. Both the Foreign Offering and the US Offering have now been
closed. The proceeds of the Foreign Offering and the U.S. Offering were used to
fund our acquisition of CBI, exploration and development of our mineral
properties and for general working capital purposes.

20

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Acquisition of Columbus Brine Inc. (CBI)

In order to complete the acquisition of CBI, we issued an aggregate
  of 10,440,087 shares of our common stock and 5,220,059 share purchase warrants
  (the CBI Warrants) to the former shareholders of CBI. The shares
  and share purchase warrants issued to the former shareholders of CBI were issued
  in reliance upon Rule 506 of Regulation D promulgated under the Securities Act.
  We received representations that there were no more than 35 shareholders of
  CBI who did not qualify as accredited investors as that term is
  defined in Rule 502 of Regulation D. Each share purchase warrant entitles the
  holder to purchase one additional share of our common stock at a price of $2.39
  per share until February 19, 2013. We may accelerate the expiration date of
  the share purchase warrants after August 19, 2010 if the average price of our
  common stock over any 20 consecutive trading days is greater than or equal to
  150% of the exercise price. The share purchase warrants provide the holder with
  a cashless exercise right.

ITEM
7.               
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.

PLAN OF OPERATION

During our 2008 fiscal year, we intend to proceed with our
exploration and development programs for the Columbus Project and the Red
Mountain Project. Although we currently intend to retain the Ireland Claim, our
management has deprioritized our exploration program for the Ireland Claim based
on the progress and potential of the Columbus and Red Mountain Projects. As a
result, our exploration program for the Ireland Claim is expected to be delayed,
and may be delayed indefinitely.

The Columbus Project

Our exploration and development program for the Columbus
Project currently consists of the following:

|1. | Pilot Production Module: We plan to implement a
      pilot production module on the Columbus Project in order to evaluate the
      economic feasibility of the project. The pilot production module will
      consist of a full scale production and processing cycle that we will use
      to test the commercial viability of the project. If the operation of this
      pilot production module proves to our satisfaction that the Columbus
      Project is economically viable, we will seek to construct additional
      production modules of the mill site. The production model for the Columbus
      Project is anticipated to be a low grade, low cost, high volume mining
      operation.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | We have obtained a production permit from the Bureau of
      Land Management (BLM). The production permit allows us to commence
      calcium carbonate production and precious mineral extraction on the 270
      acre mine site and 60 acre mill sites located at the Columbus Project at a
      mine rate of up to 78,000 tons per year. In addition, the Production
      Permit allows us to use 50 acres of the Columbus Project for road
      access.                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | We plan to use an open pit mining method to extract
      minerals from the Columbus Project. The material will be mined and
      transported by truck to the project facility. Water will then be added to
      the extracted material to make a slurry. Once the material has been
      slurried, we will use a gravity and spiral concentration process to filter
      the minerals from the material. The final extraction method will involve
      acid leaching to recover the minerals from the materials.                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Once we commence production, we anticipate that we will
      continue our production with the pilot production module as long as the
      Columbus Project produces commercial minerals. Readers are cautioned
      that, although we believe that the results of our exploration activities
      to date are sufficiently positive to proceed with the installation of a
      pilot production module for the Columbus Project, we have not yet
      established any probable or proven reserves. There is no assurance that we
      will be able to establish that any commercially extractable ore reserves
      exist on the Columbus Project.                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Drilling Exploration Program: We plan to commence
      a drilling program on the Columbus Project in order to determine whether
      there are sufficient reserves on the Columbus Project for economic
      viability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

21

---

During the fourth quarter of 2007, we applied for the required
permit applications in connection with our drilling exploration program on the
Columbus Project. If we receive the necessary approvals from the BLM, of which
there are no assurances, we expect to commence drilling by the end of the first
quarter of 2008. We anticipate that our drilling program will take up to two
years to complete.

We anticipate spending approximately $4,176,975 on the above
exploration and development program for the Columbus Project in 2008.

The Red Mountain Project

Our exploration and development program for the Red Mountain
Project currently consists of the following:

|1. | Comprehensive Project Report: We are currently in
      the process of having a comprehensive project report prepared by an
      independent geological consultant on the Red Mountain Project. This report
      is expected to include a review and summary of the mining history of the
      area and previous work done on the project area. We expect to receive a
      final draft of this report early in our second fiscal quarter of
    2008.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|2. | Sampling and Drilling Program: We have initiated a
      surface sampling program on the Red Mountain Project and we are planning
      to initiate a drilling program on the Red Mountain Project sometime in
      2008. We hope to submit our initial drill permit application in 2008. The
      drill locations will be determined by further analysis of the project
      data, which is currently underway.                                       

We anticipate that we will spend approximately $1,645,600 on
our exploration program for the Red Mountain Project in 2008.

Cash Requirements

Our estimated expenses for 2008 are as follows:

Columbus Project• Property Acquisition and Maintenance Costs
      $210,000• Drilling Exploration Program and Obtaining
        Reserve Estimates
      626,000• Plant Facility Upgrades
      2,379,250• Plant Operation
      402,000• Permits
      180,0003,797,250• Contingency (@ 10%)
      379,725Total for Columbus Project
      $4,176,975Red Mountain Project  Phase I• Property Acquisition and Maintenance Costs
      $60,000• Permitting Costs
      350,000• Drilling/Sampling Exploration Program
      720,000• Operations
      366,0001,496,000• Contingency (@ 10%)
      149,600Total for Red Mountain Project
      $1,645,600General and Administration• General and Administration
      $1,316,400• Contingency (@ 10%)
      131,640**Total
          for General and Administration**
      $1,448,040TOTAL
      $7,270,615


22

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As of December 31, 2007, we had cash in the amount of
approximately $8,759,605 and a working capital surplus of $8,621,176. Although
this amount is sufficient to meet our anticipated costs for our exploration and
development programs during the next twelve months, the actual costs of
completing those programs may be greater than anticipated. If the actual costs
are significantly greater than anticipated or if we proceed with our exploration
and development programs beyond what we currently have planned for the next
twelve months, we will need to obtain additional financing. There are no
assurances that we will be able to obtain additional financing in an amount
sufficient to meet our needs or on terms that are acceptable to us.

RESULTS OF OPERATIONS

|Summary of Year End Results |              |                              |                      
|--------------------------- | ------------ | ---------------------------- | ---------------------
|                            |              | Year
      Ended December 31 |                      
|                            |              |                              | Percentage           
|                            | 2007         | 2006                         | Increase / (Decrease)
|Revenue                     | $ Nil        | $ Nil                        | n/a                  
|Operating Expenses          | (2,363,460)  | (95,279)                     | 2,380.6%             
|Interest Income             | 120,189      | -                            | n/a                  
|Net Loss                    | $(2,243,271) | $(95,279)                    | 2,254.4%             

Revenue

We have not earned any revenues since our inception and we do
not anticipate earning revenues until such time as we have entered into
commercial production of our mineral properties. We are currently in the
exploration stage of our business and we can provide no assurances that we will
discover commercially exploitable levels of mineral resources on our properties,
or if such resources are discovered, that we will be able to enter into
commercial production of our mineral properties.

Operating Expenses

The major components of our operating expenses are outlined in
the table below:

|                                                                        |            | Year Ended December 31 |                      
|----------------------------------------------------------------------- | ---------- | ---------------------- | ---------------------
|                                                                        |            |                        | Percentage           
|                                                                        | 2007       | 2006                   | Increase / (Decrease)
|Mineral exploration and
      evaluation expenses                       | $336,042   | -                      | n/a                  
|Mineral exploration and evaluation
      expenses  related party       | 976,314    | -                      | n/a                  
|General and administrative                                              | 485,932    | 95,279                 | 410.0%               
|Depreciation                                                            | 672        | -                      | n/a                  
|Mineral and property holding costs                                      | 269,500    | -                      | n/a                  
|Mineral and property holding costs  
      reimbursed to related party | 295,000    | -                      | n/a                  
|Total Expenses                                                          | $2,363,460 | $95,279                | 2,380.6%             

Our operating expenses increased during the year ended December
31, 2007 primarily as a result of amounts spent by us on acquiring, exploring
and evaluating the Columbus and Red Mountain Projects.

The amounts spent on mineral exploration and evaluation
expenses in 2007 represents amounts spent by us on exploring and evaluating the
Columbus and Red Mountain Projects. Mineral exploration and evaluation expenses
 related party and Mineral and property option payments  reimbursed to
related party represent amounts paid or reimbursed to Nanominerals. During the
year ended December 31, 2007, we incurred fees payable to Nanominerals of
$645,000 for technical services and financing related services relating
primarily to

23

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the Columbus and Red Mountain Projects. In addition, we
reimbursed Nanominerals an aggregate of $626,314 for expenses related to the
acquisition, exploration and evaluation of the Columbus and Red Mountain
Projects.

The increase in general and administrative expenses is
primarily attributable to: (i) increases in the amounts paid as executive
compensation (see Item 11. Executive Compensation); and (ii) an increase in
legal expenses incurred by us due to our acquisition of the Columbus Project and
the assigning to us of Nanominerals rights under the Columbus Letter Agreement
and the Red Mountain Letter Agreement.

We anticipate that our operating expenses will continue to
increase significantly as we pursue our exploration and development programs for
the Columbus Project, the Red Mountain Project and the Ireland Claim.

LIQUIDITY AND CAPITAL RESOURCES

|Working Capital                         |                 |                 |                      
|--------------------------------------- | --------------- | --------------- | ---------------------
|                                        | At December 31, | At December 31, | Percentage           
|                                        | 2007            | 2006            | Increase / (Decrease)
|Current Assets                          | $8,909,628      | $11,633         | 76,489.3%            
|Current Liabilities                     | (288,452)       | (71,061)        | 305.9%               
|Working Capital Surplus
      (Deficit) | $8,621,176      | $(59,428)       | 14,406.9%            

|Cash Flows                                   |                              |          
|-------------------------------------------- | ---------------------------- | ---------
|                                             | Year
      Ended December 31
|                                             | 2007                         | 2006     
|Net Cash Used In Operating Activities        | $(3,790,103)                 | $(51,609)
|Net Cash from Financing Activities           | 12,757,847                   | --       
|Net Cash Used in Investing Activities        | (219,772)                    | --       
|Net Increase/ Decrease In Cash During Period | $8,747,972                   | $(51,609)

As at December 31, 2007 we had a working capital surplus of
$8,621,176 as compared to a working capital deficit of $59,428 as at our year
ended December 31, 2006. This is primarily a result of the capital raised by us
in 2007 through the Foreign and US Offerings.

During the year ended December 31, 2007, we completed the sale
of a collective total of 20,000,000 Units under the Foreign and US Offerings,
for total proceeds, less commissions, of $12,756,347. The Foreign and US
Offerings have now been closed.

Although the amounts raised by us through the Foreign and US
Offerings is sufficient to meet our anticipated costs for our exploration and
development programs for 2008, the actual costs of completing those programs may
be greater than anticipated. If the actual costs are significantly greater than
anticipated or if we proceed with our exploration and development programs
beyond what we currently have planned for the next twelve months, we will need
to obtain additional financing. There are no assurances that we will be able to
obtain additional financing in an amount sufficient to meet our needs or on
terms that are acceptable to us. There are no assurances that we will able to
obtain financing from alternative sources on terms acceptable to us. If we are
not able to obtain additional financing when needed, we will be unable to
complete our current plan of operation.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a material current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources.

24

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CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with
generally accepted accounting principles requires our management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Our management routinely makes judgments and estimates about the effects of
matters that are inherently uncertain.

We have identified certain accounting policies, described
below, that are most important to the portrayal of our current financial
condition and results of operations.

Mineral Rights

We capitalize acquisition and option costs of mineral property
rights. The amount capitalized represents fair value at the time the mineral
rights were acquired. The accumulated costs of acquisition for properties that
are developed to the stage of commercial production will be amortized using the
unit-of-production method.

Exploration Costs

Mineral exploration costs are expensed as incurred.

Environmental Protection and Reclamation Costs

Our operations have been, and may in the future, be affected
  from time to time in varying degrees by changes in environmental regulations,
  including those for future removal and site restoration costs. Both the likelihood
  of new regulation and their overall effect upon us may vary from region to region
  and are not predictable.

Environmental expenditures that relate to ongoing environmental
and reclamation programs are charged against statements of operations as
incurred or capitalized and amortized depending upon their future economic
benefits. We do not currently anticipate any material capital expenditures for
environmental control facilities because our property holding is at an early
stage of exploration.

25

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ITEM
8.               
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index to Financial Statements:

Audited financial statements for the year ended December 31,
2007, including:

|1. | Report of Independent Registered Accounting
        Firm (Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter
        Accountancy Corporation);                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                               
|2. | Report of Independent Registered Accounting
        Firm (Telford & Sadovnick, P.L.L.C.);                                                                                     
|   |                                                                                                                                                                               
|3. | Consolidated Balance Sheets as of December 31, 2007 and
      2006;                                                                                                           
|   |                                                                                                                                                                               
|4. | Consolidated Statements of Operations for the years ended
      December 31, 2007 and 2006 and the period on February 20, 2001 (date of
      inception) to December 31, 2007;
|   |                                                                                                                                                                               
|5. | Consolidated Statements of Stockholders Equity (Deficit)
      for the period from February 20, 2001 (date of inception) through December
      31, 2007; and                
|   |                                                                                                                                                                               
|6. | Consolidated Statements of Cash Flows for the years ended
      December 31, 2007 and 2006 and the period on February 20, 2001 (date of
      inception) to December 31, 2007;
|   |                                                                                                                                                                               
|7. | Notes to the Consolidated Financial Statements.                                                                                                                               

26

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REPORT OF INDEPENDENT REGISTERED 
  PUBLIC ACCOUNTING FIRM

To the Board of Directors and 
  Shareholders of Ireland, Inc.

We have audited the accompanying balance sheet of Ireland, Inc.
  (An Exploration Stage Company) as of December 31, 2007, and the related statements
  of operations, stockholders’ equity and comprehensive income, and cash
  flows for the year ended December 31, 2007. Ireland, Inc.’s management
  is responsible for these financial statements. Our responsibility is to express
  an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform the audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. The company is not
  required to have, nor were we engaged to perform, an audit of its internal control
  over financial reporting. Our audit included consideration of internal control
  over financial reporting as a basis for designing audit procedures that are
  appropriate in the circumstances, but not for the purpose of expressing an opinion
  on the effectiveness of the company’s internal control over financial
  reporting. Accordingly, we express no such opinion. An audit also includes examining,
  on a test basis, evidence supporting the amounts and disclosures in the financial
  statements, assessing the accounting principles used and significant estimates
  made by management, as well as evaluating the overall financial statement presentation.
  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
  fairly, in all material respects, the financial position of Ireland, Inc. (An
  Exploration Stage Company) as of December 31, 2007, and the results of its operations
  and its cash flows for the year ended December 31, 2007 in conformity with accounting
  principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
  the Company will continue as a going concern. As described in Note 1 to the
  financial statements, the Company’s operating losses raise substantial
  doubt about its ability to continue as a going concern, unless the Company attains
  future profitable operations and/or obtains additional financing. The financial
  statements do not include any adjustments that might result from the outcome
  of this uncertainty.

| | BROWN ARMSTRONG PAULDEN            
| | -----------------------------------
| | McCOWN STARBUCK THORNBURGH & KEETER
| | ACCOUNTANCY CORPORATION            
| |                                    
| |                                    

Bakersfield, California 
  March 31, 2008

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of**Ireland Inc.**
  (An Exploration Stage Company)

We have audited the accompanying balance sheet of **Ireland
  Inc.** (the Company) as at December 31, 2006, the related statements
  of operations, stockholders’ equity (deficiency) and cash flows for the
  year then ended, and for the period from inception on February 20, 2001 through
  to December 31, 2006. These financial statements are the responsibility of the
  Company’s management. Our responsibility is to express an opinion on these
  financial statements based on our audits.

We conducted our audits in accordance with standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform an audit to obtain reasonable assurance about 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, based on our audits, such financial statements
  present fairly, in all material respects, the financial position of Ireland
  Inc. as at December 31, 2006, and the results of its operations and its cash
  flows for the year then ended and for the period from inception on February
  20, 2001 through to December 31, 2006, in conformity with accounting principles
  generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
  the Company will continue as a going concern. As described in Note 1 to the
  financial statements, the Company’s operating losses raise substantial
  doubt about its ability to continue as a going concern, unless the Company attains
  future profitable operations and/or obtains additional financing. The financial
  statements do not include any adjustments that might result from the outcome
  of this uncertainty.

| | **/s/ TELFORD SADOVNICK, P.L.L.C.** **TELFORD
        SADOVNICK, P.L.L.C.
        CERTIFIED PUBLIC ACCOUNTANTS**
| | ----------------------------------------------------------------------------------------------------------------

Bellingham, Washington
  April 4, 2007

---

IRELAND INC.
  (AN EXPLORATION STAGE ENTERPRISE) 
  CONSOLIDATED BALANCE SHEETS

|                                                           |   | December 31, 2007 |   |   | December 31, 2006 |  
|---------------------------------------------------------- | - | ----------------- | - | - | ----------------- | -
|                                                           |   |                   |   |   |                   |  
|ASSETS                                                     |  
|                                                           |   |                   |   |   |                   |  
|Current assets                                             |   |                   |   |   |                   |  
|Cash                                                       | $ | 8,759,605         |   | $ | 11,633            |  
|Prepaid expenses                                           |   | 150,023           |   |   | -                 |  
|                                                           |   |                   |   |   |                   |  
|Total current assets                                       |   | 8,909,628         |   |   | 11,633            |  
|                                                           |   |                   |   |   |                   |  
|Property and equipment, net                                |   | 290,718           |   |   | -                 |  
|Reclamation deposit                                        |   | 807,000           |   |   | -                 |  
|Deposits                                                   |   | 2,200             |   |   | -                 |  
|Mineral property acquisition costs                         |   | 1,058,872         |   |   | -                 |  
|                                                           |   |                   |   |   |                   |  
|Total non-current assets                                   |   | 2,158,790         |   |   | -                 |  
|                                                           |   |                   |   |   |                   |  
|Total assets                                               | $ | 11,068,418        |   | $ | 11,633            |  
|                                                           |   |                   |   |   |                   |  
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)             |  
|                                                           |   |                   |   |   |                   |  
|Current liabilities                                        |   |                   |   |   |                   |  
|Accounts payable                                           | $ | 144,280           |   | $ | 49,271            |  
|Accounts payable - related party                           |   | 82,128            |   |   | -                 |  
|Accrued payroll and related taxes                          |   | 38,754            |   |   | -                 |  
|Due to related party                                       |   | 23,290            |   |   | 21,790            |  
|                                                           |   |                   |   |   |                   |  
|Total liabilities                                          |   | 288,452           |   |   | 71,061            |  
|                                                           |   |                   |   |   |                   |  
|Stockholders' equity (deficit)                             |   |                   |   |   |                   |  
|Common stock, $0.001 par value;
      400,000,000 shares   |   |                   |   |   |                   |  
|authorized, 86,550,000 and 36,550,000
      shares,        |   |                   |   |   |                   |  
|respectively, issued
      and outstanding                 |   | 86,550            |   |   | 36,550            |  
|Additional paid-in capital                                 |   | 13,234,865        |   |   | 202,200           |  
|Accumulated deficit during exploration
      stage         |   | (2,541,449        | ) |   | (298,178          | )
|                                                           |   |                   |   |   |                   |  
|Total stockholders'
      equity (deficit)                 |   | 10,779,966        |   |   | (59,428           | )
|                                                           |   |                   |   |   |                   |  
|Total liabilities and stockholders' equity
      (deficit) | $ | 11,068,418        |   | $ | 11,633            |  

See Accompanying Notes to these Consolidated Financial Statements
  
  2

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IRELAND INC.
  (AN EXPLORATION STAGE ENTERPRISE) 
  CONSOLIDATED STATEMENTS OF OPERATIONS

|                                             |   |                    |   |   |                    |   |   | For the period from |  
|-------------------------------------------- | - | ------------------ | - | - | ------------------ | - | - | ------------------- | -
|                                             |   |                    |   |   |                    |   |   | February 20, 2001   |  
|                                             |   |                    |   |   |                    |   |   | (Date of Inception) |  
|                                             |   | For the Year Ended |   |   | For the Year Ended |   |   | Through             |  
|                                             |   | December 31, 2007  |   |   | December 31, 2006  |   |   | December 31, 2007   |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Revenue                                      | $ | -                  |   | $ | -                  |   | $ | -                   |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Operating expenses                           |   |                    |   |   |                    |   |   |                     |  
|Mineral exploration and evaluation expenses  |   | 336,042            |   |   | -                  |   |   | 346,898             |  
|Mineral exploration and evaluation           |   |                    |   |   |                    |   |   |                     |  
|expenses - related party                     |   | 976,314            |   |   | -                  |   |   | 976,314             |  
|General and administrative                   |   | 485,932            |   |   | 95,279             |   |   | 759,254             |  
|Depreciation                                 |   | 672                |   |   | -                  |   |   | 672                 |  
|Mineral and property holding
      costs     |   | 269,500            |   |   | -                  |   |   | 269,500             |  
|Mineral and property holding costs -         |   |                    |   |   |                    |   |   |                     |  
|reimbursed to related
      party            |   | 295,000            |   |   | -                  |   |   | 295,000             |  
|Write-off of mineral rights                  |   | -                  |   |   | -                  |   |   | 14,000              |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Total operating expenses                     |   | 2,363,460          |   |   | 95,279             |   |   | 2,661,638           |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Loss from operations                         |   | (2,363,460         | ) |   | (95,279            | ) |   | (2,661,638          | )
|                                             |   |                    |   |   |                    |   |   |                     |  
|Other income:                                |   |                    |   |   |                    |   |   |                     |  
|Interest income                              |   | 120,189            |   |   | -                  |   |   | 120,189             |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Total other income                           |   | 120,189            |   |   | -                  |   |   | 120,189             |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Net loss                                     | $ | (2,243,271         | ) | $ | (95,279            | ) | $ | (2,541,449          | )
|                                             |   |                    |   |   |                    |   |   |                     |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Loss per common share - basic and diluted    | $ | (0.04              | ) | $ | (0.00              | ) |   |                     |  
|                                             |   |                    |   |   |                    |   |   |                     |  
|Weighted average common shares outstanding - |   |                    |   |   |                    |   |   |                     |  
|Basic and diluted                            |   | 55,535,612         |   |   | 36,550,000         |   |   |                     |  

See Accompanying Notes to these Consolidated Financial Statements
  3

---

IRELAND INC.
  (AN EXPLORATION STAGE ENTERPRISE) 
  CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

AccumulatedDeficit During
      
      
      TotalCommon
        Stock
      
      
      Additional
      
      
      Exploration
      
      
      Stockholders'Shares
      
      
      Amount
      
      
      Paid-in Capital
      
      
      Stage
      
      
      Equity (Deficit)Balance, February 20, 2001
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -Issuance of common stock for cash,$0.001 per share
      20,000,000
      
      
      20,000
      
      
      (15,000
      )
      
      -
      
      
      5,000Issuance of common stock for cash,$0.0025 per share
      8,000,000
      
      
      8,000
      
      
      12,000
      
      
      -
      
      
      20,000Issuance of common stock for cash,$0.025 per share
      1,750,000
      
      
      1,750
      
      
      42,000
      
      
      -
      
      
      43,750Net loss
      -
      
      
      -
      
      
      -
      
      
      (16,045
      )
      
      (16,045
      )Balance, December 31, 2001
      29,750,000
      
      
      29,750
      
      
      39,000
      
      
      (16,045
      )
      
      52,705Net loss
      -
      
      
      -
      
      
      -
      
      
      (49,313
      )
      
      (49,313
      )Balance, December 31, 2002
      29,750,000
      
      
      29,750
      
      
      39,000
      
      
      (65,358
      )
      
      3,392Net loss
      -
      
      
      -
      
      
      -
      
      
      (32,516
      )
      
      (32,516
      )Balance, December 31, 2003
      29,750,000
      
      
      29,750
      
      
      39,000
      
      
      (97,874
      )
      
      (29,124
      )Net loss
      -
      
      
      -
      
      
      -
      
      
      (51,000
      )
      
      (51,000
      )Balance, December 31, 2004
      29,750,000
      
      
      29,750
      
      
      39,000
      
      
      (148,874
      )
      
      (80,124
      )Issuance of common stock for cash,$0.025 per share
      6,800,000
      
      
      6,800
      
      
      163,200
      
      
      -
      
      
      170,000Net loss
      -
      
      
      -
      
      
      -
      
      
      (54,025
      )
      
      (54,025
      )Balance, December 31, 2005
      36,550,000
      
      
      36,550
      
      
      202,200
      
      
      (202,899
      )
      
      35,851Net loss
      -
      
      
      -
      
      
      -
      
      
      (95,279
      )
      
      (95,279
      )Balance, December 31, 2006
      36,550,000
      
      
      36,550
      
      
      202,200
      
      
      (298,178
      )
      
      (59,428
      )Issue of common stock toNanominerals Corp. for a deed ofassignment to the option interestsin the Columbus and the Red Mountainprojects
      30,000,000
      
      
      30,000
      
      
      195,000
      
      
      -
      
      
      225,000Issuance of stock options for3,720,000 shares of common stockto officers and consultants
      -
      
      
      -
      
      
      6,817
      
      
      -
      
      
      6,817Issuance of common stock for cashReg. S - Private Placement,$0.65 per share
      2,016,000
      
      
      2,016
      
      
      1,308,384
      
      
      -
      
      
      1,310,400


See Accompanying Notes to these Consolidated Financial Statements
  4

---

IRELAND INC.
  (AN EXPLORATION STAGE ENTERPRISE) 
  CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

AccumulatedDeficit During
      
      
      TotalCommon
        Stock
      
      
      Additional
      
      
      Exploration
      
      
      Stockholders'Shares
      
      
      Amount
      
      
      Paid-in Capital
      
      
      Stage
      
      
      Equity (Deficit)Issuance of common stock for cashReg. D - Private Placement,$0.65 per share, net of $34,125commission
      2,250,000
      
      
      2,250
      
      
      1,426,125
      
      
      -
      
      
      1,428,375Issuance of common stock for cashReg. D - Private Placement,$0.65 per share, net of $98,053commission
      3,962,000
      
      
      3,962
      
      
      2,473,285
      
      
      -
      
      
      2,477,247Issuance of common stock for cashReg. S - Private Placement,$0.65 per share, net of $29,575commission
      3,150,500
      
      
      3,151
      
      
      2,015,100
      
      
      -
      
      
      2,018,251Issuance of common stock for cashReg. D - Private Placement,$0.65 per share
      2,000,000
      
      
      2,000
      
      
      1,298,000
      
      
      -
      
      
      1,300,000Issuance of common stock for cashReg. S - Private Placement,$0.65 per share, net of $39,358commission
      1,895,000
      
      
      1,895
      
      
      1,190,497
      
      
      -
      
      
      1,192,392Issuance of stock options for75,000 shares of common stockto employee amortized overvesting period
      -
      
      
      -
      
      
      9,876
      
      
      -
      
      
      9,876Issuance of common stock for cashReg. D - Private Placement,$0.65 per share, net of $4,550commission
      3,600,000
      
      
      3,600
      
      
      2,331,850
      
      
      -
      
      
      2,335,450Issuance of common stock for cashReg. S - Private Placement,$0.65 per share, net of $37,992commission
      1,126,500
      
      
      1,126
      
      
      693,107
      
      
      -
      
      
      694,233Issuance of stock options for100,000 shares of common stockto consultant
      -
      
      
      -
      
      
      84,624
      
      
      -
      
      
      84,624Net loss
      -
      
      
      -
      
      
      -
      
      
      (2,243,271
      )
      
      (2,243,271
      )Balance, December 31, 2007
      86,550,000
      
      $
      86,550
      
      $
      13,234,865
      
      $
      (2,541,449
      )
      $
      10,779,966


See Accompanying Notes to these Consolidated Financial Statements
  4

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IRELAND INC.
  (AN EXPLORATION STAGE ENTERPRISE) 
  CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                     |   |                    |   |   |                    |   |   | For the period from |  
|-------------------------------------------------------------------- | - | ------------------ | - | - | ------------------ | - | - | ------------------- | -
|                                                                     |   |                    |   |   |                    |   |   | February 20, 2001   |  
|                                                                     |   |                    |   |   |                    |   |   | (Date of inception) |  
|                                                                     |   | For the Year Ended |   |   | For the Year Ended |   |   | through             |  
|                                                                     |   | December 31, 2007  |   |   | December 31, 2006  |   |   | December 31, 2007   |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                 |   |                    |   |   |                    |   |   |                     |  
|Net loss                                                             | $ | (2,243,271         | ) | $ | (95,279            | ) | $ | (2,541,449          | )
|Adjustments to reconcile loss from operating                         |   |                    |   |   |                    |   |   |                     |  
|to net cash used
      in operating activities:                      |   |                    |   |   |                    |   |   |                     |  
|Depreciation                                                         |   | 672                |   |   | -                  |   |   | 672                 |  
|Write-off
      of mineral rights                                    |   | -                  |   |   | -                  |   |   | 14,000              |  
|Consulting accrual                                                   |   | -                  |   |   | 15,000             |   |   | 15,000              |  
|Stock based
      expenses                                           |   | 101,317            |   |   | -                  |   |   | 101,317             |  
|Changes in operating assets and liabilities:                         |   |                    |   |   |                    |   |   |                     |  
|Prepaid
      expenses                                               |   | (150,023           | ) |   | -                  |   |   | (150,023            | )
|Other assets                                                         |   | (2,200             | ) |   | -                  |   |   | (2,200              | )
|Reclamation
      deposit                                            |   | (807,000           | ) |   | -                  |   |   | (821,000            | )
|Mineral property acquisition
      costs                             |   | (833,872           | ) |   | -                  |   |   | (833,872            | )
|Accounts
      payable and accrued liabilities                       |   | 144,274            |   |   | 28,670             |   |   | 193,545             |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Net cash used in operating activities                                |   | (3,790,103         | ) |   | (51,609            | ) |   | (4,024,010          | )
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|CASH FLOW FROM INVESTING ACTIVITIES                                  |   |                    |   |   |                    |   |   |                     |  
|Purchase of property and equipment                                   |   | (219,772           | ) |   | -                  |   |   | (219,772            | )
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Net cash used in investing activities                                |   | (219,772           | ) |   | -                  |   |   | (219,772            | )
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|CASH FLOW FROM FINANCING ACTIVITIES                                  |   |                    |   |   |                    |   |   |                     |  
|Proceeds from stock issuance                                         |   | 13,000,000         |   |   | -                  |   |   | 13,238,750          |  
|Stock issuance costs                                                 |   | (243,653           | ) |   | -                  |   |   | (243,653            | )
|Proceeds from borrowings from related
      party                    |   | 1,500              |   |   | -                  |   |   | 8,290               |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Net cash provided by financing activities                            |   | 12,757,847         |   |   | -                  |   |   | 13,003,387          |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|NET CHANGE IN CASH                                                   |   | 8,747,972          |   |   | (51,609            | ) |   | 8,759,605           |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|CASH AT BEGINNING OF PERIOD                                          |   | 11,633             |   |   | 63,242             |   |   | -                   |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|CASH AT END OF PERIOD                                                | $ | 8,759,605          |   | $ | 11,633             |   | $ | 8,759,605           |  
|                                                                     |   | -                  |   |   |                    |   |   |                     |  
|                                                                     |   | -                  |   |   |                    |   |   |                     |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|SUPPLEMENTAL INFORMATION                                             |   |                    |   |   |                    |   |   |                     |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Interest Paid                                                        | $ | -                  |   | $ | -                  |   | $ | -                   |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Income Taxes Paid                                                    | $ | -                  |   | $ | -                  |   | $ | -                   |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Non-cash investing and financing activities:                         |   |                    |   |   |                    |   |   |                     |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Capital equipment purchased through
      accounts payable financing | $ | 71,618             |   | $ | -                  |   | $ | 71,618              |  
|                                                                     |   |                    |   |   |                    |   |   |                     |  
|Assets acquired for common stock issued
      for mineral properties | $ | 225,000            |   | $ | -                  |   | $ | 225,000             |  

See Accompanying Notes to these Consolidated Financial Statements
  5

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Basis of presentation These financial
        statements and related notes are presented in accordance with accounting
        principles generally accepted in the United States. The Companys
        fiscal year-end is December 31.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Description of business The Company is
        considered an exploration stage company since its formation and the Company
        has not yet realized any revenues from its planned operations. The Company
        is primarily focused on the acquisition and exploration of mining properties.
        Upon location of a commercial minable reserve, the Company expects to
        actively prepare the site for its extractions and enter a development
        stage.                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | History The Company was incorporated on
        February 20, 2001 under the laws of the State of Nevada under the name
        Merritt Ventures Corp. On December 19, 2005, the Company changed its name
        to Ireland Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Going concern- The accompanying financial statements
        have been prepared assuming the Company will continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | The Company incurred cumulative net losses of $2,541,449
        from operations as of December 31, 2007, and has no revenue. The future
        of the Company is dependent upon its ability to obtain financing and upon
        future profitable operations from the development of its mineral properties.
        Management has plans to seek additional capital through private placements
        and public offerings of its common stock. The financial statements do
        not include any adjustments relating to the recoverability and classification
        of recorded assets, or the amounts of and classification of liabilities
        that might be necessary in the event the Company cannot continue in existence.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Principles of consolidation The consolidated
        financial statements include the accounts of the Company and its wholly-owned
        subsidiary incorporated for the sole purpose of completing an acquisition,
        CBI Acquisition, Inc. (CBIA). CBIA was formed on December 19, 2007 and
        had no activity in 2007.                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Mineral rights- The Company capitalizes acquisition
        and option costs of mineral property rights. The amount capitalized represents
        fair value at the time the mineral rights were acquired. The accumulated
        costs of acquisition for properties that are developed to the stage of
        commercial production will be amortized using the unit-of-production method.                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Exploration costs- Mineral exploration costs
        are expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Fixed assets Fixed assets are stated at
        cost less accumulated depreciation. Depreciation is provided principally
        on the straight-line method over the estimated useful lives of the assets,
        which are generally 3 to 39 years. The cost of repairs and maintenance
        is charged to expense as incurred. Expenditures for property betterments
        and renewals are capitalized. Upon sale or other disposition of a depreciable
        asset, cost and accumulated depreciation are removed from the accounts
        and any gain or loss is reflected in other income (expense).                                                                                                                       

6

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Impairment of long-lived assets The Company
        reviews and evaluates long-lived assets for impairment when events or
        changes in circumstances indicate the related carrying amounts may not
        be recoverable. The Company considers SFAS No. 144, Accounting for
        the Impairment or Disposal of Long-lived Assets and EITF 04-3, Mining
        Assets: Impairment and Business Combinations. Asset impairment is
        considered to exist if the total estimated future cash flows, on an undiscounted
        basis, are less than the carrying amount of the long-lived asset. An impairment
        loss is measured and recorded based on discounted estimated future cash
        flows. Future cash flows are based on estimated quantities of recoverable
        minerals, expected gold and other commodity prices (considering current
        and historical prices, price trends and related factors), production levels
        and cash costs of production, capital and reclamation costs, all based
        on detailed engineering life-of-mine plans.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | In estimating future cash flows, assets are grouped
        at the lowest levels for which there are identifiable cash flows that
        are largely independent of future cash flows from other asset groups.
        With the exception of other mine-related exploration potential and exploration
        potential in areas outside of the immediate mine-site, all assets at a
        particular operation are considered together for purposes of estimating
        future cash flows. In the case of mineral interests associated with other
        mine-related exploration potential and exploration potential in areas
        outside of the immediate mine-site, cash flows and fair values are individually
        evaluated based primarily on recent exploration results.                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Various factors could impact our ability to achieve
        forecasted production schedules. Additionally, commodity prices, capital
        expenditure requirements and reclamation costs could differ from the assumptions
        used in the cash flow models used to assess impairment. The ability to
        achieve the estimated quantities of recoverable minerals from exploration
        stage mineral interests involves further risks in addition to those factors
        applicable to mineral interests where proven and probable reserves have
        been identified, due to the lower level of confidence that the identified
        mineralized material can ultimately be mined economically.                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Material changes to any of these factors or assumptions
        discussed above could result in future impairment charges to operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Fair value of financial instruments Financial
        accounting standards Statement No. 107, Disclosure About Fair Value
        of Financial Instruments, requires the Company to disclose, when
        reasonably attainable, the fair market values of its assets and liabilities
        which are deemed to be financial instruments. The carrying amounts and
        estimated fair values of the Companys financial instruments approximates
        their fair value due to the short-term nature.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Use of estimates- The preparation of financial
        statements in conformity with generally accepted accounting principles
        requires management to make estimates and assumptions that affect the
        reported amounts of assets and liabilities, and disclosure of contingent
        assets and liabilities at the date of the financial statements, and the
        reported amounts of revenues and expenses for the reporting period. Actual
        results could differ from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

7

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Asset retirement obligations- The Company has
        adopted Statement of Financial Accounting Standards No. 143 (SFAS
        143), Accounting for Asset Retirement Obligations, which
        requires that an asset retirement obligation (ARO) associated
        with the retirement of a tangible long-lived asset be recognized as a
        liability in the period in which it is incurred and becomes determinable,
        with an offsetting increase in the carrying amount of the associated asset.
        The cost of the tangible asset, including the initially recognized ARO,
        is depleted, such that the cost of the ARO is recognized over the useful
        life of the asset. The ARO is recorded at fair value, and accretion expense
        is recognized over time as the discounted liability is accreted to its
        expected settlement value. The fair value of the ARO is measured using
        expected future cash flow, discounted at the Companys credit-adjusted
        risk- free interest rate. To date, no significant asset retirement obligation
        exists due to the early stage of exploration. Accordingly, no liability
        has been recorded.                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Income taxes The Company accounts for
        income taxes under SFAS No. 109, Accounting for Income Taxes
        using the liability method, recognizing certain temporary differences
        between the financial reporting basis of the Companys liabilities
        and assets and the related income tax basis for such liabilities and assets.
        This method generates either a net deferred income tax liability or asset
        for the Company, as measured by the statutory tax rates in effect. The
        Company derives its deferred income tax provision or benefit by recording
        the change in either the net deferred income tax liability or asset balance
        for the year. The Company records a valuation allowance against any portion
        of those deferred income tax assets when it believes, based on the weight
        of available evidence, it is more likely than not that some portion or
        all of the deferred income tax will not be realized.                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | On July 13, 2006, the FASB issued interpretation No.
        48, Accounting for Uncertainty in Income Taxes  An Interpretation
        of FASB Statement No. 109 (FIN 48). FIN 48 clarifies
        the accounting for uncertainty in income taxes recognized in an entitys
        financial statements in accordance with SFAS No. 109, and prescribes a
        recognition threshold and measurement attributes for financial statement
        disclosure of tax positions taken or expected to be taken on a tax return.
        Under FIN 48, the impact of an uncertain income tax position on the income
        tax return must be recognized at the largest amount that is more-likely-than-not
        to be sustained upon audit by the relevant taxing authority. An uncertain
        income tax position will not be recognized if it has less than 50% likelihood
        of being sustained. Additionally, FIN 48 provides guidance on de-recognition,
        classification, interest and penalties, accounting in interim periods,
        and disclosure and transition. The Company adopted the provision of FIN
        48 on January 1, 2007, which did not have any impact on the consolidated
        financial statements.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Mineral property acquisition costs Costs
        related to acquisitions are included in the cost of acquisition when the
        acquisitions are deemed probable. Costs incurred prior to the date the
        acquisitions are deemed probable are expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Environmental protection and reclamation costs-
        The operations of the Company have been, and may in the future be affected
        from time to time in varying degrees by changes in environmental regulations,
        including those for future removal and site restoration costs. Both the
        likelihood of new regulations and their overall effect upon the Company
        may vary from region to region and are not predictable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Environmental expenditures that relate to ongoing environmental
        and reclamation programs are charged against statements of operations
        as incurred or capitalized and amortized depending upon their future economic
        benefits. The Company does not currently anticipate any material capital
        expenditures for environmental control facilities because its property
        holding is at an early stage of exploration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

8

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Stock-based compensation- On December 16, 2004,
        the FASB issued SFAS No. 123R, Share- Based Payment, which
        replaces SFAS No. 123, Accounting for Stock-Based Compensation
        and supersedes APB Opinion No. 25, Accounting for Stock Issued to
        Employees. SFAS No. 123R requires all share-based payments to employees,
        including grants of employee stock options, to be recognized in the financial
        statements based on the grant date fair value of the award. SFAS No. 123R
        was to be effective for interim or annual reporting periods beginning
        on or after June 15, 2005, but in April 2005 the SEC issued a rule that
        permits most registrants to implement SFAS No. 123R at the beginning of
        their next fiscal year, instead of the next reporting period as required
        by SFAS No. 123R. The pro forma disclosures previously permitted under
        SFAS No. 123 no longer will be an alternative to financial statement recognition.
        Under SFAS No. 123R, the Company must determine the appropriate fair value
        model to be used for valuing share-based payments, the amortization method
        for compensation cost and the transition method to be used at date of
        adoption. The transition methods include prospective and retroactive adoption
        option. Under the retroactive option, prior periods may be restated either
        as of the beginning of the year of adoption or for all periods presented.
        The prospective method requires that compensation expense be recorded
        for all unvested stock options and restricted stock at the beginning of
        the first quarter of adoption of SFAS No. 123R, while the retroactive
        methods would record compensation expense for all unvested stock options
        and restricted stock beginning with the first period restated. The Company
        has adopted the requirements of SFAS No. 123R for the fiscal year beginning
        after December 31, 2004.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | New accounting pronouncements- In December 2007,
        the FASB issued SFAS No. 141(R), Business Combinations, which
        amends SFAS No. 141, and provides revised guidance for recognizing and
        measuring identifiable assets and goodwill acquired, liabilities assumed,
        and any noncontrolling interest in the acquiree. It also provides disclosure
        requirements to enable users of the financial statements to evaluate the
        nature and financial effects of the business combination. SFAS No. 141(R)
        is effective for the Companys fiscal year beginning January 1, 2009
        and is to be applied prospectively. The Company is currently evaluating
        the potential impact of adopting this statement on the Companys
        consolidated financial position, results of operations or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | In December 2007, the FASB issued SFAS No. 160, Noncontrolling
        Interests in Consolidated Financial Statements - an amendment of ARB No.
        51 which establishes accounting and reporting standards pertaining
        to ownership interests in subsidiaries held by parties other than the
        parent, the amount of net income attributable to the parent and to the
        noncontrolling interest, changes in a parents ownership interest,
        and the valuation of any retained noncontrolling equity investment when
        a subsidiary is deconsolidated. SFAS No. 160 also establishes disclosure
        requirements that clearly identify and distinguish between the interests
        of the parent and the interests of the noncontrolling owners. SFAS No.
        160 is effective for the Companys fiscal year beginning January
        1, 2009. The Company is currently evaluating the potential impact of adopting
        this statement on the Companys consolidated financial position,
        results of operations or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

9

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | In September 2007, the FASB published Proposed FSP No.
        APB 14-a, Accounting for Convertible Debt Instruments That May Be
        Settled in Cash upon Conversion. The proposed FSP applies to convertible
        debt instruments that, by their stated terms, may be settled in cash (or
        other assets) upon conversion, including partial cash settlement, unless
        the embedded conversion option is required to be separately accounted
        for as a derivative under SFAS 133. Convertible debt instruments within
        the scope of the proposed FSP are not addressed by the existing APB 14.
        The proposed FSP would require that the liability and equity components
        of convertible debt instruments within the scope of the proposed FSP shall
        be separately accounted for in a manner that reflects the entitys
        nonconvertible debt borrowing rate. This will require an allocation of
        the convertible debt proceeds between the liability component and the
        embedded conversion option (i.e., the equity component). The difference
        between the principal amount of the debt and the amount of the proceeds
        allocated to the liability component would be reported as a debt discount
        and subsequently amortized to earnings over the instruments expected
        life using the effective interest method. The Company is currently evaluating
        the impact that FSP may have on the financial position, results of operations
        and cash flows of the Company.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | In February 2007, the Financial Accounting Standards
        Board (FASB) issued SFAS No. 159, The Fair Value Option
        For Financial Assets And Financial Liabilities  Including An Amendment
        Of FASB Statement No. 115. This pronouncement permits entities to
        use the fair value method to measure certain financial assets and liabilities
        by electing an irrevocable option to use the fair value method at specified
        election dates. After election of the option, subsequent changes in fair
        value would result in the recognition of unrealized gains or losses as
        period costs during the period the change occurred. SFAS No. 159 becomes
        effective as of the beginning of the first fiscal year that begins after
        November 15, 2007, with early adoption permitted. However, entities may
        not retroactively apply the provisions of SFAS No. 159 to fiscal years
        preceding the date of adoption. The Company is currently evaluating the
        impact that SFAS No. 159 may have on the financial position, results of
        operations and cash flows of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | In September 2006, the FASB issued Statement No. 158
        Employers Accounting for Defined Benefit Pension and Other
        Postretirement Plans (SFAS 158). SFAS 158 requires companies
        to recognize the over funded or under funded status of a defined benefit
        postretirement plan as an asset or liability in its statement of financial
        position and to recognize changes in that funded status in the year in
        which the changes occur through comprehensive income. SFAS 158 requires
        companies to measure the funded status of a plan as of the date of its
        year-end statement of financial position, with limited exceptions. The
        Company adopted SFAS 158 effective for the fiscal year ending December
        31, 2006. Adoption of this statement had no impact on the Companys
        financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | In September 2006, the SEC issued Staff Accounting Bulletin
        No. 108 (SAB 108). SAB 108 considers the effects of prior
        year misstatements when quantifying misstatements in the current year
        financial statements. It is effective for fiscal years ending after November
        15, 2006. The adoption of SAB 108 did not have a material impact on its
        financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

10

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. | DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT
        POLICIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In September 2006, FASB issued SFAS No. 157, Fair
        Value Measurements which defines fair value, establishes a framework
        for measuring fair value in generally accepted accounting principles (GAAP),
        and expands disclosures about fair value measurements. Where applicable,
        SFAS No. 157 simplifies and codifies related guidance within GAAP and
        does not require any new fair value measurements. SFAS No. 157 is effective
        for financial statements issued for fiscal years beginning after November
        15, 2007, and interim periods within those fiscal years. Earlier adoption
        is encouraged. The Company does not expect the adoption of SFAS No. 157
        to have a material effect on its financial condition or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In March 2006, FASB issued SFAS No. 156, Accounting
        for Servicing of Financial Assets  an Amendment of FASB Statement
        No. 140. This statement requires an entity to recognize a servicing
        asset or servicing liability each time it undertakes an obligation to
        service a financial asset by entering into a servicing contract in any
        of the following situations: a transfer of the servicers financial
        assets that meets the requirements for sale accounting; a transfer of
        the servicers financial assets to a qualifying special-purpose entity
        in a guaranteed mortgage securitization in which the transferor retains
        all of the resulting securities and classifies them as either available-for-sale
        securities or trading securities in accordance with SFAS No. 115; or an
        acquisition of an obligation to service a financial asset that does not
        relate to financial assets of the servicer or its consolidated affiliates.
        The statement also requires all separately recognized servicing assets
        and servicing liabilities to be initially measured at fair value, if practicable
        and permits and entity to chose either the amortization or fair value
        method for subsequent measurement of each class of servicing assets and
        liabilities. This statement is effective for fiscal years beginning after
        September 15, 2006, with early adoption permitted as of the beginning
        of an entitys fiscal year. Management believes the adoption of this
        statement will have not immediate impact on the Companys financial
        condition or results of operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | In February 2006, FASB issued SFAS No. 155, Accounting
        for Certain Hybrid Financial Instruments, and established the accounting
        for certain derivatives embedded in other instruments. It simplifies amendment
        of SFAS No. 133 and 140 (hereinafter SFAS No. 155).
        This statement accounting for certain hybrid financial instruments by
        permitting fair value remeasurement for any hybrid instruments that contains
        an embedded derivative that otherwise would require bifurcation under
        SFAS No. 133 as well as eliminating a restriction on the passive derivative
        instruments that a qualifying special- purpose entity (SPE)
        may hold under SFAS No. 140. This statement allows a public entity to
        irrevocably elect to initially and subsequently measure a hybrid instrument
        that would be required to be separated into a host contract and derivative
        in its entirety at fair value (with changes in fair value recognized in
        earnings) so long as that instrument is not designated as a hedging instrument
        pursuant to the statement. SFAS No. 140 previously prohibited a qualifying
        SPE from holding a derivative financial instrument that pertains to a
        beneficial interest other than another derivative financial instrument.
        This statement is effective for fiscal years beginning after September
        15, 2006, with early adoption permitted as of the beginning of an entitys
        fiscal year. Management believes the adoption of this statement will have
        no immediate impact on the Companys financial condition or result
        of operation.             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | Reclassification Certain amounts in the
        prior period financial statements have been reclassified to conform to
        the current period financial statement presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

11

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|2. | FIXED ASSETS                                                                     
|-- | ---------------------------------------------------------------------------------
|   |                                                                                  
|   | Fixed assets consisted of the following as of December
        31, 2007 and 2006:

| |                               |   | December 31, |  |   | December 31, | 
| | ----------------------------- | - | ------------ |  | - | ------------ | 
| |                               |   | 2007         |  |   | 2006         | 
| |                               |   |              |  |   |              | 
| | Furniture and fixtures        | $ | 2,698        |  | $ | --           | 
| | Computers and equipment       |   | 21,178       |  |   | --           | 
| | Site improvements             |   | 260,014      |  |   | --           | 
| | Site equipment                |   | 7,500        |  |   | --           | 
| |                               |   |              |  |   |              | 
| |                               |   | 291,390      |  |   | --           | 
| | Less accumulated depreciation |   | 672          |  |   | --           | 
| |                               |   |              |  |   |              | 
| |                               | $ | 290,718      |  | $ | --           | 

|   | Depreciation expense was $672 and $0 for the years ended
        December 31, 2007 and 2006, respectively.                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3. | MINERAL EXPLORATION PROPERTIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Ireland claim- On November 30, 2004, the Company
        entered into a mineral property purchase agreement to acquire a 100% undivided
        interest in one mineral claim located in the Yellow Pine Mining District
        in Clark County, Nevada, known as the Ireland Claim, for a total consideration
        of $6,000.                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The Company has not determined whether the mineral claim
        contains mineralized material and has consequently written off all mineral
        rights acquisition costs to operations during the previous financial periods.                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The Columbus and Red Mountain projects- On March
        30, 2007, as amended August 8, 2007, the Company entered into an Assignment
        Agreement with Nanominerals Corp. (NMC) a Nevada corporation, to acquire
        two mineral property option interests, the first located in Esmeralda
        County, Nevada (the Columbus project) and the second located
        in San Bernardino County, California (the Red Mountain project).
        The assignments were completed on August 14, 2007.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Pursuant to the above assignment agreement, the Company
        issued 30,000,000 common shares to NMC and, in return, received a deed
        of assignment to the option interests in the Columbus Project and to the
        Red Mountain Project. The Company granted a 5% net smelter return royalty
        and has reimbursed $1,162,125 in documented fees and expenses to NMC.                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Upon assignment of the option rights, the Company assumed
        the terms of the underlying agreements to earn the respective interests
        in both properties.                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The mineral property options have been capitalized as
        tangible assets in accordance with Emerging Issues Task Force abstract
        04-02 and valued in accordance with SFAS No. 141. Valuation of $225,000
        is based on issuance of 30,000,000 shares at $0.0075 which was the share
        price at the time of the option assignment agreement.                                                                                                                                             

12

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|3. | MINERAL EXPLORATION PROPERTIES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | At such time either or both of the option transactions
        are completed the option cost will continue to be included in the overall
        acquisition cost of the underlying mineral properties. If the Company
        does not complete the option transactions or the underlying mineral properties
        are considered impaired the acquisition cost will be either written down
        or expensed at that time.                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Columbus project- On June 26, 2007, the
        Company paid $807,000 to the Bureau of Land Management as a bond for future
        reclamation work on the proposed Columbus Project. This payment was made
        pursuant to the underlying option agreement in anticipation of the completion
        of the transaction.                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Columbus project is subject to an underlying option
        agreement dated July 22, 2006. Under the terms of this agreement, to earn
        a 15% interest, the Company is required to pay $24,000 per month until
        December 31, 2007 and spend $3,000,000 on qualifying expenses by December
        31, 2007. These expenditures required were satisfied as of December 31,
        2007.                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | As of December 31, 2007, the Company earned a 15% operating
        interest in the Columbus project by satisfying the above terms of the
        agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | To earn a 100% interest in the Columbus project, the
        Company, upon earning 15%, will have the right to merge with the corporation
        holding the remaining 85% interest. To exercise the merger right, the
        Company will be required to issue shares of common stock with an aggregate
        value of $20,000,000 and issue share purchase warrants to purchase up
        to a further 50% of the number of shares of common stock to be issued.                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Subsequent to December 31, 2007, on February 20, 2008,
        the Company acquired a 100% interest in the Columbus Project by way of
        merger with the owner of the Columbus Project, Columbus Brine Inc. (CBI).
        Under the terms of the Merger Agreement, the Company issued an aggregate
        of 10,440,087 shares of its common stock, and 5,220,059 share purchase
        warrants to the former shareholders of CBI. Each share purchase warrant
        issued by the Company entitles the holder to purchase one additional share
        of the Companys common stock at a price of $2.39 per share for a
        period of 5 years.                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Red Mountain project- The Red Mountain project
        is subject to an underlying option agreement dated March 15, 2007. Under
        the terms of this agreement, to earn a 60% interest, the Company is required
        to pay $5,000 per month until December 31, 2011 and spend an aggregate
        of $1,200,000 in additional qualifying expenditures by December 31, 2011.                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Company may at any time during the life of the Red
        Mountain project, earn a 100% interest, by paying $100,000, issuing shares
        of common stock with an aggregate value of $1,400,000 and issuing share
        purchase warrants to purchase up to an additional 25% of the number of
        shares of common stock to be issued. If the project achieves commercial
        production, the Company will be required to pay an additional $100,000,
        issue shares of common stock with an aggregate value of $2,400,000 and
        issue share purchase warrants to purchase up to an additional 25% of the
        number of shares of common stock to be issued.

13

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|4. | STOCKHOLDERS EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | On April 24, 2007, the Company approved a
        US private placement offering pursuant to Rule 506 of Regulation D of
        the Securities Act of up to 10,000,000 units at a price of $0.65 per unit.
        Each unit consists of one share of common stock and one half of one share
        purchase warrant. Each whole warrant entitles the holder to purchase one
        additional share of common stock for a period of 12 months at a price
        of $1.00 per share. Warrants associated with the 2007 equity issuances
        do not constitute a registration payment arrangement and are considered
        part of the overall equity offering. On September 20, 2007, the Company
        amended the terms of the warrants issued under the US and foreign private
        placements by extending the terms of the warrants to two years from the
        date the units were issued.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Also effective on April 24, 2007, the Company
        approved a foreign private placement offering of up to 10,000,000 units
        to persons who are not U.S. Persons as defined in Regulation
        S of the Securities Act of 1933. The units are identical to those offered
        to US investors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Units issued under the US offering resulted
        in over allotment of 1,812,000 units. To account for over allotment the
        Company decreased the number of units available under the foreign offering
        by an equal number of units. Total units of 20,000,000 for the entire
        offering were unchanged.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | During the year ended December 31, 2007, the
        Companys stockholders activities consisted of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

14

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|4. | STOCKHOLDERS EQUITY(continued)
|-- | -------------------------------
|   |                                
|   | c)                             
|   |                                
|   | d)                             
|   |                                
|   | e)                             
|   |                                
|   | f)                             
|   |                                
|   |                                

15

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|5. | OPTION PLAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | On March 27, 2007, the Board of Directors
        adopted the 2007 Stock Incentive Plan (the Plan). Under the
        terms of the Plan, options to purchase up to 6,000,000 shares of the common
        stock of the Company, subject to an increase each quarter equal to 15%
        of the increase in the total number of outstanding shares during the previous
        quarter, may be granted to officers, directors, employees and eligible
        consultants.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | During the year ended December 31, 2007, the
        Company granted stock options as follows:                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Expenses for the year ended December
  31, 2007 related to granting of stock options were $101,317 and are included
  in general and administrative expense.

From inception on February 20, 2001 to
  the end of the fiscal year-ended December 31, 2006, the Company did not grant
  any stock options awards, stock awards or any other equity incentive plan awards.
  As such, there were no outstanding equity awards as at December 31, 2006.

Stock options  During the
  year ended December 31, 2007, the Company granted stock options to officers,
  consultants and employee totaling 3,895,000 with a weighted average exercise
  price of $0.13 per share. As of December 31, 2007 stock options outstanding
  totaled 3,895,000 with a weighted average exercise price of $0.13 per share.

16

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|5. | OPTION PLAN(continued)
|-- | ----------------------

The following table summarizes the Companys
  stock option activity for the year ended December 31, 2007:

| |                             |  | Number of |  |   | Weighted       | 
| | --------------------------- |  | --------- |  | - | -------------- | 
| |                             |  | Shares    |  |   | Average        | 
| |                             |  |           |  |   | Exercise Price | 
| | Balance, December 31, 2006  |  | --        |  | $ | --             | 
| | Options granted and assumed |  | 3,895,000 |  |   | 0.13           | 
| | Options expired             |  | --        |  |   | --             | 
| | Options cancelled           |  | --        |  |   | --             | 
| | Options exercised           |  | --        |  |   | --             | 
| |                             |  |           |  |   |                | 
| | Balance, December 31, 2007  |  | 3,895,000 |  | $ | 0.13           | 

The Company estimated the fair value
  of options granted prior to March 31, 2007 using the Black-Scholes option pricing
  model. The Company now utilizes the Binomial lattice pricing model to estimate
  the fair value of options granted. The Company believes this model provides
  the best estimate of fair value due to its ability to incorporate inputs that
  change over time, such as volatility and interest rates, and to allow for actual
  exercise behavior of option holders. The Company has used the same assumptions
  within each of the pricing models utilized to estimated the fair value of the
  options granted as follows:

2007
      2006Dividend yield
      --
      --Expected volatility
      56.13% to 120.24%
      --Risk-free interest rate
      3.62% to 4.05%
      --Expected life (years)
      2 to 10
      --


The Company estimates expected volatility
  using representative peer group average, because of limited historical equity
  transactions of the Company. The risk-free interest rate is based on the implied
  yield available on U.S. Treasury zero-coupon issues over equivalent lives of
  the options.

Accordingly, the Company valued the services
  under SFAS No. 123R relating to non-statutory stock options upon grant in 2007
  for $101,317 as of December 31, 2007.

The following table summarizes the status
  of the Companys unvested shares as of December 31, 2007 and changes during
  the year ended December 31, 2007:

| |                                   |  | Number of |  |   | Weighted Average | 
| | --------------------------------- |  | --------- |  | - | ---------------- | 
| |                                   |  | Shares    |  |   | Grant Date       | 
| |                                   |  |           |  |   | Fair Value       | 
| | Unvested, January 1, 2006         |  | --        |  | $ | --               | 
| | Options granted                   |  | 75,000    |  |   | 0.53             | 
| | Options vested                    |  | --        |  |   | --               | 
| | Options cancelled                 |  | --        |  |   | --               | 
| |                                   |  |           |  |   |                  | 
| | Unvested, December
      31, 2007 |  | 75,000    |  | $ | 0.53             | 

As of December 31, 2007, there was $30,020
  of total unrecognized compensation cost related to unvested stock options. This
  cost is expected to be recognized as follows: 2008  $23,176 and 2009 -
  $6,844.

17

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|5. | OPTION PLAN(continued)                                                                                           
|-- | -----------------------------------------------------------------------------------------------------------------
|   |                                                                                                                  
|   | The following table summarizes information about options
        granted during the year ended December 31, 2007:

Exercise PriceEquals, ExceedsOr
      WeightedNumber of Options
      Is Less than Mkt.
      Average
      Range of
      WeightedGranted
      Price of Stock
      Exercise
      Exercise
      Average FairDuring 2007
      On Grant Date
      Price
      Price
      Value3, 895,000
      Equals
      $ 0.13
      $0.05 to $1.88
      $ 0.034--
      Exceeds
      $ --
      $ -- to $ --
      $ ----
      Less Than
      $ --
      $ -- to $ --
      $ --3,895,000
      Equals
      $ 0.13
      $0.05 to $1.88
      $ 0.034


Stock options/warrants 
  During the year ended December 31, 2007 the Company granted stock warrants related
  to common stock issued through a private placement totaling 10,160,650 with
  an exercise price of $1.00 per share.

The Company may accelerate the expiry
  date (call provision) for the warrants issued during 2007 after one year from
  the date of issuance of common stock if the common stock trades at a weighted
  average price over $3.50 for 20 consecutive trading days.

The following table summarizes information
  about options/warrants granted during the year ended December 31, 2007:

| |                                      |  | Number of  |  |   | Weighted       | 
| | ------------------------------------ |  | ---------- |  | - | -------------- | 
| |                                      |  | Shares     |  |   | Average        | 
| |                                      |  |            |  |   | Exercise Price | 
| | Balance, December 31, 2006           |  | --         |  | $ | --             | 
| | Options/warrants granted and assumed |  | 14,055,650 |  |   | 0.76           | 
| | Options/warrants expired             |  | --         |  |   | --             | 
| | Options/warrants cancelled           |  | --         |  |   | --             | 
| | Options/warrants exercised           |  | --         |  |   | --             | 
| |                                      |  |            |  |   |                | 
| | Balance, December 31, 2007           |  | 14,055,650 |  | $ | 0.76           | 

18

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|6. | INCOME TAXES                                                                                                                      
|-- | ----------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                   
|   | The Company is a Nevada corporation and is subject to
        federal income taxes. Nevada does not impose a corporate income tax.
|   |                                                                                                                                   
|   | The provision for income taxes consisted of the following
        at December 31, 2007 and 2006,                                  

| |                               |   | December 31, |   |   | December 31, | 
| | ----------------------------- | - | ------------ | - | - | ------------ | 
| |                               |   | 2007         |   |   | 2006         | 
| |                               |   |              |   |   |              | 
| | Income tax benefit at 34%     | $ | (762,713     | ) | $ | --           | 
| | Non-deductible and other      |   | 473          |   |   | --           | 
| | Change in valuation allowance |   | 762,240      |   |   | --           | 
| |                               |   |              |   |   |              | 
| | Provision for income taxes    | $ | --           |   | $ | --           | 

Significant components of the Companys
  net deferred income tax assets at December 31, 2007 and 2006 were as follows:

| |                                  |   | December 31, |   |   | December 31, | 
| | -------------------------------- | - | ------------ | - | - | ------------ | 
| |                                  |   | 2007         |   |   | 2006         | 
| | Net operating loss carry forward | $ | 727,864      |   | $ | --           | 
| | Option compensation              |   | 34,448       |   |   | --           | 
| | Gross deferred income tax asset  |   | 762,312      |   |   | --           | 
| | Property, plant & equipment      |   | (72          | ) |   | --           | 
| | Net deferred income tax asset    |   | 762,240      |   |   |              | 
| | Valuation allowance              |   | (762,240     | ) |   |              | 
| |                                  | $ | --           |   | $ | --           | 

A full valuation allowance was established
  for net deferred tax assets due to the uncertainty of realizing these deferred
  tax assets based on conditions existing at December 31, 2007 and 2006.

The Company had cumulative net operating
  losses of approximately $2,140,776 as of December 31, 2007 for federal income
  tax purposes. Cumulative net operating losses from December 31, 2006 and previous
  years are effectively nil due to the annual limitation imposed by the Internal
  Revenue Code of 1986 as a result of the ownership percentage change limitations.
  The net operating loss carryforwards will be expiring in 2027.

As of January 1, 2007, the Company did
  not have any unrecognized tax benefits. The adoption of FIN 48 did not result
  in any cumulative effect adjustment to the January 1, 2007 balance of the Companys
  accumulated deficit. Upon adoption of FIN 48, the Company did not accrue for
  interest and penalties as there were no unrecognized tax benefits. If interest
  and penalties were to be assessed, we would charge interest to interest expense,
  and penalties to general and administrative expense. It is not anticipated that
  unrecognized tax benefits would significantly increase or decrease within 12
  months of the reporting date.

19

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|6.  | INCOME TAXES(continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The Company and its subsidiary file income tax returns
        in the United States. These tax returns are subject to examination by
        taxation authorities provided the years remain open under the relevant
        statues of limitations, which may result in the payment of income taxes
        and/or decrease its net operating losses available for carryforwards.
        While the Company believes its tax filings do not include uncertain tax
        positions, the results of potential examinations or the effect of changes
        in tax law cannot be ascertained at this time. The Company currently has
        no tax years under examination.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|7.  | COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Lease obligations The Company rents office
        space in Henderson, Nevada under a one year lease term effective September
        1, 2007 for $2,200 per month.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Rental expense, resulting from this operating lease
        agreement, approximates $8,800 and $0 for the years ended December 31,
        2007 and 2006, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|8.  | CONCENTRATION OF CREDIT RISK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Financial instruments that potentially subject the Company
        to concentration of credit risk consist of cash investments. The Company
        places its temporary cash investments with one financial institution.
        Cash accounts at the financial institution are insured by the Federal
        Deposit Insurance Corporation for up to $100,000 per financial institution.                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|9.  | CONCENTRATION OF ACTIVITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | For the year ended December 31, 2007, the Company purchased
        services from two major vendors Arrakis, Inc. and NMC that exceeded more
        than 10% of total purchases and amounted to approximately $309,725 and
        $645,000, respectively. NMC is considered a related party and is more
        fully discussed in the related party note that follows.                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|10. | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | During the year ended December 31, 2007, the Company
        utilized the services of NMC to provide technical and financing related
        activities. These services related primarily to the Columbus project and
        the Red Mountain project.                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In addition to the above fees, NMC provided dedicated
        use of its laboratory, instrumentation, milling equipment and research
        facilities. NMC provided invoices for these fees plus expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | For the year ended December 31, 2007, the Company incurred
        total fees and reimbursements of expenses to NMC of $645,000 and $626,314,
        respectively, for a total of $1,271,314. These expenses are presented
        in the financial statements as mineral exploration and evaluation expenses
        – related party of $976,314 and mineral and property holding costs
        – reimbursed to related party of $295,000.                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | At December 31, 2007, the Company had an outstanding balance due to NMC
      of $37,128. The Company also had an outstanding balance for accrued compensation
      to Mr. Birnie, its executive officer of $45,000, payable to a company wholly
      owned by Mr. Birnie. Accounts payable – related party totaled $82,128
      as of December 31, 2007.                                                                                                                                                                                                                                                                                                                

20

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IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|11. | SUBSEQUENT EVENTS (UNAUDITED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | On February 20, 2008, the Company completed
        the acquisition of Columbus Brine Inc. (CBI). The acquisition of CBI was
        completed pursuant to the Agreement and Plan of Merger entered into by
        the Company, CBIA, CBI, and CBIs directors and officers, John T.
        Arkoosh, William Maghan and Lawrence E. Chizmar Jr. on December 14, 2007,
        and as amended on January 31, 2008 (the Agreement and Plan of Merger,
        as amended, is referred to as the Merger Agreement).                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Pursuant to the terms of the Merger Agreement,
        CBI was merged with, and into, CBIA , with CBIA continuing as the surviving
        entity. To complete the acquisition of CBI, the Company issued an aggregate
        of 10,440,087 shares of its common stock, and 5,220,059 share purchase
        warrants to the former shareholders of CBI. Each share purchase warrant
        issued by the Company entitles the holder to purchase one additional share
        of the Companys common stock at a price of $2.39 per share for a
        period 5 years. These share purchase warrants also contain the following
        material terms:
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

A = the average closing price of the
  Companys common stock during the five trading days prior to exercise.
  
  B = the exercise price of $2.39. 
  C = the maximum number of the Companys common stock issuable upon exercise
  of the warrants.

If the holder chooses to utilize the
  cashless exercise right, the holder must do so with respect to all of the unexercised
  warrants held by him.

| | b) | The Company will have the right to accelerate the expiration
        date of the warrants at any time after August 19, 2010 if the average
        closing price of the Companys common stock over any 20 consecutive
        trading days is equal or greater than 150% of the exercise price. If the
        Company exercises this acceleration right, the expiration date of the
        warrants will be accelerated to 30 days after the Company sends out notice
        that it is exercising the acceleration right.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Pursuant to the terms of the Merger Agreement,
  immediately upon completion of the Companys acquisition of CBI, Lawrence
  E. Chizmar Jr., the Secretary, and a director of CBI, was appointed to the Companys
  board of directors.

By completing the acquisition of CBI,
  the Company now owns 100% of the Columbus Project. The Company believes the
  acquisition of CBI is beneficial because it expands its exploration potential
  and increases the flexibility of developing and financing the Columbus Project.

21

---

IRELAND INC.(AN EXPLORATION STAGE ENTERPRISE)NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|11. | SUBSEQUENT EVENTS (UNAUDITED)(continued)                                                                    
|--- | ------------------------------------------------------------------------------------------------------------
|    |                                                                                                             
|    | The following table reflects the components of the acquisition
        and is subject to further refinement:

| | Purchase price:                  |   |            | 
| | -------------------------------- | - | ---------- | 
| | Common stock and warrants issued | $ | 20,000,000 | 
| |                                  |   |            | 
| | Total purchase price             | $ | 20,000,000 | 

In accordance with SFAS 141, Business
  Combinations, the purchase price of $20,000,000 will be allocated to the assets
  acquired and liabilities assumed, to be based on their estimated fair values
  at the date of acquisition. The purchase price is anticipated to be first allocated
  to the property, plant and equipment based on estimated market values to be
  determined using internal and external valuation resources. The value is anticipated
  to be allocated to the mineral properties based on managements best estimates
  taking into account all available information. The Company will continue to
  review information related to the mineral properties and valuations may be subject
  to change.

The estimated future federal income tax
  liability associated with the temporary difference between the acquisition consideration
  of $20,000,000 and the estimated tax basis of $0 as computed in accordance with
  SFAS 141 and SFAS 109, resulted in an increase to the total purchase price of
  $10,303,030 which was applied to the mineral properties in the absence of there
  being a goodwill component associated with the transaction in accordance with
  SFAS 141 and SFAS 109.

The following table reflects allocation
  of the purchase price:

| | Allocation of purchase price:                              |   |             |  
| | ---------------------------------------------------------- | - | ----------- | -
| | Mineral properties (including
      deferred tax liability | $ | 28,280,001  |  
| | assumed of $10,303,030)                                    |   |             |  
| | Property, plant and equipment                              |   | 1,848,349   |  
| | Deposits                                                   |   | 44,720      |  
| | Other assets                                               |   | 2,955       |  
| | Cash and receivables                                       |   | 127,005     |  
| | Deferred income tax liability
      assumed                |   | (10,303,030 | )
| |                                                            |   |             |  
| | Net assets acquired                                        | $ | 20,000,000  |  

22

---

ITEM
9.               
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.

On October 6, 2007, we received notice that Telford Sadovnick,
P.L.L.C. (Telford Sadovnick) had resigned as our independent public
accountants.

Telford Sadovnick stated that they were resigning as our
independent auditor due to the fact that Telford Sadovnick had withdrawn its
registration with the Public Company Accountability Oversight Board (PCAOB)
and is no longer able to audit US issuers.

Telford Sadovnicks reports on the financial statements of us
for the past two fiscal years ended December 31, 2006 and December 31, 2005 did
not contain an adverse opinion or disclaimer of opinion, nor were they modified
or qualified as to uncertainty, audit scope or accounting principles with the
exception of a statement regarding the uncertainty of our ability to continue as
a going concern.

There were no disagreements between us and Telford Sadovnick on
any matter of accounting principles or practices, financial statement disclosure
or auditing scope or procedure, which, if not resolved to the satisfaction of
Telford Sadovnick, would have caused them to make reference to the subject
matter of the disagreement in connection with their report for the financial
statements for the past year.

On October 15, 2007, our Board of Directors appointed Brown
Armstrong Paulden McCown Starbuck Thornburgh & Keeter Accountancy
Corporation (Brown Armstrong) as our new independent registered public
accounting firm.

ITEM
9A(T).           CONTROLS
AND PROCEDURES.

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of our
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of December 31, 2007 (the Evaluation Date). This evaluation
was carried out under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer. Based upon that evaluation, our
Chief Executive Officer and Chief Financial Officer concluded that our
disclosure controls and procedures were effective as of the Evaluation Date.

Disclosure controls and procedures are those controls and
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act are recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed in our reports filed under the Exchange Act is accumulated and
communicated to management, including our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

Management's Annual Report on Internal Control Over
Financial Reporting

Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act, for the Company.

Our internal control over financial reporting includes those
policies and procedures that: (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of our assets; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that our receipts
and expenditures are being made only in accordance with authorizations of our
management and directors; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition
of our assets that could have a material effect on the financial statements.

Under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer, management conducted an
evaluation of the effectiveness of our internal control over financial
reporting, as of the Evaluation Date, based on the framework set forth in
Internal Control-Integrated Framework issued by the

27

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Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on its evaluation under this framework, management
concluded that our internal control over financial reporting was effective as of
the Evaluation Date.

This annual report does not include an attestation report of
our registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by our registered
public accounting firm pursuant to temporary rules of the SEC that permit us to
provide only management's report in this annual report.

Changes in Internal Control Over Financial Reporting

As of the Evaluation Date, there were no changes in our
internal control over financial reporting that occurred during the fiscal
quarter ended December 31, 2007 that have materially affected, or that are
reasonably likely to materially affect, our internal control over financial
reporting.

Limitations on the Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and the
Chief Financial Officer, do not expect that the our controls and procedures will
prevent all potential error and fraud. A control system, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met.

ITEM
9B.             OTHER
INFORMATION.

None.

28

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PART III

ITEM
10.               
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The following table sets forth the names and positions of our
officers and directors as of the filing of this Annual Report:

|Name                     | Age | Positions                                                       
|------------------------ | --- | ----------------------------------------------------------------
|                         |     |                                                                 
|Douglas D.G. Birnie      | 37  | President, Chief
      Executive Officer, Secretary and Director
|                         |     |                                                                 
|Robert D. McDougal       | 75  | Chief Financial
      Officer, Treasurer and Director           
|                         |     |                                                                 
|Michael A. Steele        | 50  | Director                                                        
|                         |     |                                                                 
|Lawrence E. Chizmar, Jr. | 64  | Director                                                        

Douglas D.G. Birnie.Mr. Birnie was appointed as our
Chief Executive Officer, President and a member of our Board of Directors on
June 29, 2007. Mr. Birnie was also appointed as our Secretary on March 30, 2007.
Mr. Birnie was appointed as our President and Secretary, and as one of our
directors pursuant to the terms of our assignment agreement with Nanominerals.
Mr. Birnie graduated with a Bachelor of Commerce degree from the University of
British Columbia in 1994. In 1995, Mr. Birnie was a founder of Columbus Group
Communications Inc., a privately held internet solutions company. In 1998, Mr.
Birnie received the Ernst and Young Entrepreneur of the Year award and the
Business Development Bank of Canada Young Entrepreneur of the Year Award. During
his tenure at Columbus Group, Mr. Birnie held the positions of CFO and COO until
the company was acquired by TELUS Corp. in 2001. Mr. Birnie continued to work
for TELUS Corp. as Director  Strategic Planning with the e.Solutions department
until 2003.

Robert D. McDougal.Mr. McDougal was appointed as our
Chief Financial Officer on March 30, 2007 and has served as a member of our
Board of Directors since December 14, 2007. Mr. McDougal was also appointed as
our Treasurer on January 23, 2008. Mr. McDougal was appointed as our Chief
Financial Officer pursuant to the terms of our assignment agreement with
Nanominerals. Mr. McDougal is a Certified Public Accountant. He began practicing
public accounting in 1973 and established his own practice in 1981. The majority
of his practice is focused on mining and mining related clients including public
companies, private companies partnerships and individuals. Mr. McDougal was a
Director and Officer of GEXA Gold Corporation, a publicly traded mining company,
from 1985 to 2001. Mr. McDougal was one of the founders of Millennium Mining
Corporation, which was subsequently merged into Gold Summit Corporation, a
publicly traded company. He is the managing partner of GM Squared, LLC, which
holds numerous mining claims. He served on the Nevada Society of Certified
Public Accountants Committee on Natural Resources for seven years, four years as
chairman. Prior to this time Mr. McDougal spent 20 years in the United States
Air Force, retiring with the rank of Major. Mr. McDougal is currently a member
of the Board of Directors of Searchlight Minerals Corp.

Michael A. Steele.Mr. Steele was appointed as a member
of our Board of Directors on December 14, 2007. For the past 15 years, Mr.
Steele has been the president and director of Avonlea Investments Ltd., a
private company. From 1998 to 2000, Mr. Steele acted as the president of
International Menu Solutions Corp., a company formerly quoted on the OTC
Bulletin Board.

Lawrence E. Chizmar, Jr.Mr. Chizmar was appointed as a
member of our Board of Directors pursuant to the terms of our Agreement and Plan
of Merger with CBI, John T. Arkoosh, William Maghan, Mr. Chizmar and our wholly
subsidiary CBI Acquisition, Inc. Prior to our acquisition of CBI, Mr. Chizmar
acted as a director, and the Secretary, of CBI. Mr. Chizmar currently works as
the Director of Sales for a German industrial brake company, overseeing North
American sales. Mr. Chizmar is also a decorated Army veteran and is a published
author of several industrial brake related technical articles.

TERMS OF OFFICE

Our directors are appointed for a one-year term to hold office
until the next annual general meeting of our stockholders or until removed from
office in accordance with our bylaws. Our officers are appointed by our Board of
Directors and hold office until removed by the Board.

29

---

SIGNIFICANT EMPLOYEES

We have no significant employees other than the officers and
directors described above.

AUDIT COMMITTEE

Our audit committee is composed of Robert D. McDougal and Michael
  A. Steele. Mr. McDougal is our “audit committee financial expert”
  as defined by the applicable rules of the SEC. Mr. McDougal is not independent
  as he also acts as our Chief Financial Officer and Treasurer. Mr. Steele is
  an independent member of our Board of Directors.

CODE OF ETHICS

We adopted a Code of Ethics applicable to our officers and
directors which is a "code of ethics" as defined by applicable rules of the SEC.
If we make any amendments to our Code of Ethics other than technical,
administrative, or other non-substantive amendments, or grant any waivers,
including implicit waivers, from a provision of our Code of Ethics to our Chief
Executive Officer, Chief Financial Officer, or certain other finance executives,
we will disclose the nature of the amendment or waiver, its effective date and
to whom it applies in a current report on Form 8-K filed with the SEC. A copy of
our Code of Ethics was attached as an exhibit to our Annual Report filed with
the SEC on September 28, 2004.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires our executive
officers and directors, and persons who beneficially own more than 10% of our
equity securities (collectively, the Reporting Persons), to file reports of
ownership and changes in ownership with the SEC. Reporting Persons are required
by SEC regulation to furnish us with copies of all forms they file pursuant to
Section 16(a). Based on our review of the copies of such forms received by us,
other than as described below, no other reports were required for those
persons.

The following persons have failed to file, on a timely basis,
the identified reports required by Section 16(a) of the Exchange Act:

|                                  | Number
      of Late | Transactions Not | Known
      Failures to File
|--------------------------------- | -------------------- | ---------------- | ----------------------------
|Name and Principal
      Position | Reports              | Timely Reported  | a
      Required Form       
|Douglas D.G. Birnie,              | Two                  | Two              | None                        
|CEO, President, Secretary and     |                      |                  |                             
|Director                          |                      |                  |                             
|Michael A. Steele,                | One                  | One              | One                         
|Director                          |                      |                  |                             
|Lorrie Ann Archibald,             | One                  | One              | None                        
|Former Officer and Former         |                      |                  |                             
|Director                          |                      |                  |                             
|Nanominerals Corp.                | One                  | One              | None                        
|Owner of more than 10% of         |                      |                  |                             
|outstanding common
      stock    |                      |                  |                             

30

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ITEM
11.               
EXECUTIVE COMPENSATION.

COMPENSATION TO EXECUTIVE OFFICERS AND DIRECTORS

The following table sets forth the total compensation paid or
accrued to our named executive officers, as that term is defined in Item
402(m)(2) of Regulation S-K , and to our directors, during our last two
completed fiscal years.

SUMMARY COMPENSATION TABLEName & Principal 
        Position
      Year
      Salary 
        ($)
      Bonus 
        ($)
      Stock 
        Awards
        ($)
      Option 
        Awards 
        ($)
      Non-Equity 
        Incentive 
        Plan 
        Compen- 
        sation ($)
      Nonqualified 
        Deferred 
        Compen- 
        sation 
        Earnings 
        ($)
      All Other 
        Compen 
        -sation 
        ($)
      Total 
        ($)Douglas D.G. Birnie, 
        CEO, President, 
        Secretary, 
        Director
      2007 
        2006
      $81,000(1)
        $0
      $0 
        $0
      $0 
        $0
      $4,032 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $85,032 
        $0Robert D. McDougal, 
        CFO, Treasurer, Director
      2007 
        2006
      $36,000 
        $0
      $0 
        $0
      $0 
        $0
      $916 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $36,916 
        $0Lorrie Ann Archibald, 
        Former CEO, Former 
        CFO , Former President, 
        Former Treasurer, 
        Former Director
      2007 
        2006
      $0(2)
        $40,000
      $0 
        $0
      $0 
        $0
      $37 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $37 
        $40,000Christian Adolf Rommel, 
        Former Secretary
      2007 
        2006
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0
      $0 
        $0


|(1) | Represents consulting fees paid or accrued to a company
      of which Mr. Birnie is the sole shareholder for services provided by Mr.
      Birnie as an executive officer and director of Ireland.                                                                                                                                                       
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                            
|(2) | We paid consulting fees of $5,000 per month to Ms.
      Archibald for the period from May 1, 2006 to December 31, 2006 in
      consideration for her services as Chief Executive Officer, President,
      Chief Financial Officer and Treasurer of our Company. No compensation was
      paid to Ms. Archibald for her services as our sole
  director.

---

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table provides information concerning unexercised
options for each our named executive officers, as that term is defined in Item
402(m)(2) of Regulation S-K as of our fiscal year end of December 31, 2007:

Name and Principal
      Position
    Number of
      Securities Underlying Unexercised
      Options (#) Exercisable
      Number of
      Securities Underlying Unexercised
      Options (#) Unexercisable
    Equity Incentive
      Plan Awards: Number of Securities
      Underlying Unexercised Unearned
      Options
    Option
      Exercise Price
    Option
      Expiration DateDouglas D.G. Birnie CEO, President, Secretary
      & Director
    2,200,000
    --
    --
    $0.05
    March 30, 2009Robert D. McDougal CFO, Treasurer & Director
    500,000
    --
    --
    $0.05
    March 30, 2009Lorrie Archibald(1)Former Officer and
      Former Director
    20,000
    --
    --
    $0.05
      March 28, 2009Christian Adolf Rommel 
        Former Secretary
    0
    --
    --
    n/a
    n/a


|(1) | On January 28, 2008, Ms. Archibald exercised her options
      to acquire 20,000 shares of our common stock at a price of $0.05 per
      share.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

DIRECTOR COMPENSATION

Name
    Fees Earned or
      Paid in Cash ($)
    Stock Awards
      ($)(1)
    Option Awards
      ($)(1)
    Non-Equity Incentive
      Plan Compensation ($)
    Nonqualified Deferred
      Compensation Earnings ($)
    All Other
      Compensation ($)
    Total ($)Michael A. Steele
    -
    -
    $916
    -
    -
    $916
    $916


Subsequent to our year ended December 31, 2007, Mr. Chizmar was
appointed as a member of our Board of Directors. As of the date of this Annual
Report, we have not entered into an arrangement to pay Mr. Chizmar compensation
for acting as a member of our Board of Directors.

EMPLOYMENT CONTRACTS

We have no employment contracts, termination of employment or
change-in-control arrangements with any of our executive officers or
directors.

ITEM
12.               
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS.

EQUITY COMPENSATION PLANS

The following table sets forth certain information concerning
all equity compensation plans previously approved by stockholders and all
previous equity compensation plans not previously approved by stockholders, as
of the most recently completed fiscal year.

32

---

Equity Compensation Plan Information

Plan Category
    Number of Securities to be Issued
      Upon Exercise of Outstanding Options, Warrants and Rights
      (a)
    Weighted-Average Exercise Price
      of Outstanding Options, Warrants and Rights (b)
    Number of Securities Remaining Available
      for Future Issuance Under Equity Compensation Plans (Excluding
      Securities Reflected in column (a)) (c)Equity Compensation Plans Approved By Security Holders
    None
    Not Applicable
    NoneEquity Compensation Plans Not Approved By Security
      Holders
    3,375,000
    $0.14
    8,998,525


2007 Stock Option Plan

On March 27, 2007, we established our 2007 Stock Incentive Plan
(the 2007 Plan). The purpose of the 2007 Plan is to enhance the long-term
stockholder value of the Company by offering opportunities to our directors,
officers, employees and eligible consultants and any entity that directly or
indirectly is in control of or is controlled by the Company (a Related
Company) to acquire and maintain stock ownership in the Company in order to
give these persons the opportunity to participate in our growth and success, and
to encourage them to remain in our service or a Related Company.

The 2007 Plan is administered by our Board of Directors or by a
committee of two or more directors appointed by our Board of Directors (the
"Plan Administrator"). Subject to the provisions of the 2007 Plan, the Plan
Administrator has full and final authority to grant the awards of stock options
and to determine the terms and conditions of the awards and the number of shares
to be issued pursuant thereto. Options granted under the 2007 Plan may be either
"incentive stock options," which qualify for special tax treatment under the
Internal Revenue Code of 1986, as amended, (the "Code"), nonqualified stock
options or restricted shares.

All of our employees and members of our Board of Directors are
eligible to be granted options. Individuals who have rendered or are expected to
render advisory or consulting services to us are also eligible to receive
options so long as they do not provide capital raising services or promote or
maintain a market for our securities. The maximum number of shares of our Common
Stock with respect to which options or rights may be granted under the 2007 Plan
to any participant is 6,000,000 shares with the number of authorized shares
under the 2007 Plan increasing on the first day of each quarter beginning with
the fiscal quarter commencing July 1, 2007 by the lesser of the following
amounts: (1) 15% of the total increase in the number of shares of Common Stock
outstanding during the previous fiscal quarter; or (2) a lesser number of shares
of Common Stock as may be determined by our Board of Directors, subject to
certain adjustments to prevent dilution.

The exact terms of the option granted are contained in an
option agreement between us and the person to whom such option is granted.
Eligible employees are not required to pay anything to receive options. The
exercise price for incentive stock options must be no less than 100% of the fair
market value of our common stock on the date of grant. The exercise price for
nonqualified stock options is determined by the Plan Administrator but may not
be less than 75% of the fair market value of our common stock on the date of the
grant. Fair market value for purposes of the 2007 Plan is calculated based on
the price of our common stock during the 10 trading days prior to the grant
date. An option holder may exercise options from time to time, subject to
vesting. Options will vest immediately upon death or disability of a participant
and upon certain change of control events.

The Plan Administrator may amend the 2007 Plan at any time and
in any manner, however no recipient of any award may, without his or her
consent, be deprived thereof or of any of his or her rights thereunder or with
respect thereto as a result of such amendment or termination.

The 2007 Plan terminates on March 27, 2017 unless sooner
terminated by action of our Board of Directors. No option is exercisable by any
person after such expiration. If an award expires, terminates or is canceled,
the shares of our Common Stock not purchased thereunder may again be made
available for issuance under the 2007 Plan.

33

---

We have not yet filed a registration statement under the
Securities Act of 1933 to register the shares of our Common Stock reserved for
issuance under the 2007 Plan.

Options Granted to Consultant

In accordance with the terms of the Consulting Agreement dated
November 5, 2007 between us and RJ Falkner & Company, Inc., we granted an
option to R. Jerry Falkner to purchase 100,000 shares of our common stock. The
option granted is exercisable at a price of $1.75 per share and expires on
August 15, 2017. The option granted to Mr. Falkner was not granted under our
2007 Plan.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The following table sets forth certain information concerning
the number of shares of our common stock owned beneficially as of March 25, 2008
by: (i) each person (including any group) known to us to own more than five
percent (5%) of any class of our voting securities, (ii) each of our name
executive officers as defined in Item 402(m)(2) of Registration S-K, (iii) each
of our directors, (iv) officers and directors as a group. Unless otherwise
indicated, the stockholders listed possess sole voting and investment power with
respect to the shares shown.

Title of Class
      Name and Address of Beneficial
        Owner
      Number of Shares of Common Stock
      Percentage of Common Stock(1)DIRECTORS AND OFFICERSCommon Stock
      Douglas D.G. Birnie 
        Chief Executive Officer, President, Secretary 
        and Director
      4,200,000(2)
        (direct)
      4.2%Common Stock
      Robert D. McDougal 
        Chief Financial Officer, Treasurer and Director
      1,700,000(3)
        (direct)
      1.7%Common Stock
      Michael Steele 
        Director
      1,100,000(4)
        (direct)
      1.1%Common Stock
      Lawrence E. Chizmar, Jr. 
        Director
      302,699(5)
        (direct)
      *Common Stock
      Lorrie Archibald 
        Former Officer and Former Director
      20,000 
        (direct)
      *Common Stock
      Christian Adolf Rommel 
        Former Secretary
      Nil
      NilCommon Stock
      All Officers and Directors 
        as a Group (6 persons)
      7,322,699
      7.3%5% STOCKHOLDERSCommon Stock
      Nanominerals Corp. 
        3500 Lakeside Court, Suite 206 
        Rena, NV 89509
      40,150,000 
        (direct)
      41.4%


|*   | Less than 1%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|(1) | Under Rule 13d-3, a beneficial owner of a security
      includes any person who, directly or indirectly, through any contract,
      arrangement, understanding, relationship, or otherwise has or shares: (i)
      voting power, which includes the power to vote, or to direct the voting of
      shares; and (ii) investment power, which includes the power to dispose or
      direct the disposition of shares. Certain shares may be deemed to be
      beneficially owned by more than one person

34

---

|    | (if, for example, persons share the power to vote or the
      power to dispose of the shares). In addition, shares are deemed to be
      beneficially owned by a person if the person has the right to acquire the
      shares (for example, upon exercise of an option) within 60 days of the
      date as of which the information is provided. In computing the percentage
      ownership of any person, the amount of shares outstanding is deemed to
      include the amount of shares beneficially owned by such person (and only
      such person) by reason of these acquisition rights. As a result, the
      percentage of outstanding shares of any person as shown in this table does
      not necessarily reflect the persons actual ownership or voting power with
      respect to the number of shares of common stock actually outstanding. As
      of March 25, 2008, there were 97,010,087 shares of our common stock issued
      and outstanding.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(2) | The shares listed as beneficially owned by Mr. Birnie
      consists of: (i) 1,900,000 shares of our common stock held by Mr. Birnie;
      (ii) warrants to acquire 100,000 shares of our common stock at an exercise
      price of $1.00 per share until June 20, 2008; and (iii) options to acquire
      2,200,000 shares of our common stock at an exercise price of $0.05 per
      share until March 30, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(3) | The shares listed as beneficially owned by Mr. McDougal
      consists of: (i) 1,200,000 shares of our common stock held by Mr.
      McDougal; and (ii) options to acquire 500,000 shares of our common stock
      at an exercise price of $0.05 per share until March 30, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(4) | The shares listed as beneficially owned by Mr. Steele
      consists of: (i) options to acquire 500,000 shares of our common stock at
      an exercise price of $0.05 per share; and (ii) 400,000 shares and warrants
      to acquire an additional 200,000 shares at a price of $1.00 per share
      owned by Avonlea Ventures #2 Inc. Mr. Steele owns a 50% interest in
      Avonlea Ventures #2 Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(5) | The shares listed as beneficially owned by Mr. Chizmar
      consists of: (i) 201,799 shares of our common stock; and (ii) warrants to
      purchase 100,900 shares of our common stock at an exercise price of $2.39
      per share until February 20, 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

CHANGES IN CONTROL

None.

ITEM
13.               
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

RELATED TRANSACTIONS

Except as disclosed below, none of the following parties has,
during the last two fiscal years, had any material interest, direct or indirect,
in any transaction with us or in any presently proposed transaction that has or
will materially affect us:

| | (a) | Any of our directors or officers;                                                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Any person proposed as a nominee for election as a
      director;                                                                                                                                                                                                                                                                        
| | (c) | Any person who beneficially owns, directly or indirectly,
      more than 5% of our outstanding common stock; or                                                                                                                                                                                                                          
| | (d) | Any child, stepchild, parent, stepparent, spouse,
      sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
      brother-in-law, sister-in-law of any person listed in (a) to (c), above,
      or any person (other than a tenant or employee) who shares the household
      of any person listed in (a) to (c), above.

Nano Agreement

On March 30, 2007, we entered into an assignment agreement (the
Nano Agreement) dated for reference as of March 29, 2007, with Nanominerals
Corp. (Nanominerals), pursuant to which Nanominerals agreed to assign to us
its rights to the Columbus Project and the Red Mountain Project under the
Columbus Letter Agreement and the Red Mountain Letter Agreement, respectively.
The terms of the Nano Agreement were amended pursuant to an Amendment Agreement
entered into on August 8, 2007. The assignments were completed on August 14,
2007. In consideration for the assignment of Nanominerals rights to the
Columbus and Red Mountain Projects, we issued an aggregate of 30,000,000 shares
of our common stock to Nanominerals and to certain business associates of
Nanominerals, including 1,200,000 shares to Robert D. McDougal, currently our
Chief Financial

35

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Officer and Treasurer and a member of our Board of Directors.
Also pursuant to the Nano Agreement, we agreed to grant a royalty in favor of
Nanominerals equal to 5% of the net smelter returns on the Columbus Project and
Red Mountain Project and any future project transferred or assigned to us by
Nanominerals, and agreed to reimburse Nanominerals for expenses on the Columbus
and Red Mountain Projects and to assume all of Nanominerals obligations under
the Columbus Letter Agreement and the Red Mountain Letter Agreement. For the
year ended December 31, 2007, we reimbursed Nanominerals a total of $626,314 in
respect of expenses incurred by it in relation to the Columbus and Red Mountain
Projects.

Under the terms of the Nano Agreement, as further consideration
for Nanominerals agreement to enter into the Nano Agreement and for completing
the assignment of the mineral property rights, Lorrie Ann Archibald, then our
Chief Executive Officer, President, Treasurer and sole director, agreed to sell
all 18,200,000 shares of our common stock owned by her to Nanominerals at a
price of $0.0025 per share.

In addition, the Nano Agreement called for us to grant options
to acquire 2,200,000 shares of our common stock to Douglas D.G. Birnie and
options to acquire 500,000 shares of our common stock to Mr. McDougal. These
options were granted to Mr. Birnie and Mr. McDougal on March 30, 2007 with an
exercise price of $0.05 per share and expire on March 30, 2009. Mr. Birnie was
appointed as our Chief Executive Officer, President and Secretary, and to our
Board of Directors, and Mr. McDougal was appointed as our Chief Financial
Officer, pursuant to the terms of the Nano Agreement.

In addition, Nanominerals acts as a consultant to us on
technical, exploration and financial matters. During the year ended December 31,
2007, we incurred fees totaling $645,000 due to Nanominerals in connection with
these services.

Private Placement Offerings

On June 20, 2007, we issued to Douglas D.G. Birnie, our current
Chief Executive Officer, President, Secretary and a member of our board of
directors, 200,000 units at a price of $0.65 per unit under the terms of our
U.S. Offering. Each unit consists of one share of our common stock and one half
share purchase warrant. Each full share purchase warrant entitles the holder to
purchase an additional share of our common stock at a price of $1.00 per share
for a period of two years from the date of issuance.

On June 20, 2007, we issued to Avonlea Ventures #2 Inc., a
company of which Michael A. Steele owns 50%, 300,000 units at a price of $0.65
per unit under the terms of the Foreign Offering. On October 18, 2007, Avonlea
Ventures #2 Inc. purchased an additional 100,000 units at a price of $0.65 per
unit under the Foreign Offering. Each unit consists of one share of our common
stock and one half share purchase warrant. Each full share purchase warrant
entitles the holder to purchase an additional share of our common stock at a
price of $1.00 per share for a period of two years from the date of issuance.

Acquisition of the Columbus Project

On February 20, 2008, we completed the acquisition of Columbus
Brine Inc. (CBI). The acquisition of CBI was completed pursuant to the
Agreement and Plan of Merger entered into by us, our wholly owned subsidiary
incorporated for the sole purpose of completing the acquisition, CBI
Acquisition, Inc. (Ireland Sub), CBI, and CBIs directors and officers, John
T. Arkoosh, William Maghan and Lawrence E. Chizmar, Jr. (collectively referred
to as the CBI Principals) on December 14, 2007, and as amended on January 31,
2008 (the Agreement and Plan of Merger, as amended, is referred to as the
Merger Agreement).

In connection with our acquisition of CBI, we issued Mr.
Chizmar, currently a member of our Board of Directors, 202,099 shares of our
common stock and share purchase warrants entitling Mr. Chizmar to purchase
100,900 additional shares of our common stock at a price of $2.39 per share. The
warrants issued to Mr. Chizmar expire February 19, 2013 and contain a cashless
right of exercise. We may accelerate the expiration date for these warrants
after August 19, 2010 if the average price of our common stock over any 20
consecutive trading days is greater than or equal to 150% of the exercise price.
Mr. Chizmar was appointed to our Board of Directors pursuant to the terms of the
Merger Agreements.

36

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DDB Claims

Lawrence E. Chizmar Jr., a member of our Board of Directors,
and Douglas D.G. Birnie, our CEO, President and Secretary, and a member of our
Board of Directors, are each the owners of a 1/8 interest in the mining
syndicate known as the DDB Syndicate. The former officers and directors of CBI
(other than Mr. Chizmar), and an affiliate of one of those former officers and
directors, collectively own a 3/8 interest in the DDB Syndicate. The remaining
3/8 interest in the DDB Syndicate is collectively owned by affiliates of
Nanominerals Corp., a significant shareholder of the Company. The DDB Claims
constitute approximately 55% of the mineral claims that make up the Columbus
Project as it is currently composed. Mr. Birnie, Nanominerals and Nanominerals
affiliates acquired their respective interests in the DDB Syndicate and the DDB
Claims prior to their involvement with the Company. On November 30, 2007, the
DDB Syndicate leased the DDB Claims to Columbus S.M. LLC (CSM), formerly a
wholly owned subsidiary of CBI, and now a wholly owned subsidiary of the
Company. The mining lease agreement (the DDB Agreement) between the DDB
Syndicate and CSM provides CSM with a lease, extending for approximately 5
years, with an option to purchase the DDB Claims at any time during the lease
period. In order to maintain its lease rights, CSM must pay the DDB Syndicate
$130,000 by June 30, 2008, with annual rental payments thereafter of $30,000 per
year, payable on June 30, 2009, 2010 and 2011 respectively. CSM may exercise its
option to purchase the DDB Claims by:

| | (a) | paying the DDB Syndicate a purchase price of $400,000,
      less any rental payments made by CSM prior to exercising the option;
    or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                         
| | (b) | paying the DDB Syndicate $10, plus the grant of a 2%
      royalty of net smelter returns on the DDB Claims.                            

As the owners of a 1/8 interest each in the DDB Syndicate, Mr.
Chizmar and Mr. Birnie are each entitled to 1/8 of any amounts paid by us under
the DDB Agreement.

DIRECTOR INDEPENDENCE

Our common stock is quoted on the OTC Bulletin Board
interdealer quotation system, which does not have director independence
requirements. In determining whether any of our directors are independent
directors, we have applied the definition for independence set out in NASDAQ
Rule 4200(a)(15). In applying this definition, we have determined that Michael
A. Steele is our sole independent director. Neither of Douglas D.G. Birnie,
Robert D. McDougal or Lawrence E. Chizmar Jr. qualifies as an independent member
of our Board of Directors.

37

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ITEM
14.               
PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The aggregate fees billed for the two most recently completed
  fiscal years ended December 31, 2007 and 2006 for professional services rendered
  by the principal accountant for the audit of the Corporations annual financial
  statements and review of the financial statements included our quarterly reports
  on Form 10-QSB and services that are normally provided by the accountant in
  connection with statutory and regulatory filings or engagements for these fiscal
  periods were as follows:

Year Ended December 31, 2007
      Year Ended December 31, 2006Audit Fees
    $46,725
    $10,000Audit Related Fees
    13,131
    NilTax Fees
    Nil
    NilAll Other Fees
    Nil
    NilTotal
    $59,856
    $10,000


ITEM
15.               
EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

The following documents are filed as a part of this report:

| | (1) | Our financial statements are included in Part II, Item
      8.                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                    
| | (2) | All financial statement supporting schedules are omitted
      because the information is inapplicable or presented in the notes to our
      financial statements.

|EXHIBITS |  |                                                                                                                                                                                                                                             
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         |  |                                                                                                                                                                                                                                             
|Exhibit  |  |                                                                                                                                                                                                                                             
|Number   |  | Description of Exhibit                                                                                                                                                                                                                      
|         |  |                                                                                                                                                                                                                                             
|3.1      |  | Articles of
        Incorporation.(1)                                                                                                                                                                                                       
|         |  |                                                                                                                                                                                                                                             
|3.2      |  | Certificate
        of Amendment to Articles  Name Change from Merritt Ventures Corp.
        to Ireland Inc.(2)                                                                                                                           
|         |  |                                                                                                                                                                                                                                             
|3.3      |  | Certificate
        of Change  4-for-1 Stock Split.(4)                                                                                                                                                                                     
|         |  |                                                                                                                                                                                                                                             
|3.4      |  | Bylaws.(1)                                                                                                                                                                                                                                  
|         |  |                                                                                                                                                                                                                                             
|10.1     |  | 2007 Stock Incentive
        Plan.(3)                                                                                                                                                                                                       
|         |  |                                                                                                                                                                                                                                             
|10.2     |  | Assignment Agreement
        dated for reference as of March 29, 2007, among Nano Minerals Corp., Ireland
        Inc. and Lorrie Archibald.(3)                                                                                             
|         |  |                                                                                                                                                                                                                                             
|10.3     |  | Letter Agreement
        dated July 22, 2006 among Columbus Brine Inc., Columbus S.M. LLC and Nanominerals
        Corp., assigned to Ireland Inc. by Nanominerals Corp.(11)                                                                
|         |  |                                                                                                                                                                                                                                             
|10.4     |  | Letter Agreement
        dated March 15, 2007 between Red Mountain Mining and Nanominerals Corp.,
        assigned to Ireland Inc. by Nanominerals Corp.(11)                                                                                
|         |  |                                                                                                                                                                                                                                             
|10.5     |  | Agency Agreement
        dated effective as of June 19, 2007 between the Company and S & P
        Investors, Inc.(5)                                                                                                                       
|         |  |                                                                                                                                                                                                                                             
|10.6     |  | Amendment Agreement
        to Assignment Agreement among Nanominerals Corp., Ireland Inc. and Lorrie
        Archibald, dated for reference as of August 8, 2007.(6)                                                                       
|         |  |                                                                                                                                                                                                                                             
|10.7     |  | Consulting Agreement
        between the Company and RJ Falkner & Company, Inc., dated for reference
        as of November 5, 2007.(7)                                                                                                     
|         |  |                                                                                                                                                                                                                                             
|10.8     |  | Consultant Non-Qualified
        Stock Option Agreement between the Company and R. Jerry Falkner, dated
        effective as of November 5, 2007.(7)                                                                                        
|         |  |                                                                                                                                                                                                                                             
|10.9     |  | Agreement and
        Plan of Merger dated December 14, 2007 among Ireland Inc., Columbus Brine
        Inc., John T. Arkoosh, William Maghan and Lawrence E. Chizmar, Jr.(8)                                                               
|         |  |                                                                                                                                                                                                                                             
|10.10    |  | Amendment Agreement
        to Agreement and Plan of Merger entered into on January 31, 2008 among
        Ireland Inc., CBI Acquisition, Inc., Columbus Brine Inc., John T. Arkoosh,
        William Maghan and Lawrence E. Chizmar, Jr.(9)
|         |  |                                                                                                                                                                                                                                             
|10.11    |  | Mining
        Lease Agreement dated November 30, 2007 between DDB Syndicate and Columbus
        S.M., LLC.                                                                                                                                

38

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|Exhibit |  |                                                                                                                                                                       
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |  | Description of Exhibit                                                                                                                                                
|        |  |                                                                                                                                                                       
|14.1    |  | Code of Ethics.(10)                                                                                                                                                   
|        |  |                                                                                                                                                                       
|16.1    |  | Letter of Telford
        Sadovnick, PLLC.(12)                                                                                                                        
|        |  |                                                                                                                                                                       
|21.1    |  | List
        of Subsidiaries                                                                                                                                          
|        |  |                                                                                                                                                                       
|31.1    |  | Certification
        of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002.                                               
|        |  |                                                                                                                                                                       
|31.2    |  | Certification
        of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002.                                               
|        |  |                                                                                                                                                                       
|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.

|(1)  | Filed as an exhibit to our Registration Statement on Form
      SB-2 originally filed on April 18, 2002, as amended.              
|---- | ----------------------------------------------------------------------------------------------------------------------------------
|(2)  | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2005 filed on April 12, 2006.       
|(3)  | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2006 filed on April 5, 2007.        
|(4)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on April 30, 2007.                                              
|(5)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on June 21, 2007.                                               
|(6)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on August 14, 2007.                                             
|(7)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on November 9, 2007.                                            
|(8)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on December 20, 2007.                                           
|(9)  | Filed as an exhibit to our Current Report on Form 8-K
      filed on February 6, 2008.                                            
|(10) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2003, filed on September 28,
  2004.
|(11) | Filed as a Schedule to Exhibit 10.3.                                                                                              
|(12) | Filed as an exhibit to our Current Report on Form 8-K
      filed on October 12, 2007.                                            

39

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

|      |  | IRELAND INC.                                          
|----- |  | ------------------------------------------------------
|      |  |                                                       
|      |  |                                                       
|By:   |  | /s/
      Douglas D.G. Birnie                         
|      |  | DOUGLAS D.G. BIRNIE                                   
|      |  | Chief Executive Officer, President and
      Secretary
|      |  | (Principal Executive Officer)                         
|      |  |                                                       
|Date: |  | March
      31, 2008                                  
|      |  |                                                       
|      |  |                                                       
|      |  |                                                       
|      |  |                                                       
|By:   |  | /s/
      Robert D. McDougal                          
|      |  | ROBERT D. MCDOUGAL                                    
|      |  | Chief Financial Officer and Treasurer                 
|      |  | (Principal Financial Officer)                         
|      |  |                                                       
|Date: |  | March
      31, 2008                                  

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

|By:   |  | /s/
      Douglas D.G. Birnie                         
|----- |  | ------------------------------------------------------
|      |  | DOUGLAS D.G. BIRNIE                                   
|      |  | Chief Executive Officer, President and
      Secretary
|      |  | Director                                              
|      |  |                                                       
|Date: |  | March
      31, 2008                                  
|      |  |                                                       
|      |  |                                                       
|      |  |                                                       
|By:   |  | /s/
      Robert D. McDougal                          
|      |  | ROBERT D. MCDOUGAL                                    
|      |  | Chief Financial Officer and Treasurer                 
|      |  | Director                                              
|      |  |                                                       
|Date: |  | March
      31, 2008                                  
|      |  |                                                       
|      |  |                                                       
|      |  |                                                       
|By:   |  | /s/
      Michael A. Steele                           
|      |  | MICHAEL A. STEELE                                     
|      |  | Director                                              
|      |  |                                                       
|Date: |  | March
      31, 2008                                  
|      |  |                                                       
|      |  |                                                       
|      |  |                                                       
|By:   |  | /s/
      Lawrence E. Chizmar Jr.                     
|      |  | LAWRENCE E. CHIZMAR, JR.                              
|      |  | Director                                              
|      |  |                                                       
|Date: |  | March
      31, 2008                                  

---