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<o:Author>Laurie Rempel</o:Author>

<o:LastAuthor>Laurie Rempel</o:LastAuthor>

<o:LastPrinted>2002-12-03T16:42:35Z</o:LastPrinted>

<o:Created>2002-11-13T17:30:36Z</o:Created>

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

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}

.xl145 {

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}

.xl146 {

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}

.xl147 {

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}

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}

.xl150 {

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}

.xl151 {

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}

.xl152 {

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}

.xl153 {

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}

.xl154 {

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}

.xl155 {

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}

.xl156 {

	FONT-STYLE: italic; FONT-FAMILY: Arial, sans-serif; TEXT-ALIGN: left; mso-font-charset: 0; mso-style-parent: style0

}

.xl157 {

	TEXT-ALIGN: center; mso-style-parent: style0

}

.xl158 {

	FONT-FAMILY: Arial, sans-serif; WHITE-SPACE: normal; mso-font-charset: 0; mso-style-parent: style0

}

.xl159 {

	FONT-WEIGHT: 700; FONT-FAMILY: Arial, sans-serif; WHITE-SPACE: normal; TEXT-ALIGN: left; mso-font-charset: 0; mso-style-parent: style0

}

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<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Consolidated<SPAN 

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<TD class=xl38 style="mso-ignore: colspan" colSpan=3>CALAIS RESOURCES 

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<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Years ended May 31, 

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<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>(In Canadian dollars)</TD>

<TD class=xl37></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl36 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD style="HEIGHT: 18pt" height=24></TD>

<TD class=xl40 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD style="HEIGHT: 18pt" height=24></TD>

<TD class=xl40 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD style="HEIGHT: 18pt" height=24></TD>

<TD class=xl40 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18.75pt; mso-height-source: userset" height=25>

<TD class=xl40 style="HEIGHT: 18.75pt" colSpan=6 height=25>MANAGEMENT’S 

STATEMENT OF RESPONSIBILITY</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 64.5pt; mso-height-source: userset" height=86>

<TD class=xl39 style="HEIGHT: 64.5pt" colSpan=6 height=86>Management is 

responsible for the preparation of the accompanying consolidated financial 

statements and for their integrity and objectivity.<SPAN 

style="mso-spacerun: yes">  </SPAN>The consolidated statements have 

been prepared in accordance with Canadian generally accepted accounting 

principles and are considered by management to present fairly the 

financial position and operating results of the Company.<SPAN 

style="mso-spacerun: yes">  </SPAN>The significant accounting 

policies followed are described in the notes to the consolidated financial 

statements.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl41 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl42></TD>

<TD class=xl43 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 52.5pt; mso-height-source: userset" height=70>

<TD class=xl39 style="HEIGHT: 52.5pt" colSpan=6 height=70>Management has 

established internal control systems to provide reliable accounting 

records and safeguard Company assets.<SPAN 

style="mso-spacerun: yes">  </SPAN>The consolidated financial 

statements have been audited by the independent auditors KPMG LLP, 

Chartered Accountants, whose report outlines the scope of their 

examination and their opinion on the consolidated financial statements.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl41 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl42></TD>

<TD class=xl43 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 25.5pt; mso-height-source: userset" height=34>

<TD class=xl39 style="HEIGHT: 25.5pt" colSpan=6 height=34>The auditors 

have full rights to meet separately with the Audit Committee to discuss 

the results of their examination and their opinions on the adequacy of 

internal controls and the quality of financial reporting.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl41 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl42></TD>

<TD class=xl43 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 26.25pt; mso-height-source: userset" height=35>

<TD class=xl39 style="HEIGHT: 26.25pt" colSpan=6 height=35>The Audit 

Committee of the Company reports their finding to the Board of Directors 

for its consideration in approving the financial statements for 

issuance.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl57 style="HEIGHT: 12.75pt" height=17> </TD>

<TD class=xl58>"signed by Art Daher"</TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" colSpan=2 height=17>Calais 

Resources Inc.</TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" colSpan=2 height=17>Chilliwack, 

BC</TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" colSpan=2 height=17 

x:num="37547">October 18, 2002</TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 17.25pt; mso-height-source: userset" height=23>

<TD class=xl40 style="HEIGHT: 17.25pt" colSpan=6 height=23>AUDITORS' 

REPORT TO THE DIRECTORS</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 17.25pt; mso-height-source: userset" height=23>

<TD class=xl40 style="HEIGHT: 17.25pt" height=23></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 90.75pt; mso-height-source: userset" height=121>

<TD class=xl39 style="HEIGHT: 90.75pt" colSpan=6 height=121>We have 

audited the consolidated balance sheet of Calais Resources Inc. as at May 

31, 2002 and the consolidated statements of operations and deficit and 

cash flows for the year then ended.<SPAN style="mso-spacerun: yes">  

</SPAN>These financial statements are the responsibility of the Company's 

management.<SPAN style="mso-spacerun: yes">  </SPAN>Our 

responsibility is to express an opinion on these<SPAN 

style="mso-spacerun: yes">  </SPAN>financial statements based on our 

audit.<SPAN style="mso-spacerun: yes">  </SPAN>The consolidated 

financial statements as at May 31, 2001 and for the years ended May 31, 

2001 and 2000 were audited by another auditor, who expressed an opinion 

without reservation on those statements in their report, dated October 17, 

2001, except as to Note 5 which was as of November 21, 2001.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 96.75pt; mso-height-source: userset" height=129>

<TD class=xl39 style="HEIGHT: 96.75pt" colSpan=6 height=129>With respect 

to the consolidated financial statements for the year ended May 31, 2002, 

we conducted our audit in accordance with Canadian generally accepted 

auditing standards and United States generally accepted auditing 

standards.<SPAN style="mso-spacerun: yes">  </SPAN>Those standards 

require that we plan and perform an audit to obtain reasonable assurance 

whether the financial statements are free of material misstatement.<SPAN 

style="mso-spacerun: yes">  </SPAN>An audit includes examining, on a 

test basis, evidence supporting the amounts and disclosures in the 

financial statements.<SPAN style="mso-spacerun: yes">  </SPAN>An 

audit also includes assessing the accounting principles used and 

significant estimates made by management, as well as evaluating the 

overall financial statement presentation.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 83.25pt; mso-height-source: userset" height=111>

<TD class=xl39 style="HEIGHT: 83.25pt" colSpan=6 height=111>In our 

opinion, these consolidated financial statements present fairly, in all 

material respects, the financial position of the Company as at May 31, 

2002 and the results of its operations and its cash flows for the year 

then ended in accordance with Canadian generally accepted accounting 

principles.<SPAN style="mso-spacerun: yes">  </SPAN>As required by 

the Company Act (British Columbia), we report that in our opinion these 

principles have been applied, after giving retroactive effect to the 

change in accounting for net loss per share explained in Note 2(j) to the 

financial statements, on a consistent basis.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 44.25pt; mso-height-source: userset" height=59>

<TD class=xl39 style="HEIGHT: 44.25pt" colSpan=6 height=59></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 43.5pt; mso-height-source: userset" height=58>

<TD class=xl57 style="HEIGHT: 43.5pt" height=58> </TD>

<TD class=xl57>"signed KPMG LLP"</TD>

<TD class=xl39></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" colSpan=6 height=17>Chartered 

Accountants</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Chilliwack, Canada</TD>

<TD class=xl39></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" colSpan=2 height=17 

x:num="37547">October 18, 2002</TD>

<TD class=xl47></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 18pt" height=24>

<TD class=xl40 style="HEIGHT: 18pt" height=24></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 34.5pt; mso-height-source: userset" height=46>

<TD class=xl40 style="HEIGHT: 34.5pt" colSpan=6 height=46>COMMENTS BY 

AUDITOR FOR U.S. READERS ON CANADA-U.S. REPORTING DIFFERENCE</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 101.25pt; mso-height-source: userset" height=135>

<TD class=xl39 style="HEIGHT: 101.25pt" colSpan=6 height=135>In the United 

States, reporting standards require the addition of an explanatory 

paragraph (following the opinion paragraph) when the financial statements 

are affected by conditions and events that cast substantial doubt on the 

Company's ability to continue as a going concern, such as those described 

in note 1 to the consolidated financial statements.<SPAN 

style="mso-spacerun: yes">  </SPAN>Our report to the directors dated 

October 18, 2002 is expressed in accordance with Canadian reporting 

standards which does not permit a reference to such events and conditions 

in the auditors' report when these are adequately disclosed in the 

financial statements.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 49.5pt; mso-height-source: userset" height=66>

<TD class=xl57 style="HEIGHT: 49.5pt" height=66> </TD>

<TD class=xl57>"signed by KPMG LLP"</TD>

<TD class=xl39></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" colSpan=6 height=17>Chartered 

Accountants</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Chilliwack, Canada</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" colSpan=2 height=17 

x:num="37547">October 18, 2002</TD>

<TD class=xl49></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl44 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl49 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 23.25pt" height=31>

<TD class=xl27 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3 

height=31>CALAIS RESOURCES INC.</TD>

<TD class=xl27></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Consolidated Balance Sheets</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Expressed in Canadian Dollars</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>May 31, 2002 and 2001</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl25 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl32 style="HEIGHT: 12.75pt" height=17> </TD>

<TD class=xl32> </TD>

<TD class=xl32> </TD>

<TD class=xl32> </TD>

<TD class=xl33 x:num>2002</TD>

<TD class=xl33 x:num>2001</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 20.25pt" height=27>

<TD class=xl28 style="HEIGHT: 20.25pt; mso-ignore: colspan" colSpan=2 

height=27>Assets</TD>

<TD class=xl24></TD>

<TD class=xl28></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9pt; mso-height-source: userset" height=12>

<TD class=xl28 style="HEIGHT: 9pt" height=12></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl28></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Current assets:</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Cash</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl31 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                  

</SPAN>- </TD>

<TD class=xl31 x:num="632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">               

</SPAN>632 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:str="Restricted cash (Note 5) ">Restricted cash (Note 5) 

</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 x:num="67415">67,415 </TD>

<TD class=xl29>-</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:str="Advances receivable ">Advances receivable </TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29>-</TD>

<TD class=xl29 x:num="122806">122,806 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Other receivables</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 x:num="44">44 </TD>

<TD class=xl29 x:num="862">862 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:str="Inventories ">Inventories </TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 x:num="283301">283,301 </TD>

<TD class=xl29 x:num="283301">283,301 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl131>Prepaid expenses and deposits</TD>

<TD class=xl131> </TD>

<TD class=xl131> </TD>

<TD class=xl132 x:num="7612">7,612 </TD>

<TD class=xl132 x:num="7612">7,612 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD class=xl29 x:num="358372">358,372 </TD>

<TD class=xl29 x:num="415213">415,213 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Capital assets (Note 3)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl29 x:num="126216">126,216 </TD>

<TD class=xl29 x:num="169668">169,668 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Mineral properties (Note 4)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl29 x:num="12681453">12,681,453 </TD>

<TD class=xl29 x:num="12202896">12,202,896 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl34 style="HEIGHT: 13.5pt" height=18> </TD>

<TD class=xl34> </TD>

<TD class=xl34> </TD>

<TD class=xl34> </TD>

<TD class=xl35 x:num="13166041"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>13,166,041 </TD>

<TD class=xl35 x:num="12787777"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>12,787,777 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 20.25pt" height=27>

<TD class=xl28 style="HEIGHT: 20.25pt; mso-ignore: colspan" colSpan=4 

height=27>Liabilities and Shareholders' Equity</TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9.75pt; mso-height-source: userset" height=13>

<TD class=xl28 style="HEIGHT: 9.75pt" height=13></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl28></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Current liabilities:</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:str="Bank overdraft ">Bank overdraft </TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl31 x:num="9399"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">           

</SPAN>9,399 </TD>

<TD class=xl31 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2>Accounts payable and 

accrued liabilities</TD>

<TD class=xl25></TD>

<TD class=xl29 x:num="595282">595,282 </TD>

<TD class=xl29 x:num="780994">780,994 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Bank loan (Note 5)</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 x:num="1832616">1,832,616 </TD>

<TD class=xl29>-</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 26.25pt; mso-height-source: userset" height=35>

<TD style="HEIGHT: 26.25pt" height=35></TD>

<TD class=xl135 style="WIDTH: 227pt" width=303 colSpan=2 

x:str="Advances from shareholders, without interest or fixed terms of repayment; unsecured ">Advances 

from shareholders, without interest or fixed terms of repayment; unsecured 

</TD>

<TD class=xl135 style="WIDTH: 71pt" width=95> </TD>

<TD class=xl132 x:num="546138">546,138 </TD>

<TD class=xl132 x:num="895893">895,893 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD class=xl29 x:num="2983435">2,983,435 </TD>

<TD class=xl29 x:num="1676887">1,676,887 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 7.5pt; mso-height-source: userset" height=10>

<TD class=xl24 style="HEIGHT: 7.5pt; mso-ignore: colspan" colSpan=4 

height=10></TD>

<TD class=xl29 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Long-term debt (Note 6)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl29 x:num="5097105">5,097,105 </TD>

<TD class=xl29 x:num="5720680">5,720,680 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 8.25pt; mso-height-source: userset" height=11>

<TD style="HEIGHT: 8.25pt" height=11></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Shareholders' equity:</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Share capital (Note 7)</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 x:num="22322607">22,322,607 </TD>

<TD class=xl29 x:num="22076307">22,076,307 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl131>Deficit</TD>

<TD class=xl131> </TD>

<TD class=xl131> </TD>

<TD class=xl132 x:num="-17237106">(17,237,106)</TD>

<TD class=xl132 x:num="-16686097">(16,686,097)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD class=xl29 x:num="5085501">5,085,501 </TD>

<TD class=xl29 x:num="5390210">5,390,210 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>General and future operations (Note 1)</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl29 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Contingency (Note 10)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Commitments (Note 13)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Subsequent event (Note<SPAN style="mso-spacerun: yes">  

</SPAN>15)</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl30 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl34 style="HEIGHT: 13.5pt" height=18> </TD>

<TD class=xl34> </TD>

<TD class=xl34> </TD>

<TD class=xl34> </TD>

<TD class=xl35 x:num="13166041"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>13,166,041 </TD>

<TD class=xl35 x:num="12787777"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>12,787,777 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>On behalf of the Board:</TD>

<TD class=xl24></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 8.25pt; mso-height-source: userset" height=11>

<TD class=xl25 style="HEIGHT: 8.25pt" height=11></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17><SPAN style="mso-spacerun: yes">  </SPAN><FONT 

class=font8><SPAN 

style="mso-spacerun: yes">             </SPAN>"A. 

Daher"<SPAN 

style="mso-spacerun: yes">                             

</SPAN></FONT><FONT class=font6><SPAN 

style="mso-spacerun: yes">      </SPAN>Director</FONT></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9pt; mso-height-source: userset" height=12>

<TD class=xl25 style="HEIGHT: 9pt" height=12></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17><SPAN style="mso-spacerun: yes">  </SPAN><FONT 

class=font8><SPAN 

style="mso-spacerun: yes">             </SPAN>"M. 

Marten"<SPAN 

style="mso-spacerun: yes">                           

</SPAN></FONT><FONT class=font6><SPAN 

style="mso-spacerun: yes">      </SPAN>Director</FONT></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl25></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17>See accompanying notes to consolidated financial statements.</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl24 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 

height=17></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 23.25pt" height=31>

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3 

height=31>CALAIS RESOURCES INC.</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=3 height=17>Consolidated 

Statement of Operations and Deficit</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Expressed in 

Canadian Dollars</TD>

<TD class=xl25></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl39 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl56 style="HEIGHT: 12.75pt" height=17> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none" align=right x:num>2002</TD>

<TD class=xl56 style="BORDER-TOP: medium none" align=right x:num>2001</TD>

<TD class=xl56 style="BORDER-TOP: medium none" align=right x:num>2000</TD>

<TD></TD>

<TD class=xl37></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Revenues</TD>

<TD class=xl37></TD>

<TD class=xl45 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                 

</SPAN>- </TD>

<TD class=xl53 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                  

</SPAN>- </TD>

<TD class=xl45 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD class=xl37></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Expenses:</TD>

<TD></TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Advertising</TD>

<TD class=xl37></TD>

<TD class=xl50 x:num="1947"><SPAN 

style="mso-spacerun: yes">             

</SPAN>1,947 </TD>

<TD class=xl50 x:num="4523"><SPAN 

style="mso-spacerun: yes">              

</SPAN>4,523 </TD>

<TD class=xl46 x:num="2684"><SPAN 

style="mso-spacerun: yes">               

</SPAN>2,684 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Amortization</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="7043"><SPAN 

style="mso-spacerun: yes">             

</SPAN>7,043 </TD>

<TD class=xl51 x:num="10694"><SPAN 

style="mso-spacerun: yes">            

</SPAN>10,694 </TD>

<TD class=xl46 x:num="15395"><SPAN 

style="mso-spacerun: yes">             

</SPAN>15,395 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Consulting fees</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="91500"><SPAN 

style="mso-spacerun: yes">           

</SPAN>91,500 </TD>

<TD class=xl51 x:num="71727"><SPAN 

style="mso-spacerun: yes">            

</SPAN>71,727 </TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Filing fees, licenses, permits</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="2586"><SPAN 

style="mso-spacerun: yes">             

</SPAN>2,586 </TD>

<TD class=xl51 x:num="2924"><SPAN 

style="mso-spacerun: yes">              

</SPAN>2,924 </TD>

<TD class=xl46 x:num="2014"><SPAN 

style="mso-spacerun: yes">               

</SPAN>2,014 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Foreign exchange</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="4699"><SPAN 

style="mso-spacerun: yes">             

</SPAN>4,699 </TD>

<TD class=xl51 x:num="75207"><SPAN 

style="mso-spacerun: yes">            

</SPAN>75,207 </TD>

<TD class=xl46 x:num="61499"><SPAN 

style="mso-spacerun: yes">             

</SPAN>61,499 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Insurance</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="2591"><SPAN 

style="mso-spacerun: yes">             

</SPAN>2,591 </TD>

<TD class=xl51 x:num="1303"><SPAN 

style="mso-spacerun: yes">              

</SPAN>1,303 </TD>

<TD class=xl46 x:num="-2461"><SPAN 

style="mso-spacerun: yes">              

</SPAN>(2,461)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Interest and bank charges</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="267349"><SPAN 

style="mso-spacerun: yes">          

</SPAN>267,349 </TD>

<TD class=xl51 x:num="35288"><SPAN 

style="mso-spacerun: yes">            

</SPAN>35,288 </TD>

<TD class=xl46 x:num="45624"><SPAN 

style="mso-spacerun: yes">             

</SPAN>45,624 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Office and general</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="8889"><SPAN 

style="mso-spacerun: yes">             

</SPAN>8,889 </TD>

<TD class=xl51 x:num="15807"><SPAN 

style="mso-spacerun: yes">            

</SPAN>15,807 </TD>

<TD class=xl46 x:num="17734"><SPAN 

style="mso-spacerun: yes">             

</SPAN>17,734 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Professional fees</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="128478"><SPAN 

style="mso-spacerun: yes">          

</SPAN>128,478 </TD>

<TD class=xl51 x:num="133999"><SPAN 

style="mso-spacerun: yes">          

</SPAN>133,999 </TD>

<TD class=xl46 x:num="139583"><SPAN 

style="mso-spacerun: yes">           

</SPAN>139,583 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Rent</TD>

<TD class=xl37></TD>

<TD class=xl50 x:num="19800"><SPAN 

style="mso-spacerun: yes">           

</SPAN>19,800 </TD>

<TD class=xl50 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Telephone</TD>

<TD class=xl37></TD>

<TD class=xl50 x:num="13997"><SPAN 

style="mso-spacerun: yes">           

</SPAN>13,997 </TD>

<TD class=xl50 x:num="12871"><SPAN 

style="mso-spacerun: yes">            

</SPAN>12,871 </TD>

<TD class=xl46 x:num="16010"><SPAN 

style="mso-spacerun: yes">             

</SPAN>16,010 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Transfer agent fees</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="2521"><SPAN 

style="mso-spacerun: yes">             

</SPAN>2,521 </TD>

<TD class=xl51 x:num="3551"><SPAN 

style="mso-spacerun: yes">              

</SPAN>3,551 </TD>

<TD class=xl46 x:num="4310"><SPAN 

style="mso-spacerun: yes">               

</SPAN>4,310 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Travel</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="2001"><SPAN 

style="mso-spacerun: yes">             

</SPAN>2,001 </TD>

<TD class=xl51 x:num="7211"><SPAN 

style="mso-spacerun: yes">              

</SPAN>7,211 </TD>

<TD class=xl46 x:num="1037"><SPAN 

style="mso-spacerun: yes">               

</SPAN>1,037 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>Utilities</TD>

<TD class=xl25></TD>

<TD class=xl51 x:num="10820"><SPAN 

style="mso-spacerun: yes">           

</SPAN>10,820 </TD>

<TD class=xl51 x:num="2456"><SPAN 

style="mso-spacerun: yes">              

</SPAN>2,456 </TD>

<TD class=xl46 x:num="14950"><SPAN 

style="mso-spacerun: yes">             

</SPAN>14,950 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60>Wages and benefits</TD>

<TD class=xl60> </TD>

<TD class=xl62 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl62 x:num="58639"><SPAN 

style="mso-spacerun: yes">            

</SPAN>58,639 </TD>

<TD class=xl59 x:num="78800"><SPAN 

style="mso-spacerun: yes">             

</SPAN>78,800 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl52 x:num="564221"><SPAN 

style="mso-spacerun: yes">    </SPAN>564,221 </TD>

<TD class=xl52 x:num="436200"><SPAN 

style="mso-spacerun: yes">    </SPAN>436,200 </TD>

<TD class=xl46 x:num="397179" x:fmla="=SUM(F220:F234)"><SPAN 

style="mso-spacerun: yes">           

</SPAN>397,179 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl57 style="HEIGHT: 12.75pt" height=17> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl59> </TD>

<TD class=xl59> </TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Loss before the undernoted</TD>

<TD></TD>

<TD class=xl50 x:num="-564221"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(564,221)</TD>

<TD class=xl50 x:num="-436200"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(436,200)</TD>

<TD class=xl46 x:num="-397179" x:fmla="=F217-F235"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(397,179)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl50 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Other income (expenses):</TD>

<TD></TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Loss on abandonment 

of mineral properties</TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl73 x:num="-312749"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(312,749)</TD>

<TD class=xl46 x:num="-11399044"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(11,399,044)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Gain on sale of capital assets</TD>

<TD class=xl37></TD>

<TD class=xl73 x:num="7142"><SPAN 

style="mso-spacerun: yes">             

</SPAN>7,142 </TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Interest income</TD>

<TD class=xl37></TD>

<TD class=xl73 x:num="3092"><SPAN 

style="mso-spacerun: yes">             

</SPAN>3,092 </TD>

<TD class=xl73 x:num="1081"><SPAN 

style="mso-spacerun: yes">              

</SPAN>1,081 </TD>

<TD class=xl46 x:num="1180"><SPAN 

style="mso-spacerun: yes">               

</SPAN>1,180 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60>Rental income</TD>

<TD class=xl60> </TD>

<TD class=xl76 x:num="2978"><SPAN 

style="mso-spacerun: yes">             

</SPAN>2,978 </TD>

<TD class=xl76 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl59 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl52 x:num="13212"><SPAN 

style="mso-spacerun: yes">     </SPAN>13,212 </TD>

<TD class=xl52 x:num="-311668"><SPAN 

style="mso-spacerun: yes">   </SPAN>(311,668)</TD>

<TD class=xl46 x:num="-11397864" x:fmla="=SUM(F240:F243)"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(11,397,864)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl57 style="HEIGHT: 12.75pt" height=17> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl59> </TD>

<TD class=xl59> </TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Loss for the year</TD>

<TD></TD>

<TD class=xl50 x:num="-551009"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(551,009)</TD>

<TD class=xl50 x:num="-747868"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(747,868)</TD>

<TD class=xl46 x:num="-11795043" x:fmla="=F237+F244"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(11,795,043)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl50 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Deficit, beginning of year</TD>

<TD></TD>

<TD class=xl50 x:num="-16686097"><SPAN 

style="mso-spacerun: yes">    </SPAN>(16,686,097)</TD>

<TD class=xl50 x:num="-15938229"><SPAN 

style="mso-spacerun: yes">     </SPAN>(15,938,229)</TD>

<TD class=xl46 x:num="-4143186"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(4,143,186)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17><SPAN 

style="mso-spacerun: yes"> </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl63 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2 

height=18>Deficit, end of year</TD>

<TD class=xl63> </TD>

<TD class=xl64 x:num="-17237106"><SPAN 

style="mso-spacerun: yes"> </SPAN>$ (17,237,106)</TD>

<TD class=xl64 x:num="-16686097"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>(16,686,097)</TD>

<TD class=xl126 style="BORDER-TOP: medium none" x:num="-15938229" 

x:fmla="=SUM(F246:F248)"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(15,938,229)</TD>

<TD class=xl37></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Net loss per common share, basic and diluted</TD>

<TD class=xl65 x:num="-00.05"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">           

</SPAN>(0.05)</TD>

<TD class=xl65 x:num="-00.08"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>(0.08)</TD>

<TD class=xl137 x:num="-1.24"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">             

</SPAN>(1.24)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Weighted average common shares outstanding,</TD>

<TD class=xl46 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl66 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2 

height=18><SPAN style="mso-spacerun: yes">   </SPAN>basic and 

diluted</TD>

<TD class=xl54> </TD>

<TD class=xl67 x:num="10184635"><SPAN style="mso-spacerun: yes">  

</SPAN>10,184,635 </TD>

<TD class=xl67 x:num="9618218"><SPAN 

style="mso-spacerun: yes">    </SPAN>9,618,218 </TD>

<TD class=xl136 x:num="9505718"><SPAN 

style="mso-spacerun: yes">         

</SPAN>9,505,718 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=4 height=17>See 

accompanying notes to consolidated financial statements.</TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 23.25pt" height=31>

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3 

height=31>CALAIS RESOURCES INC.</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Consolidated 

Statement of Cash Flows</TD>

<TD class=xl25></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Expressed in 

Canadian Dollars</TD>

<TD class=xl25></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl72 style="HEIGHT: 13.5pt" height=18> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl56 style="BORDER-TOP: medium none; HEIGHT: 12.75pt" 

height=17> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD class=xl56 style="BORDER-TOP: medium none" align=right x:num>2000</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 8.25pt; mso-height-source: userset" height=11>

<TD style="HEIGHT: 8.25pt; mso-ignore: colspan" colSpan=3 height=11></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Cash provided by (used in):</TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Operations:</TD>

<TD></TD>

<TD class=xl75></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Loss for the year</TD>

<TD class=xl37></TD>

<TD class=xl31 x:num="-551009"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(551,009)</TD>

<TD class=xl31 x:num="-747868"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(747,868)</TD>

<TD class=xl45 x:num="-11795043"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>(11,795,043)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Items not involving cash:</TD>

<TD class=xl37></TD>

<TD class=xl75></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Amortization</TD>

<TD></TD>

<TD class=xl73 x:num="7043"><SPAN 

style="mso-spacerun: yes">             

</SPAN>7,043 </TD>

<TD class=xl73 x:num="10694"><SPAN 

style="mso-spacerun: yes">            

</SPAN>10,694 </TD>

<TD class=xl46 x:num="15395"><SPAN 

style="mso-spacerun: yes">             

</SPAN>15,395 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Shares issued for services</TD>

<TD></TD>

<TD class=xl73 x:num="141300"><SPAN 

style="mso-spacerun: yes">          

</SPAN>141,300 </TD>

<TD class=xl73 x:num="45000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>45,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Loss on abandonment of mineral properties</TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl73 x:num="312749"><SPAN 

style="mso-spacerun: yes">          

</SPAN>312,749 </TD>

<TD class=xl46 x:num="11399044"><SPAN 

style="mso-spacerun: yes">       

</SPAN>11,399,044 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Gain on sale of capital assets</TD>

<TD></TD>

<TD class=xl73 x:num="-7142"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(7,142)</TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Change in non cash 

operating working capital:</TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Restricted cash</TD>

<TD></TD>

<TD class=xl73 x:num="-67415"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(67,415)</TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Advances receivable</TD>

<TD></TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl73 x:num="65594"><SPAN 

style="mso-spacerun: yes">            

</SPAN>65,594 </TD>

<TD class=xl46 x:num="-71266"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(71,266)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Other receivables</TD>

<TD></TD>

<TD class=xl73 x:num="818"><SPAN 

style="mso-spacerun: yes">                

</SPAN>818 </TD>

<TD class=xl73 x:num="5218"><SPAN 

style="mso-spacerun: yes">              

</SPAN>5,218 </TD>

<TD class=xl46 x:num="-5632"><SPAN 

style="mso-spacerun: yes">              

</SPAN>(5,632)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Prepaid expenses and deposits</TD>

<TD></TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl73 x:num="7343"><SPAN 

style="mso-spacerun: yes">              

</SPAN>7,343 </TD>

<TD class=xl46 x:num="-11803"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(11,803)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60 style="mso-ignore: colspan" colSpan=2><SPAN 

style="mso-spacerun: yes">     </SPAN>Accounts payable 

and accrued liabilities</TD>

<TD class=xl76 x:num="-185712"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(185,712)</TD>

<TD class=xl76 x:num="80293"><SPAN 

style="mso-spacerun: yes">            

</SPAN>80,293 </TD>

<TD class=xl59 x:num="71309"><SPAN 

style="mso-spacerun: yes">             

</SPAN>71,309 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl73 x:num="-662117"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(662,117)</TD>

<TD class=xl73 x:num="-220977"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(220,977)</TD>

<TD class=xl46 x:num="-397996" x:fmla="=SUM(F269:F280)"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(397,996)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Financing:</TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Bank loan</TD>

<TD></TD>

<TD class=xl73 x:num="1832616"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,832,616 </TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl46 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Advances from (to) shareholders</TD>

<TD></TD>

<TD class=xl73 x:num="-274755"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(274,755)</TD>

<TD class=xl73 x:num="330292"><SPAN 

style="mso-spacerun: yes">          

</SPAN>330,292 </TD>

<TD class=xl46 x:num="187802"><SPAN 

style="mso-spacerun: yes">           

</SPAN>187,802 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60>Long term debt</TD>

<TD class=xl58> </TD>

<TD class=xl76 x:num="-623575"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(623,575)</TD>

<TD class=xl76 x:num="278662"><SPAN 

style="mso-spacerun: yes">          

</SPAN>278,662 </TD>

<TD class=xl59 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl73 x:num="934286"><SPAN 

style="mso-spacerun: yes">          

</SPAN>934,286 </TD>

<TD class=xl73 x:num="608954"><SPAN 

style="mso-spacerun: yes">          

</SPAN>608,954 </TD>

<TD class=xl46 x:num="187802" x:fmla="=SUM(F283:F285)"><SPAN 

style="mso-spacerun: yes">           

</SPAN>187,802 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Investments:</TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Mineral properties</TD>

<TD></TD>

<TD class=xl73 x:num="-289106"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(289,106)</TD>

<TD class=xl73 x:num="-373383"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(373,383)</TD>

<TD class=xl46 x:num="-122057"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(122,057)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Proceeds from 

disposal of capital assets</TD>

<TD class=xl73 x:num="7412"><SPAN 

style="mso-spacerun: yes">             

</SPAN>7,412 </TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl46 x:num="312925"><SPAN 

style="mso-spacerun: yes">           

</SPAN>312,925 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60>Net additions to capital assets</TD>

<TD class=xl58> </TD>

<TD class=xl76 x:num="-506"><SPAN 

style="mso-spacerun: yes">               

</SPAN>(506)</TD>

<TD class=xl76 x:num="-1416"><SPAN 

style="mso-spacerun: yes">             

</SPAN>(1,416)</TD>

<TD class=xl59 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl73 x:num="-282200"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(282,200)</TD>

<TD class=xl73 x:num="-374799"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(374,799)</TD>

<TD class=xl46 x:num="190868" x:fmla="=SUM(F288:F290)"><SPAN 

style="mso-spacerun: yes">           

</SPAN>190,868 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR class=xl58 style="HEIGHT: 10.5pt; mso-height-source: userset" height=14>

<TD class=xl57 style="HEIGHT: 10.5pt" height=14> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Increase (decrease) in cash</TD>

<TD></TD>

<TD class=xl73 x:num="-10031"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(10,031)</TD>

<TD class=xl73 x:num="13178"><SPAN 

style="mso-spacerun: yes">            

</SPAN>13,178 </TD>

<TD class=xl46 x:num="-19326" x:fmla="=F281+F286+F291"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(19,326)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9pt; mso-height-source: userset" height=12>

<TD class=xl37 style="HEIGHT: 9pt" height=12></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Cash (bank overdraft), beginning of year</TD>

<TD></TD>

<TD class=xl73 x:num="632"><SPAN 

style="mso-spacerun: yes">                

</SPAN>632 </TD>

<TD class=xl73 x:num="-12546"><SPAN 

style="mso-spacerun: yes">           

</SPAN>(12,546)</TD>

<TD class=xl46 x:num="6780"><SPAN 

style="mso-spacerun: yes">               

</SPAN>6,780 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9.75pt; mso-height-source: userset" height=13>

<TD class=xl39 style="HEIGHT: 9.75pt" height=13></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl63 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2 

height=18>Cash (bank overdraft), end of year</TD>

<TD class=xl63> </TD>

<TD class=xl35 x:num="-9399"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>(9,399)</TD>

<TD class=xl35 x:num="632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">              

</SPAN>632 </TD>

<TD class=xl105 style="BORDER-TOP: medium none" x:num="-12546" 

x:fmla="=SUM(F293:F295)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>(12,546)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 9.75pt; mso-height-source: userset" height=13>

<TD class=xl37 style="HEIGHT: 9.75pt; mso-ignore: colspan" colSpan=3 

height=13></TD>

<TD class=xl24></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Supplementary cash flow information:</TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Interest paid</TD>

<TD class=xl68></TD>

<TD class=xl31 x:num="195877"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>195,877 </TD>

<TD class=xl31 x:num="35288"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>35,288 </TD>

<TD class=xl148 x:num="45624"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">          

</SPAN>45,624 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Income taxes paid</TD>

<TD></TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl134 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>-<SPAN style="mso-spacerun: yes">   </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Interest received</TD>

<TD></TD>

<TD class=xl73 x:num="3092"><SPAN 

style="mso-spacerun: yes">             

</SPAN>3,092 </TD>

<TD class=xl73 x:num="1081"><SPAN 

style="mso-spacerun: yes">              

</SPAN>1,081 </TD>

<TD class=xl134 x:num="1180"><SPAN 

style="mso-spacerun: yes">               

</SPAN>1,180 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Non cash transactions:</TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl134></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2><SPAN 

style="mso-spacerun: yes">  </SPAN>Shares issued for mineral property 

development</TD>

<TD class=xl73 x:num="30000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>30,000 </TD>

<TD class=xl73 x:num="15000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>15,000 </TD>

<TD class=xl134 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>-<SPAN style="mso-spacerun: yes">   </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2><SPAN 

style="mso-spacerun: yes">  </SPAN>Amortization capitalized to 

mineral properties</TD>

<TD class=xl73 x:num="36645"><SPAN 

style="mso-spacerun: yes">           

</SPAN>36,645 </TD>

<TD class=xl73 x:num="57346"><SPAN 

style="mso-spacerun: yes">            

</SPAN>57,346 </TD>

<TD class=xl134 x:num="1757431"><SPAN 

style="mso-spacerun: yes">         

</SPAN>1,757,431 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 colSpan=3 

x:str=" Shares issued for repayment of shareholder "><SPAN 

style="mso-spacerun: yes">  </SPAN>Shares issued for repayment of 

shareholder </TD>

<TD></TD>

<TD class=xl134></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25><SPAN style="mso-spacerun: yes">    

</SPAN>advances</TD>

<TD class=xl25></TD>

<TD class=xl73 x:num="75000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>75,000 </TD>

<TD class=xl73 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl134 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>-<SPAN style="mso-spacerun: yes">   </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 colSpan=2><SPAN style="mso-spacerun: yes">  

</SPAN>Advances receivable reclassified to mineral</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl54 style="HEIGHT: 13.5pt" height=18> </TD>

<TD class=xl77><SPAN style="mso-spacerun: yes">    

</SPAN>properties</TD>

<TD class=xl146> </TD>

<TD class=xl78 x:num="122806"><SPAN 

style="mso-spacerun: yes">          

</SPAN>122,806 </TD>

<TD class=xl78 x:str="-"><SPAN style="mso-spacerun: yes"> </SPAN>- 

</TD>

<TD class=xl147 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>-<SPAN style="mso-spacerun: yes">   </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 8.25pt; mso-height-source: userset" height=11>

<TD style="HEIGHT: 8.25pt" height=11></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=4 height=17>See 

accompanying notes to consolidated financial statements.</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 23.25pt" height=31>

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3 

height=31>CALAIS RESOURCES INC.</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=3 height=17>Notes to 

Consolidated Financial Statements</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Expressed in Canadian Dollars</TD>

<TD class=xl25></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl79 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>1</TD>

<TD class=xl80>General and future operations:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 97.5pt; mso-height-source: userset" height=130>

<TD class=xl39 style="HEIGHT: 97.5pt" height=130></TD>

<TD class=xl43 style="WIDTH: 448pt" width=597 colSpan=5>Calais Resources 

Inc. (the "Company") was incorporated under the laws of the Province of 

British Columbia on December 30, 1986.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company is currently in the 

process of exploring and developing various mineral properties to 

determine whether these properties contain ore reserves that are 

economically recoverable.<SPAN style="mso-spacerun: yes">  </SPAN>The 

recoverability of the amounts shown for the mineral properties and related 

deferred costs is dependent upon the existence of economically recoverable 

reserves, the ability of the Company to obtain necessary financing to 

complete their development and upon future profitable production.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 110.25pt; mso-height-source: userset" height=147>

<TD style="HEIGHT: 110.25pt" height=147></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These consolidated 

financial statements have been prepared on a going concern basis in 

accordance with Canadian generally accepted accounting principles.<SPAN 

style="mso-spacerun: yes">  </SPAN>The going concern basis of 

presentation assumes that the Company will continue in operation for the 

foreseeable future and be able to realize its assets and discharge its 

liabilities and commitments in the normal course of business.<SPAN 

style="mso-spacerun: yes">  </SPAN>There is significant doubt about 

the appropriateness of the use of the going concern assumption because the 

Company experienced significant losses in 2002 and 2001 and has 

experienced significant negative cash flow from operations over a number 

of years.<SPAN style="mso-spacerun: yes">  </SPAN>In addition, the 

Company<SPAN style="mso-spacerun: yes">  </SPAN>recently had to seek 

an extension on repayment of a $1,200,000 US loan (see Note 5).</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 71.25pt; mso-height-source: userset" height=95>

<TD style="HEIGHT: 71.25pt" height=95></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to the 

year end, the Company began seeking approximately $2,300,000 US in 

financing to repay the bank loan, trade creditors and provide operating 

funds.<SPAN style="mso-spacerun: yes">  </SPAN>The Company is 

actively pursuing various options with potential lenders and investors 

which, if accepted, will in management's view, enable the Company to 

achieve its business plans.<SPAN style="mso-spacerun: yes">  

</SPAN>No agreements with potential lenders or investors have been reached 

yet and there can be no assurance that such agreements will be reached.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 85.5pt; mso-height-source: userset" height=114>

<TD style="HEIGHT: 85.5pt" height=114></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The ability of the 

Company to continue as a going concern and to realize the carrying value 

of its assets and discharge its liabilities when due is dependent on the 

successful completion of the actions taken or planned, some of which are 

described above, which management believes will mitigate the adverse 

conditions and events which raise doubt about the validity of the "going 

concern" assumption used in preparing these financial statements.<SPAN 

style="mso-spacerun: yes">  </SPAN>There is no certainty that these 

and other strategies will be sufficient to permit the Company to continue 

beyond May 31, 2003.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 55.5pt; mso-height-source: userset" height=74>

<TD style="HEIGHT: 55.5pt" height=74></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The financial 

statements do not reflect adjustments that would be necessary if the 

"going concern" assumption were not appropriate.<SPAN 

style="mso-spacerun: yes">  </SPAN>If the "going concern" basis was 

not appropriate for these financial statements, then adjustments would be 

necessary in the carrying value of assets and liabilities, the reported 

revenues and expenses, and the balance sheet classifications used.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>2</TD>

<TD class=xl80>Significant accounting policies:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(a)</TD>

<TD class=xl39>Basis of consolidation:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 58.5pt; mso-height-source: userset" height=78>

<TD style="HEIGHT: 58.5pt" height=78></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These financial 

statements include the accounts of the Company and its wholly-owned 

subsidiaries.<SPAN style="mso-spacerun: yes">  </SPAN>Calais 

International Inc., Recursos Calais S.A. de C.V., Calais Resources Nevada 

Inc., Calais Resources Colorado Inc. and Recursos Calais La Paloma S.A. de 

C.V.<SPAN style="mso-spacerun: yes">   </SPAN>All material 

inter-company transactions and balances have been eliminated.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(b)</TD>

<TD class=xl39>Use of estimates:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 72.75pt; mso-height-source: userset" height=97>

<TD style="HEIGHT: 72.75pt" height=97></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The preparation of 

financial statements in conformity with Canadian generally accepted 

accounting principles requires management to make estimates and 

assumptions that affect the reported amounts of assets and liabilities and 

disclosure of contingent assets and liabilities at the date of the 

financial statements and the reported amounts of revenues and expenses 

during the year.<SPAN style="mso-spacerun: yes">  </SPAN>Actual 

results could differ from those estimates.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(c)</TD>

<TD class=xl39>Cash equivalents:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 19.5pt; mso-height-source: userset" height=26>

<TD style="HEIGHT: 19.5pt" height=26></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Cash equivalents 

consist of short-term deposits with maturity of ninety days or less.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(d)</TD>

<TD class=xl39>Financial instruments:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 84pt; mso-height-source: userset" height=112>

<TD style="HEIGHT: 84pt" height=112></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company's 

financial instruments consist of cash, restricted cash, other receivables, 

advances receivable, bank overdraft, accounts payable and accrued 

liabilities, bank loan, long-term debt and advances from 

shareholders.<SPAN style="mso-spacerun: yes">  </SPAN>Unless 

otherwise noted, it is management's opinion that the Company is not 

exposed to significant interest, currency or credit risks arising from 

these financial instruments.<SPAN style="mso-spacerun: yes">  

</SPAN>The fair values of these financial instruments approximate their 

carrying values, unless otherwise noted.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(e)</TD>

<TD class=xl39>Inventories:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 33pt; mso-height-source: userset" height=44>

<TD style="HEIGHT: 33pt" height=44></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Inventories 

consist of mining equipment held for resale.<SPAN 

style="mso-spacerun: yes">  </SPAN>Inventories are recorded at the 

lower of cost or net realizable value.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(f)</TD>

<TD class=xl39>Mineral properties:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 72pt; mso-height-source: userset" height=96>

<TD style="HEIGHT: 72pt" height=96></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is 

engaged in the acquisition, exploration and development of mineral 

properties.<SPAN style="mso-spacerun: yes">  </SPAN>All acquisition, 

exploration and related direct overhead expenditures are deferred and will 

be depleted over the estimated life of the property.<SPAN 

style="mso-spacerun: yes">  </SPAN>The estimated life of a property 

depends on whether the property contains economically recoverable reserves 

that can be brought into production.<SPAN style="mso-spacerun: yes">  

</SPAN>The costs relating to a property abandoned are written off when the 

decision to abandon is made.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 32.25pt; mso-height-source: userset" height=43>

<TD style="HEIGHT: 32.25pt" height=43></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The total amount 

recorded for mineral properties and deferred exploration expenditures 

represents costs incurred to date and does not reflect present or future 

values.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 46.5pt; mso-height-source: userset" height=62>

<TD style="HEIGHT: 46.5pt" height=62></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Proceeds from 

disposition of mineral properties are normally credited to the capitalized 

costs with no gain or loss being recognized unless the sale is significant 

to the capitalized property costs.<SPAN style="mso-spacerun: yes">  

</SPAN>For such significant dispositions, a gain or loss would be 

recognized.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl39 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(g)</TD>

<TD class=xl39>Capital assets and amortization:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 42pt; mso-height-source: userset" height=56>

<TD style="HEIGHT: 42pt" height=56></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Capital assets are 

recorded at cost and are amortized over the estimated useful life on the 

declining balance method at rates of 20% to 30% per annum.<SPAN 

style="mso-spacerun: yes">  </SPAN>Amortization related to 

exploration and mining equipment is capitalized as a mineral property 

cost.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(h)</TD>

<TD class=xl39>Foreign currency translation:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 71.25pt; mso-height-source: userset" height=95>

<TD style="HEIGHT: 71.25pt" height=95></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5 

x:str="For domestic companies and integrated foreign operations, monetary assets and liabilities are translated into Canadian dollars at exchange rates prevailing at the balance sheet date. Other assets and liabilities are translated at exchange rates prevailing at the dates of the transactions. Income and expenses are translated at average exchange rates prevailing during the year. Exchange gains or losses are included in earnings for the year. ">For 

domestic companies and integrated foreign operations, monetary assets and 

liabilities are translated into Canadian dollars at exchange rates 

prevailing at the balance sheet date.<SPAN 

style="mso-spacerun: yes">  </SPAN>Other assets and liabilities are 

translated at exchange rates prevailing at the dates of the 

transactions.<SPAN style="mso-spacerun: yes">  </SPAN>Income and 

expenses are translated at average exchange rates prevailing during the 

year.<SPAN style="mso-spacerun: yes">  </SPAN>Exchange gains or 

losses are included in earnings for the year.<SPAN 

style="mso-spacerun: yes">  </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(i)</TD>

<TD class=xl39>Income taxes:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 33.75pt; mso-height-source: userset" height=45>

<TD style="HEIGHT: 33.75pt" height=45></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company 

follows the asset and liability method of accounting for income 

taxes.<SPAN style="mso-spacerun: yes">  </SPAN>Under this method, 

current taxes are recognized for the estimated income taxes payable for 

the current period.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 46.5pt; mso-height-source: userset" height=62>

<TD style="HEIGHT: 46.5pt" height=62></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Future income 

taxes are provided based on the estimated future tax effects of temporary 

differences between financial statement carrying amounts of existing 

assets and liabilities and their respective tax bases as well as the 

benefit of losses available to be carried forward to future years for tax 

purposes.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 84.75pt; mso-height-source: userset" height=113>

<TD style="HEIGHT: 84.75pt" height=113></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Future tax assets 

and liabilities are measured using enacted or substantively enacted tax 

rates that are expected to apply to taxable income in the years in which 

those temporary differences are expected to be recovered or settled.<SPAN 

style="mso-spacerun: yes">  </SPAN>The effect on future tax assets 

and liabilities of a change in tax rates is recognized in operations in 

the period that includes the enactment or substantive enactment date.<SPAN 

style="mso-spacerun: yes">  </SPAN>A valuation allowance is recorded 

for future tax assets when it is not more likely than not that such future 

tax assets will be realized.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17><SPAN 

style="mso-spacerun: yes"> </SPAN>(j)</TD>

<TD class=xl39>Net loss per share:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 33.75pt; mso-height-source: userset" height=45>

<TD style="HEIGHT: 33.75pt" height=45></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5 

x:str="During the year the company adopted the new provisions of CICA Handbook Section 3500, earnings per share. ">During 

the year the company adopted the new provisions of CICA Handbook Section 

3500, earnings per share.<SPAN style="mso-spacerun: yes">  </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 69.75pt; mso-height-source: userset" height=93>

<TD style="HEIGHT: 69.75pt" height=93></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Basic net loss per 

share is computed using the weighted average number of common shares 

outstanding during the period.<SPAN style="mso-spacerun: yes">  

</SPAN>Diluted loss per share is computed using the weighted average 

number of common shares and potentially dilutive common shares outstanding 

during the period.<SPAN style="mso-spacerun: yes">  </SPAN>As the 

Company has a net loss in the years ending May 31, 2001 and 2002, basic 

and diluted net loss per share are the same.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(k)</TD>

<TD class=xl39>Stock based compensation:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 73.5pt; mso-height-source: userset" height=98>

<TD style="HEIGHT: 73.5pt" height=98></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5 

x:str="The Company has stock based compensation plans. No compensation expense is recognized for these plans when stock or stock options are issued to employees. Consideration paid by employees on the exercise of stock options is credited to common shares. For consideration paid to an employee for the repurchase of stock options, the excess of the consideration paid over the carrying amount of the stock option cancelled is charged to retained earnings. ">The 

Company has stock based compensation plans.<SPAN 

style="mso-spacerun: yes">  </SPAN>No compensation expense is 

recognized for these plans when stock or stock options are issued to 

employees.<SPAN style="mso-spacerun: yes">  </SPAN>Consideration paid 

by employees on the exercise of stock options is credited to common 

shares.<SPAN style="mso-spacerun: yes">  </SPAN>For consideration 

paid to an employee for the repurchase of stock options, the excess of the 

consideration paid over the carrying amount of the stock option cancelled 

is charged to retained earnings.<SPAN style="mso-spacerun: yes">  

</SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>3</TD>

<TD class=xl80>Capital assets:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl80 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl86> </TD>

<TD class=xl86> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl138 style="BORDER-TOP: medium none" x:num="2002">2002 </TD>

<TD class=xl138 style="BORDER-TOP: medium none" x:num="2001">2001 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl81 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Cost</TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Land</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl31 x:num="8215"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">           

</SPAN>8,215 </TD>

<TD class=xl31 x:num="8215"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>8,215 </TD>

<TD></TD>

<TD class=xl69></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Furniture</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="10947"><SPAN 

style="mso-spacerun: yes">            

</SPAN>10,947 </TD>

<TD class=xl73 x:num="10947"><SPAN 

style="mso-spacerun: yes">             

</SPAN>10,947 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Computer equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="37494"><SPAN 

style="mso-spacerun: yes">            

</SPAN>37,494 </TD>

<TD class=xl73 x:num="37494"><SPAN 

style="mso-spacerun: yes">             

</SPAN>37,494 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Automotive equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="57331"><SPAN 

style="mso-spacerun: yes">            

</SPAN>57,331 </TD>

<TD class=xl73 x:num="57331"><SPAN 

style="mso-spacerun: yes">             

</SPAN>57,331 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Exploration/mining equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="498988"><SPAN 

style="mso-spacerun: yes">          

</SPAN>498,988 </TD>

<TD class=xl73 x:num="508642"><SPAN 

style="mso-spacerun: yes">           

</SPAN>508,642 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Soft<SPAN 

style="DISPLAY: none">ware</SPAN></TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl76 x:num="6260"><SPAN 

style="mso-spacerun: yes">              

</SPAN>6,260 </TD>

<TD class=xl76 x:num="6024"><SPAN 

style="mso-spacerun: yes">               

</SPAN>6,024 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 height=17></TD>

<TD class=xl73 x:num="619235"><SPAN 

style="mso-spacerun: yes">          

</SPAN>619,235 </TD>

<TD class=xl73 x:num="628653"><SPAN 

style="mso-spacerun: yes">           

</SPAN>628,653 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Accumulated depreciation</TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Furniture</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="7065"><SPAN 

style="mso-spacerun: yes">              

</SPAN>7,065 </TD>

<TD class=xl73 x:num="6189"><SPAN 

style="mso-spacerun: yes">               

</SPAN>6,189 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Computer equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="30502"><SPAN 

style="mso-spacerun: yes">            

</SPAN>30,502 </TD>

<TD class=xl73 x:num="27968"><SPAN 

style="mso-spacerun: yes">             

</SPAN>27,968 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Automotive equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="47506"><SPAN 

style="mso-spacerun: yes">            

</SPAN>47,506 </TD>

<TD class=xl73 x:num="43970"><SPAN 

style="mso-spacerun: yes">             

</SPAN>43,970 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2 

height=17>Exploration/mining equipment</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 x:num="401825"><SPAN 

style="mso-spacerun: yes">          

</SPAN>401,825 </TD>

<TD class=xl73 x:num="374834"><SPAN 

style="mso-spacerun: yes">           

</SPAN>374,834 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Soft<SPAN 

style="DISPLAY: none">ware</SPAN></TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl76 x:num="6121"><SPAN 

style="mso-spacerun: yes">              

</SPAN>6,121 </TD>

<TD class=xl76 x:num="6024"><SPAN 

style="mso-spacerun: yes">               

</SPAN>6,024 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4 height=17></TD>

<TD class=xl73 x:num="493019"><SPAN 

style="mso-spacerun: yes">          

</SPAN>493,019 </TD>

<TD class=xl73 x:num="458985"><SPAN 

style="mso-spacerun: yes">           

</SPAN>458,985 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Net book value</TD>

<TD class=xl87> </TD>

<TD class=xl87> </TD>

<TD class=xl35 x:num="126216"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>126,216 </TD>

<TD class=xl35 x:num="169668"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>169,668 </TD>

<TD></TD>

<TD class=xl68></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 32.25pt; mso-height-source: userset" height=43>

<TD style="HEIGHT: 32.25pt" height=43></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Amortization of 

$36,645 (2001 - $57,346) related to exploration equipment was capitalized 

to mineral properties during the year.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>4</TD>

<TD class=xl80>Mineral properties:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl80 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl86> </TD>

<TD class=xl86> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl61> </TD>

<TD class=xl89 x:num><A name=OLE_LINK1>2002</A></TD>

<TD class=xl89 x:num>2001</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl24></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Nevada U.S.A.</TD>

<TD class=xl37></TD>

<TD class=xl24></TD>

<TD class=xl31 x:num="3297789"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>3,297,789 </TD>

<TD class=xl31 x:num="3004902"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      </SPAN>3,004,902 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Colorado, U.S.A.</TD>

<TD class=xl37></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="9239606"><SPAN 

style="mso-spacerun: yes">       

</SPAN>9,239,606 </TD>

<TD class=xl73 x:num="9119006"><SPAN 

style="mso-spacerun: yes">         

</SPAN>9,119,006 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Panama, Central America</TD>

<TD class=xl37></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="144058"><SPAN 

style="mso-spacerun: yes">          

</SPAN>144,058 </TD>

<TD class=xl73 x:num="78988"><SPAN 

style="mso-spacerun: yes">             

</SPAN>78,988 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl90> </TD>

<TD class=xl90> </TD>

<TD class=xl34> </TD>

<TD class=xl35 x:num="12681453"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>12,681,453 </TD>

<TD class=xl35 x:num="12202896"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>12,202,896 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 91.5pt; mso-height-source: userset" height=122>

<TD style="HEIGHT: 91.5pt" height=122></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Title to mining 

properties involves certain inherent risks due to the difficulties of 

determining the validity of certain claims as well as the potential for 

problems arising from the frequently ambiguous conveyancing history 

characteristics of many mining properties.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company has investigated title 

to all of its mineral properties and, to the best of its knowledge, title 

to all of its properties are in good standing.<SPAN 

style="mso-spacerun: yes">  </SPAN>The majority of the properties in 

which the Company has committed to earn an interest are located outside 

Canada.<SPAN style="mso-spacerun: yes">  </SPAN>The Company is 

therefore relying on title opinions by legal counsel who are basing such 

opinions on the laws of the respective country.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(a)</TD>

<TD class=xl39>Nevada, U.S.A.:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 58.5pt; mso-height-source: userset" height=78>

<TD style="HEIGHT: 58.5pt" height=78></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>In December 1994, 

the Company acquired a 51% interest in certain patented and unpatented 

claims located in Nevada from a company controlled by directors for 

$1,176,000 US plus a 5% net smelter royalty.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company can also acquire a 

100% interest in a further 89 claims in this property under this 

agreement.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 96.75pt; mso-height-source: userset" height=129>

<TD style="HEIGHT: 96.75pt" height=129></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company 

entered into an agreement and settlement dated September 7, 2000 with 

Nevada Manhattan Mining Incorporated to settle and purchase Nevada 

Manhattan Mining Incorporated's 24.5% interest in the property.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company agreed to make four 

annual payments of US $75,000 each for a total of US $300,000.<SPAN 

style="mso-spacerun: yes">  </SPAN>During the term of the agreement 

the Company has agreed to pay Nevada Manhattan Mining Incorporated a 2% 

net smelter return royalty.<SPAN style="mso-spacerun: yes">  

</SPAN>The Company can purchase the entire Nevada Manhattan Mining 

Incorporated interest and royalty at anytime over a thirty-year period for 

US $7,500,000, which would include production royalties.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 33pt; mso-height-source: userset" height=44>

<TD style="HEIGHT: 33pt" height=44></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company also 

holds a 100% interest in 42 unpatented claims in the Manhattan Mining 

district by staking.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(b)</TD>

<TD class=xl39>Colorado, U.S.A.</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 122.25pt; mso-height-source: userset" height=163>

<TD style="HEIGHT: 122.25pt" height=163></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Included in the 

Colorado properties is a 100% working interest in the Consolidated 

Caribou-Cross-Comstock-Panadora district mine area which the Company 

acquired in 1997 for US $4,000,000 in stock, cash and final property 

payments.<SPAN style="mso-spacerun: yes">  </SPAN>After acquisition 

of 100% working interest the seller retains a 2% net smelter royalty 

interest in the property.<SPAN style="mso-spacerun: yes">  </SPAN>The 

Company has the right to buy back half of the net smelter royalty (1%) for 

US $750,000.<SPAN style="mso-spacerun: yes">  </SPAN>The seller has 

not sold any of the issued shares for this acquisition through May 31, 

2002.<SPAN style="mso-spacerun: yes">  </SPAN>During 2000, the 

Company acquired 100% ownership of 10 patented claims that are 

continuations of the historic Boulder County and Cardinal vein 

systems.<SPAN style="mso-spacerun: yes">  </SPAN>The Colorado 

properties contain a well-documented mineral resource of 424,500 ounces of 

gold and 11,725,000 ounces of silver.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(c)</TD>

<TD class=xl39>Panama, Central America:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 111pt; mso-height-source: userset" height=148>

<TD style="HEIGHT: 111pt" height=148></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company owns 

hard rock mining concessions to 61,000 acres (24,686 hectares) in the 

eastern Veraguas District of Panama in Central America in 2001.<SPAN 

style="mso-spacerun: yes">  </SPAN>The acquisition was made through a 

five-year agreement with Panama Mining of Golden Cycle Incorporated, the 

seller.<SPAN style="mso-spacerun: yes">  </SPAN>The Company issued 

100,000 shares of stock to the seller.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company is obligated to pay 

the seller a 2% net smelter return on any hard rock mineral 

production.<SPAN style="mso-spacerun: yes">  </SPAN>The Company can 

purchase the concessions from the seller at anytime during the five-year 

option period for US $5,000,000.<SPAN style="mso-spacerun: yes">  

</SPAN>Upon completion of the purchase the 2% net smelter return would 

terminate.<SPAN style="mso-spacerun: yes">  </SPAN>The Company is 

obligated to pay the annual taxes and holding fees during the option 

period.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>5</TD>

<TD class=xl80>Bank loan:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 33.75pt; mso-height-source: userset" height=45>

<TD style="HEIGHT: 33.75pt" height=45></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Loan payable with 

interest only payments at 10.5% per annum.<SPAN 

style="mso-spacerun: yes">   </SPAN>The loan principal of 

$1,200,000 US is due in full on September 12, 2002; and the loan is 

secured by deed of trust over mineral properties.</TD>

<TD class=xl85></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 24pt; mso-height-source: userset" height=32>

<TD style="HEIGHT: 24pt" height=32></TD>

<TD class=xl25 colSpan=5>Cash of $67,415 is held in an escrow account for 

monthly interest payments.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 59.25pt; mso-height-source: userset" height=79>

<TD style="HEIGHT: 59.25pt" height=79></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to May 

31, 2002, the due date of the loan was extended to November 16, 2002 in 

exchange for a renewal fee.<SPAN style="mso-spacerun: yes">  

</SPAN>The bank has agreed to subsequent extensions beyond November 16, 

2002 for monthly renewal fees, and has agreed to extend the loan for one 

year upon the Company paying down 10% of the principal (US$120,000).</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>6</TD>

<TD class=xl80>Long-term debt:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl80 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl86> </TD>

<TD class=xl86> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 46.5pt; mso-height-source: userset" height=62>

<TD style="HEIGHT: 46.5pt" height=62></TD>

<TD class=xl85 style="WIDTH: 298pt" width=398 colSpan=3>Debentures 

payable, without interest, due May 2011, convertible to common shares at 

an exercise price of $1.23 at holders discretion; unsecured</TD>

<TD class=xl31 x:num="5097105"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>5,097,105 </TD>

<TD class=xl31 x:num="5442018"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      </SPAN>5,442,018 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 30.75pt; mso-height-source: userset" height=41>

<TD style="HEIGHT: 30.75pt" height=41></TD>

<TD class=xl85 style="WIDTH: 298pt" width=398 colSpan=3>Promissory note 

payable, with interest at 11.5% per annum; unsecured</TD>

<TD class=xl88>-</TD>

<TD class=xl88 x:num="278662">278,662</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl92 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl90> </TD>

<TD class=xl90> </TD>

<TD class=xl34> </TD>

<TD class=xl35 x:num="5097105"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>5,097,105 </TD>

<TD class=xl35 x:num="5720680"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      </SPAN>5,720,680 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 48pt; mso-height-source: userset" height=64>

<TD class=xl39 style="HEIGHT: 48pt" height=64></TD>

<TD class=xl158 style="WIDTH: 448pt" width=597 colSpan=5>All debentures 

are held by companies or persons related to a shareholder and 

director.<SPAN style="mso-spacerun: yes">  </SPAN>It is not 

practicable to determine the fair value of the debentures and advances 

from shareholders due to their related party nature and the absence of a 

secondary market for such instruments.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=17 

height=17></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>7</TD>

<TD class=xl80>Share capital:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 

height=17></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(a)</TD>

<TD class=xl25 colSpan=3>Authorized:<SPAN style="mso-spacerun: yes">  

</SPAN>100,000,000 Common shares without par value</TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(b)</TD>

<TD class=xl39>Issued:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl39 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl72> </TD>

<TD class=xl72> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl26 x:num>2002</TD>

<TD class=xl74></TD>

<TD class=xl26 x:num>2001</TD>

<TD></TD>

<TD class=xl74></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=6></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Common</TD>

<TD class=xl74>Number</TD>

<TD></TD>

<TD class=xl74>Number</TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=7></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60 x:str="shares ">shares </TD>

<TD class=xl89>of shares</TD>

<TD class=xl89 x:str="Amount ">Amount </TD>

<TD class=xl89 x:str="of shares ">of shares </TD>

<TD class=xl95>Amount</TD>

<TD></TD>

<TD class=xl74></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=6></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl74></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=6></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Balance, beginning of year</TD>

<TD class=xl73 x:num="9855718"><SPAN 

style="mso-spacerun: yes">      </SPAN>9,855,718 

</TD>

<TD class=xl31 x:num="22076307"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>22,076,307 </TD>

<TD class=xl73 x:num="9655718"><SPAN 

style="mso-spacerun: yes">       

</SPAN>9,655,718 </TD>

<TD class=xl31 x:num="22016307"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>22,016,307 </TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26></TD>

<TD class=xl74></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Shares issued for debt or services</TD>

<TD class=xl73 x:num="721000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>721,000 </TD>

<TD class=xl73 x:num="216300"><SPAN 

style="mso-spacerun: yes">          

</SPAN>216,300 </TD>

<TD class=xl73 x:num="100000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>100,000 </TD>

<TD class=xl73 x:num="45000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>45,000 </TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Issued for acquisition of mineral</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   

</SPAN>property</TD>

<TD class=xl73 x:num="100000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>100,000 </TD>

<TD class=xl73 x:num="30000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>30,000 </TD>

<TD class=xl73 x:num="100000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>100,000 </TD>

<TD class=xl73 x:num="15000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>15,000 </TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Balance, end of year</TD>

<TD class=xl55 x:num="10676718"><SPAN 

style="mso-spacerun: yes">    </SPAN>10,676,718 </TD>

<TD class=xl35 x:num="22322607"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>22,322,607 </TD>

<TD class=xl55 x:num="9855718"><SPAN 

style="mso-spacerun: yes">       

</SPAN>9,855,718 </TD>

<TD class=xl35 x:num="22076307"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>22,076,307 </TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl26></TD>

<TD class=xl74></TD>

<TD style="mso-ignore: colspan" colSpan=4></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=3>No shares were issued in the 

year ended May 31, 2000.</TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 34.5pt; mso-height-source: userset" height=46>

<TD style="HEIGHT: 34.5pt" height=46></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Included in issued 

and outstanding capital stock are 150,000 contingently cancelable shares 

that are held in escrow and may not be traded without regulatory 

approval.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(c)</TD>

<TD class=xl39>Stock options:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl39 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl72> </TD>

<TD class=xl72> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=5 height=17></TD>

<TD class=xl74>Weighted</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=5 height=17></TD>

<TD class=xl74>average</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=5 height=17></TD>

<TD class=xl74>exercise price</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Dat<SPAN 

style="DISPLAY: none">e</SPAN></TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl97 x:str="Number ">Number </TD>

<TD class=xl89>per share</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl69></TD>

<TD class=xl74></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 colSpan=3>Issued and outstanding, May 31, 2000 and 

1999<SPAN 

style="mso-spacerun: yes">                          

</SPAN>(i)</TD>

<TD class=xl73 x:num="824250"><SPAN 

style="mso-spacerun: yes">          

</SPAN>824,250 </TD>

<TD class=xl107 x:num="00.45"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">              

</SPAN>0.45 </TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Issued in 2000</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="155000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>155,000 </TD>

<TD class=xl99 x:num="00.45"><SPAN 

style="mso-spacerun: yes">                 

</SPAN>0.45 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60>Expired in the year</TD>

<TD class=xl98> </TD>

<TD class=xl61> </TD>

<TD class=xl76 x:num="-14000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>(14,000)</TD>

<TD class=xl100 x:num="-00.45"><SPAN 

style="mso-spacerun: yes">                

</SPAN>(0.45)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl70 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl75></TD>

<TD class=xl101></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Issued and 

outstanding, May 31, 2001</TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="965250"><SPAN 

style="mso-spacerun: yes">          

</SPAN>965,250 </TD>

<TD class=xl99 x:num="00.45"><SPAN 

style="mso-spacerun: yes">                 

</SPAN>0.45 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Issued in the year</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="60000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>60,000 </TD>

<TD class=xl99 x:num="00.77"><SPAN 

style="mso-spacerun: yes">                 

</SPAN>0.77 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl70 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl75></TD>

<TD class=xl102></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Balance, May 31, 2002</TD>

<TD class=xl87> </TD>

<TD class=xl34> </TD>

<TD class=xl55 x:num="1025250"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,025,250 </TD>

<TD class=xl108 x:num="00.47"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>0.47 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(i)</TD>

<TD class=xl25 colSpan=5>During 2001, these options were re-priced from 

$1.34 to $0.45.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 colSpan=5>Options outstanding at May 31, 2002 are as 

follows:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74>Weighted</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74>Average</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl74>Exercise price</TD>

<TD class=xl26></TD>

<TD class=xl74>Remaining</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl89>Number</TD>

<TD class=xl89>per share</TD>

<TD class=xl89>Expiry date</TD>

<TD class=xl89>Life</TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl69 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Director and employee options</TD>

<TD class=xl73 x:num="116250"><SPAN 

style="mso-spacerun: yes">         

</SPAN>116,250 </TD>

<TD class=xl96 x:num="00.45">$0.45 </TD>

<TD class=xl109 x:num="37438">July-2002</TD>

<TD class=xl74>.2 years</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Other</TD>

<TD class=xl73 x:num="60000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>60,000 </TD>

<TD class=xl96 x:num="00.77">$0.77 </TD>

<TD class=xl109 x:num="37773">June-2003</TD>

<TD class=xl74>1.1 years</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Director and employee options</TD>

<TD class=xl73 x:num="694000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>694,000 </TD>

<TD class=xl96 x:num="00.45">$0.45 </TD>

<TD class=xl109 x:num="37895">October-2003</TD>

<TD class=xl74>1.4 years</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Director and employee options</TD>

<TD class=xl73 x:num="155000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>155,000 </TD>

<TD class=xl96 x:num="00.45">$0.45 </TD>

<TD class=xl109 x:num="38565">August-2005</TD>

<TD class=xl74>3.3 years</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD></TD>

<TD class=xl75></TD>

<TD class=xl24></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl87> </TD>

<TD class=xl55 x:num="1025250"><SPAN 

style="mso-spacerun: yes">      </SPAN>1,025,250 

</TD>

<TD class=xl34> </TD>

<TD class=xl93> </TD>

<TD class=xl94>1.5 years</TD>

<TD></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 colSpan=5>All outstanding options are exercisable when 

issued.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(d)</TD>

<TD class=xl25 colSpan=5>Warrants</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD class=xl39 style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74>Weighted</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74>Average</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl74></TD>

<TD class=xl26></TD>

<TD class=xl74>exercise price</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl89> </TD>

<TD class=xl89> </TD>

<TD class=xl89>Number</TD>

<TD class=xl89>per share</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl69 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Issued and 

outstanding, May 31, 1999</TD>

<TD class=xl96></TD>

<TD class=xl73 x:num="537000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>537,000 </TD>

<TD class=xl107 x:num="10"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>10.00 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Expired in year</TD>

<TD class=xl73></TD>

<TD class=xl96></TD>

<TD class=xl73 x:num="-537000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(537,000)</TD>

<TD class=xl99 x:num="10"><SPAN 

style="mso-spacerun: yes">               

</SPAN>10.00 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD></TD>

<TD class=xl75></TD>

<TD class=xl24></TD>

<TD class=xl75></TD>

<TD class=xl139></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl87 style="mso-ignore: colspan" colSpan=2>Balance, May 31, 

2002, 2001 and 2000</TD>

<TD class=xl34> </TD>

<TD class=xl129 x:num="0" x:fmla="=SUM(E487:E488)"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl140 x:num="0" x:fmla="=F487-F488"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                 

</SPAN>-<SPAN style="mso-spacerun: yes">   </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=3>Subsequent to the 

year end, the following warrants were issued:</TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl104> </TD>

<TD class=xl104> </TD>

<TD class=xl123> </TD>

<TD class=xl123>Exercise</TD>

<TD class=xl149>Expiry</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl89> </TD>

<TD class=xl89>Number</TD>

<TD class=xl89>price</TD>

<TD class=xl89>Date</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD class=xl74 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>In conjunction with share issuance</TD>

<TD class=xl74></TD>

<TD class=xl151 x:num="62500"><SPAN 

style="mso-spacerun: yes">           

</SPAN>62,500 </TD>

<TD class=xl152 x:num="00.8"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">             

</SPAN>0.80 </TD>

<TD class=xl150 x:num="37876">09/12/2003</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25>For services</TD>

<TD class=xl25></TD>

<TD class=xl153 x:num="486303"><SPAN 

style="mso-spacerun: yes">          

</SPAN>486,303 </TD>

<TD class=xl154 x:num="00.81"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">             

</SPAN>0.81 </TD>

<TD class=xl150 x:num="38283">10/23/2004</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl153></TD>

<TD class=xl154></TD>

<TD class=xl150></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>8</TD>

<TD class=xl80>Income taxes:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 39pt; mso-height-source: userset" height=52>

<TD style="HEIGHT: 39pt" height=52></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company has 

income tax loss carryforwards of approximately $3,049,000 which are 

available to reduce future taxable income.<SPAN 

style="mso-spacerun: yes">  </SPAN>The benefits of the losses have 

not been recognized in the financial statements.<SPAN 

style="mso-spacerun: yes">  </SPAN>The losses will expire as 

follows:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl110 style="WIDTH: 159pt" width=212> </TD>

<TD class=xl110 style="WIDTH: 68pt" width=91> </TD>

<TD class=xl110 style="WIDTH: 71pt" width=95> </TD>

<TD class=xl110 style="WIDTH: 73pt" width=97> </TD>

<TD class=xl110 style="WIDTH: 77pt" width=102> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 39.75pt; mso-height-source: userset" height=53>

<TD style="HEIGHT: 39.75pt" height=53></TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl91 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none">Canada</TD>

<TD class=xl33 style="BORDER-TOP: medium none">U.S.</TD>

<TD class=xl33 style="BORDER-TOP: medium none">Total</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl81 style="HEIGHT: 12pt" height=16></TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl26 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2003</TD>

<TD class=xl83></TD>

<TD class=xl31 x:num="72000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>72,000 </TD>

<TD class=xl31 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                  

</SPAN>- </TD>

<TD class=xl31 x:num="72000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">          

</SPAN>72,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2004</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="547000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>547,000 </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl73 x:num="547000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>547,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2005</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="13000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>13,000 </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl73 x:num="13000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>13,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2006</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="105000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>105,000 </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl73 x:num="105000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>105,000 </TD>

<TD></TD>

<TD class=xl81></TD>

<TD style="mso-ignore: colspan" colSpan=9></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2007</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="222000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>222,000 </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl73 x:num="222000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>222,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2008</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl73 x:num="496000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>496,000 </TD>

<TD class=xl73 x:num="646000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>646,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2009</TD>

<TD class=xl82></TD>

<TD class=xl73 x:num="264000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>264,000 </TD>

<TD class=xl73 x:num="255000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>255,000 </TD>

<TD class=xl73 x:num="519000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>519,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2020</TD>

<TD class=xl81></TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl73 x:num="84000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>84,000 </TD>

<TD class=xl73 x:num="84000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>84,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2021</TD>

<TD class=xl81></TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl73 x:num="398000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>398,000 </TD>

<TD class=xl73 x:num="398000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>398,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25 x:num>2022</TD>

<TD class=xl81></TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl73 x:num="443000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>443,000 </TD>

<TD class=xl73 x:num="443000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>443,000 </TD>

<TD class=xl68></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl25></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl68></TD>

<TD style="mso-ignore: colspan" colSpan=10></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl34> </TD>

<TD class=xl111> </TD>

<TD class=xl35 x:num="1373000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>1,373,000 </TD>

<TD class=xl35 x:num="1676000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>1,676,000 </TD>

<TD class=xl35 x:num="3049000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      </SPAN>3,049,000 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 39pt; mso-height-source: userset" height=52>

<TD style="HEIGHT: 39pt" height=52></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Significant 

components of the Company's future tax assets are shown below.<SPAN 

style="mso-spacerun: yes">  </SPAN>A valuation allowance has been 

recognized to fully offset the net future tax assets as realization of 

such net assets is uncertain.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 11.25pt; mso-height-source: userset" height=15>

<TD style="HEIGHT: 11.25pt" height=15></TD>

<TD class=xl110 style="WIDTH: 159pt" width=212> </TD>

<TD class=xl110 style="WIDTH: 68pt" width=91> </TD>

<TD class=xl110 style="WIDTH: 71pt" width=95> </TD>

<TD class=xl110 style="WIDTH: 73pt" width=97> </TD>

<TD class=xl110 style="WIDTH: 77pt" width=102> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl56 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl81 style="HEIGHT: 12pt" height=16></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Future tax assets:</TD>

<TD style="mso-ignore: colspan" colSpan=15></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   

</SPAN>Operating loss carryforwards</TD>

<TD class=xl81></TD>

<TD></TD>

<TD class=xl31 x:num="1186000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>1,186,000 </TD>

<TD class=xl31 x:num="943000"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>943,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 22.5pt; mso-height-source: userset" height=30>

<TD style="HEIGHT: 22.5pt" height=30></TD>

<TD class=xl60><SPAN style="mso-spacerun: yes">   </SPAN>Capital 

assets</TD>

<TD class=xl133> </TD>

<TD class=xl58> </TD>

<TD class=xl76 x:num="27000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>27,000 </TD>

<TD class=xl76 x:num="15000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>15,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 21.75pt; mso-height-source: userset" height=29>

<TD class=xl81 style="HEIGHT: 21.75pt" height=29></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3 height=17></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="1213000"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,213,000 </TD>

<TD class=xl73 x:num="958000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>958,000 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Valuation allowance 

for future tax assets</TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="-1213000"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(1,213,000)</TD>

<TD class=xl73 x:num="-958000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(958,000)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl81 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=3></TD>

<TD class=xl92 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Net future tax assets</TD>

<TD class=xl87> </TD>

<TD class=xl90> </TD>

<TD class=xl35 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                  

</SPAN>- </TD>

<TD class=xl35 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl68 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl68></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>9</TD>

<TD class=xl80>Related party transactions:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 56.25pt; mso-height-source: userset" height=75>

<TD style="HEIGHT: 56.25pt" height=75></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>During the year, 

the Company paid, primarily through the issuance of common stock, $82,500 

(2001 - $45,000) to several directors for various services provided to the 

Company throughout the year.<SPAN style="mso-spacerun: yes">  

</SPAN>The Company also paid the spouse of a director $30,000 in stock 

(2001 - nil) for counter-signing the bank loan (see Note 5) and $19,800 in 

stock (2001 - nil) for office rent.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 32.25pt; mso-height-source: userset" height=43>

<TD style="HEIGHT: 32.25pt" height=43></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These transactions 

are in the normal course of operations and are measured at the exchange 

amount, which is the amount of consideration established and agreed to by 

the related parties.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>10</TD>

<TD class=xl80>Contingency:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 71.25pt; mso-height-source: userset" height=95>

<TD style="HEIGHT: 71.25pt" height=95></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is 

negotiating with a shareholder and director of the Company for claims of 

past wages, salary remuneration and expenses in the approximate amount of 

USD $544,700 ($832,302 Cdn).<SPAN style="mso-spacerun: yes">  

</SPAN>Included in advances from shareholders is $383,430 Cdn provided for 

this claim.<SPAN style="mso-spacerun: yes">  </SPAN>The claim is 

under negotiation, the outcome of which is undeterminable.<SPAN 

style="mso-spacerun: yes">  </SPAN>Accordingly, no additional 

provision has been recorded.<SPAN style="mso-spacerun: yes">  

</SPAN>Additional amounts, if any, will be recorded in the period such 

amounts are determinable.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>11</TD>

<TD class=xl80>Segmented information:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 20.25pt; mso-height-source: userset" height=27>

<TD style="HEIGHT: 20.25pt" height=27></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company 

operates principally in the mining industry segment.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 21pt; mso-height-source: userset" height=28>

<TD style="HEIGHT: 21pt" height=28></TD>

<TD class=xl25 colSpan=5>The Company's operations are in the following 

geographical locations:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD class=xl77> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl91 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2000</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl39 style="HEIGHT: 12pt" height=16></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Net loss for the year:</TD>

<TD style="mso-ignore: colspan" colSpan=15></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   

</SPAN>Canada</TD>

<TD class=xl69></TD>

<TD class=xl31 x:num="261143"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>261,143 </TD>

<TD class=xl31 x:num="487017"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>487,017 </TD>

<TD class=xl31 x:num="11730509"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>11,730,509 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   </SPAN>United 

States</TD>

<TD></TD>

<TD class=xl73 x:num="289866"><SPAN 

style="mso-spacerun: yes">          

</SPAN>289,866 </TD>

<TD class=xl73 x:num="260851"><SPAN 

style="mso-spacerun: yes">          

</SPAN>260,851 </TD>

<TD class=xl73 x:num="64534"><SPAN 

style="mso-spacerun: yes">             

</SPAN>64,534 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl90> </TD>

<TD class=xl90> </TD>

<TD class=xl55 x:num="551009"><SPAN 

style="mso-spacerun: yes">          

</SPAN>551,009 </TD>

<TD class=xl55 x:num="747868"><SPAN 

style="mso-spacerun: yes">          

</SPAN>747,868 </TD>

<TD class=xl55 x:num="11795043" x:fmla="=SUM(F546:F547)"><SPAN 

style="mso-spacerun: yes">       

</SPAN>11,795,043 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl68 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Identifiable assets at end of year:</TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   

</SPAN>Canada</TD>

<TD class=xl69></TD>

<TD class=xl73 x:num="291993"><SPAN 

style="mso-spacerun: yes">          

</SPAN>291,993 </TD>

<TD class=xl73 x:num="295978"><SPAN 

style="mso-spacerun: yes">          

</SPAN>295,978 </TD>

<TD class=xl73 x:num="445728"><SPAN 

style="mso-spacerun: yes">           

</SPAN>445,728 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   </SPAN>United 

States</TD>

<TD></TD>

<TD class=xl73 x:num="12874048"><SPAN 

style="mso-spacerun: yes">     </SPAN>12,874,048 </TD>

<TD class=xl73 x:num="12491799"><SPAN 

style="mso-spacerun: yes">      </SPAN>12,491,799 

</TD>

<TD class=xl73 x:num="12353217"><SPAN 

style="mso-spacerun: yes">       

</SPAN>12,353,217 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl69 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl90> </TD>

<TD class=xl90> </TD>

<TD class=xl35 x:num="13166041"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>13,166,041 </TD>

<TD class=xl35 x:num="12787777"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>12,787,777 </TD>

<TD class=xl35 x:num="12798945" x:fmla="=SUM(F552:F553)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>12,798,945 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>12</TD>

<TD class=xl80>Financial instruments:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 45.75pt; mso-height-source: userset" height=61>

<TD style="HEIGHT: 45.75pt" height=61></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5 

x:str="The Company holds various forms of financial instruments. The nature of these instruments and the Company's operations expose the Company to foreign currency risk, interest rate risk and industry credit risk. ">The 

Company holds various forms of financial instruments.<SPAN 

style="mso-spacerun: yes">  </SPAN>The nature of these instruments 

and the Company's operations expose the Company to foreign currency risk, 

interest rate risk and industry credit risk.<SPAN 

style="mso-spacerun: yes">  </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl39 style="HEIGHT: 12pt" height=16>(a)</TD>

<TD class=xl39>Foreign currency risk:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 45.75pt; mso-height-source: userset" height=61>

<TD style="HEIGHT: 45.75pt" height=61></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>A significant 

portion of the Company's operations are located in the United States and 

the Company manages its exposure to foreign currency fluctuations by 

maintaining U.S. currency bank accounts and denominates its commitments 

and contracts in U.S. dollar equivalents.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(b)</TD>

<TD class=xl39>Credit risk:</TD>

<TD class=xl39></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 45pt; mso-height-source: userset" height=60>

<TD style="HEIGHT: 45pt" height=60></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company's 

receivables are mainly for cost recoveries from related parties.<SPAN 

style="mso-spacerun: yes">  </SPAN>The Company has no significant 

credit risk as it has the ability to net amounts receivable against 

accounts payable for services rendered by these parties.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl80 style="HEIGHT: 12pt" height=16 x:num>13</TD>

<TD class=xl80>Commitments:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 46.5pt; mso-height-source: userset" height=62>

<TD style="HEIGHT: 46.5pt" height=62></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is 

committed under option and lease agreements to expend on exploration 

expenditures and property option payments amounts as disclosed in Notes 4 

(a), (b), and (c) in the form of cash and/or stock as detailed therein.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>14</TD>

<TD class=xl80>Comparative figures:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 33pt; mso-height-source: userset" height=44>

<TD style="HEIGHT: 33pt" height=44></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Certain balances 

in the preceding period have been reclassified to conform with the current 

year's financial statement presentation.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17>

<TD class=xl80 style="HEIGHT: 12.75pt" height=17 x:num>15</TD>

<TD class=xl80>Subsequent event:</TD>

<TD class=xl80></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 31.5pt; mso-height-source: userset" height=42>

<TD style="HEIGHT: 31.5pt" height=42></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to May 

31, 2002, the Company settled $36,889 of trade accounts payable with 

67,500 common shares valued at $38,800.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 24.75pt; mso-height-source: userset" height=33>

<TD class=xl127 style="HEIGHT: 24.75pt" height=33 x:num>16</TD>

<TD class=xl159 style="WIDTH: 448pt" width=597 colSpan=5>Differences 

between Canadian and United States of America generally accepted 

accounting principles:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 43.5pt; mso-height-source: userset" height=58>

<TD style="HEIGHT: 43.5pt" height=58></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Generally accepted 

accounting principles (“GAAP”) and practices in the United States of 

America (“U.S. GAAP”) differ in certain respects from Canadian GAAP. 

Differences which may materially affect these consolidated financial 

statements are:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(a)</TD>

<TD class=xl25 colSpan=3>Mineral property exploration and development 

expenditures</TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 158.25pt; mso-height-source: userset" height=211>

<TD style="HEIGHT: 158.25pt" height=211></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5 

x:str='Statement of Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of" in the U.S. requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In performing the review for recoverability, the Company is to estimate the future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is measured, equal to the excess of the carrying amount over the fair value of the assets. United States Security and Exchange Commission staff have indicated that their interpretation of SFAS 121 requires mineral property exploration and development costs to be expensed as incurred until commercially minable deposits are determined to exist within a particular property as cash flows cannot be reasonably estimated prior to such determination. '>Statement 

of Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for 

the Impairment of Long-Lived Assets and for Long-Lived Assets to be 

Disposed of" in the U.S. requires that long-lived assets be reviewed for 

impairment whenever events or changes in circumstances indicate that the 

carrying amount of an asset may not be recoverable.<SPAN 

style="mso-spacerun: yes">  </SPAN>In performing the review for 

recoverability, the Company is to estimate the future cash flows expected 

to result from the use of the asset and its eventual disposition.<SPAN 

style="mso-spacerun: yes">  </SPAN>If the sum of the expected future 

cash flows (undiscounted and without interest charges) is less than the 

carrying amount of the asset, an impairment loss is measured, equal to the 

excess of the carrying amount over the fair value of the assets.<SPAN 

style="mso-spacerun: yes">  </SPAN>United States Security and 

Exchange Commission staff have indicated that their interpretation of SFAS 

121 requires mineral property exploration and development costs to be 

expensed as incurred until commercially minable deposits are determined to 

exist within a particular property as cash flows cannot be reasonably 

estimated prior to such determination.<SPAN 

style="mso-spacerun: yes">  </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 57pt; mso-height-source: userset" height=76>

<TD style="HEIGHT: 57pt" height=76></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Accordingly, for 

all periods presented, the Company has expensed exploration and 

development costs incurred for U.S. GAAP purposes.<SPAN 

style="mso-spacerun: yes">  </SPAN>Once proved and probable reserves 

are established, capitalization of related costs would commence.<SPAN 

style="mso-spacerun: yes">  </SPAN>This is significantly different 

from the accounting policy under Canadian GAAP, as detailed in the mineral 

properties significant accounting policy note.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 32.25pt; mso-height-source: userset" height=43>

<TD style="HEIGHT: 32.25pt" height=43></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Under U.S. GAAP, 

additional exploration costs for mineral properties that would be written 

off are as follows:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl110 style="WIDTH: 159pt" width=212> </TD>

<TD class=xl110 style="WIDTH: 68pt" width=91> </TD>

<TD class=xl110 style="WIDTH: 71pt" width=95> </TD>

<TD class=xl110 style="WIDTH: 73pt" width=97> </TD>

<TD class=xl110 style="WIDTH: 77pt" width=102> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl112 style="BORDER-TOP: medium none"> </TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl112 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD class=xl56 style="BORDER-TOP: medium none" align=right x:num>2000</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Mineral exploration 

and development costs</TD>

<TD class=xl114 x:num="478557">478,557</TD>

<TD class=xl114 x:num="445729">445,729</TD>

<TD class=xl136 x:num="122057"><SPAN 

style="mso-spacerun: yes">           

</SPAN>122,057 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17>(b)</TD>

<TD>Stock-based compensation</TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 162.75pt; mso-height-source: userset" height=217>

<TD class=xl39 style="HEIGHT: 162.75pt" height=217></TD>

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5 

x:str='Statement of Financial Accounting Standards No. 123 ("SFAS 123") requires that stock-based compensation be accounted for based on a fair value methodology, although it allows the effects to be disclosed in the notes to the financial statements rather than in the statement of operations for employee awards. SFAS 123 allows an entity to continue to measure compensation costs for employee stock-based compensation plans using the intrinsic value based method of accounting as prescribed by APB Opinion No. 25 ("APB 25") and related interpretations. The Company has elected to measure compensation cost for those employee plans using APB 25. As such, compensation expense under fixed plans is recorded only if the market value of the underlying stock at the date of granting exceeds the exercise price. If the exercise price of a fixed option award is reduced, the award is accounted for as a variable award from the date of modification to the final measurement date upon which the award is exercised, is forfeited, or expires unexercised. Compensation cost is adjusted in subsequent periods up to the measurement date for changes in the quoted market price. '>Statement 

of Financial Accounting Standards No. 123 ("SFAS 123") requires that 

stock-based compensation be accounted for based on a fair value 

methodology, although it allows the effects to be disclosed in the notes 

to the financial statements rather than in the statement of operations for 

employee awards.<SPAN style="mso-spacerun: yes">  </SPAN>SFAS 123 

allows an entity to continue to measure compensation costs for employee 

stock-based compensation plans using the intrinsic value based method of 

accounting as prescribed by APB Opinion No. 25 ("APB 25") and related 

interpretations.<SPAN style="mso-spacerun: yes">  </SPAN>The Company 

has elected to measure compensation cost for those employee plans using 

APB 25.<SPAN style="mso-spacerun: yes">  </SPAN>As such, compensation 

expense under fixed plans is recorded only if the market value of the 

underlying stock at the date of granting exceeds the exercise price.<SPAN 

style="mso-spacerun: yes">  </SPAN>If the exercise price of a fixed 

option award is reduced, the award is accounted for as a variable award 

from the date of modification to the final measurement date upon which the 

award is exercised, is forfeited, or expires unexercised.<SPAN 

style="mso-spacerun: yes">  </SPAN>Compensation cost is adjusted in 

subsequent periods up to the measurement date for changes in the quoted 

market price.<SPAN style="mso-spacerun: yes">  </SPAN></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 33pt; mso-height-source: userset" height=44>

<TD class=xl39 style="HEIGHT: 33pt" height=44></TD>

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5 

x:str="Compensation expense (recovery) recognized for employee fixed and variable awards for the year ended May 31, 2002 would be $(65,940) (2001 - $123,638; 2000 - $nil). ">Compensation 

expense (recovery) recognized for employee fixed and variable awards for 

the year ended May 31, 2002 would be $(65,940) (2001 - $123,638; 2000 - 

$nil). </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 63pt; mso-height-source: userset" height=84>

<TD class=xl141 style="HEIGHT: 63pt" height=84>(c)</TD>

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>The Company has 

150,000 common shares held in escrow.<SPAN 

style="mso-spacerun: yes">  </SPAN>The release of the shares is 

contingent on certain performance conditions.<SPAN 

style="mso-spacerun: yes">  </SPAN>Compensation under U.S. GAAP, if 

any, is recognized when the contingency is resolved and the shares are 

released from escrow based upon value of the shares as they become 

releasable.<SPAN style="mso-spacerun: yes">  </SPAN>As at May 31, 

2002, no shares are releaseable from escrow. No similiar compensation 

expense would be recognized under Canadian GAAP.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD class=xl141 style="HEIGHT: 12pt" height=16></TD>

<TD class=xl42 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 51.75pt; mso-height-source: userset" height=69>

<TD class=xl141 style="HEIGHT: 51.75pt" height=69>(d)</TD>

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>Under Canadian 

GAAP, future tax assets and liabilities are recorded at substantially 

enacted tax rates.<SPAN style="mso-spacerun: yes">  </SPAN>Under U.S. 

GAAP, deferred tax assets and liabilities are recorded at enacted tax 

rates.<SPAN style="mso-spacerun: yes">  </SPAN>Recording Canadian 

deferred tax assets and liabilities at enacted tax rates would not change 

recorded net assets or shareholders' equity under U.S. GAAP.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl141 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 26.25pt; mso-height-source: userset" height=35>

<TD class=xl141 style="HEIGHT: 26.25pt" height=35>(e)</TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The following 

table presents the consolidated balance sheet, statement of operations and 

deficit, and cash flows under U.S. GAAP:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl85 style="mso-ignore: colspan" colSpan=5></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl48>Balance Sheet</TD>

<TD style="mso-ignore: colspan" colSpan=15></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl115> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl112 style="BORDER-TOP: medium none"> </TD>

<TD class=xl32 style="BORDER-TOP: medium none"> </TD>

<TD class=xl112 style="BORDER-TOP: medium none" x:num>2002</TD>

<TD class=xl33 style="BORDER-TOP: medium none" x:num>2001</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl26></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Total assets under Canadian GAAP</TD>

<TD class=xl84></TD>

<TD class=xl24></TD>

<TD class=xl31 x:num="13166041"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>13,166,041 </TD>

<TD class=xl31 x:num="12787777"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">    </SPAN>12,787,777 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=3>Adjustments to 

mineral property exploration and development</TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">  

</SPAN>expenditures<SPAN style="mso-spacerun: yes">  </SPAN>(a)</TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl46 x:num="-12681453"><SPAN 

style="mso-spacerun: yes">     </SPAN>(12,681,453)</TD>

<TD class=xl75 x:num="-12202896"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(12,202,896)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl70 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl46></TD>

<TD class=xl75></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Total assets under U.S. GAAP</TD>

<TD class=xl116> </TD>

<TD class=xl34> </TD>

<TD class=xl55 x:num="484588" x:fmla="=SUM(E601:E603)"><SPAN 

style="mso-spacerun: yes">          

</SPAN>484,588 </TD>

<TD class=xl55 x:num="584881" x:fmla="=SUM(F601:F603)"><SPAN 

style="mso-spacerun: yes">           

</SPAN>584,881 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl24></TD>

<TD class=xl46></TD>

<TD class=xl75></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Total liabilities 

under Canadian and U.S. GAAP</TD>

<TD class=xl24></TD>

<TD class=xl117 x:num="8080540"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>8,080,540 </TD>

<TD class=xl117 x:num="7397567"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      </SPAN>7,397,567 

</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Share capital, Canadian GAAP</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="22322607"><SPAN 

style="mso-spacerun: yes">      </SPAN>22,322,607 

</TD>

<TD class=xl73 x:num="22076307"><SPAN 

style="mso-spacerun: yes">       

</SPAN>22,076,307 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Gain on sale of subsidiary</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="-430000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(430,000)</TD>

<TD class=xl73 x:num="-430000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(430,000)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Stock-based compensation<SPAN 

style="mso-spacerun: yes">  </SPAN>(b)</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="57698"><SPAN 

style="mso-spacerun: yes">            

</SPAN>57,698 </TD>

<TD class=xl73 x:num="123638"><SPAN 

style="mso-spacerun: yes">           

</SPAN>123,638 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60> </TD>

<TD class=xl58> </TD>

<TD class=xl61> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Share capital, U.S. GAAP</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="21950305" x:fmla="=SUM(E609:E611)"><SPAN 

style="mso-spacerun: yes">      </SPAN>21,950,305 

</TD>

<TD class=xl73 x:num="21769945" x:fmla="=SUM(F609:F611)"><SPAN 

style="mso-spacerun: yes">       

</SPAN>21,769,945 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Accumulated deficit, U.S. GAAP</TD>

<TD class=xl71></TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="-29546257"><SPAN 

style="mso-spacerun: yes">     </SPAN>(29,546,257)</TD>

<TD class=xl73 x:num="-28582631"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(28,582,631)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60> </TD>

<TD class=xl58> </TD>

<TD class=xl61> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Shareholders’ 

deficiency, U.S. GAAP</TD>

<TD class=xl24></TD>

<TD class=xl73 x:num="-7595952" x:fmla="=SUM(E613:E614)"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(7,595,952)</TD>

<TD class=xl73 x:num="-6812686" x:fmla="=SUM(F613:F614)"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(6,812,686)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl24></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63 style="mso-ignore: colspan" colSpan=3>Shareholders’ 

deficiency and liabilities under U.S. GAAP</TD>

<TD class=xl35 x:num="484588"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>484,588 </TD>

<TD class=xl35 x:num="584881"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>584,881 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl48 style="HEIGHT: 12.75pt" height=17></TD>

<TD style="mso-ignore: colspan" colSpan=16></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl156 colSpan=2>Statement of Operations and Deficit</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl119> </TD>

<TD class=xl119> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD class=xl54> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD class=xl74>Cumulative from</TD>

<TD class=xl26>Year ended</TD>

<TD class=xl26>Year ended</TD>

<TD class=xl26>Year ended</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD class=xl74>Inception to</TD>

<TD class=xl142 x:num="37407">May 31,</TD>

<TD class=xl142 x:num="37407">May 31,</TD>

<TD class=xl142 x:num="37407">May 31,</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl122 x:num="37407">May 31, 2002</TD>

<TD class=xl121 x:num>2002</TD>

<TD class=xl121 x:num>2001</TD>

<TD class=xl121 x:num>2000</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Net loss under Canadian GAAP</TD>

<TD class=xl31 x:num="-17237106"><SPAN 

style="mso-spacerun: yes"> </SPAN>$(17,237,106)</TD>

<TD class=xl31 x:num="-551009"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(551,009)</TD>

<TD class=xl31 x:num="-747868"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(747,868)</TD>

<TD class=xl31 x:num="-11795043"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>(11,795,043)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Adjustments:</TD>

<TD class=xl106></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 x:str=" Mineral property exploration "><SPAN 

style="mso-spacerun: yes">  </SPAN>Mineral property exploration </TD>

<TD class=xl106></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN 

style="mso-spacerun: yes">        

</SPAN>and development expenditures</TD>

<TD class=xl73 x:num="-12681453"><SPAN 

style="mso-spacerun: yes">   </SPAN>(12,681,453)</TD>

<TD class=xl73 x:num="-478557"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(478,557)</TD>

<TD class=xl73 x:num="-445729"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(445,729)</TD>

<TD class=xl73 x:num="-1879488"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(1,879,488)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 x:str=" Loss on mineral property "><SPAN 

style="mso-spacerun: yes">  </SPAN>Loss on mineral property </TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN 

style="mso-spacerun: yes">      

</SPAN>exploration previously recorded</TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN 

style="mso-spacerun: yes">      </SPAN>for U.S. 

GAAP</TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl73 x:num="312749"><SPAN 

style="mso-spacerun: yes">          

</SPAN>312,749 </TD>

<TD class=xl73 x:num="11399044"><SPAN 

style="mso-spacerun: yes">       

</SPAN>11,399,044 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">   </SPAN>Gain on 

sale of subsidiary</TD>

<TD class=xl73 x:num="430000"><SPAN 

style="mso-spacerun: yes">         

</SPAN>430,000 </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                     

</SPAN>- </TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Stock-based compensation</TD>

<TD class=xl73 x:num="-57698"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(57,698)</TD>

<TD class=xl73 x:num="65940"><SPAN 

style="mso-spacerun: yes">           

</SPAN>65,940 </TD>

<TD class=xl73 x:num="-123638"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(123,638)</TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                      

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl70 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl58> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Net loss, being 

comprehensive loss,</TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">    

</SPAN>under U.S. GAAP</TD>

<TD class=xl73 x:num="-29546257" x:fmla="=SUM(C626:C634)"><SPAN 

style="mso-spacerun: yes">   </SPAN>(29,546,257)</TD>

<TD class=xl73 x:num="-963626" x:fmla="=SUM(D626:D634)"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(963,626)</TD>

<TD class=xl73 x:num="-1004486" x:fmla="=SUM(E626:E634)"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(1,004,486)</TD>

<TD class=xl73 x:num="-2275487" x:fmla="=SUM(F626:F634)"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(2,275,487)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37>Accumulated opening deficit under</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">  </SPAN>U.S. GAAP</TD>

<TD class=xl73 x:num="0"><SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD class=xl73 x:num="-28582631"><SPAN 

style="mso-spacerun: yes">    </SPAN>(28,582,631)</TD>

<TD class=xl73 x:num="-27578145"><SPAN 

style="mso-spacerun: yes">     </SPAN>(27,578,145)</TD>

<TD class=xl73 x:num="-25302658"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(25,302,658)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Ending deficit, U.S. GAAP</TD>

<TD class=xl35 x:num="-29546257" x:fmla="=SUM(C637:C640)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$(29,546,257)</TD>

<TD class=xl35 x:num="-29546257" x:fmla="=SUM(D637:D640)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$ (29,546,257)</TD>

<TD class=xl35 x:num="-28582631" x:fmla="=SUM(E637:E640)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">  </SPAN>(28,582,631)</TD>

<TD class=xl35 x:num="-27578145" x:fmla="=SUM(F637:F640)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>(27,578,145)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=4></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Net loss per share, 

basic and diluted, U.S. GAAP</TD>

<TD class=xl155 x:num="-00.09"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">           

</SPAN>(0.09)</TD>

<TD class=xl155 x:num="-00.1"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>(0.10)</TD>

<TD class=xl155 x:num="-00.24"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">             

</SPAN>(0.24)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl84></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl145 style="HEIGHT: 12.75pt" height=17>(f)</TD>

<TD class=xl156 colSpan=2>Statement of Cash Flows</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 71.25pt; mso-height-source: userset" height=95>

<TD style="HEIGHT: 71.25pt" height=95></TD>

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>For Canadian GAAP, 

cash flows relating to mineral property exploration and development 

expenditures are reported as investing activities.<SPAN 

style="mso-spacerun: yes">  </SPAN>For U.S. GAAP purposes, these 

costs would be characterized as operating activities.<SPAN 

style="mso-spacerun: yes">  </SPAN>Under U.S. GAAP financing 

activities would include financing through the Company's bank 

overdraft.<SPAN style="mso-spacerun: yes">  </SPAN>Accordingly, the 

effect of these differences on the statements of cash flows are summarized 

as follows:</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12pt; mso-height-source: userset" height=16>

<TD style="HEIGHT: 12pt" height=16></TD>

<TD class=xl110 style="WIDTH: 159pt" width=212> </TD>

<TD class=xl110 style="WIDTH: 68pt" width=91> </TD>

<TD class=xl110 style="WIDTH: 71pt" width=95> </TD>

<TD class=xl110 style="WIDTH: 73pt" width=97> </TD>

<TD class=xl110 style="WIDTH: 77pt" width=102> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl120> </TD>

<TD class=xl121 x:num>2002</TD>

<TD class=xl121 x:num>2001</TD>

<TD class=xl121 x:num>2000</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 27.75pt; mso-height-source: userset" height=37>

<TD style="HEIGHT: 27.75pt; mso-ignore: colspan" colSpan=17 

height=37></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD class=xl39 style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash used in 

operations under Canadian GAAP</TD>

<TD class=xl31 x:num="-662117"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(662,117)</TD>

<TD class=xl31 x:num="-220977"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">      

</SPAN>(220,977)</TD>

<TD class=xl31 x:num="-397996"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">        

</SPAN>(397,996)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Adjustment for 

mineral exploration costs</TD>

<TD class=xl75 x:num="-289106"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(289,106)</TD>

<TD class=xl75 x:num="-373383"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(373,383)</TD>

<TD class=xl75 x:num="-122057"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(122,057)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60> </TD>

<TD class=xl58> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Cash used in 

operations under U.S. GAAP</TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-951223" 

x:fmla="=SUM(D651:D652)"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(951,223)</TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-594360" 

x:fmla="=SUM(E651:E652)"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(594,360)</TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-520053" 

x:fmla="=SUM(F651:F652)"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(520,053)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl71></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash provided by 

(used in) investments under</TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37><SPAN style="mso-spacerun: yes">  </SPAN>Canadian 

GAAP</TD>

<TD></TD>

<TD class=xl75 x:num="-282200"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(282,200)</TD>

<TD class=xl75 x:num="-374799"><SPAN 

style="mso-spacerun: yes">         

</SPAN>(374,799)</TD>

<TD class=xl75 x:num="190868"><SPAN 

style="mso-spacerun: yes">           

</SPAN>190,868 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Adjustment for 

mineral exploration costs</TD>

<TD class=xl75 x:num="289106"><SPAN 

style="mso-spacerun: yes">          

</SPAN>289,106 </TD>

<TD class=xl75 x:num="373383"><SPAN 

style="mso-spacerun: yes">          

</SPAN>373,383 </TD>

<TD class=xl75 x:num="122057"><SPAN 

style="mso-spacerun: yes">           

</SPAN>122,057 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60> </TD>

<TD class=xl58> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash provided by 

(used in) investments</TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl128><SPAN style="mso-spacerun: yes">   </SPAN>under 

U.S. GAAP</TD>

<TD class=xl143> </TD>

<TD class=xl144 x:num="6906" x:fmla="=SUM(D657:D658)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">          

</SPAN>6,906 </TD>

<TD class=xl144 x:num="-1416" x:fmla="=SUM(E657:E658)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">          

</SPAN>(1,416)</TD>

<TD class=xl144 x:num="312925" x:fmla="=SUM(F657:F658)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>312,925 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl84></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Financing activities 

under Canadian GAAP</TD>

<TD class=xl31 x:num="934286"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>934,286 </TD>

<TD class=xl31 x:num="608954"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>608,954 </TD>

<TD class=xl31 x:num="187802"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>187,802 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Increase (decrease) 

in bank overdraft</TD>

<TD class=xl75 x:num="9399"><SPAN 

style="mso-spacerun: yes">             

</SPAN>9,399 </TD>

<TD class=xl75 x:num="-12546"><SPAN 

style="mso-spacerun: yes">           

</SPAN>(12,546)</TD>

<TD class=xl75 x:num="12546"><SPAN 

style="mso-spacerun: yes">             

</SPAN>12,546 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl60> </TD>

<TD class=xl58> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD class=xl118> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Financing activities 

under U.S. GAAP</TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="943685"><SPAN 

style="mso-spacerun: yes">          

</SPAN>943,685 </TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="596408"><SPAN 

style="mso-spacerun: yes">          

</SPAN>596,408 </TD>

<TD class=xl129 style="BORDER-TOP: medium none" x:num="200348" 

x:fmla="=SUM(F663:F664)"><SPAN 

style="mso-spacerun: yes">           

</SPAN>200,348 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl71></TD>

<TD class=xl73 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Increase (decrease) 

in cash under Canadian GAAP</TD>

<TD class=xl75 x:num="-10031"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(10,031)</TD>

<TD class=xl75 x:num="13178"><SPAN 

style="mso-spacerun: yes">            

</SPAN>13,178 </TD>

<TD class=xl75 x:num="-19326"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(19,326)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Additional bank 

overdraft financing (repayment)</TD>

<TD class=xl78 x:num="9399"><SPAN 

style="mso-spacerun: yes">             

</SPAN>9,399 </TD>

<TD class=xl78 x:num="-12546"><SPAN 

style="mso-spacerun: yes">           

</SPAN>(12,546)</TD>

<TD class=xl78 x:num="12456"><SPAN 

style="mso-spacerun: yes">             

</SPAN>12,456 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Increase (decrease) 

in cash under U.S. GAAP</TD>

<TD class=xl35 x:num="-632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>(632)</TD>

<TD class=xl35 x:num="632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">              

</SPAN>632 </TD>

<TD class=xl35 x:num="-6780"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">           

</SPAN>(6,780)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63> </TD>

<TD class=xl116> </TD>

<TD class=xl35> </TD>

<TD class=xl35> </TD>

<TD class=xl35> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Cash, beginning of 

year, U.S. GAAP</TD>

<TD class=xl35 x:num="632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">             

</SPAN>632 </TD>

<TD class=xl35 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                  

</SPAN>- </TD>

<TD class=xl35 x:num="6780"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">            

</SPAN>6,780 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl37></TD>

<TD class=xl84></TD>

<TD class=xl31 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl63>Cash, end of year, U.S. GAAP</TD>

<TD class=xl116> </TD>

<TD class=xl35 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                 

</SPAN>- </TD>

<TD class=xl35 x:num="632"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">              

</SPAN>632 </TD>

<TD class=xl35 x:num="0"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=17 

height=17></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17>(g)</TD>

<TD class=xl24>Development stage enterprise:</TD>

<TD style="mso-ignore: colspan" colSpan=15></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=15></TD></TR>

<TR style="HEIGHT: 26.25pt; mso-height-source: userset" height=35>

<TD style="HEIGHT: 26.25pt" height=35></TD>

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>The Company meets 

the definition of a Development stage enterprises under FAS No. 7.<SPAN 

style="mso-spacerun: yes">  </SPAN>The following additional 

disclosures would be required under U.S. GAAP.</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 colSpan=4 

x:str="Consolidated statements of operations and deficit (U.S. GAAP) ">Consolidated 

statements of operations and deficit (U.S. GAAP) </TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl103> </TD>

<TD class=xl103> </TD>

<TD class=xl104> </TD>

<TD class=xl104> </TD>

<TD class=xl123>Cumulative</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26>from inception</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl124><SPAN style="mso-spacerun: yes"> </SPAN>Dec 30, 

1986</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26>to</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl125 x:num="37407">May 31, 2002</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Operating, 

exploration and administrative expenses</TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl45 x:num="-21536007"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>(21,536,007)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Loss on disposition of subsidiary</TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 x:num="-12107072"><SPAN 

style="mso-spacerun: yes">      

</SPAN>(12,107,072)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Other income</TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 x:num="4096822"><SPAN 

style="mso-spacerun: yes">         

</SPAN>4,096,822 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl34 style="mso-ignore: colspan" colSpan=3>Net loss for the 

period since inception to May 31, 2002</TD>

<TD class=xl87> </TD>

<TD class=xl105 x:num="-29546257" x:fmla="=SUM(F690:F692)"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">   </SPAN>(29,546,257)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Consolidated 

statements of cash flows</TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl103> </TD>

<TD class=xl103> </TD>

<TD class=xl104> </TD>

<TD class=xl104> </TD>

<TD class=xl123>Cumulative</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26>from inception</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl124><SPAN style="mso-spacerun: yes"> </SPAN>Dec 30, 

1986</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl26>to</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD class=xl125 x:num="37407">May 31, 2002</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Operating activities</TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl45 x:num="-9968960"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>(9,968,960)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Financing activities</TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 x:num="15695740"><SPAN 

style="mso-spacerun: yes">       

</SPAN>15,695,740 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Investing activities</TD>

<TD class=xl24></TD>

<TD style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46 x:num="-5726780"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(5,726,780)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl34 style="mso-ignore: colspan" colSpan=2>Net cash inflows from 

inception to May 31, 2002</TD>

<TD class=xl87> </TD>

<TD class=xl87> </TD>

<TD class=xl105 x:str="$ -"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 colSpan=4>Additional shareholders' equity disclosures 

required under FAS No. 7 would include:</TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 13.5pt" height=18>

<TD style="HEIGHT: 13.5pt" height=18></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD style="mso-ignore: colspan" colSpan=14></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl103> </TD>

<TD class=xl103> </TD>

<TD class=xl103> </TD>

<TD class=xl104> </TD>

<TD class=xl123>Deficit</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl157 colSpan=2>Common shares</TD>

<TD class=xl26>accumulated</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl95>Number</TD>

<TD class=xl95>Amount</TD>

<TD class=xl125>since inception</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=3></TD>

<TD style="mso-ignore: colspan" colSpan=13></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance at inception</TD>

<TD class=xl24></TD>

<TD class=xl106 x:num="0"><SPAN 

style="mso-spacerun: yes">                    

</SPAN>- </TD>

<TD>$<SPAN 

style="mso-spacerun: yes">                    

</SPAN>-</TD>

<TD class=xl45 x:str="$ -"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">                   

</SPAN>- </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>December 1986</TD>

<TD class=xl24></TD>

<TD class=xl26 x:num>1</TD>

<TD align=right x:num>1</TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>January 1987</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="80000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>80,000 </TD>

<TD class=xl46 x:num="100000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>100,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>April 1987</TD>

<TD class=xl24></TD>

<TD class=xl106 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl46 x:num="7500"><SPAN 

style="mso-spacerun: yes">              

</SPAN>7,500 </TD>

<TD style="mso-ignore: colspan" colSpan=12></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-108647"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(108,647)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl95> </TD>

<TD class=xl58> </TD>

<TD class=xl59> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1987</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="230001">230,001</TD>

<TD class=xl45 x:num="107501"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>107,501 </TD>

<TD class=xl45 x:num="-108647"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">        

</SPAN>(108,647)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>September 1987</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="11600"><SPAN 

style="mso-spacerun: yes">           

</SPAN>11,600 </TD>

<TD class=xl46 x:num="14500"><SPAN 

style="mso-spacerun: yes">            

</SPAN>14,500 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>March 1988</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="100000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>100,000 </TD>

<TD class=xl46 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-42412"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(42,412)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1988</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="341601">341,601</TD>

<TD class=xl45 x:num="272001"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>272,001 </TD>

<TD class=xl45 x:num="-151059"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">        

</SPAN>(151,059)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>August 1988</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="31000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>31,000 </TD>

<TD class=xl46 x:num="54250"><SPAN 

style="mso-spacerun: yes">            

</SPAN>54,250 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued upon 

exercise of warrants</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>August 1988</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="20000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>20,000 </TD>

<TD class=xl46 x:num="40000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>40,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>March 1989</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="5000"><SPAN 

style="mso-spacerun: yes">             

</SPAN>5,000 </TD>

<TD class=xl46 x:num="10000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>10,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-185968"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(185,968)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1989</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="397601">397,601</TD>

<TD class=xl45 x:num="376251"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>376,251 </TD>

<TD class=xl45 x:num="-337027"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">        

</SPAN>(337,027)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>July 1989</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="40000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>40,000 </TD>

<TD class=xl46 x:num="136000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>136,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued upon 

exercise of options</TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>August 1989</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="20000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>20,000 </TD>

<TD class=xl46 x:num="75000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>75,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-54515"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(54,515)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1990</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="457601">457,601</TD>

<TD class=xl45 x:num="587251"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">       

</SPAN>587,251 </TD>

<TD class=xl45 x:num="391542"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">         

</SPAN>391,542 </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Acquisition 

of Cinsonix Limited</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>July 1989</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="1000000"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,000,000 </TD>

<TD class=xl46 x:num="750000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>750,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

finder's fee</TD>

<TD class=xl24></TD>

<TD class=xl106 x:num="30000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>30,000 </TD>

<TD class=xl46 x:num="90000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>90,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-1179904"><SPAN 

style="mso-spacerun: yes">        

</SPAN>(1,179,904)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1991</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="1487601">1,487,601</TD>

<TD class=xl45 x:num="1427251"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>1,427,251 </TD>

<TD class=xl45 x:num="-1571446"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>(1,571,446)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

mineral properties</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>April 1992</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="50000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>50,000 </TD>

<TD class=xl46 x:num="20000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>20,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-71702"><SPAN 

style="mso-spacerun: yes">            

</SPAN>(71,702)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1992</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="1537601">1,537,601</TD>

<TD class=xl45 x:num="1447251"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>1,447,251 </TD>

<TD class=xl45 x:num="-1643148"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>(1,643,148)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>July 1992</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="1000000"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,000,000 </TD>

<TD class=xl46 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>March 1993</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="600000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>600,000 </TD>

<TD class=xl46 x:num="132000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>132,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

debt settlement</TD>

<TD class=xl24></TD>

<TD class=xl26></TD>

<TD></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>August 1992</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="115468"><SPAN 

style="mso-spacerun: yes">          

</SPAN>115,468 </TD>

<TD class=xl46 x:num="23094"><SPAN 

style="mso-spacerun: yes">            

</SPAN>23,094 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

finder's fee</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="30000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>30,000 </TD>

<TD class=xl46 x:num="26100"><SPAN 

style="mso-spacerun: yes">            

</SPAN>26,100 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-118136"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(118,136)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1993</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="3283069">3,283,069</TD>

<TD class=xl45 x:num="1778445"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>1,778,445 </TD>

<TD class=xl45 x:num="-1761284"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>(1,761,284)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2><SPAN 

style="mso-spacerun: yes">  </SPAN>Issued for mineral properties Oct. 

1993</TD>

<TD class=xl75 x:num="50000"><SPAN 

style="mso-spacerun: yes">           

</SPAN>50,000 </TD>

<TD class=xl75 x:num="30500"><SPAN 

style="mso-spacerun: yes">            

</SPAN>30,500 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

exercise of warrants</TD>

<TD class=xl24></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>June 1993</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="1000000"><SPAN 

style="mso-spacerun: yes">       

</SPAN>1,000,000 </TD>

<TD class=xl46 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>September 1993</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="145000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>145,000 </TD>

<TD class=xl46 x:num="31900"><SPAN 

style="mso-spacerun: yes">            

</SPAN>31,900 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash January 1994</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="170000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>170,000 </TD>

<TD class=xl75 x:num="102000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>102,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year 

under U.S. GAAP</TD>

<TD class=xl24></TD>

<TD></TD>

<TD class=xl46 x:num="-329175"><SPAN 

style="mso-spacerun: yes">          

</SPAN>(329,175)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl61> </TD>

<TD class=xl58> </TD>

<TD class=xl58> </TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24>Balance May 31, 1994</TD>

<TD class=xl24></TD>

<TD class=xl92 x:num="4648069">4,648,069</TD>

<TD class=xl45 x:num="2092845"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>2,092,845 </TD>

<TD class=xl45 x:num="-2090459"><SPAN 

style="mso-spacerun: yes"> </SPAN>$<SPAN 

style="mso-spacerun: yes">     </SPAN>(2,090,459)</TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

cash November 1994</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="200000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>200,000 </TD>

<TD class=xl75 x:num="150000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>150,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">  </SPAN>Issued for 

exercise of warrants</TD>

<TD class=xl24></TD>

<TD class=xl75 style="mso-ignore: colspan" colSpan=2></TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>October 1994</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="205000"><SPAN 

style="mso-spacerun: yes">          

</SPAN>205,000 </TD>

<TD class=xl46 x:num="55000"><SPAN 

style="mso-spacerun: yes">            

</SPAN>55,000 </TD>

<TD class=xl46></TD>

<TD style="mso-ignore: colspan" colSpan=11></TD></TR>

<TR style="HEIGHT: 12.75pt" height=17>

<TD style="HEIGHT: 12.75pt" height=17></TD>

<TD class=xl24><SPAN style="mso-spacerun: yes">    

</SPAN>December 1994</TD>

<TD class=xl24></TD>

<TD class=xl75 x:num="40000"><SPAN 

style="mso-spacerun: yes">&