----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     For the quarterly period ended May 31, 2011 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     For the transition period from              to              |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                           |                                 |
|----------------------------------------------------------------|--------------------------------------|
| Nevada                                                         | 26-4205169                           |
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |

| 1 Dundas Street West, Suite 2500Toronto, Ontario ProvinceCanada M5G 1Z3 | (416) 593-8034                    |
|-------------------------------------------------------------------------|-----------------------------------|
| (Address of Principal Executive Offices)                                | (Issuer’s Telephone Number) |

----

| Large accelerated filer |   | o      |    | Accelerated filer              |   | o |
|-----------------------------------|--------|--------|--------------|-------------------------------------|--------|---|
|                              |   |   |         |
| Non-accelerated filer             |   | o      |    | Smaller reporting company |   | x |

----

----

| Balance Sheets                 | 3      |
|--------------------------------|--------|
|                           |   |
| Statements of Operations       | 4      |
|                           |   |
| Statements of Cash Flows       | 5      |
|                           |   |
| Statements of Equity (Deficit) | 6      |
|                           |   |
| Notes to Financial Statements  | 7      |

----

|                                                                                                                                                                                                 |   | May 31,2011 |       |   | February 28,2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|------------------|--------|
|                                                                                                                                                                                                 |   | (unaudited) |       |   |             |   |   |
| ASSETS                                                                                                                                                                                               |
| Current Assets                                                                                                                                                                                       |   |        |       |   |             |   |   |   |
| Cash and cash equivalents                                                                                                                                                                            |   | $           | 219,964    |   |             | $      | 329,746 |   |
| Taxes and other amounts receivable                                                                                                                                                                   |   |        | 142,868    |   |             |   | 61,573 |   |
| Prepaid expenses                                                                                                                                                                                     |   |        | 159,182    |   |             |   | 232,287 |   |
| Note receivable (Note 3)                                                                                                                                                                             |   |        | 350,000    |   |             |   | - |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Total Current Assets                                                                                                                                                                                 |   |        | 872,014    |   |             |   | 623,606 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Equipment                                                                                                                                                                                            |   |        | 5,006      |   |             |   | 4,114 |   |
| Mineral property rights (Note 4)                                                                                                                                                                     |   |        | 6,136,002  |   |             |   | 6,136,002 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Total Assets                                                                                                                                                                                         |   | $           | 7,013,022  |   |             | $      | 6,763,722 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                     |
| Current Liabilities                                                                                                                                                                                  |   |        |       |   |             |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                |   | $           | 220,274    |   |             | $      | 107,578 |   |
| Accounts payable and accrued expenses - related                                                                                                                                                      |   |        | 38,159     |   |             |   | 50,714 |   |
| Mineral option payment liability (Note 6(c))                                                                                                                                                         |   |        | 381,154    |   |             |   | 371,259 |   |
| Total Current Liabilities                                                                                                                                                                            |   |        | 639,587    |   |             |   | 529,551 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Long-Term Debt                                                                                                                                                                                       |   |        |       |   |             |   |   |   |
| Mineral option payment liability (Note 6(c))                                                                                                                                                         |   |        | 652,549    |   |             |   | 635,608 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Total Liabilities                                                                                                                                                                                    |   |        | 1,292,136  |   |             |   | 1,165,159 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Contingencies and Commitments (Note 6)                                                                                                                                                               |   |        |       |   |             |   |   |   |
| Stockholders' Equity                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Preferred stock, $0.00001 par value, 100,000,000 shares authorized and none issued and outstanding as of May 31, 2011 and February 28, 2011                                                          |   |        | -          |   |             |   | - |   |
| Common stock, $0.00001 par value, authorized  250,000,000 shares, 61,181,598 shares issued and outstanding as of May 31, 2011, 57,945,848 shares issued and outstanding as of February 28, 2011 |   |        | 612        |   |             |   | 579 |   |
| Additional paid-in capital                                                                                                                                                                           |   |        | 8,672,685  |   |             |   | 6,991,948 |   |
| Accumulated other comprehensive income                                                                                                                                                               |   |        | 424        |   |             |   | 396 |   |
| Accumulated deficit prior to exploration stage                                                                                                                                                       |   |        | (414,284   | )      |             |   | (414,284 |   |
| Accumulated deficit during exploration stage                                                                                                                                                         |   |        | (2,538,551 | )      |             |   | (980,076 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                           |   |        | 5,720,886  |   |             |   | 5,598,563 |   |
|                                                                                                                                                                                                 |   |        |       |   |             |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                                           |   | $           | 7,013,022  |   |             | $      | 6,763,722 |   |

----

|                                                             |   | For theThree month period endedMay 31, |       |   | For the periodOctober 1, 2010(Entry intoExploration Stage)to May 31, |   |
|------------------------------------------------------------------|--------|----------------------------------------|------------|--------|----------------------------------------------------------------------|--------|
|                                                             |   | 2011                                   |       |   | 2010                                                                 |   |   | 2011 |   |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |
| Revenues                                                         |   | $                                      | -          |   |                                                                 | $      | - |   |   | $ | - |   |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Operating Expenses                                               |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Exploration expense                                              |   |                                   | 528,878    |   |                                                                 |   | - |   |   |   | 668,544 |   |
| General & administrative                                     |   |                                   | 1,010,145  |   |                                                                 |   | 54,952 |   |   |   | 1,833,712 |   |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Total Operating Expenses                                         |   |                                   | 1,539,023  |   |                                                                 |   | 54,952 |   |   |   | 2,502,256 |   |
| Other (Expenses)                                                 |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Interest income                                                  |   |                                   | 7,384      |   |                                                                 |   | - |   |   |   | 7,384 |   |
| Amortization of debt discount                                    |   |                                   | (26,836    | )      |                                                                 |   | - |   |   |   | (43,679 | ) |
| Total Other (Expenses)                                           |   |                                   | (19,452    | )      |                                                                 |   | - |   |   |   | (36,295 | ) |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Net Loss                                                         |   | $                                      | (1,558,475 | )      |                                                                 | $      | (54,952 | ) |   | $ | (2,538,551 | ) |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Basic and Diluted Net Loss  Per Share                  |   | $                                      | (0.03      | )      |                                                                 | $      | (0.00 | ) |   |   |   |   |
|                                                             |   |                                   |       |   |                                                                 |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding, basic and diluted |   |                                   | 60,480,166 |   |                                                                 |   | 61,340,010 |   |   |   |   |   |

----

|                                                                        | For theThree month period endedMay 31, |   |       | Period fromOctober 1, 2010(Entry intoExploration Stage)to May 31, |   |
|-----------------------------------------------------------------------------|----------------------------------------|--------|------------|-------------------------------------------------------------------|--------|
|                                                                        | 2011                                   |   |       | 2010                                                              |   |   | 2011 |   |
| Cash Flows from Operating Activities                                        |                                   |   |       |                                                              |   |   |   |   |   |
| Net Loss                                                                    |                                   | $      | (1,558,475 | )                                                                 |   | $ | (54,952 | ) |   | $ | (2,538,551 | ) |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |                                   |   |       |                                                              |   |   |   |   |   |
| Depreciation expense                                                        |                                   |   | 412        |                                                              |   |   | - |   |   |   | 668 |   |
| Amortization of debt discount                                               |                                   |   | 26,836     |                                                              |   |   | - |   |   |   | 43,679 |   |
| Stock based compensation                                                    |                                   |   | 453,050    |                                                              |   |   | - |   |   |   | 755,083 |   |
| Common stock issued for services                                            |                                   |   | -          |                                                              |   |   | 9,000 |   |   |   | 64,600 |   |
| Change in operating assets and liabilities:                                 |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| (Increase) in taxes and other amounts receivable                            |                                   |   | (81,294    | )                                                                 |   |   | - |   |   |   | (109,449 | ) |
| Decrease in prepaids                                                        |                                   |   | 73,105     |                                                              |   |   | - |   |   |   | 62,018 |   |
| Increase in accounts payable and accrued expenses                           |                                   |   | 112,695    |                                                              |   |   | 37,603 |   |   |   | 181,870 |   |
| (Decrease) in accounts payable and accrued expenses - related               |                                   |   | (12,555    | )                                                                 |   |   | - |   |   |   | (17,786 | ) |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Net Cash used in Operating Activities                                       |                                   |   | (986,226   | )                                                                 |   |   | (8,349 | ) |   |   | (1,557,867 | ) |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Pre-acquisition loans to subsidiary                                         |                                   |   | (350,000   | )                                                                 |   |   | - |   |   |   | (550,000 | ) |
| Purchase of equipment                                                       |                                   |   | (1,304     | )                                                                 |   |   | - |   |   |   | (5,101 | ) |
| Cash acquired in acquisition                                                |                                   |   | -          |                                                              |   |   | - |   |   |   | 70,048 |   |
| Net Cash used in Investing Activities                                       |                                   |   | (351,304   | )                                                                 |   |   | - |   |   |   | (485,053 | ) |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Proceeds from the sale of common stock                                      |                                   |   | 1,227,720  |                                                              |   |   | - |   |   |   | 2,262,455 |   |
| Borrowing form officer or affiliate                                         |                                   |   | -          |                                                              |   |   | 2,871 |   |   |   | - |   |
| Net Cash provided by Financing Activities                                   |                                   |   | 1,227,720  |                                                              |   |   | 2,871 |   |   |   | 2,262,455 |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) in Cash                                             |                                   | $      | (109,810   | )                                                                 |   | $ | (5,478 | ) |   | $ | 219,534 |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                     |                                   |   | 28         |                                                              |   |   | - |   |   |   | 424 |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                            |                                   | $      | 329,746    |                                                              |   | $ | 5,619 |   |   | $ | 6 |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                  |                                   | $      | 219,964    |                                                              |   | $ | 141 |   |   | $ | 219,964 |   |
|                                                                        |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Cash paid for                                                               |                                   |   |       |                                                              |   |   |   |   |   |   |   |   |
| Interest                                                                    |                                   | $      | -          |                                                              |   | $ | - |   |   | $ | - |   |
| Income Taxes                                                                |                                   | $      | -          |                                                              |   | $ | - |   |   | $ | - |   |

----

|                                                                                                   | Preferred Stock |   | Common Stock |   |   AdditionalPaid-in |        |   Accumulated OtherComprehensive |   | Accumulated Deficit Prior to Exploration |   | Accumulated Deficit During Exploration |      |   |   |
|--------------------------------------------------------------------------------------------------------|-----------------|--------|--------------|--------|--------------------------|-------------|---------------------------------------|--------|------------------------------------------|--------|----------------------------------------|-----------|--------|--------|
|                                                                                                   | Shares          |   | Amount       |   | Shares                   |        | Amount                                |   | Capital                                  |   | Income (Loss)                          |      | Stage  |   | Stage |   | Total |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at February 28, 2010                                                                          | -               |   | $            | -      |                     | 61,340,010  |                                  | $      | 613                                      |   | $                                      | 268,346   |   | $      | - |   | $ | (271,936 | ) | $ | - |   | $ | (2,977 | ) |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for professional services at $0.30 per share                                       | -               |   |         | -      |                     | 100,000     |                                  |   | 1                                        |   |                                   | 29,999    |   |   | - |   |   | - |   |   | - |   |   | 30,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for professional services at $0.22 per share                                       | -               |   |         | -      |                     | 150,000     |                                  |   | 2                                        |   |                                   | 32,998    |   |   | - |   |   | - |   |   | - |   |   | 33,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock cancelled without consideration                                                           | -               |   |         | -      |                     | (26,000,000 | )                                     |   | (260                                     | )      |                                   | 260       |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for mineral property option at $0.20 per share                                     | -               |   |         | -      |                     | 250,000     |                                  |   | 2                                        |   |                                   | 49,998    |   |   | - |   |   | - |   |   | - |   |   | 50,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash in private placements at $0.20 per share                                  | -               |   |         | -      |                     | 4,700,000   |                                  |   | 47                                       |   |                                   | 939,953   |   |   | - |   |   | - |   |   | - |   |   | 940,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for consulting services at $0.20 per share                                         | -               |   |         | -      |                     | 969,000     |                                  |   | 10                                       |   |                                   | 193,790   |   |   | - |   |   | - |   |   | - |   |   | 193,800 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for acquisition of subsidiary at $0.31 per share                                   | -               |   |         | -      |                     | 16,000,000  |                                  |   | 160                                      |   |                                   | 4,999,840 |   |   | - |   |   | - |   |   | - |   |   | 5,000,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for consulting services at $0.40 per share                                         | -               |   |         | -      |                     | 200,000     |                                  |   | 2                                        |   |                                   | 79,998    |   |   | - |   |   | - |   |   | - |   |   | 80,000 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash in private placements with warrants at $0.40 per unit                     | -               |   |         | -      |                     | 236,838     |                                  |   | 2                                        |   |                                   | 94,733    |   |   | - |   |   | - |   |   | - |   |   | 94,735 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                   | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | 302,033   |   |   | - |   |   | - |   |   | - |   |   | 302,033 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                   | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | -         |   |   | 396 |   |   | - |   |   | - |   |   | 396 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended February 28, 2011                                                          | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | -         |   |   | - |   |   | (142,348 | ) |   | (980,076 | ) |   | (1,122,424 | ) |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at February 28, 2011                                                                          | -               |   | $            | -      |                     | 57,945,848  |                                  | $      | 579                                      |   | $                                      | 6,991,948 |   | $      | 396 |   | $ | (414,284 | ) | $ | (980,076 | ) | $ | 5,598,563 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash in private placements with warrants at $0.40 per unit (net of comissions) | -               |   |         | -      |                     | 3,235,750   |                                  |   | 33                                       |   |                                   | 1,227,687 |   |   | - |   |   | - |   |   | - |   |   | 1,227,720 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock option expense                                                                                   | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | 453,050   |   |   | - |   |   | - |   |   | - |   |   | 453,050 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                   | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | -         |   |   | 28 |   |   | - |   |   | - |   |   | 28 |   |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the three month period ended May 31, 2011                                                 | -               |   |         | -      |                     | -           |                                  |   | -                                        |   |                                   | -         |   |   | - |   |   | - |   |   | (1,558,475 | ) |   | (1,558,475 | ) |
|                                                                                                   |            |   |         |   |                     |        |                                  |   |                                     |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at May 31, 2011                                                                               | -               |   | $            | -      |                     | 61,181,598  |                                  | $      | 612                                      |   | $                                      | 8,672,685 |   | $      | 424 |   | $ | (414,284 | ) | $ | (2,538,551 | ) | $ | 5,720,886 |   |

----

----

| 1.   | Organization and Description of Business |
|----------------|------------------------------------------|

| 2.   | Significant accounting policies |
|----------------|---------------------------------|

| (a)   | Mineral Properties, Leases and Exploration and Development Costs |
|-----------------|------------------------------------------------------------------|

----

----

| 2.   | Significant accounting policies (continued) |
|----------------|---------------------------------------------|

| (b)   | Stock-based compensation |
|-----------------|--------------------------|

| (c)   | Warrants |
|-----------------|----------|

| (d)   | Recently accounting pronouncements |
|-----------------|------------------------------------|

----

----

| 2.   | Significant accounting policies (continued) |
|----------------|---------------------------------------------|

| (e)   | Comparative figures |
|-----------------|---------------------|

| (f)   | Going Concern |
|-----------------|---------------|

| 3.   |  Note Receivable |
|----------------|-----------------------|

----

----

| 4.   | Mineral property rights |
|----------------|-------------------------|

| Mineral property                        |   | February 28, 2011 |      |   | Additions |   |   | Disposals |   |   | May 31, 2011 |   |
|-----------------------------------------|--------|-------------------|-----------|--------|-----------|--------|--------|-----------|--------|--------|--------------|--------|
| Canada Watabeag, Russell Creek,    |   | $                 | 50,000    |   |      | $      | -      |      |   | $      |         |   |   | $ | 50,000 |   |
| Mexico                                  |   |              |      |   |      |   |   |      |   |   |         |   |   |   |   |   |
|   Huicicila                   |   |              | 6,086,002 |   |      |   | -      |      |   |   | -            |   |   |   | 6,086,002 |   |
|   San Nicholas & Santa Fe |   |              |  -   |   |      |   | -      |      |   |   | -            |   |   |   | - |   |
|   Focus I                     |   |              | -         |   |      |   | -      |      |   |   | -            |   |   |   | - |   |
|   Focus II                    |   |              | -         |   |      |   | -      |      |   |   | -            |   |   |   | - |   |
|                                    |   | $                 | 6,136,002 |   |      | $      | -      |      |   | $      | -            |   |   | $ | 6,136,002 |   |

| (a)   | Huicicila Claims - Mexico |
|-----------------|---------------------------|

| (b)   | Watabeag & Russell Creek Claims – Ontario, Canada |
|-----------------|-------------------------------------------------------------|

----

----

| 4.   | Mineral property rights (continued) |
|----------------|-------------------------------------|

| (c)   | San Nicholas & Santa Fe - Mexico |
|-----------------|--------------------------------------|

| (d)   | Focus I and II - Mexico |
|-----------------|-------------------------|

| 5.   | Share capital |
|----------------|---------------|

| (a)    | Authorized capital |
|-----------------------|--------------------|

| (b)    | Share issuances, returns and cancellations during the three month period ended May 31, 2011 |
|------------------|---------------------------------------------------------------------------------------------|

----

----

| 5.   | Share capital (continued) |
|----------------|---------------------------|

| (c)    |  Stock options |
|------------------|---------------------|

| Expiry date                     |   | Exerciseprice per share |   |   | BalanceFebruary 28,2011 |   |      | Granted |   |   | Forfeited |   |   | Expired/Cancelled |   |   | BalanceMay 31,2011 |   |
|---------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|-----------|---------|--------|--------|-----------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                            |   |                    |   |   |                    |   |      |    |   |   |      |   |   |              |   |   |               |   |
| February 24, 2016               |   | $                       | 0.50   |   |                    |   | 6,400,000 |    |   |   | -         |   |   |              | -      |   |               |   | - |   |   |   | 6,400,000 |   |
|                            |   |                    |   |   |                    |   |      |    |   |   |      |   |   |              |   |   |               |   |   |   |   |   |   |   |
|                            |   |                    |   |   |                    |   | 6,400,000 |    |   |   | -         |   |   |              | -      |   |               |   | - |   |   |   | 6,460,000 |   |
|                            |   |                    |   |   |                    |   |      |    |   |   |      |   |   |              |   |   |               |   |   |   |   |   |   |   |
| Weighted average exercise price |   |                    |   |   |                    | $      | 0.50      |    |   | $      | -         |   |   | $                 | -      |   |               | $      | - |   |   | $ | 0.50 |   |

----

----

| 5.   | Share capital (continued) |
|----------------|---------------------------|

| Expiry date                                |   | Exerciseprice per share |   |   | BalanceFebruary 28,2011 |   |    | Issued |   |   | Exercised |   |   | Expired |   |   | BalanceMay 31,2011 |   |
|--------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|---------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|--------------------|--------|
|                                       |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |
| Class A                                    |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |
| March 1, 2012                              |   | $                       | 0.40   |   |                    |   | -       |   |   |   | 66,450    |   |   |    |   |   |               |   |   |   | 66,450 |   |
| June 12, 2014                              |   | $                       | 0.40   |   |                    |   |    |   |   |   | 100,000   |   |   |    |   |   |               |   |   |   | 100,000 |   |
|                                       |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |   |   |   |   |
| Class B                                    |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |   |   |   |   |
| April 24, 2012                             |   | $                       | 0.50   |   |                    |   | 118,415 |   |   |   | -         |   |   |    | -      |   |               |   | - |   |   |   | 118,419 |   |
| April 24, 2012                             |   | $                       | 0.50   |   |                    |   |    |   |   |   | 1,446,625 |   |   |    |   |   |               |   |   |   |   |   | 1,446,625 |   |
| May 24, 2012                               |   | $                       | 0.50   |   |                    |   |    |   |   |   | 76,250    |   |   |    |   |   |               |   |   |   |   |   | 76,250 |   |
| July 1, 2012                               |   | $                       | 0.50   |   |                    |   |    |   |   |   | 95,000    |   |   |    |   |   |               |   |   |   |   |   | 95,000 |   |
|                                       |   |                    |   |   |                    |   | 118,415 |   |   |   | 1,784,329 |   |   |    | -      |   |               |   | - |   |   |   | 1,902,744 |   |
|                                       |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |   |   |   |   |   |   |
| Weighted average exercise price            |   |                    |   |   |                    | $      | 0.50    |   |   | $      | 0.49      |   |   | $       | -      |   |               | $      | - |   |   | $ | 0.49 |   |
| Average remaining contractual term (years) |   |                    |   |   |                    |   |    |   |   |   |      |   |   |    |   |   |               |   |   |   |   |   | 1.02 |   |

|   | Class A warrant | Are non-transferrable, exercisable for cash and have no acceleration of the expiry date. |
|--------|----------------------|------------------------------------------------------------------------------------------|

|   | Class B warrant | Each warrant entitles the holder to purchase one additional common share at US$0.50 per share for a period of one year subject to acceleration provisions and with a cashless exercise provision based upon the 20 day volume weighted average price per share at closing day (VWAP) the day prior to exercise. Holders of warrants electing cashless exercise will receive that number of shares equal to the 20 day VWAP minus $0.50 divided by the 20 day VWAP multiplied by the number of warrants held. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Commitments and Contingencies |
|----------------|-------------------------------|

| (a)    | On October 1, 2010, the Company entered into an option agreement with Victoria Gold Corp., covering 16 gold mining claims in the Province of Ontario.  Under the agreement, the Company has the right to acquire Victoria’s ownership interest in the sixteen mining claims known as the Watabeag and Russell Creek properties.  Under the terms of the option agreement, to exercise the option and receive the exclusive right to earn a 100% interest in the Watabeag and Russell Creek properties, the Company has  issued 250,000 shares of its common stock and must complete $2,000,000 of cumulative exploration and maintenance expenditures on or before the third anniversary of the date of the agreement.  Of the $2,000,000 of cumulative exploration and maintenance expenditures, $375,000 must be incurred on the first anniversary of the date of the agreement and $25,000 must be paid to Victoria Gold Corp. on the first, second and third anniversary dates of the agreement.  Upon the commencement of commercial production, the Company will pay a Net Smelter Returns royalty equal to 3.0% of Net Smelter Returns.  The Company has the ability to buy back 1% of the Royalty at any time for $1 million.  |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 6.   | Commitments and Contingencies (Continued) |
|----------------|-------------------------------------------|

| (b)    | On November 10, 2010, the Company. signed a definitive agreement to acquire Fairfields Gold S.A. de CV.  Fairfields owns an option to acquire 100% of the Huicicila gold project in Nayarit Mexico.  Under the terms of the definitive agreement, Fairfields selling stockholders have the opportunity to receive additional shares based on performance as per the following schedule: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Resource Estimate Date       |   | Indicated Reserves           |   | Payment Obligation |
|------------------------------|--------|------------------------------|--------|--------------------|
| 18 months after Closing Date |   | 475,000 oz Au (equivalent)   |   | $1,250,000         |
| 24 months after Closing Date |   | 750,000 oz Au (equivalent)   |   | $1,250,000         |
| 36 months after Closing Date |   | 1,025,000 oz Au (equivalent) |   | $1,250,000         |
| 48 months after Closing Date |   | 1,300,000 oz Au (equivalent) |   | $1,250,000         |

| (c)    | Option on Huicicila mining concession - Mexico |
|------------------|------------------------------------------------|

|   | ● | US$ 100,000 plus applicable VAT, paid on May 24, 2010 (paid).                                                                                                                           |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                    |
|   | ● | US$ 1,200,000 plus applicable VAT, on six semester payment of US$ 200,000 each one, payable on every August and February month from August 17, 2011 to February 17, 2114.               |
|   |    |                                                                                                                                                                                    |
|   | ● | The issue to the optionee that number of  shares of common stock of Fairfields at the end of the option agreement that is 3% of its issued and outstand capital at that time. |
|   |    |                                                                                                                                                                                    |
|   | ● | A Net Smelter Return Royalty (“NSR”) calculated at a rate of the 2.5% above the concentrate sales, payable every quarter over the life of the mines.                        |

----

----

| 6.   | Commitments and Contingencies (Continued) |
|----------------|-------------------------------------------|

| (d)    | Acquisition of Metallum Resources PLC. |
|------------------|----------------------------------------|

| 7.   | Related party transactions |
|----------------|----------------------------|

| (b)    | During the three month period ended May 31, 2011 and 2010, the former president donated services of $nil and $2,359, respectively, which were charged to operations and treated as donated capital. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)    | During the three month period ended May 31, 2011 the Company agreed to pay a monthly fee of $1,500 to a director as compensation for serving as corporate secretary.   The Company paid $4,500 in the quarter ended May 31, 2011 (2010 - $4,500) under this commitment.  A law firm of which the director is a partner is paid a monthly fee of $10,000 under a retainer agreement to provide legal services that was effective since March 1, 2010.  Total fees were $30,000 in the three month period ended May 31, 2011 (2010 - $30,000).  As at May 31, 2011, Mr. Weed and Weed & Company, LLP are due a total of $nil (2010 - $38,871).  Mr. Weed was also issued 100,000 shares of restricted common stock, as designee for Law firm at a valuation of $0.30 per share or a total of $30,000 in the quarter ended May 31, 2010. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)    | Commencing August 27, 2010, the Company entered into agreements with the president and CEO of the Company to provide services in exchange for $15,000 per month through December 31, 2010 and $21,000 per month during the year ended December 31, 2011.  During the three month period ended May 31, 2011, the Company paid $65,122 (2010 - $nil) as compensation for such management services. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 7.   | Related party transactions (Continued) |
|----------------|----------------------------------------|

| (e)    | Effective January 1, 2011, the Company entered into an employment agreement with the director of exploration of the Company to provide services in exchange for $12,000 per month through December 31, 2011.  During the three month period ended May 31, 2011, the Company recorded $36,000 (2010 - $nil) as compensation for such management services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)    | Effective January 1, 2011, the Company has paid fees to directors of its Mexican subsidiary Fairfields to provide services related to developing Fairfields mineral properties as  well as management services in exchange for 150,000 pesos ($12,710 monthly at the average rates of exchange during the three month period ended May 31, 2011).  During the three month period ended May 31, 2011, the Company recorded $76,258 (2010 - $nil) as compensation for such management services by these directors. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)    | During the three month period ended May 31, 2011, the Company recorded  $5,250  (2010 - $nil) as compensation to a company controlled by a director of the Company for exploration services provided pursuant to a consulting agreement with the Company. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Included in accounts payable and accrued liabilities – related at May 31, 2011 is $38,159 (2010 - $38,871) payable to the firms and directors referred to in this note. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Subsequent events |
|----------------|-------------------|

| (a)    | The Company has expanded its holdings in the historic mining municipality of Compostela, Nayarit State, Mexico, by acquiring an additional claim totalling approximately 2,367 hectares (Focus 3). Focus 3 borders to the south the Company's previously acquired Focus 1 Claim. The Company's land holdings in Nayarit now exceed 31,000 hectares in total with most of it contiguous. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | ● | Exploration expense was $528,878 for the three month period ended May 31, 2011, with no comparable expense in the prior year.  This expense is attributable to the recommencement of exploration activities on our optioned claims in Mexico.  These activities consisted of geologist fees, equipment rental, road building tunnelling and mining and assay costs.           |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                              |
|   | ● | General and Administrative expenses increased by $955,193, for the three month period ended May 31, 2011 as compared with the three month period ended May 31, 2010.  This increase was primarily attributable to the overall increase in spending associated with becoming an active company in the exploration stage. The components of General and Administrative expenses are: |

|   | ● | Consulting expenses was $123,500 for the three month period ended May 31, 2011, as compared to the three month period ended May 31, 2010.  This increase was primarily attributable to the hiring of consultants to assist the development and support of its business activities. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | Management fees and salaries increased by $195,822, for the three month period ended May 31, 2011, as compared with the three month period ended May 31, 2010.  This increase was primarily attributable to engaging Grant White as president and CEO and to the engagement of additional directors, managers in our Mexico operations and support staff.                                                                                                                                                                |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | ● | Legal and professional expenses decreased approximately 29%, or $14,705, for the three month period ended May 31, 2011, as compared to the three month period ended May 31, 2010.  This decrease was primarily attributable to the Company recording audit fees and related expenses when incurred in the prior period and the Company’s current accounting approach of accruing all audit and related costs to the quarter that the cost is related to.                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | ● | Depreciation expense was $412 for the three month period ended May 31, 2011, with no comparable expense in the three month period ended May 31, 2010.  This expense is attributable to minor office equipment acquisitions.                                                                                                                                                                                                                                                                                              |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | ● | Stock based compensation expense was $453,050 for the three month period ended May 31, 2011, with no comparable expense in the three month period ended May 31, 2010.  This expense is attributable to the granting of stock options to directors, officers in the fiscal year ended February 28, 2011 and the amortization of resultant stock based compensation expenses.  Management expects to record a similar amount for stock based compensation over the period from June 1 through December 31, 2011. |

|   | ● | Other expenses for the three month period ended May 31, 2011 totalled $19,452 composed of $26,836 from the amortization of the discount record mineral option payment liabilities, with no comparable other expenses in the three month period ended May 31, 2010.    Management expects the amount of other expense related to the amortization of the discount record mineral property option liabilities will continue through to the year ended 2014.  In addition other expenses includes $7,384 of interest income arising from its loan advance to Metallum plc., with no comparable expense in the three month period ended May 31, 2010. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Exhibit No. |   | Date              |   | Description                                                                                                                          |
|-------------|--------|-------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |   | December 23, 2005 |   | Articles of Incorporation (1)                                                                                                        |
| 3.2         |   | April 22, 2009    |   | Articles of Amendment to the Articles of Incorporation to change name to Gold Bag, Inc.(10)                                          |
| 3.3         |   | n/a               |   | Bylaws (1)                                                                                                                           |
| 3.4         |   | October 22, 2009  |   | Certificate of Amendment to Articles of Incorporation – change in capital structure (11)                                       |
| 3.5         |   | May 19, 2011      |   | Certificate of Amendment to Articles of Incorporation – name change to Focus Gold Corporation (12)                             |
| 4.1         |   | n/a               |   | Specimen Stock Certificate for Common Stock (1)                                                                                      |
| 10.1        |   | October 1, 2010   |   | Option Agreement with Victoria Gold Corp. –Watabeag & Russell Creek Properties (2)                                         |
| 10.2        |   | November 10, 2010 |   | Share Purchase Agreement dated November 10, 2010 – Fairfields Gold S.A. de C.V. (3)                                            |
| 10.3        |   | December 13, 2010 |   | Amending Agreement between Focus Gold Mexico Corporation, Gold Bag, Inc. and Fairfields Gold S.A. de C.V. (4)                        |
| 10.4        |   | February 1, 2011  |   | Fee Agreement with Weed & Co. LLP (5)                                                                                            |
| 10.5        |   | February 23, 2011 |   | Employment Agreement with Grant R. White (6)                                                                                         |
| 10.6        |   | February 28, 2011 |   | Agreement with Dorian L. Nicol, Director of Exploration (7)                                                                          |
| 10.7        |   | February 7, 2011  |   | 2011 Stock and Stock Option Compensation Plan (8)                                                                                    |
| 21.1        |   | June 13, 2011     |   | List of Subsidiaries (9)                                                                                                             |
| 31.1        |   | June 13, 2011     |   | Certification of Chief Executive Officer and Chief Financial Officer of Periodic Report pursuant to Rule 13a-14a and Rule 14d-14(a)* |
| 32.1        |   | June 13, 2011     |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Sect 1350*                                |

----

| (1)(2) | Filed as an exhibit to the registration statement on Form SB-2 filed with the SEC on June 2, 2006.Filed as exhibit 10.1 to the Form 8-K dated October 1, 2010 (SEC Accession Number 0001019687-10-003802) |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed as exhibit 10.1 to the Form 8-K dated November 10, 2010 (SEC Accession Number 0001019687-10-004170 |
|-----|----------------------------------------------------------------------------------------------------------|

| (4) | Filed as exhibit 10.6 to the Form 10-Q for period ended November 30, 2010 (SEC Accession Number 0001019687-11-000212 |
|-----|----------------------------------------------------------------------------------------------------------------------|

| (5) | Filed as exhibit 10.4 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (6) | Filed as exhibit 10.5 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (7) | Filed as exhibit 10.6 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (8) | Filed as exhibit 10.7 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (9) | Filed as exhibit 21.1 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (10) | Filed as exhibit 3.2 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|------|--------------------------------------------------------------------------------------------------------------------|

| (11) | Filed as exhibit 3.4 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|------|--------------------------------------------------------------------------------------------------------------------|

| (12) | Filed as exhibit 3.5 to the Form 10-K for year ended February 28, 2011 (SEC Accession Number 0001019687-11-001937) |
|------|--------------------------------------------------------------------------------------------------------------------|

| * | Filed herewith. |
|---|-----------------|

----

|                 | Focus Gold Corporation |                                                |
|----------------------|------------------------|-----------------------------------------------------|
|                 |                   |                                                |   |
| Dated: July 11, 2011 | By:                    | /s/ Grant R. White                             |   |
|                 |                   | Grant R. White                                      |   |
|                 |                   | Chief Executive Officer and Chief Financial Officer |   |
|                 |                   |                                                |   |

----