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321:

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415:

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417:

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418:

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420:

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442:

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454:

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456:

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457:

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460:

}

461:

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462:

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463:

}

464:

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465:

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

466:

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468:

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

469:

}

470:

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471:

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

472:

}

473:

</STYLE>

474:

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476:

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

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style="mso-spacerun: yes">  Financial Statements of</TD>

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

622:

INC.</TD>

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

637:

2002 and 2001</TD>

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

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

828:

STATEMENT OF RESPONSIBILITY</TD>

829:

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

847:

responsible for the preparation of the accompanying consolidated financial

848:

statements and for their integrity and objectivity.<SPAN

849:

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

850:

been prepared in accordance with Canadian generally accepted accounting

851:

principles and are considered by management to present fairly the

852:

financial position and operating results of the Company.<SPAN

853:

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

854:

policies followed are described in the notes to the consolidated financial

855:

statements.</TD>

856:

857:

858:

859:

860:

861:

862:

863:

864:

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

865:

established internal control systems to provide reliable accounting

866:

records and safeguard Company assets.<SPAN

867:

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

868:

statements have been audited by the independent auditors KPMG LLP,

869:

Chartered Accountants, whose report outlines the scope of their

870:

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

871:

872:

873:

874:

875:

876:

877:

878:

879:

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

880:

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

881:

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

882:

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

883:

884:

885:

886:

887:

888:

889:

890:

891:

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

892:

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

893:

for its consideration in approving the financial statements for

894:

issuance.</TD>

895:

896:

897:

898:

899:

900:

901:

902:

903:

904:

905:

906:

907:

908:

909:

910:

911:

912:

913:

914:

915:

916:

917:

918:

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

919:

920:

921:

922:

923:

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

924:

Resources Inc.</TD>

925:

926:

927:

928:

929:

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

930:

BC</TD>

931:

932:

933:

934:

935:

936:

937:

938:

939:

940:

941:

942:

943:

944:

945:

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

946:

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

947:

948:

949:

950:

951:

952:

953:

954:

955:

956:

957:

958:

959:

960:

961:

962:

963:

964:

965:

966:

967:

968:

969:

970:

971:

972:

973:

974:

975:

976:

977:

978:

979:

980:

981:

982:

983:

984:

985:

986:

987:

988:

989:

990:

991:

992:

993:

994:

995:

996:

997:

998:

999:

1000:

1001:

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

1002:

height=17></TD>

1003:

1004:

1005:

1006:

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

1007:

height=17></TD>

1008:

1009:

1010:

1011:

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

1012:

height=17></TD>

1013:

1014:

1015:

1016:

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

1017:

height=17></TD>

1018:

1019:

1020:

1021:

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

1022:

height=17></TD>

1023:

1024:

1025:

1026:

1027:

1028:

1029:

1030:

1031:

1032:

1033:

1034:

1035:

1036:

1037:

1038:

1039:

1040:

1041:

1042:

1043:

1044:

1045:

1046:

1047:

1048:

1049:

1050:

1051:

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

1052:

REPORT TO THE DIRECTORS</TD>

1053:

1054:

1055:

1056:

1057:

1058:

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

1059:

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

1060:

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

1061:

cash flows for the year then ended.

1062:

These financial statements are the responsibility of the Company's

1063:

management.  Our

1064:

responsibility is to express an opinion on these<SPAN

1065:

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

1066:

audit.  The consolidated

1067:

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

1068:

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

1069:

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

1070:

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

1071:

1072:

1073:

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

1074:

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

1075:

we conducted our audit in accordance with Canadian generally accepted

1076:

auditing standards and United States generally accepted auditing

1077:

standards.  Those standards

1078:

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

1079:

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

1080:

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

1081:

test basis, evidence supporting the amounts and disclosures in the

1082:

financial statements.  An

1083:

audit also includes assessing the accounting principles used and

1084:

significant estimates made by management, as well as evaluating the

1085:

overall financial statement presentation.</TD>

1086:

1087:

1088:

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

1089:

opinion, these consolidated financial statements present fairly, in all

1090:

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

1091:

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

1092:

then ended in accordance with Canadian generally accepted accounting

1093:

principles.  As required by

1094:

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

1095:

principles have been applied, after giving retroactive effect to the

1096:

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

1097:

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

1098:

1099:

1100:

1101:

1102:

1103:

1104:

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

1105:

1106:

1107:

1108:

1109:

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

1110:

Accountants</TD>

1111:

1112:

1113:

1114:

1115:

1116:

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

1117:

height=17>Chilliwack, Canada</TD>

1118:

1119:

1120:

1121:

1122:

1123:

1124:

1125:

1126:

1127:

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

1128:

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

1129:

1130:

1131:

1132:

1133:

1134:

1135:

1136:

1137:

1138:

1139:

1140:

1141:

1142:

1143:

1144:

1145:

1146:

1147:

1148:

1149:

1150:

1151:

1152:

1153:

1154:

1155:

1156:

1157:

1158:

1159:

1160:

1161:

1162:

1163:

1164:

1165:

1166:

1167:

1168:

1169:

1170:

1171:

1172:

1173:

1174:

1175:

1176:

1177:

1178:

1179:

1180:

1181:

1182:

1183:

1184:

1185:

1186:

1187:

1188:

1189:

1190:

1191:

1192:

1193:

1194:

1195:

1196:

1197:

1198:

1199:

1200:

1201:

1202:

1203:

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

1204:

height=17></TD>

1205:

1206:

1207:

1208:

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

1209:

height=17></TD>

1210:

1211:

1212:

1213:

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

1214:

height=17></TD>

1215:

1216:

1217:

1218:

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

1219:

height=17></TD>

1220:

1221:

1222:

1223:

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

1224:

height=17></TD>

1225:

1226:

1227:

1228:

1229:

1230:

1231:

1232:

1233:

1234:

1235:

1236:

1237:

1238:

1239:

1240:

1241:

1242:

1243:

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

1244:

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

1245:

1246:

1247:

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

1248:

States, reporting standards require the addition of an explanatory

1249:

paragraph (following the opinion paragraph) when the financial statements

1250:

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

1251:

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

1252:

in note 1 to the consolidated financial statements.<SPAN

1253:

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

1254:

October 18, 2002 is expressed in accordance with Canadian reporting

1255:

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

1256:

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

1257:

financial statements.</TD>

1258:

1259:

1260:

1261:

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

1262:

1263:

1264:

1265:

1266:

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

1267:

Accountants</TD>

1268:

1269:

1270:

1271:

1272:

1273:

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

1274:

height=17>Chilliwack, Canada</TD>

1275:

1276:

1277:

1278:

1279:

1280:

1281:

1282:

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

1283:

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

1284:

1285:

1286:

1287:

1288:

1289:

1290:

1291:

1292:

1293:

1294:

1295:

1296:

1297:

1298:

1299:

1300:

1301:

1302:

1303:

1304:

1305:

1306:

1307:

1308:

1309:

1310:

1311:

1312:

1313:

1314:

1315:

1316:

1317:

1318:

1319:

1320:

1321:

1322:

1323:

1324:

1325:

1326:

1327:

1328:

1329:

1330:

1331:

1332:

1333:

1334:

1335:

1336:

1337:

1338:

1339:

1340:

1341:

1342:

1343:

1344:

1345:

1346:

1347:

1348:

1349:

1350:

1351:

1352:

1353:

1354:

1355:

1356:

1357:

1358:

1359:

1360:

1361:

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

1362:

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

1363:

1364:

1365:

1366:

1367:

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

1368:

height=17>Consolidated Balance Sheets</TD>

1369:

1370:

1371:

1372:

1373:

1374:

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

1375:

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

1376:

1377:

1378:

1379:

1380:

1381:

1382:

1383:

1384:

1385:

1386:

1387:

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

1388:

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

1389:

1390:

1391:

1392:

1393:

1394:

1395:

1396:

1397:

1398:

1399:

1400:

1401:

1402:

1403:

1404:

1405:

1406:

1407:

1408:

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

1409:

height=27>Assets</TD>

1410:

1411:

1412:

1413:

1414:

1415:

1416:

1417:

1418:

1419:

1420:

1421:

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

1422:

height=17>Current assets:</TD>

1423:

1424:

1425:

1426:

1427:

1428:

1429:

1430:

1431:

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

1432:

style="mso-spacerun: yes"> $<SPAN

1433:

style="mso-spacerun: yes">                 

1434:

- </TD>

1435:

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

1436:

style="mso-spacerun: yes"> $<SPAN

1437:

style="mso-spacerun: yes">              

1438:

632 </TD>

1439:

1440:

1441:

1442:

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

1443:

</TD>

1444:

1445:

1446:

1447:

1448:

1449:

1450:

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

1451:

1452:

1453:

1454:

1455:

1456:

1457:

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

1458:

1459:

1460:

1461:

1462:

1463:

1464:

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

1465:

1466:

1467:

1468:

1469:

1470:

1471:

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

1472:

1473:

1474:

1475:

1476:

1477:

1478:

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

1479:

height=17></TD>

1480:

1481:

1482:

1483:

1484:

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

1485:

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

1486:

1487:

1488:

1489:

1490:

1491:

1492:

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

1493:

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

1494:

1495:

1496:

1497:

1498:

1499:

1500:

1501:

1502:

1503:

1504:

1505:

1506:

1507:

1508:

1509:

1510:

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

1511:

style="mso-spacerun: yes"> $<SPAN

1512:

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

1513:

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

1514:

style="mso-spacerun: yes"> $<SPAN

1515:

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

1516:

1517:

1518:

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

1519:

height=17></TD>

1520:

1521:

1522:

1523:

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

1524:

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

1525:

1526:

1527:

1528:

1529:

1530:

1531:

1532:

1533:

1534:

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

1535:

height=17>Current liabilities:</TD>

1536:

1537:

1538:

1539:

1540:

1541:

1542:

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

1543:

1544:

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

1545:

style="mso-spacerun: yes"> $<SPAN

1546:

style="mso-spacerun: yes">          

1547:

9,399 </TD>

1548:

<TD class=xl31 x:str="-"> -

1549:

</TD>

1550:

1551:

1552:

1553:

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

1554:

accrued liabilities</TD>

1555:

1556:

1557:

1558:

1559:

1560:

1561:

1562:

1563:

1564:

1565:

1566:

1567:

1568:

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

1569:

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

1570:

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

1571:

</TD>

1572:

1573:

1574:

1575:

1576:

1577:

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

1578:

height=17></TD>

1579:

1580:

1581:

1582:

1583:

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

1584:

height=10></TD>

1585:

1586:

1587:

1588:

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

1589:

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

1590:

1591:

1592:

1593:

1594:

1595:

1596:

1597:

1598:

1599:

1600:

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

1601:

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

1602:

1603:

1604:

1605:

1606:

1607:

1608:

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

1609:

1610:

1611:

1612:

1613:

1614:

1615:

<TD class=xl131>Deficit</TD>

1616:

1617:

1618:

1619:

1620:

1621:

1622:

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

1623:

height=17></TD>

1624:

1625:

1626:

1627:

1628:

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

1629:

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

1630:

1631:

1632:

1633:

1634:

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

1635:

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

1636:

1637:

1638:

1639:

1640:

1641:

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

1642:

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

1643:

1644:

1645:

1646:

1647:

1648:

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

1649:

height=17>Subsequent event (Note

1650:

15)</TD>

1651:

1652:

1653:

1654:

1655:

1656:

1657:

1658:

1659:

1660:

1661:

1662:

1663:

1664:

1665:

1666:

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

1667:

style="mso-spacerun: yes"> $<SPAN

1668:

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

1669:

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

1670:

style="mso-spacerun: yes"> $<SPAN

1671:

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

1672:

1673:

1674:

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

1675:

height=17></TD>

1676:

1677:

1678:

1679:

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

1680:

height=17>On behalf of the Board:</TD>

1681:

1682:

1683:

1684:

1685:

1686:

1687:

1688:

1689:

1690:

1691:

1692:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

1693:

height=17>  <FONT

1694:

class=font8><SPAN

1695:

style="mso-spacerun: yes">             "A.

1696:

Daher"<SPAN

1697:

style="mso-spacerun: yes">                            

1698:

<SPAN

1699:

style="mso-spacerun: yes">      Director</TD>

1700:

1701:

1702:

1703:

1704:

1705:

1706:

1707:

1708:

1709:

1710:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

1711:

height=17>  <FONT

1712:

class=font8><SPAN

1713:

style="mso-spacerun: yes">             "M.

1714:

Marten"<SPAN

1715:

style="mso-spacerun: yes">                          

1716:

<SPAN

1717:

style="mso-spacerun: yes">      Director</TD>

1718:

1719:

1720:

1721:

1722:

1723:

1724:

1725:

1726:

1727:

1728:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=4

1729:

height=17>See accompanying notes to consolidated financial statements.</TD>

1730:

1731:

1732:

1733:

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

1734:

height=17></TD>

1735:

1736:

1737:

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3

1738:

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

1739:

1740:

1741:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=3 height=17>Consolidated

1742:

Statement of Operations and Deficit</TD>

1743:

1744:

1745:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Expressed in

1746:

Canadian Dollars</TD>

1747:

1748:

1749:

1750:

1751:

1752:

1753:

1754:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

1755:

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

1756:

1757:

1758:

1759:

1760:

1761:

1762:

1763:

1764:

1765:

1766:

1767:

1768:

1769:

1770:

1771:

1772:

1773:

1774:

1775:

1776:

1777:

1778:

1779:

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

1780:

height=17>Revenues</TD>

1781:

1782:

<TD class=xl45 x:num="0"><SPAN

1783:

style="mso-spacerun: yes"> $<SPAN

1784:

style="mso-spacerun: yes">                

1785:

- </TD>

1786:

<TD class=xl53 x:num="0"><SPAN

1787:

style="mso-spacerun: yes"> $<SPAN

1788:

style="mso-spacerun: yes">                 

1789:

- </TD>

1790:

<TD class=xl45 x:num="0"><SPAN

1791:

style="mso-spacerun: yes"> $<SPAN

1792:

style="mso-spacerun: yes">                  

1793:

- </TD>

1794:

1795:

1796:

1797:

1798:

1799:

1800:

1801:

1802:

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

1803:

height=17>Expenses:</TD>

1804:

1805:

1806:

1807:

1808:

1809:

<TD class=xl37>Advertising</TD>

1810:

1811:

<TD class=xl50 x:num="1947"><SPAN

1812:

style="mso-spacerun: yes">            

1813:

1,947 </TD>

1814:

<TD class=xl50 x:num="4523"><SPAN

1815:

style="mso-spacerun: yes">             

1816:

4,523 </TD>

1817:

<TD class=xl46 x:num="2684"><SPAN

1818:

style="mso-spacerun: yes">              

1819:

2,684 </TD>

1820:

1821:

1822:

1823:

<TD class=xl25>Amortization</TD>

1824:

1825:

<TD class=xl51 x:num="7043"><SPAN

1826:

style="mso-spacerun: yes">            

1827:

7,043 </TD>

1828:

<TD class=xl51 x:num="10694"><SPAN

1829:

style="mso-spacerun: yes">           

1830:

10,694 </TD>

1831:

<TD class=xl46 x:num="15395"><SPAN

1832:

style="mso-spacerun: yes">            

1833:

15,395 </TD>

1834:

1835:

1836:

1837:

<TD class=xl25>Consulting fees</TD>

1838:

1839:

<TD class=xl51 x:num="91500"><SPAN

1840:

style="mso-spacerun: yes">          

1841:

91,500 </TD>

1842:

<TD class=xl51 x:num="71727"><SPAN

1843:

style="mso-spacerun: yes">           

1844:

71,727 </TD>

1845:

<TD class=xl46 x:num="0"><SPAN

1846:

style="mso-spacerun: yes">                     

1847:

- </TD>

1848:

1849:

1850:

1851:

<TD class=xl25>Filing fees, licenses, permits</TD>

1852:

1853:

<TD class=xl51 x:num="2586"><SPAN

1854:

style="mso-spacerun: yes">            

1855:

2,586 </TD>

1856:

<TD class=xl51 x:num="2924"><SPAN

1857:

style="mso-spacerun: yes">             

1858:

2,924 </TD>

1859:

<TD class=xl46 x:num="2014"><SPAN

1860:

style="mso-spacerun: yes">              

1861:

2,014 </TD>

1862:

1863:

1864:

1865:

<TD class=xl25>Foreign exchange</TD>

1866:

1867:

<TD class=xl51 x:num="4699"><SPAN

1868:

style="mso-spacerun: yes">            

1869:

4,699 </TD>

1870:

<TD class=xl51 x:num="75207"><SPAN

1871:

style="mso-spacerun: yes">           

1872:

75,207 </TD>

1873:

<TD class=xl46 x:num="61499"><SPAN

1874:

style="mso-spacerun: yes">            

1875:

61,499 </TD>

1876:

1877:

1878:

1879:

<TD class=xl25>Insurance</TD>

1880:

1881:

<TD class=xl51 x:num="2591"><SPAN

1882:

style="mso-spacerun: yes">            

1883:

2,591 </TD>

1884:

<TD class=xl51 x:num="1303"><SPAN

1885:

style="mso-spacerun: yes">             

1886:

1,303 </TD>

1887:

<TD class=xl46 x:num="-2461"><SPAN

1888:

style="mso-spacerun: yes">             

1889:

(2,461)</TD>

1890:

1891:

1892:

1893:

<TD class=xl25>Interest and bank charges</TD>

1894:

1895:

<TD class=xl51 x:num="267349"><SPAN

1896:

style="mso-spacerun: yes">         

1897:

267,349 </TD>

1898:

<TD class=xl51 x:num="35288"><SPAN

1899:

style="mso-spacerun: yes">           

1900:

35,288 </TD>

1901:

<TD class=xl46 x:num="45624"><SPAN

1902:

style="mso-spacerun: yes">            

1903:

45,624 </TD>

1904:

1905:

1906:

1907:

<TD class=xl25>Office and general</TD>

1908:

1909:

<TD class=xl51 x:num="8889"><SPAN

1910:

style="mso-spacerun: yes">            

1911:

8,889 </TD>

1912:

<TD class=xl51 x:num="15807"><SPAN

1913:

style="mso-spacerun: yes">           

1914:

15,807 </TD>

1915:

<TD class=xl46 x:num="17734"><SPAN

1916:

style="mso-spacerun: yes">            

1917:

17,734 </TD>

1918:

1919:

1920:

1921:

<TD class=xl25>Professional fees</TD>

1922:

1923:

<TD class=xl51 x:num="128478"><SPAN

1924:

style="mso-spacerun: yes">         

1925:

128,478 </TD>

1926:

<TD class=xl51 x:num="133999"><SPAN

1927:

style="mso-spacerun: yes">         

1928:

133,999 </TD>

1929:

<TD class=xl46 x:num="139583"><SPAN

1930:

style="mso-spacerun: yes">          

1931:

139,583 </TD>

1932:

1933:

1934:

1935:

1936:

1937:

<TD class=xl50 x:num="19800"><SPAN

1938:

style="mso-spacerun: yes">          

1939:

19,800 </TD>

1940:

<TD class=xl50 x:num="0"><SPAN

1941:

style="mso-spacerun: yes">                    

1942:

- </TD>

1943:

<TD class=xl46 x:num="0"><SPAN

1944:

style="mso-spacerun: yes">                     

1945:

- </TD>

1946:

1947:

1948:

1949:

<TD class=xl37>Telephone</TD>

1950:

1951:

<TD class=xl50 x:num="13997"><SPAN

1952:

style="mso-spacerun: yes">          

1953:

13,997 </TD>

1954:

<TD class=xl50 x:num="12871"><SPAN

1955:

style="mso-spacerun: yes">           

1956:

12,871 </TD>

1957:

<TD class=xl46 x:num="16010"><SPAN

1958:

style="mso-spacerun: yes">            

1959:

16,010 </TD>

1960:

1961:

1962:

1963:

<TD class=xl25>Transfer agent fees</TD>

1964:

1965:

<TD class=xl51 x:num="2521"><SPAN

1966:

style="mso-spacerun: yes">            

1967:

2,521 </TD>

1968:

<TD class=xl51 x:num="3551"><SPAN

1969:

style="mso-spacerun: yes">             

1970:

3,551 </TD>

1971:

<TD class=xl46 x:num="4310"><SPAN

1972:

style="mso-spacerun: yes">              

1973:

4,310 </TD>

1974:

1975:

1976:

1977:

<TD class=xl25>Travel</TD>

1978:

1979:

<TD class=xl51 x:num="2001"><SPAN

1980:

style="mso-spacerun: yes">            

1981:

2,001 </TD>

1982:

<TD class=xl51 x:num="7211"><SPAN

1983:

style="mso-spacerun: yes">             

1984:

7,211 </TD>

1985:

<TD class=xl46 x:num="1037"><SPAN

1986:

style="mso-spacerun: yes">              

1987:

1,037 </TD>

1988:

1989:

1990:

1991:

<TD class=xl25>Utilities</TD>

1992:

1993:

<TD class=xl51 x:num="10820"><SPAN

1994:

style="mso-spacerun: yes">          

1995:

10,820 </TD>

1996:

<TD class=xl51 x:num="2456"><SPAN

1997:

style="mso-spacerun: yes">             

1998:

2,456 </TD>

1999:

<TD class=xl46 x:num="14950"><SPAN

2000:

style="mso-spacerun: yes">            

2001:

14,950 </TD>

2002:

2003:

2004:

2005:

<TD class=xl60>Wages and benefits</TD>

2006:

2007:

<TD class=xl62 x:num="0"><SPAN

2008:

style="mso-spacerun: yes">                   

2009:

- </TD>

2010:

<TD class=xl62 x:num="58639"><SPAN

2011:

style="mso-spacerun: yes">           

2012:

58,639 </TD>

2013:

<TD class=xl59 x:num="78800"><SPAN

2014:

style="mso-spacerun: yes">            

2015:

78,800 </TD>

2016:

2017:

2018:

2019:

<TD class=xl52 x:num="564221"><SPAN

2020:

style="mso-spacerun: yes">    564,221 </TD>

2021:

<TD class=xl52 x:num="436200"><SPAN

2022:

style="mso-spacerun: yes">    436,200 </TD>

2023:

<TD class=xl46 x:num="397179" x:fmla="=SUM(F220:F234)"><SPAN

2024:

style="mso-spacerun: yes">          

2025:

397,179 </TD>

2026:

2027:

2028:

2029:

2030:

2031:

2032:

2033:

2034:

2035:

2036:

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

2037:

height=17>Loss before the undernoted</TD>

2038:

2039:

<TD class=xl50 x:num="-564221"><SPAN

2040:

style="mso-spacerun: yes">        

2041:

(564,221)</TD>

2042:

<TD class=xl50 x:num="-436200"><SPAN

2043:

style="mso-spacerun: yes">        

2044:

(436,200)</TD>

2045:

<TD class=xl46 x:num="-397179" x:fmla="=F217-F235"><SPAN

2046:

style="mso-spacerun: yes">         

2047:

(397,179)</TD>

2048:

2049:

2050:

2051:

2052:

2053:

2054:

2055:

2056:

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

2057:

height=17>Other income (expenses):</TD>

2058:

2059:

2060:

2061:

2062:

2063:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Loss on abandonment

2064:

of mineral properties</TD>

2065:

<TD class=xl73 x:str="-"> -

2066:

</TD>

2067:

<TD class=xl73 x:num="-312749"><SPAN

2068:

style="mso-spacerun: yes">        

2069:

(312,749)</TD>

2070:

<TD class=xl46 x:num="-11399044"><SPAN

2071:

style="mso-spacerun: yes">     

2072:

(11,399,044)</TD>

2073:

2074:

2075:

2076:

<TD class=xl37>Gain on sale of capital assets</TD>

2077:

2078:

<TD class=xl73 x:num="7142"><SPAN

2079:

style="mso-spacerun: yes">            

2080:

7,142 </TD>

2081:

<TD class=xl73 x:str="-"> -

2082:

</TD>

2083:

<TD class=xl46 x:num="0"><SPAN

2084:

style="mso-spacerun: yes">                     

2085:

- </TD>

2086:

2087:

2088:

2089:

<TD class=xl37>Interest income</TD>

2090:

2091:

<TD class=xl73 x:num="3092"><SPAN

2092:

style="mso-spacerun: yes">            

2093:

3,092 </TD>

2094:

<TD class=xl73 x:num="1081"><SPAN

2095:

style="mso-spacerun: yes">             

2096:

1,081 </TD>

2097:

<TD class=xl46 x:num="1180"><SPAN

2098:

style="mso-spacerun: yes">              

2099:

1,180 </TD>

2100:

2101:

2102:

2103:

<TD class=xl60>Rental income</TD>

2104:

2105:

<TD class=xl76 x:num="2978"><SPAN

2106:

style="mso-spacerun: yes">            

2107:

2,978 </TD>

2108:

<TD class=xl76 x:str="-"> -

2109:

</TD>

2110:

<TD class=xl59 x:num="0"><SPAN

2111:

style="mso-spacerun: yes">                     

2112:

- </TD>

2113:

2114:

2115:

2116:

<TD class=xl52 x:num="13212"><SPAN

2117:

style="mso-spacerun: yes">     13,212 </TD>

2118:

<TD class=xl52 x:num="-311668"><SPAN

2119:

style="mso-spacerun: yes">   (311,668)</TD>

2120:

<TD class=xl46 x:num="-11397864" x:fmla="=SUM(F240:F243)"><SPAN

2121:

style="mso-spacerun: yes">     

2122:

(11,397,864)</TD>

2123:

2124:

2125:

2126:

2127:

2128:

2129:

2130:

2131:

2132:

2133:

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

2134:

height=17>Loss for the year</TD>

2135:

2136:

<TD class=xl50 x:num="-551009"><SPAN

2137:

style="mso-spacerun: yes">        

2138:

(551,009)</TD>

2139:

<TD class=xl50 x:num="-747868"><SPAN

2140:

style="mso-spacerun: yes">        

2141:

(747,868)</TD>

2142:

<TD class=xl46 x:num="-11795043" x:fmla="=F237+F244"><SPAN

2143:

style="mso-spacerun: yes">     

2144:

(11,795,043)</TD>

2145:

2146:

2147:

2148:

2149:

2150:

2151:

2152:

2153:

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

2154:

height=17>Deficit, beginning of year</TD>

2155:

2156:

<TD class=xl50 x:num="-16686097"><SPAN

2157:

style="mso-spacerun: yes">    (16,686,097)</TD>

2158:

<TD class=xl50 x:num="-15938229"><SPAN

2159:

style="mso-spacerun: yes">     (15,938,229)</TD>

2160:

<TD class=xl46 x:num="-4143186"><SPAN

2161:

style="mso-spacerun: yes">       

2162:

(4,143,186)</TD>

2163:

2164:

2165:

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

2166:

style="mso-spacerun: yes"> </TD>

2167:

2168:

2169:

2170:

2171:

2172:

<TD class=xl63 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2

2173:

height=18>Deficit, end of year</TD>

2174:

2175:

<TD class=xl64 x:num="-17237106"><SPAN

2176:

style="mso-spacerun: yes"> $ (17,237,106)</TD>

2177:

<TD class=xl64 x:num="-16686097"><SPAN

2178:

style="mso-spacerun: yes"> $<SPAN

2179:

style="mso-spacerun: yes">  (16,686,097)</TD>

2180:

<TD class=xl126 style="BORDER-TOP: medium none" x:num="-15938229"

2181:

x:fmla="=SUM(F246:F248)"><SPAN

2182:

style="mso-spacerun: yes">     

2183:

(15,938,229)</TD>

2184:

2185:

2186:

2187:

2188:

2189:

2190:

2191:

2192:

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2193:

height=17>Net loss per common share, basic and diluted</TD>

2194:

<TD class=xl65 x:num="-00.05"><SPAN

2195:

style="mso-spacerun: yes"> $<SPAN

2196:

style="mso-spacerun: yes">          

2197:

(0.05)</TD>

2198:

<TD class=xl65 x:num="-00.08"><SPAN

2199:

style="mso-spacerun: yes"> $<SPAN

2200:

style="mso-spacerun: yes">           

2201:

(0.08)</TD>

2202:

<TD class=xl137 x:num="-1.24"><SPAN

2203:

style="mso-spacerun: yes"> $<SPAN

2204:

style="mso-spacerun: yes">            

2205:

(1.24)</TD>

2206:

2207:

2208:

<TD class=xl37 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2209:

height=17>Weighted average common shares outstanding,</TD>

2210:

2211:

2212:

2213:

<TD class=xl66 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2

2214:

height=18>   basic and

2215:

diluted</TD>

2216:

2217:

2218:

10,184,635 </TD>

2219:

<TD class=xl67 x:num="9618218"><SPAN

2220:

style="mso-spacerun: yes">    9,618,218 </TD>

2221:

<TD class=xl136 x:num="9505718"><SPAN

2222:

style="mso-spacerun: yes">        

2223:

9,505,718 </TD>

2224:

2225:

2226:

2227:

2228:

2229:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=4 height=17>See

2230:

accompanying notes to consolidated financial statements.</TD>

2231:

2232:

2233:

2234:

2235:

2236:

2237:

2238:

2239:

2240:

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3

2241:

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

2242:

2243:

2244:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Consolidated

2245:

Statement of Cash Flows</TD>

2246:

2247:

2248:

2249:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=2 height=17>Expressed in

2250:

Canadian Dollars</TD>

2251:

2252:

2253:

2254:

2255:

2256:

2257:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2258:

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

2259:

2260:

2261:

2262:

2263:

2264:

2265:

2266:

2267:

2268:

2269:

<TD class=xl56 style="BORDER-TOP: medium none; HEIGHT: 12.75pt"

2270:

height=17> </TD>

2271:

2272:

2273:

2274:

2275:

2276:

2277:

2278:

2279:

2280:

2281:

2282:

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

2283:

height=17>Cash provided by (used in):</TD>

2284:

2285:

2286:

2287:

2288:

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

2289:

height=17>Operations:</TD>

2290:

2291:

2292:

2293:

2294:

2295:

2296:

2297:

2298:

<TD class=xl31 x:num="-551009"><SPAN

2299:

style="mso-spacerun: yes"> $<SPAN

2300:

style="mso-spacerun: yes">     

2301:

(551,009)</TD>

2302:

<TD class=xl31 x:num="-747868"><SPAN

2303:

style="mso-spacerun: yes"> $<SPAN

2304:

style="mso-spacerun: yes">     

2305:

(747,868)</TD>

2306:

<TD class=xl45 x:num="-11795043"><SPAN

2307:

style="mso-spacerun: yes"> $<SPAN

2308:

style="mso-spacerun: yes">   (11,795,043)</TD>

2309:

2310:

2311:

2312:

<TD class=xl37>Items not involving cash:</TD>

2313:

2314:

2315:

2316:

2317:

2318:

2319:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2320:

height=17>Amortization</TD>

2321:

2322:

<TD class=xl73 x:num="7043"><SPAN

2323:

style="mso-spacerun: yes">            

2324:

7,043 </TD>

2325:

<TD class=xl73 x:num="10694"><SPAN

2326:

style="mso-spacerun: yes">           

2327:

10,694 </TD>

2328:

<TD class=xl46 x:num="15395"><SPAN

2329:

style="mso-spacerun: yes">            

2330:

15,395 </TD>

2331:

2332:

2333:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2334:

height=17>Shares issued for services</TD>

2335:

2336:

<TD class=xl73 x:num="141300"><SPAN

2337:

style="mso-spacerun: yes">         

2338:

141,300 </TD>

2339:

<TD class=xl73 x:num="45000"><SPAN

2340:

style="mso-spacerun: yes">           

2341:

45,000 </TD>

2342:

2343:

2344:

2345:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2346:

height=17>Loss on abandonment of mineral properties</TD>

2347:

<TD class=xl73 x:str="-"> -

2348:

</TD>

2349:

<TD class=xl73 x:num="312749"><SPAN

2350:

style="mso-spacerun: yes">         

2351:

312,749 </TD>

2352:

<TD class=xl46 x:num="11399044"><SPAN

2353:

style="mso-spacerun: yes">      

2354:

11,399,044 </TD>

2355:

2356:

2357:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2358:

height=17>Gain on sale of capital assets</TD>

2359:

2360:

<TD class=xl73 x:num="-7142"><SPAN

2361:

style="mso-spacerun: yes">           

2362:

(7,142)</TD>

2363:

<TD class=xl73 x:str="-"> -

2364:

</TD>

2365:

<TD class=xl46 x:num="0"><SPAN

2366:

style="mso-spacerun: yes">                     

2367:

- </TD>

2368:

2369:

2370:

2371:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Change in non cash

2372:

operating working capital:</TD>

2373:

2374:

2375:

2376:

2377:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2378:

height=17>Restricted cash</TD>

2379:

2380:

<TD class=xl73 x:num="-67415"><SPAN

2381:

style="mso-spacerun: yes">         

2382:

(67,415)</TD>

2383:

<TD class=xl73 x:str="-"> -

2384:

</TD>

2385:

<TD class=xl46 x:num="0"><SPAN

2386:

style="mso-spacerun: yes">                     

2387:

- </TD>

2388:

2389:

2390:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2391:

height=17>Advances receivable</TD>

2392:

2393:

<TD class=xl73 x:str="-"> -

2394:

</TD>

2395:

<TD class=xl73 x:num="65594"><SPAN

2396:

style="mso-spacerun: yes">           

2397:

65,594 </TD>

2398:

<TD class=xl46 x:num="-71266"><SPAN

2399:

style="mso-spacerun: yes">           

2400:

(71,266)</TD>

2401:

2402:

2403:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2404:

height=17>Other receivables</TD>

2405:

2406:

<TD class=xl73 x:num="818"><SPAN

2407:

style="mso-spacerun: yes">               

2408:

818 </TD>

2409:

<TD class=xl73 x:num="5218"><SPAN

2410:

style="mso-spacerun: yes">             

2411:

5,218 </TD>

2412:

<TD class=xl46 x:num="-5632"><SPAN

2413:

style="mso-spacerun: yes">             

2414:

(5,632)</TD>

2415:

2416:

2417:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2418:

height=17>Prepaid expenses and deposits</TD>

2419:

2420:

<TD class=xl73 x:str="-"> -

2421:

</TD>

2422:

<TD class=xl73 x:num="7343"><SPAN

2423:

style="mso-spacerun: yes">             

2424:

7,343 </TD>

2425:

<TD class=xl46 x:num="-11803"><SPAN

2426:

style="mso-spacerun: yes">           

2427:

(11,803)</TD>

2428:

2429:

2430:

2431:

<TD class=xl60 style="mso-ignore: colspan" colSpan=2><SPAN

2432:

style="mso-spacerun: yes">     Accounts payable

2433:

and accrued liabilities</TD>

2434:

<TD class=xl76 x:num="-185712"><SPAN

2435:

style="mso-spacerun: yes">        

2436:

(185,712)</TD>

2437:

<TD class=xl76 x:num="80293"><SPAN

2438:

style="mso-spacerun: yes">           

2439:

80,293 </TD>

2440:

<TD class=xl59 x:num="71309"><SPAN

2441:

style="mso-spacerun: yes">            

2442:

71,309 </TD>

2443:

2444:

2445:

2446:

<TD class=xl73 x:num="-662117"><SPAN

2447:

style="mso-spacerun: yes">        

2448:

(662,117)</TD>

2449:

<TD class=xl73 x:num="-220977"><SPAN

2450:

style="mso-spacerun: yes">        

2451:

(220,977)</TD>

2452:

<TD class=xl46 x:num="-397996" x:fmla="=SUM(F269:F280)"><SPAN

2453:

style="mso-spacerun: yes">         

2454:

(397,996)</TD>

2455:

2456:

2457:

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

2458:

height=17>Financing:</TD>

2459:

2460:

2461:

2462:

2463:

2464:

2465:

2466:

2467:

<TD class=xl73 x:num="1832616"><SPAN

2468:

style="mso-spacerun: yes">      

2469:

1,832,616 </TD>

2470:

<TD class=xl73 x:str="-"> -

2471:

</TD>

2472:

<TD class=xl46 x:num="0"><SPAN

2473:

style="mso-spacerun: yes">                     

2474:

- </TD>

2475:

2476:

2477:

2478:

<TD class=xl37>Advances from (to) shareholders</TD>

2479:

2480:

<TD class=xl73 x:num="-274755"><SPAN

2481:

style="mso-spacerun: yes">        

2482:

(274,755)</TD>

2483:

<TD class=xl73 x:num="330292"><SPAN

2484:

style="mso-spacerun: yes">         

2485:

330,292 </TD>

2486:

<TD class=xl46 x:num="187802"><SPAN

2487:

style="mso-spacerun: yes">          

2488:

187,802 </TD>

2489:

2490:

2491:

2492:

2493:

2494:

<TD class=xl76 x:num="-623575"><SPAN

2495:

style="mso-spacerun: yes">        

2496:

(623,575)</TD>

2497:

<TD class=xl76 x:num="278662"><SPAN

2498:

style="mso-spacerun: yes">         

2499:

278,662 </TD>

2500:

<TD class=xl59 x:num="0"><SPAN

2501:

style="mso-spacerun: yes">                     

2502:

- </TD>

2503:

2504:

2505:

2506:

<TD class=xl73 x:num="934286"><SPAN

2507:

style="mso-spacerun: yes">         

2508:

934,286 </TD>

2509:

<TD class=xl73 x:num="608954"><SPAN

2510:

style="mso-spacerun: yes">         

2511:

608,954 </TD>

2512:

<TD class=xl46 x:num="187802" x:fmla="=SUM(F283:F285)"><SPAN

2513:

style="mso-spacerun: yes">          

2514:

187,802 </TD>

2515:

2516:

2517:

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

2518:

height=17>Investments:</TD>

2519:

2520:

2521:

2522:

2523:

2524:

2525:

<TD class=xl37>Mineral properties</TD>

2526:

2527:

<TD class=xl73 x:num="-289106"><SPAN

2528:

style="mso-spacerun: yes">        

2529:

(289,106)</TD>

2530:

<TD class=xl73 x:num="-373383"><SPAN

2531:

style="mso-spacerun: yes">        

2532:

(373,383)</TD>

2533:

<TD class=xl46 x:num="-122057"><SPAN

2534:

style="mso-spacerun: yes">         

2535:

(122,057)</TD>

2536:

2537:

2538:

2539:

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

2540:

disposal of capital assets</TD>

2541:

<TD class=xl73 x:num="7412"><SPAN

2542:

style="mso-spacerun: yes">            

2543:

7,412 </TD>

2544:

<TD class=xl73 x:str="-"> -

2545:

</TD>

2546:

<TD class=xl46 x:num="312925"><SPAN

2547:

style="mso-spacerun: yes">          

2548:

312,925 </TD>

2549:

2550:

2551:

2552:

<TD class=xl60>Net additions to capital assets</TD>

2553:

2554:

<TD class=xl76 x:num="-506"><SPAN

2555:

style="mso-spacerun: yes">              

2556:

(506)</TD>

2557:

<TD class=xl76 x:num="-1416"><SPAN

2558:

style="mso-spacerun: yes">            

2559:

(1,416)</TD>

2560:

<TD class=xl59 x:num="0"><SPAN

2561:

style="mso-spacerun: yes">                     

2562:

- </TD>

2563:

2564:

2565:

2566:

<TD class=xl73 x:num="-282200"><SPAN

2567:

style="mso-spacerun: yes">        

2568:

(282,200)</TD>

2569:

<TD class=xl73 x:num="-374799"><SPAN

2570:

style="mso-spacerun: yes">        

2571:

(374,799)</TD>

2572:

<TD class=xl46 x:num="190868" x:fmla="=SUM(F288:F290)"><SPAN

2573:

style="mso-spacerun: yes">          

2574:

190,868 </TD>

2575:

2576:

2577:

2578:

2579:

2580:

2581:

2582:

2583:

2584:

2585:

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

2586:

height=17>Increase (decrease) in cash</TD>

2587:

2588:

<TD class=xl73 x:num="-10031"><SPAN

2589:

style="mso-spacerun: yes">         

2590:

(10,031)</TD>

2591:

<TD class=xl73 x:num="13178"><SPAN

2592:

style="mso-spacerun: yes">           

2593:

13,178 </TD>

2594:

<TD class=xl46 x:num="-19326" x:fmla="=F281+F286+F291"><SPAN

2595:

style="mso-spacerun: yes">           

2596:

(19,326)</TD>

2597:

2598:

2599:

2600:

2601:

2602:

2603:

2604:

2605:

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

2606:

height=17>Cash (bank overdraft), beginning of year</TD>

2607:

2608:

<TD class=xl73 x:num="632"><SPAN

2609:

style="mso-spacerun: yes">               

2610:

632 </TD>

2611:

<TD class=xl73 x:num="-12546"><SPAN

2612:

style="mso-spacerun: yes">          

2613:

(12,546)</TD>

2614:

<TD class=xl46 x:num="6780"><SPAN

2615:

style="mso-spacerun: yes">              

2616:

6,780 </TD>

2617:

2618:

2619:

2620:

2621:

2622:

2623:

2624:

2625:

<TD class=xl63 style="HEIGHT: 13.5pt; mso-ignore: colspan" colSpan=2

2626:

height=18>Cash (bank overdraft), end of year</TD>

2627:

2628:

<TD class=xl35 x:num="-9399"><SPAN

2629:

style="mso-spacerun: yes"> $<SPAN

2630:

style="mso-spacerun: yes">        

2631:

(9,399)</TD>

2632:

<TD class=xl35 x:num="632"><SPAN

2633:

style="mso-spacerun: yes"> $<SPAN

2634:

style="mso-spacerun: yes">             

2635:

632 </TD>

2636:

<TD class=xl105 style="BORDER-TOP: medium none" x:num="-12546"

2637:

x:fmla="=SUM(F293:F295)"><SPAN

2638:

style="mso-spacerun: yes"> $<SPAN

2639:

style="mso-spacerun: yes">        

2640:

(12,546)</TD>

2641:

2642:

2643:

<TD class=xl37 style="HEIGHT: 9.75pt; mso-ignore: colspan" colSpan=3

2644:

height=13></TD>

2645:

2646:

2647:

2648:

2649:

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

2650:

height=17>Supplementary cash flow information:</TD>

2651:

2652:

2653:

2654:

2655:

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2656:

height=17>Interest paid</TD>

2657:

2658:

<TD class=xl31 x:num="195877"><SPAN

2659:

style="mso-spacerun: yes"> $<SPAN

2660:

style="mso-spacerun: yes">      

2661:

195,877 </TD>

2662:

<TD class=xl31 x:num="35288"><SPAN

2663:

style="mso-spacerun: yes"> $<SPAN

2664:

style="mso-spacerun: yes">        

2665:

35,288 </TD>

2666:

<TD class=xl148 x:num="45624"><SPAN

2667:

style="mso-spacerun: yes"> $<SPAN

2668:

style="mso-spacerun: yes">         

2669:

45,624 </TD>

2670:

2671:

2672:

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2673:

height=17>Income taxes paid</TD>

2674:

2675:

<TD class=xl73 x:str="-"> -

2676:

</TD>

2677:

<TD class=xl73 x:str="-"> -

2678:

</TD>

2679:

<TD class=xl134 x:num="0"><SPAN

2680:

style="mso-spacerun: yes">                   

2681:

-   </TD>

2682:

2683:

2684:

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2685:

height=17>Interest received</TD>

2686:

2687:

<TD class=xl73 x:num="3092"><SPAN

2688:

style="mso-spacerun: yes">            

2689:

3,092 </TD>

2690:

<TD class=xl73 x:num="1081"><SPAN

2691:

style="mso-spacerun: yes">             

2692:

1,081 </TD>

2693:

<TD class=xl134 x:num="1180"><SPAN

2694:

style="mso-spacerun: yes">              

2695:

1,180 </TD>

2696:

2697:

2698:

<TD class=xl68 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

2699:

height=17>Non cash transactions:</TD>

2700:

2701:

2702:

2703:

2704:

2705:

2706:

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

2707:

style="mso-spacerun: yes">  Shares issued for mineral property

2708:

development</TD>

2709:

<TD class=xl73 x:num="30000"><SPAN

2710:

style="mso-spacerun: yes">          

2711:

30,000 </TD>

2712:

<TD class=xl73 x:num="15000"><SPAN

2713:

style="mso-spacerun: yes">           

2714:

15,000 </TD>

2715:

<TD class=xl134 x:num="0"><SPAN

2716:

style="mso-spacerun: yes">                   

2717:

-   </TD>

2718:

2719:

2720:

2721:

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

2722:

style="mso-spacerun: yes">  Amortization capitalized to

2723:

mineral properties</TD>

2724:

<TD class=xl73 x:num="36645"><SPAN

2725:

style="mso-spacerun: yes">          

2726:

36,645 </TD>

2727:

<TD class=xl73 x:num="57346"><SPAN

2728:

style="mso-spacerun: yes">           

2729:

57,346 </TD>

2730:

<TD class=xl134 x:num="1757431"><SPAN

2731:

style="mso-spacerun: yes">        

2732:

1,757,431 </TD>

2733:

2734:

2735:

2736:

<TD class=xl25 colSpan=3

2737:

x:str=" Shares issued for repayment of shareholder "><SPAN

2738:

style="mso-spacerun: yes">  Shares issued for repayment of

2739:

shareholder </TD>

2740:

2741:

2742:

2743:

2744:

2745:

2746:

advances</TD>

2747:

2748:

<TD class=xl73 x:num="75000"><SPAN

2749:

style="mso-spacerun: yes">          

2750:

75,000 </TD>

2751:

<TD class=xl73 x:str="-"> -

2752:

</TD>

2753:

<TD class=xl134 x:num="0"><SPAN

2754:

style="mso-spacerun: yes">                   

2755:

-   </TD>

2756:

2757:

2758:

2759:

2760:

Advances receivable reclassified to mineral</TD>

2761:

2762:

2763:

2764:

2765:

properties</TD>

2766:

2767:

<TD class=xl78 x:num="122806"><SPAN

2768:

style="mso-spacerun: yes">         

2769:

122,806 </TD>

2770:

<TD class=xl78 x:str="-"> -

2771:

</TD>

2772:

<TD class=xl147 x:num="0"><SPAN

2773:

style="mso-spacerun: yes">                   

2774:

-   </TD>

2775:

2776:

2777:

2778:

2779:

2780:

2781:

2782:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=4 height=17>See

2783:

accompanying notes to consolidated financial statements.</TD>

2784:

2785:

2786:

2787:

<TD class=xl38 style="HEIGHT: 23.25pt; mso-ignore: colspan" colSpan=3

2788:

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

2789:

2790:

2791:

<TD class=xl25 style="HEIGHT: 12.75pt" colSpan=3 height=17>Notes to

2792:

Consolidated Financial Statements</TD>

2793:

2794:

2795:

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

2796:

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

2797:

2798:

2799:

2800:

2801:

2802:

2803:

<TD class=xl25 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2804:

height=17>Years ended May 31, 2002, 2001 and 2000</TD>

2805:

2806:

2807:

2808:

2809:

2810:

2811:

2812:

2813:

2814:

<TD class=xl80>General and future operations:</TD>

2815:

2816:

2817:

2818:

2819:

<TD class=xl43 style="WIDTH: 448pt" width=597 colSpan=5>Calais Resources

2820:

Inc. (the "Company") was incorporated under the laws of the Province of

2821:

British Columbia on December 30, 1986.<SPAN

2822:

style="mso-spacerun: yes">  The Company is currently in the

2823:

process of exploring and developing various mineral properties to

2824:

determine whether these properties contain ore reserves that are

2825:

economically recoverable.  The

2826:

recoverability of the amounts shown for the mineral properties and related

2827:

deferred costs is dependent upon the existence of economically recoverable

2828:

reserves, the ability of the Company to obtain necessary financing to

2829:

complete their development and upon future profitable production.</TD>

2830:

2831:

2832:

2833:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These consolidated

2834:

financial statements have been prepared on a going concern basis in

2835:

accordance with Canadian generally accepted accounting principles.<SPAN

2836:

style="mso-spacerun: yes">  The going concern basis of

2837:

presentation assumes that the Company will continue in operation for the

2838:

foreseeable future and be able to realize its assets and discharge its

2839:

liabilities and commitments in the normal course of business.<SPAN

2840:

style="mso-spacerun: yes">  There is significant doubt about

2841:

the appropriateness of the use of the going concern assumption because the

2842:

Company experienced significant losses in 2002 and 2001 and has

2843:

experienced significant negative cash flow from operations over a number

2844:

of years.  In addition, the

2845:

Company  recently had to seek

2846:

an extension on repayment of a $1,200,000 US loan (see Note 5).</TD>

2847:

2848:

2849:

2850:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to the

2851:

year end, the Company began seeking approximately $2,300,000 US in

2852:

financing to repay the bank loan, trade creditors and provide operating

2853:

funds.  The Company is

2854:

actively pursuing various options with potential lenders and investors

2855:

which, if accepted, will in management's view, enable the Company to

2856:

achieve its business plans.

2857:

No agreements with potential lenders or investors have been reached

2858:

yet and there can be no assurance that such agreements will be reached.</TD>

2859:

2860:

2861:

2862:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The ability of the

2863:

Company to continue as a going concern and to realize the carrying value

2864:

of its assets and discharge its liabilities when due is dependent on the

2865:

successful completion of the actions taken or planned, some of which are

2866:

described above, which management believes will mitigate the adverse

2867:

conditions and events which raise doubt about the validity of the "going

2868:

concern" assumption used in preparing these financial statements.<SPAN

2869:

style="mso-spacerun: yes">  There is no certainty that these

2870:

and other strategies will be sufficient to permit the Company to continue

2871:

beyond May 31, 2003.</TD>

2872:

2873:

2874:

2875:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The financial

2876:

statements do not reflect adjustments that would be necessary if the

2877:

"going concern" assumption were not appropriate.<SPAN

2878:

style="mso-spacerun: yes">  If the "going concern" basis was

2879:

not appropriate for these financial statements, then adjustments would be

2880:

necessary in the carrying value of assets and liabilities, the reported

2881:

revenues and expenses, and the balance sheet classifications used.</TD>

2882:

2883:

2884:

2885:

2886:

2887:

2888:

<TD class=xl80>Significant accounting policies:</TD>

2889:

2890:

2891:

2892:

<TD class=xl80 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

2893:

height=17></TD>

2894:

2895:

2896:

2897:

<TD class=xl39>Basis of consolidation:</TD>

2898:

2899:

2900:

2901:

2902:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These financial

2903:

statements include the accounts of the Company and its wholly-owned

2904:

subsidiaries.  Calais

2905:

International Inc., Recursos Calais S.A. de C.V., Calais Resources Nevada

2906:

Inc., Calais Resources Colorado Inc. and Recursos Calais La Paloma S.A. de

2907:

C.V.   All material

2908:

inter-company transactions and balances have been eliminated.</TD>

2909:

2910:

2911:

2912:

2913:

2914:

2915:

<TD class=xl39>Use of estimates:</TD>

2916:

2917:

2918:

2919:

2920:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The preparation of

2921:

financial statements in conformity with Canadian generally accepted

2922:

accounting principles requires management to make estimates and

2923:

assumptions that affect the reported amounts of assets and liabilities and

2924:

disclosure of contingent assets and liabilities at the date of the

2925:

financial statements and the reported amounts of revenues and expenses

2926:

during the year.  Actual

2927:

results could differ from those estimates.</TD>

2928:

2929:

2930:

2931:

2932:

2933:

2934:

<TD class=xl39>Cash equivalents:</TD>

2935:

2936:

2937:

2938:

2939:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Cash equivalents

2940:

consist of short-term deposits with maturity of ninety days or less.</TD>

2941:

2942:

2943:

2944:

2945:

2946:

2947:

<TD class=xl39>Financial instruments:</TD>

2948:

2949:

2950:

2951:

2952:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company's

2953:

financial instruments consist of cash, restricted cash, other receivables,

2954:

advances receivable, bank overdraft, accounts payable and accrued

2955:

liabilities, bank loan, long-term debt and advances from

2956:

shareholders.  Unless

2957:

otherwise noted, it is management's opinion that the Company is not

2958:

exposed to significant interest, currency or credit risks arising from

2959:

these financial instruments.

2960:

The fair values of these financial instruments approximate their

2961:

carrying values, unless otherwise noted.</TD>

2962:

2963:

2964:

2965:

2966:

2967:

2968:

<TD class=xl39>Inventories:</TD>

2969:

2970:

2971:

2972:

2973:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Inventories

2974:

consist of mining equipment held for resale.<SPAN

2975:

style="mso-spacerun: yes">  Inventories are recorded at the

2976:

lower of cost or net realizable value.</TD>

2977:

2978:

2979:

2980:

2981:

2982:

2983:

<TD class=xl39>Mineral properties:</TD>

2984:

2985:

2986:

2987:

2988:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is

2989:

engaged in the acquisition, exploration and development of mineral

2990:

properties.  All acquisition,

2991:

exploration and related direct overhead expenditures are deferred and will

2992:

be depleted over the estimated life of the property.<SPAN

2993:

style="mso-spacerun: yes">  The estimated life of a property

2994:

depends on whether the property contains economically recoverable reserves

2995:

that can be brought into production.

2996:

The costs relating to a property abandoned are written off when the

2997:

decision to abandon is made.</TD>

2998:

2999:

3000:

3001:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The total amount

3002:

recorded for mineral properties and deferred exploration expenditures

3003:

represents costs incurred to date and does not reflect present or future

3004:

values.</TD>

3005:

3006:

3007:

3008:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Proceeds from

3009:

disposition of mineral properties are normally credited to the capitalized

3010:

costs with no gain or loss being recognized unless the sale is significant

3011:

to the capitalized property costs.

3012:

For such significant dispositions, a gain or loss would be

3013:

recognized.</TD>

3014:

3015:

3016:

3017:

3018:

3019:

3020:

3021:

<TD class=xl39>Capital assets and amortization:</TD>

3022:

3023:

3024:

3025:

3026:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Capital assets are

3027:

recorded at cost and are amortized over the estimated useful life on the

3028:

declining balance method at rates of 20% to 30% per annum.<SPAN

3029:

style="mso-spacerun: yes">  Amortization related to

3030:

exploration and mining equipment is capitalized as a mineral property

3031:

cost.</TD>

3032:

3033:

3034:

3035:

3036:

3037:

3038:

<TD class=xl39>Foreign currency translation:</TD>

3039:

3040:

3041:

3042:

3043:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5

3044:

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

3045:

domestic companies and integrated foreign operations, monetary assets and

3046:

liabilities are translated into Canadian dollars at exchange rates

3047:

prevailing at the balance sheet date.<SPAN

3048:

style="mso-spacerun: yes">  Other assets and liabilities are

3049:

translated at exchange rates prevailing at the dates of the

3050:

transactions.  Income and

3051:

expenses are translated at average exchange rates prevailing during the

3052:

year.  Exchange gains or

3053:

losses are included in earnings for the year.<SPAN

3054:

style="mso-spacerun: yes">  </TD>

3055:

3056:

3057:

3058:

3059:

3060:

3061:

<TD class=xl39>Income taxes:</TD>

3062:

3063:

3064:

3065:

3066:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company

3067:

follows the asset and liability method of accounting for income

3068:

taxes.  Under this method,

3069:

current taxes are recognized for the estimated income taxes payable for

3070:

the current period.</TD>

3071:

3072:

3073:

3074:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Future income

3075:

taxes are provided based on the estimated future tax effects of temporary

3076:

differences between financial statement carrying amounts of existing

3077:

assets and liabilities and their respective tax bases as well as the

3078:

benefit of losses available to be carried forward to future years for tax

3079:

purposes.</TD>

3080:

3081:

3082:

3083:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Future tax assets

3084:

and liabilities are measured using enacted or substantively enacted tax

3085:

rates that are expected to apply to taxable income in the years in which

3086:

those temporary differences are expected to be recovered or settled.<SPAN

3087:

style="mso-spacerun: yes">  The effect on future tax assets

3088:

and liabilities of a change in tax rates is recognized in operations in

3089:

the period that includes the enactment or substantive enactment date.<SPAN

3090:

style="mso-spacerun: yes">  A valuation allowance is recorded

3091:

for future tax assets when it is not more likely than not that such future

3092:

tax assets will be realized.</TD>

3093:

3094:

3095:

3096:

3097:

3098:

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

3099:

style="mso-spacerun: yes"> (j)</TD>

3100:

<TD class=xl39>Net loss per share:</TD>

3101:

3102:

3103:

3104:

3105:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5

3106:

x:str="During the year the company adopted the new provisions of CICA Handbook Section 3500, earnings per share. ">During

3107:

the year the company adopted the new provisions of CICA Handbook Section

3108:

3500, earnings per share.  </TD>

3109:

3110:

3111:

3112:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Basic net loss per

3113:

share is computed using the weighted average number of common shares

3114:

outstanding during the period.

3115:

Diluted loss per share is computed using the weighted average

3116:

number of common shares and potentially dilutive common shares outstanding

3117:

during the period.  As the

3118:

Company has a net loss in the years ending May 31, 2001 and 2002, basic

3119:

and diluted net loss per share are the same.</TD>

3120:

3121:

3122:

3123:

3124:

3125:

3126:

<TD class=xl39>Stock based compensation:</TD>

3127:

3128:

3129:

3130:

3131:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5

3132:

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

3133:

Company has stock based compensation plans.<SPAN

3134:

style="mso-spacerun: yes">  No compensation expense is

3135:

recognized for these plans when stock or stock options are issued to

3136:

employees.  Consideration paid

3137:

by employees on the exercise of stock options is credited to common

3138:

shares.  For consideration

3139:

paid to an employee for the repurchase of stock options, the excess of the

3140:

consideration paid over the carrying amount of the stock option cancelled

3141:

is charged to retained earnings.

3142:

</TD>

3143:

3144:

3145:

3146:

3147:

3148:

3149:

3150:

<TD class=xl80>Capital assets:</TD>

3151:

3152:

3153:

3154:

3155:

3156:

3157:

3158:

3159:

3160:

3161:

3162:

3163:

3164:

3165:

3166:

3167:

3168:

3169:

3170:

3171:

3172:

3173:

3174:

3175:

3176:

3177:

3178:

3179:

3180:

3181:

3182:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3183:

height=17>Land</TD>

3184:

3185:

<TD class=xl31 x:num="8215"><SPAN

3186:

style="mso-spacerun: yes"> $<SPAN

3187:

style="mso-spacerun: yes">          

3188:

8,215 </TD>

3189:

<TD class=xl31 x:num="8215"><SPAN

3190:

style="mso-spacerun: yes"> $<SPAN

3191:

style="mso-spacerun: yes">           

3192:

8,215 </TD>

3193:

3194:

3195:

3196:

3197:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3198:

height=17>Furniture</TD>

3199:

3200:

<TD class=xl73 x:num="10947"><SPAN

3201:

style="mso-spacerun: yes">           

3202:

10,947 </TD>

3203:

<TD class=xl73 x:num="10947"><SPAN

3204:

style="mso-spacerun: yes">            

3205:

10,947 </TD>

3206:

3207:

3208:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3209:

height=17>Computer equipment</TD>

3210:

3211:

<TD class=xl73 x:num="37494"><SPAN

3212:

style="mso-spacerun: yes">           

3213:

37,494 </TD>

3214:

<TD class=xl73 x:num="37494"><SPAN

3215:

style="mso-spacerun: yes">            

3216:

37,494 </TD>

3217:

3218:

3219:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3220:

height=17>Automotive equipment</TD>

3221:

3222:

<TD class=xl73 x:num="57331"><SPAN

3223:

style="mso-spacerun: yes">           

3224:

57,331 </TD>

3225:

<TD class=xl73 x:num="57331"><SPAN

3226:

style="mso-spacerun: yes">            

3227:

57,331 </TD>

3228:

3229:

3230:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3231:

height=17>Exploration/mining equipment</TD>

3232:

3233:

<TD class=xl73 x:num="498988"><SPAN

3234:

style="mso-spacerun: yes">         

3235:

498,988 </TD>

3236:

<TD class=xl73 x:num="508642"><SPAN

3237:

style="mso-spacerun: yes">          

3238:

508,642 </TD>

3239:

3240:

3241:

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Soft<SPAN

3242:

style="DISPLAY: none">ware</TD>

3243:

3244:

3245:

3246:

<TD class=xl76 x:num="6260"><SPAN

3247:

style="mso-spacerun: yes">             

3248:

6,260 </TD>

3249:

<TD class=xl76 x:num="6024"><SPAN

3250:

style="mso-spacerun: yes">              

3251:

6,024 </TD>

3252:

3253:

3254:

3255:

<TD class=xl73 x:num="619235"><SPAN

3256:

style="mso-spacerun: yes">         

3257:

619,235 </TD>

3258:

<TD class=xl73 x:num="628653"><SPAN

3259:

style="mso-spacerun: yes">          

3260:

628,653 </TD>

3261:

3262:

3263:

3264:

<TD class=xl37>Accumulated depreciation</TD>

3265:

3266:

3267:

3268:

3269:

3270:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3271:

height=17>Furniture</TD>

3272:

3273:

<TD class=xl73 x:num="7065"><SPAN

3274:

style="mso-spacerun: yes">             

3275:

7,065 </TD>

3276:

<TD class=xl73 x:num="6189"><SPAN

3277:

style="mso-spacerun: yes">              

3278:

6,189 </TD>

3279:

3280:

3281:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3282:

height=17>Computer equipment</TD>

3283:

3284:

<TD class=xl73 x:num="30502"><SPAN

3285:

style="mso-spacerun: yes">           

3286:

30,502 </TD>

3287:

<TD class=xl73 x:num="27968"><SPAN

3288:

style="mso-spacerun: yes">            

3289:

27,968 </TD>

3290:

3291:

3292:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3293:

height=17>Automotive equipment</TD>

3294:

3295:

<TD class=xl73 x:num="47506"><SPAN

3296:

style="mso-spacerun: yes">           

3297:

47,506 </TD>

3298:

<TD class=xl73 x:num="43970"><SPAN

3299:

style="mso-spacerun: yes">            

3300:

43,970 </TD>

3301:

3302:

3303:

<TD class=xl69 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=2

3304:

height=17>Exploration/mining equipment</TD>

3305:

3306:

<TD class=xl73 x:num="401825"><SPAN

3307:

style="mso-spacerun: yes">         

3308:

401,825 </TD>

3309:

<TD class=xl73 x:num="374834"><SPAN

3310:

style="mso-spacerun: yes">          

3311:

374,834 </TD>

3312:

3313:

3314:

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Soft<SPAN

3315:

style="DISPLAY: none">ware</TD>

3316:

3317:

3318:

3319:

<TD class=xl76 x:num="6121"><SPAN

3320:

style="mso-spacerun: yes">             

3321:

6,121 </TD>

3322:

<TD class=xl76 x:num="6024"><SPAN

3323:

style="mso-spacerun: yes">              

3324:

6,024 </TD>

3325:

3326:

3327:

3328:

<TD class=xl73 x:num="493019"><SPAN

3329:

style="mso-spacerun: yes">         

3330:

493,019 </TD>

3331:

<TD class=xl73 x:num="458985"><SPAN

3332:

style="mso-spacerun: yes">          

3333:

458,985 </TD>

3334:

3335:

3336:

3337:

3338:

3339:

3340:

3341:

3342:

<TD class=xl63>Net book value</TD>

3343:

3344:

3345:

<TD class=xl35 x:num="126216"><SPAN

3346:

style="mso-spacerun: yes"> $<SPAN

3347:

style="mso-spacerun: yes">      

3348:

126,216 </TD>

3349:

<TD class=xl35 x:num="169668"><SPAN

3350:

style="mso-spacerun: yes"> $<SPAN

3351:

style="mso-spacerun: yes">        

3352:

169,668 </TD>

3353:

3354:

3355:

3356:

3357:

3358:

3359:

3360:

3361:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Amortization of

3362:

$36,645 (2001 - $57,346) related to exploration equipment was capitalized

3363:

to mineral properties during the year.</TD>

3364:

3365:

3366:

3367:

3368:

3369:

3370:

3371:

<TD class=xl80>Mineral properties:</TD>

3372:

3373:

3374:

3375:

3376:

3377:

3378:

3379:

3380:

3381:

3382:

3383:

3384:

3385:

3386:

3387:

3388:

3389:

3390:

3391:

3392:

3393:

3394:

3395:

3396:

3397:

<TD class=xl37>Nevada U.S.A.</TD>

3398:

3399:

3400:

<TD class=xl31 x:num="3297789"><SPAN

3401:

style="mso-spacerun: yes"> $<SPAN

3402:

style="mso-spacerun: yes">     3,297,789 </TD>

3403:

<TD class=xl31 x:num="3004902"><SPAN

3404:

style="mso-spacerun: yes"> $<SPAN

3405:

style="mso-spacerun: yes">      3,004,902

3406:

</TD>

3407:

3408:

3409:

3410:

<TD class=xl37>Colorado, U.S.A.</TD>

3411:

3412:

3413:

<TD class=xl73 x:num="9239606"><SPAN

3414:

style="mso-spacerun: yes">      

3415:

9,239,606 </TD>

3416:

<TD class=xl73 x:num="9119006"><SPAN

3417:

style="mso-spacerun: yes">        

3418:

9,119,006 </TD>

3419:

3420:

3421:

3422:

<TD class=xl37>Panama, Central America</TD>

3423:

3424:

3425:

<TD class=xl73 x:num="144058"><SPAN

3426:

style="mso-spacerun: yes">         

3427:

144,058 </TD>

3428:

<TD class=xl73 x:num="78988"><SPAN

3429:

style="mso-spacerun: yes">            

3430:

78,988 </TD>

3431:

3432:

3433:

3434:

3435:

3436:

3437:

3438:

3439:

3440:

3441:

3442:

3443:

<TD class=xl35 x:num="12681453"><SPAN

3444:

style="mso-spacerun: yes"> $<SPAN

3445:

style="mso-spacerun: yes">   12,681,453 </TD>

3446:

<TD class=xl35 x:num="12202896"><SPAN

3447:

style="mso-spacerun: yes"> $<SPAN

3448:

style="mso-spacerun: yes">    12,202,896 </TD>

3449:

3450:

3451:

3452:

3453:

3454:

3455:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Title to mining

3456:

properties involves certain inherent risks due to the difficulties of

3457:

determining the validity of certain claims as well as the potential for

3458:

problems arising from the frequently ambiguous conveyancing history

3459:

characteristics of many mining properties.<SPAN

3460:

style="mso-spacerun: yes">  The Company has investigated title

3461:

to all of its mineral properties and, to the best of its knowledge, title

3462:

to all of its properties are in good standing.<SPAN

3463:

style="mso-spacerun: yes">  The majority of the properties in

3464:

which the Company has committed to earn an interest are located outside

3465:

Canada.  The Company is

3466:

therefore relying on title opinions by legal counsel who are basing such

3467:

opinions on the laws of the respective country.</TD>

3468:

3469:

3470:

3471:

3472:

3473:

3474:

3475:

<TD class=xl39>Nevada, U.S.A.:</TD>

3476:

3477:

3478:

3479:

3480:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>In December 1994,

3481:

the Company acquired a 51% interest in certain patented and unpatented

3482:

claims located in Nevada from a company controlled by directors for

3483:

$1,176,000 US plus a 5% net smelter royalty.<SPAN

3484:

style="mso-spacerun: yes">  The Company can also acquire a

3485:

100% interest in a further 89 claims in this property under this

3486:

agreement.</TD>

3487:

3488:

3489:

3490:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company

3491:

entered into an agreement and settlement dated September 7, 2000 with

3492:

Nevada Manhattan Mining Incorporated to settle and purchase Nevada

3493:

Manhattan Mining Incorporated's 24.5% interest in the property.<SPAN

3494:

style="mso-spacerun: yes">  The Company agreed to make four

3495:

annual payments of US $75,000 each for a total of US $300,000.<SPAN

3496:

style="mso-spacerun: yes">  During the term of the agreement

3497:

the Company has agreed to pay Nevada Manhattan Mining Incorporated a 2%

3498:

net smelter return royalty.

3499:

The Company can purchase the entire Nevada Manhattan Mining

3500:

Incorporated interest and royalty at anytime over a thirty-year period for

3501:

US $7,500,000, which would include production royalties.</TD>

3502:

3503:

3504:

3505:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company also

3506:

holds a 100% interest in 42 unpatented claims in the Manhattan Mining

3507:

district by staking.</TD>

3508:

3509:

3510:

3511:

3512:

3513:

3514:

3515:

<TD class=xl39>Colorado, U.S.A.</TD>

3516:

3517:

3518:

3519:

3520:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Included in the

3521:

Colorado properties is a 100% working interest in the Consolidated

3522:

Caribou-Cross-Comstock-Panadora district mine area which the Company

3523:

acquired in 1997 for US $4,000,000 in stock, cash and final property

3524:

payments.  After acquisition

3525:

of 100% working interest the seller retains a 2% net smelter royalty

3526:

interest in the property.  The

3527:

Company has the right to buy back half of the net smelter royalty (1%) for

3528:

US $750,000.  The seller has

3529:

not sold any of the issued shares for this acquisition through May 31,

3530:

2002.  During 2000, the

3531:

Company acquired 100% ownership of 10 patented claims that are

3532:

continuations of the historic Boulder County and Cardinal vein

3533:

systems.  The Colorado

3534:

properties contain a well-documented mineral resource of 424,500 ounces of

3535:

gold and 11,725,000 ounces of silver.</TD>

3536:

3537:

3538:

3539:

3540:

3541:

3542:

3543:

<TD class=xl39>Panama, Central America:</TD>

3544:

3545:

3546:

3547:

3548:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company owns

3549:

hard rock mining concessions to 61,000 acres (24,686 hectares) in the

3550:

eastern Veraguas District of Panama in Central America in 2001.<SPAN

3551:

style="mso-spacerun: yes">  The acquisition was made through a

3552:

five-year agreement with Panama Mining of Golden Cycle Incorporated, the

3553:

seller.  The Company issued

3554:

100,000 shares of stock to the seller.<SPAN

3555:

style="mso-spacerun: yes">  The Company is obligated to pay

3556:

the seller a 2% net smelter return on any hard rock mineral

3557:

production.  The Company can

3558:

purchase the concessions from the seller at anytime during the five-year

3559:

option period for US $5,000,000.

3560:

Upon completion of the purchase the 2% net smelter return would

3561:

terminate.  The Company is

3562:

obligated to pay the annual taxes and holding fees during the option

3563:

period.</TD>

3564:

3565:

3566:

3567:

3568:

3569:

3570:

3571:

3572:

3573:

3574:

3575:

3576:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Loan payable with

3577:

interest only payments at 10.5% per annum.<SPAN

3578:

style="mso-spacerun: yes">   The loan principal of

3579:

$1,200,000 US is due in full on September 12, 2002; and the loan is

3580:

secured by deed of trust over mineral properties.</TD>

3581:

3582:

3583:

3584:

3585:

<TD class=xl25 colSpan=5>Cash of $67,415 is held in an escrow account for

3586:

monthly interest payments.</TD>

3587:

3588:

3589:

3590:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to May

3591:

31, 2002, the due date of the loan was extended to November 16, 2002 in

3592:

exchange for a renewal fee.

3593:

The bank has agreed to subsequent extensions beyond November 16,

3594:

2002 for monthly renewal fees, and has agreed to extend the loan for one

3595:

year upon the Company paying down 10% of the principal (US$120,000).</TD>

3596:

3597:

3598:

3599:

3600:

3601:

3602:

3603:

3604:

3605:

3606:

3607:

3608:

3609:

3610:

3611:

3612:

3613:

3614:

3615:

3616:

3617:

3618:

3619:

3620:

3621:

3622:

3623:

3624:

<TD class=xl85 style="WIDTH: 298pt" width=398 colSpan=3>Debentures

3625:

payable, without interest, due May 2011, convertible to common shares at

3626:

an exercise price of $1.23 at holders discretion; unsecured</TD>

3627:

<TD class=xl31 x:num="5097105"><SPAN

3628:

style="mso-spacerun: yes"> $<SPAN

3629:

style="mso-spacerun: yes">     5,097,105 </TD>

3630:

<TD class=xl31 x:num="5442018"><SPAN

3631:

style="mso-spacerun: yes"> $<SPAN

3632:

style="mso-spacerun: yes">      5,442,018

3633:

</TD>

3634:

3635:

3636:

3637:

<TD class=xl85 style="WIDTH: 298pt" width=398 colSpan=3>Promissory note

3638:

payable, with interest at 11.5% per annum; unsecured</TD>

3639:

3640:

3641:

3642:

3643:

3644:

3645:

3646:

3647:

3648:

3649:

3650:

3651:

3652:

3653:

<TD class=xl35 x:num="5097105"><SPAN

3654:

style="mso-spacerun: yes"> $<SPAN

3655:

style="mso-spacerun: yes">     5,097,105 </TD>

3656:

<TD class=xl35 x:num="5720680"><SPAN

3657:

style="mso-spacerun: yes"> $<SPAN

3658:

style="mso-spacerun: yes">      5,720,680

3659:

</TD>

3660:

3661:

3662:

3663:

<TD class=xl158 style="WIDTH: 448pt" width=597 colSpan=5>All debentures

3664:

are held by companies or persons related to a shareholder and

3665:

director.  It is not

3666:

practicable to determine the fair value of the debentures and advances

3667:

from shareholders due to their related party nature and the absence of a

3668:

secondary market for such instruments.</TD>

3669:

3670:

3671:

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=17

3672:

height=17></TD></TR>

3673:

3674:

3675:

<TD class=xl80>Share capital:</TD>

3676:

3677:

3678:

3679:

<TD class=xl80 style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=3

3680:

height=17></TD>

3681:

3682:

3683:

3684:

<TD class=xl25 colSpan=3>Authorized:

3685:

100,000,000 Common shares without par value</TD>

3686:

3687:

3688:

3689:

<TD class=xl39>Issued:</TD>

3690:

3691:

3692:

3693:

3694:

3695:

3696:

3697:

3698:

3699:

3700:

3701:

3702:

3703:

3704:

3705:

3706:

3707:

3708:

3709:

3710:

3711:

<TD class=xl37>Common</TD>

3712:

<TD class=xl74>Number</TD>

3713:

3714:

<TD class=xl74>Number</TD>

3715:

3716:

3717:

3718:

3719:

3720:

3721:

<TD class=xl60 x:str="shares ">shares </TD>

3722:

<TD class=xl89>of shares</TD>

3723:

<TD class=xl89 x:str="Amount ">Amount </TD>

3724:

<TD class=xl89 x:str="of shares ">of shares </TD>

3725:

<TD class=xl95>Amount</TD>

3726:

3727:

3728:

3729:

3730:

3731:

3732:

3733:

3734:

3735:

3736:

3737:

3738:

3739:

3740:

3741:

<TD class=xl37>Balance, beginning of year</TD>

3742:

<TD class=xl73 x:num="9855718"><SPAN

3743:

style="mso-spacerun: yes">      9,855,718

3744:

</TD>

3745:

<TD class=xl31 x:num="22076307"><SPAN

3746:

style="mso-spacerun: yes"> $<SPAN

3747:

style="mso-spacerun: yes">  22,076,307 </TD>

3748:

<TD class=xl73 x:num="9655718"><SPAN

3749:

style="mso-spacerun: yes">      

3750:

9,655,718 </TD>

3751:

<TD class=xl31 x:num="22016307"><SPAN

3752:

style="mso-spacerun: yes"> $<SPAN

3753:

style="mso-spacerun: yes">    22,016,307 </TD>

3754:

3755:

3756:

3757:

3758:

3759:

3760:

3761:

3762:

<TD class=xl37>Shares issued for debt or services</TD>

3763:

<TD class=xl73 x:num="721000"><SPAN

3764:

style="mso-spacerun: yes">        

3765:

721,000 </TD>

3766:

<TD class=xl73 x:num="216300"><SPAN

3767:

style="mso-spacerun: yes">         

3768:

216,300 </TD>

3769:

<TD class=xl73 x:num="100000"><SPAN

3770:

style="mso-spacerun: yes">         

3771:

100,000 </TD>

3772:

<TD class=xl73 x:num="45000"><SPAN

3773:

style="mso-spacerun: yes">            

3774:

45,000 </TD>

3775:

3776:

3777:

3778:

3779:

3780:

3781:

3782:

<TD class=xl37>Issued for acquisition of mineral</TD>

3783:

3784:

3785:

3786:

3787:

3788:

3789:

3790:

3791:

3792:

property</TD>

3793:

<TD class=xl73 x:num="100000"><SPAN

3794:

style="mso-spacerun: yes">        

3795:

100,000 </TD>

3796:

<TD class=xl73 x:num="30000"><SPAN

3797:

style="mso-spacerun: yes">          

3798:

30,000 </TD>

3799:

<TD class=xl73 x:num="100000"><SPAN

3800:

style="mso-spacerun: yes">         

3801:

100,000 </TD>

3802:

<TD class=xl73 x:num="15000"><SPAN

3803:

style="mso-spacerun: yes">            

3804:

15,000 </TD>

3805:

3806:

3807:

3808:

3809:

3810:

3811:

3812:

3813:

3814:

3815:

3816:

3817:

3818:

3819:

3820:

3821:

<TD class=xl63>Balance, end of year</TD>

3822:

<TD class=xl55 x:num="10676718"><SPAN

3823:

style="mso-spacerun: yes">    10,676,718 </TD>

3824:

<TD class=xl35 x:num="22322607"><SPAN

3825:

style="mso-spacerun: yes"> $<SPAN

3826:

style="mso-spacerun: yes">  22,322,607 </TD>

3827:

<TD class=xl55 x:num="9855718"><SPAN

3828:

style="mso-spacerun: yes">      

3829:

9,855,718 </TD>

3830:

<TD class=xl35 x:num="22076307"><SPAN

3831:

style="mso-spacerun: yes"> $<SPAN

3832:

style="mso-spacerun: yes">    22,076,307 </TD>

3833:

3834:

3835:

3836:

3837:

3838:

3839:

3840:

3841:

3842:

3843:

3844:

<TD style="mso-ignore: colspan" colSpan=3>No shares were issued in the

3845:

year ended May 31, 2000.</TD>

3846:

3847:

3848:

3849:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Included in issued

3850:

and outstanding capital stock are 150,000 contingently cancelable shares

3851:

that are held in escrow and may not be traded without regulatory

3852:

approval.</TD>

3853:

3854:

3855:

3856:

3857:

3858:

3859:

3860:

<TD class=xl39>Stock options:</TD>

3861:

3862:

3863:

3864:

3865:

3866:

3867:

3868:

3869:

3870:

3871:

3872:

3873:

<TD class=xl74>Weighted</TD>

3874:

3875:

3876:

3877:

<TD class=xl74>average</TD>

3878:

3879:

3880:

3881:

<TD class=xl74>exercise price</TD>

3882:

3883:

3884:

<TD class=xl69 style="HEIGHT: 12.75pt" height=17>Dat<SPAN

3885:

style="DISPLAY: none">e</TD>

3886:

3887:

3888:

3889:

<TD class=xl97 x:str="Number ">Number </TD>

3890:

<TD class=xl89>per share</TD>

3891:

3892:

3893:

3894:

3895:

3896:

3897:

3898:

3899:

3900:

<TD class=xl25 colSpan=3>Issued and outstanding, May 31, 2000 and

3901:

1999<SPAN

3902:

style="mso-spacerun: yes">                         

3903:

(i)</TD>

3904:

<TD class=xl73 x:num="824250"><SPAN

3905:

style="mso-spacerun: yes">         

3906:

824,250 </TD>

3907:

<TD class=xl107 x:num="00.45"><SPAN

3908:

style="mso-spacerun: yes"> $<SPAN

3909:

style="mso-spacerun: yes">             

3910:

0.45 </TD>

3911:

3912:

3913:

3914:

3915:

<TD class=xl37>Issued in 2000</TD>

3916:

3917:

3918:

<TD class=xl73 x:num="155000"><SPAN

3919:

style="mso-spacerun: yes">         

3920:

155,000 </TD>

3921:

<TD class=xl99 x:num="00.45"><SPAN

3922:

style="mso-spacerun: yes">                

3923:

0.45 </TD>

3924:

3925:

3926:

3927:

<TD class=xl60>Expired in the year</TD>

3928:

3929:

3930:

<TD class=xl76 x:num="-14000"><SPAN

3931:

style="mso-spacerun: yes">          

3932:

(14,000)</TD>

3933:

<TD class=xl100 x:num="-00.45"><SPAN

3934:

style="mso-spacerun: yes">               

3935:

(0.45)</TD>

3936:

3937:

3938:

3939:

3940:

3941:

3942:

3943:

3944:

3945:

3946:

3947:

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

3948:

outstanding, May 31, 2001</TD>

3949:

3950:

<TD class=xl73 x:num="965250"><SPAN

3951:

style="mso-spacerun: yes">         

3952:

965,250 </TD>

3953:

<TD class=xl99 x:num="00.45"><SPAN

3954:

style="mso-spacerun: yes">                

3955:

0.45 </TD>

3956:

3957:

3958:

3959:

<TD class=xl37>Issued in the year</TD>

3960:

3961:

3962:

<TD class=xl73 x:num="60000"><SPAN

3963:

style="mso-spacerun: yes">           

3964:

60,000 </TD>

3965:

<TD class=xl99 x:num="00.77"><SPAN

3966:

style="mso-spacerun: yes">                

3967:

0.77 </TD>

3968:

3969:

3970:

3971:

3972:

3973:

3974:

3975:

3976:

3977:

3978:

3979:

<TD class=xl63>Balance, May 31, 2002</TD>

3980:

3981:

3982:

<TD class=xl55 x:num="1025250"><SPAN

3983:

style="mso-spacerun: yes">      

3984:

1,025,250 </TD>

3985:

<TD class=xl108 x:num="00.47"><SPAN

3986:

style="mso-spacerun: yes"> $<SPAN

3987:

style="mso-spacerun: yes">  0.47 </TD>

3988:

3989:

3990:

3991:

3992:

3993:

3994:

<TD class=xl25 colSpan=5>During 2001, these options were re-priced from

3995:

$1.34 to $0.45.</TD>

3996:

3997:

3998:

3999:

4000:

4001:

4002:

<TD class=xl25 colSpan=5>Options outstanding at May 31, 2002 are as

4003:

follows:</TD>

4004:

4005:

4006:

4007:

4008:

4009:

4010:

4011:

4012:

4013:

4014:

4015:

4016:

<TD class=xl74>Weighted</TD>

4017:

4018:

4019:

4020:

4021:

4022:

<TD class=xl74>Average</TD>

4023:

4024:

4025:

4026:

4027:

<TD class=xl74>Exercise price</TD>

4028:

4029:

<TD class=xl74>Remaining</TD>

4030:

4031:

4032:

4033:

4034:

4035:

<TD class=xl89>Number</TD>

4036:

<TD class=xl89>per share</TD>

4037:

<TD class=xl89>Expiry date</TD>

4038:

4039:

4040:

4041:

4042:

4043:

4044:

4045:

4046:

4047:

4048:

4049:

<TD class=xl37>Director and employee options</TD>

4050:

<TD class=xl73 x:num="116250"><SPAN

4051:

style="mso-spacerun: yes">        

4052:

116,250 </TD>

4053:

4054:

4055:

<TD class=xl74>.2 years</TD>

4056:

4057:

4058:

4059:

<TD class=xl37>Other</TD>

4060:

<TD class=xl73 x:num="60000"><SPAN

4061:

style="mso-spacerun: yes">         

4062:

60,000 </TD>

4063:

4064:

4065:

<TD class=xl74>1.1 years</TD>

4066:

4067:

4068:

4069:

<TD class=xl37>Director and employee options</TD>

4070:

<TD class=xl73 x:num="694000"><SPAN

4071:

style="mso-spacerun: yes">        

4072:

694,000 </TD>

4073:

4074:

<TD class=xl109 x:num="37895">October-2003</TD>

4075:

<TD class=xl74>1.4 years</TD>

4076:

4077:

4078:

4079:

<TD class=xl37>Director and employee options</TD>

4080:

<TD class=xl73 x:num="155000"><SPAN

4081:

style="mso-spacerun: yes">        

4082:

155,000 </TD>

4083:

4084:

<TD class=xl109 x:num="38565">August-2005</TD>

4085:

<TD class=xl74>3.3 years</TD>

4086:

4087:

4088:

4089:

4090:

4091:

4092:

4093:

4094:

4095:

4096:

4097:

<TD class=xl55 x:num="1025250"><SPAN

4098:

style="mso-spacerun: yes">      1,025,250

4099:

</TD>

4100:

4101:

4102:

<TD class=xl94>1.5 years</TD>

4103:

4104:

4105:

4106:

4107:

4108:

4109:

4110:

4111:

<TD class=xl25 colSpan=5>All outstanding options are exercisable when

4112:

issued.</TD>

4113:

4114:

4115:

4116:

4117:

4118:

4119:

4120:

<TD class=xl25 colSpan=5>Warrants</TD>

4121:

4122:

4123:

4124:

4125:

4126:

4127:

4128:

4129:

4130:

4131:

4132:

4133:

<TD class=xl74>Weighted</TD>

4134:

4135:

4136:

4137:

4138:

<TD class=xl74>Average</TD>

4139:

4140:

4141:

4142:

4143:

4144:

<TD class=xl74>exercise price</TD>

4145:

4146:

4147:

4148:

4149:

4150:

4151:

<TD class=xl89>Number</TD>

4152:

<TD class=xl89>per share</TD>

4153:

4154:

4155:

4156:

4157:

4158:

4159:

4160:

4161:

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

4162:

outstanding, May 31, 1999</TD>

4163:

4164:

<TD class=xl73 x:num="537000"><SPAN

4165:

style="mso-spacerun: yes">         

4166:

537,000 </TD>

4167:

<TD class=xl107 x:num="10"><SPAN

4168:

style="mso-spacerun: yes"> $<SPAN

4169:

style="mso-spacerun: yes">           

4170:

10.00 </TD>

4171:

4172:

4173:

4174:

<TD class=xl37>Expired in year</TD>

4175:

4176:

4177:

<TD class=xl73 x:num="-537000"><SPAN

4178:

style="mso-spacerun: yes">        

4179:

(537,000)</TD>

4180:

<TD class=xl99 x:num="10"><SPAN

4181:

style="mso-spacerun: yes">              

4182:

10.00 </TD>

4183:

4184:

4185:

4186:

4187:

4188:

4189:

4190:

4191:

4192:

4193:

4194:

<TD class=xl87 style="mso-ignore: colspan" colSpan=2>Balance, May 31,

4195:

2002, 2001 and 2000</TD>

4196:

4197:

<TD class=xl129 x:num="0" x:fmla="=SUM(E487:E488)"><SPAN

4198:

style="mso-spacerun: yes">                    

4199:

- </TD>

4200:

<TD class=xl140 x:num="0" x:fmla="=F487-F488"><SPAN

4201:

style="mso-spacerun: yes"> $<SPAN

4202:

style="mso-spacerun: yes">                

4203:

-   </TD>

4204:

4205:

4206:

4207:

4208:

4209:

4210:

4211:

<TD class=xl25 style="mso-ignore: colspan" colSpan=3>Subsequent to the

4212:

year end, the following warrants were issued:</TD>

4213:

4214:

4215:

4216:

4217:

4218:

4219:

4220:

4221:

4222:

4223:

4224:

<TD class=xl123>Exercise</TD>

4225:

<TD class=xl149>Expiry</TD>

4226:

4227:

4228:

4229:

4230:

4231:

<TD class=xl89>Number</TD>

4232:

<TD class=xl89>price</TD>

4233:

4234:

4235:

4236:

4237:

4238:

4239:

4240:

4241:

4242:

<TD class=xl24>In conjunction with share issuance</TD>

4243:

4244:

<TD class=xl151 x:num="62500"><SPAN

4245:

style="mso-spacerun: yes">          

4246:

62,500 </TD>

4247:

<TD class=xl152 x:num="00.8"><SPAN

4248:

style="mso-spacerun: yes"> $<SPAN

4249:

style="mso-spacerun: yes">            

4250:

0.80 </TD>

4251:

4252:

4253:

4254:

4255:

<TD class=xl25>For services</TD>

4256:

4257:

<TD class=xl153 x:num="486303"><SPAN

4258:

style="mso-spacerun: yes">         

4259:

486,303 </TD>

4260:

<TD class=xl154 x:num="00.81"><SPAN

4261:

style="mso-spacerun: yes"> $<SPAN

4262:

style="mso-spacerun: yes">            

4263:

0.81 </TD>

4264:

4265:

4266:

4267:

4268:

4269:

4270:

4271:

4272:

4273:

4274:

4275:

4276:

4277:

4278:

4279:

<TD class=xl80>Income taxes:</TD>

4280:

4281:

4282:

4283:

4284:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company has

4285:

income tax loss carryforwards of approximately $3,049,000 which are

4286:

available to reduce future taxable income.<SPAN

4287:

style="mso-spacerun: yes">  The benefits of the losses have

4288:

not been recognized in the financial statements.<SPAN

4289:

style="mso-spacerun: yes">  The losses will expire as

4290:

follows:</TD>

4291:

4292:

4293:

4294:

4295:

4296:

4297:

4298:

4299:

4300:

4301:

4302:

4303:

4304:

<TD class=xl33 style="BORDER-TOP: medium none">Canada</TD>

4305:

4306:

<TD class=xl33 style="BORDER-TOP: medium none">Total</TD>

4307:

4308:

4309:

4310:

4311:

4312:

4313:

4314:

4315:

4316:

4317:

4318:

<TD class=xl31 x:num="72000"><SPAN

4319:

style="mso-spacerun: yes"> $<SPAN

4320:

style="mso-spacerun: yes">        

4321:

72,000 </TD>

4322:

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

4323:

style="mso-spacerun: yes"> $<SPAN

4324:

style="mso-spacerun: yes">                 

4325:

- </TD>

4326:

<TD class=xl31 x:num="72000"><SPAN

4327:

style="mso-spacerun: yes"> $<SPAN

4328:

style="mso-spacerun: yes">         

4329:

72,000 </TD>

4330:

4331:

4332:

4333:

4334:

4335:

<TD class=xl73 x:num="547000"><SPAN

4336:

style="mso-spacerun: yes">         

4337:

547,000 </TD>

4338:

<TD class=xl73 x:num="0"><SPAN

4339:

style="mso-spacerun: yes">                    

4340:

- </TD>

4341:

<TD class=xl73 x:num="547000"><SPAN

4342:

style="mso-spacerun: yes">          

4343:

547,000 </TD>

4344:

4345:

4346:

4347:

4348:

4349:

<TD class=xl73 x:num="13000"><SPAN

4350:

style="mso-spacerun: yes">          

4351:

13,000 </TD>

4352:

<TD class=xl73 x:num="0"><SPAN

4353:

style="mso-spacerun: yes">                    

4354:

- </TD>

4355:

<TD class=xl73 x:num="13000"><SPAN

4356:

style="mso-spacerun: yes">            

4357:

13,000 </TD>

4358:

4359:

4360:

4361:

4362:

4363:

<TD class=xl73 x:num="105000"><SPAN

4364:

style="mso-spacerun: yes">         

4365:

105,000 </TD>

4366:

<TD class=xl73 x:num="0"><SPAN

4367:

style="mso-spacerun: yes">                    

4368:

- </TD>

4369:

<TD class=xl73 x:num="105000"><SPAN

4370:

style="mso-spacerun: yes">          

4371:

105,000 </TD>

4372:

4373:

4374:

4375:

4376:

4377:

4378:

4379:

<TD class=xl73 x:num="222000"><SPAN

4380:

style="mso-spacerun: yes">         

4381:

222,000 </TD>

4382:

<TD class=xl73 x:num="0"><SPAN

4383:

style="mso-spacerun: yes">                    

4384:

- </TD>

4385:

<TD class=xl73 x:num="222000"><SPAN

4386:

style="mso-spacerun: yes">          

4387:

222,000 </TD>

4388:

4389:

4390:

4391:

4392:

4393:

<TD class=xl73 x:num="150000"><SPAN

4394:

style="mso-spacerun: yes">         

4395:

150,000 </TD>

4396:

<TD class=xl73 x:num="496000"><SPAN

4397:

style="mso-spacerun: yes">         

4398:

496,000 </TD>

4399:

<TD class=xl73 x:num="646000"><SPAN

4400:

style="mso-spacerun: yes">          

4401:

646,000 </TD>

4402:

4403:

4404:

4405:

4406:

4407:

<TD class=xl73 x:num="264000"><SPAN

4408:

style="mso-spacerun: yes">         

4409:

264,000 </TD>

4410:

<TD class=xl73 x:num="255000"><SPAN

4411:

style="mso-spacerun: yes">         

4412:

255,000 </TD>

4413:

<TD class=xl73 x:num="519000"><SPAN

4414:

style="mso-spacerun: yes">          

4415:

519,000 </TD>

4416:

4417:

4418:

4419:

4420:

4421:

<TD class=xl73 x:num="0"><SPAN

4422:

style="mso-spacerun: yes">                   

4423:

- </TD>

4424:

<TD class=xl73 x:num="84000"><SPAN

4425:

style="mso-spacerun: yes">           

4426:

84,000 </TD>

4427:

<TD class=xl73 x:num="84000"><SPAN

4428:

style="mso-spacerun: yes">            

4429:

84,000 </TD>

4430:

4431:

4432:

4433:

4434:

4435:

<TD class=xl73 x:num="0"><SPAN

4436:

style="mso-spacerun: yes">                   

4437:

- </TD>

4438:

<TD class=xl73 x:num="398000"><SPAN

4439:

style="mso-spacerun: yes">         

4440:

398,000 </TD>

4441:

<TD class=xl73 x:num="398000"><SPAN

4442:

style="mso-spacerun: yes">          

4443:

398,000 </TD>

4444:

4445:

4446:

4447:

4448:

4449:

<TD class=xl73 x:num="0"><SPAN

4450:

style="mso-spacerun: yes">                   

4451:

- </TD>

4452:

<TD class=xl73 x:num="443000"><SPAN

4453:

style="mso-spacerun: yes">         

4454:

443,000 </TD>

4455:

<TD class=xl73 x:num="443000"><SPAN

4456:

style="mso-spacerun: yes">          

4457:

443,000 </TD>

4458:

4459:

4460:

4461:

4462:

4463:

4464:

4465:

4466:

4467:

4468:

4469:

4470:

4471:

<TD class=xl35 x:num="1373000"><SPAN

4472:

style="mso-spacerun: yes"> $<SPAN

4473:

style="mso-spacerun: yes">    1,373,000 </TD>

4474:

<TD class=xl35 x:num="1676000"><SPAN

4475:

style="mso-spacerun: yes"> $<SPAN

4476:

style="mso-spacerun: yes">     1,676,000 </TD>

4477:

<TD class=xl35 x:num="3049000"><SPAN

4478:

style="mso-spacerun: yes"> $<SPAN

4479:

style="mso-spacerun: yes">      3,049,000

4480:

</TD>

4481:

4482:

4483:

4484:

4485:

4486:

4487:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Significant

4488:

components of the Company's future tax assets are shown below.<SPAN

4489:

style="mso-spacerun: yes">  A valuation allowance has been

4490:

recognized to fully offset the net future tax assets as realization of

4491:

such net assets is uncertain.</TD>

4492:

4493:

4494:

4495:

4496:

4497:

4498:

4499:

4500:

4501:

4502:

4503:

4504:

4505:

4506:

4507:

4508:

4509:

4510:

4511:

4512:

4513:

4514:

<TD class=xl37>Future tax assets:</TD>

4515:

4516:

4517:

4518:

4519:

Operating loss carryforwards</TD>

4520:

4521:

4522:

<TD class=xl31 x:num="1186000"><SPAN

4523:

style="mso-spacerun: yes"> $<SPAN

4524:

style="mso-spacerun: yes">     1,186,000 </TD>

4525:

<TD class=xl31 x:num="943000"><SPAN

4526:

style="mso-spacerun: yes"> $<SPAN

4527:

style="mso-spacerun: yes">        

4528:

943,000 </TD>

4529:

4530:

4531:

4532:

<TD class=xl60>   Capital

4533:

assets</TD>

4534:

4535:

4536:

<TD class=xl76 x:num="27000"><SPAN

4537:

style="mso-spacerun: yes">           

4538:

27,000 </TD>

4539:

<TD class=xl76 x:num="15000"><SPAN

4540:

style="mso-spacerun: yes">            

4541:

15,000 </TD>

4542:

4543:

4544:

4545:

4546:

4547:

4548:

4549:

4550:

4551:

<TD class=xl73 x:num="1213000"><SPAN

4552:

style="mso-spacerun: yes">      

4553:

1,213,000 </TD>

4554:

<TD class=xl73 x:num="958000"><SPAN

4555:

style="mso-spacerun: yes">          

4556:

958,000 </TD>

4557:

4558:

4559:

4560:

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

4561:

for future tax assets</TD>

4562:

4563:

<TD class=xl73 x:num="-1213000"><SPAN

4564:

style="mso-spacerun: yes">     

4565:

(1,213,000)</TD>

4566:

<TD class=xl73 x:num="-958000"><SPAN

4567:

style="mso-spacerun: yes">         

4568:

(958,000)</TD>

4569:

4570:

4571:

4572:

4573:

4574:

4575:

4576:

4577:

<TD class=xl63>Net future tax assets</TD>

4578:

4579:

4580:

<TD class=xl35 x:num="0"><SPAN

4581:

style="mso-spacerun: yes"> $<SPAN

4582:

style="mso-spacerun: yes">                 

4583:

- </TD>

4584:

<TD class=xl35 x:num="0"><SPAN

4585:

style="mso-spacerun: yes"> $<SPAN

4586:

style="mso-spacerun: yes">                  

4587:

- </TD>

4588:

4589:

4590:

4591:

4592:

4593:

4594:

4595:

4596:

4597:

<TD class=xl80>Related party transactions:</TD>

4598:

4599:

4600:

4601:

4602:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>During the year,

4603:

the Company paid, primarily through the issuance of common stock, $82,500

4604:

(2001 - $45,000) to several directors for various services provided to the

4605:

Company throughout the year.

4606:

The Company also paid the spouse of a director $30,000 in stock

4607:

(2001 - nil) for counter-signing the bank loan (see Note 5) and $19,800 in

4608:

stock (2001 - nil) for office rent.</TD>

4609:

4610:

4611:

4612:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>These transactions

4613:

are in the normal course of operations and are measured at the exchange

4614:

amount, which is the amount of consideration established and agreed to by

4615:

the related parties.</TD>

4616:

4617:

4618:

4619:

4620:

4621:

4622:

4623:

<TD class=xl80>Contingency:</TD>

4624:

4625:

4626:

4627:

4628:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is

4629:

negotiating with a shareholder and director of the Company for claims of

4630:

past wages, salary remuneration and expenses in the approximate amount of

4631:

USD $544,700 ($832,302 Cdn).

4632:

Included in advances from shareholders is $383,430 Cdn provided for

4633:

this claim.  The claim is

4634:

under negotiation, the outcome of which is undeterminable.<SPAN

4635:

style="mso-spacerun: yes">  Accordingly, no additional

4636:

provision has been recorded.

4637:

Additional amounts, if any, will be recorded in the period such

4638:

amounts are determinable.</TD>

4639:

4640:

4641:

4642:

4643:

4644:

4645:

4646:

<TD class=xl80>Segmented information:</TD>

4647:

4648:

4649:

4650:

4651:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company

4652:

operates principally in the mining industry segment.</TD>

4653:

4654:

4655:

4656:

<TD class=xl25 colSpan=5>The Company's operations are in the following

4657:

geographical locations:</TD>

4658:

4659:

4660:

4661:

4662:

4663:

4664:

4665:

4666:

4667:

4668:

4669:

4670:

4671:

4672:

4673:

4674:

4675:

4676:

4677:

4678:

4679:

4680:

4681:

4682:

4683:

4684:

4685:

Canada</TD>

4686:

4687:

<TD class=xl31 x:num="261143"><SPAN

4688:

style="mso-spacerun: yes"> $<SPAN

4689:

style="mso-spacerun: yes">      

4690:

261,143 </TD>

4691:

<TD class=xl31 x:num="487017"><SPAN

4692:

style="mso-spacerun: yes"> $<SPAN

4693:

style="mso-spacerun: yes">      

4694:

487,017 </TD>

4695:

<TD class=xl31 x:num="11730509"><SPAN

4696:

style="mso-spacerun: yes"> $<SPAN

4697:

style="mso-spacerun: yes">    11,730,509 </TD>

4698:

4699:

4700:

4701:

<TD class=xl37>   United

4702:

States</TD>

4703:

4704:

<TD class=xl73 x:num="289866"><SPAN

4705:

style="mso-spacerun: yes">         

4706:

289,866 </TD>

4707:

<TD class=xl73 x:num="260851"><SPAN

4708:

style="mso-spacerun: yes">         

4709:

260,851 </TD>

4710:

<TD class=xl73 x:num="64534"><SPAN

4711:

style="mso-spacerun: yes">            

4712:

64,534 </TD>

4713:

4714:

4715:

4716:

4717:

4718:

4719:

4720:

4721:

4722:

4723:

4724:

<TD class=xl55 x:num="551009"><SPAN

4725:

style="mso-spacerun: yes">         

4726:

551,009 </TD>

4727:

<TD class=xl55 x:num="747868"><SPAN

4728:

style="mso-spacerun: yes">         

4729:

747,868 </TD>

4730:

<TD class=xl55 x:num="11795043" x:fmla="=SUM(F546:F547)"><SPAN

4731:

style="mso-spacerun: yes">      

4732:

11,795,043 </TD>

4733:

4734:

4735:

4736:

4737:

4738:

4739:

4740:

4741:

<TD class=xl37>Identifiable assets at end of year:</TD>

4742:

4743:

4744:

4745:

4746:

4747:

4748:

Canada</TD>

4749:

4750:

<TD class=xl73 x:num="291993"><SPAN

4751:

style="mso-spacerun: yes">         

4752:

291,993 </TD>

4753:

<TD class=xl73 x:num="295978"><SPAN

4754:

style="mso-spacerun: yes">         

4755:

295,978 </TD>

4756:

<TD class=xl73 x:num="445728"><SPAN

4757:

style="mso-spacerun: yes">          

4758:

445,728 </TD>

4759:

4760:

4761:

4762:

<TD class=xl37>   United

4763:

States</TD>

4764:

4765:

<TD class=xl73 x:num="12874048"><SPAN

4766:

style="mso-spacerun: yes">     12,874,048 </TD>

4767:

<TD class=xl73 x:num="12491799"><SPAN

4768:

style="mso-spacerun: yes">      12,491,799

4769:

</TD>

4770:

<TD class=xl73 x:num="12353217"><SPAN

4771:

style="mso-spacerun: yes">      

4772:

12,353,217 </TD>

4773:

4774:

4775:

4776:

4777:

4778:

4779:

4780:

4781:

4782:

4783:

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

4784:

style="mso-spacerun: yes"> $<SPAN

4785:

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

4786:

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

4787:

style="mso-spacerun: yes"> $<SPAN

4788:

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

4789:

<TD class=xl35 x:num="12798945" x:fmla="=SUM(F552:F553)"><SPAN

4790:

style="mso-spacerun: yes"> $<SPAN

4791:

style="mso-spacerun: yes">    12,798,945 </TD>

4792:

4793:

4794:

4795:

4796:

4797:

4798:

<TD class=xl80>Financial instruments:</TD>

4799:

4800:

4801:

4802:

4803:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5

4804:

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

4805:

Company holds various forms of financial instruments.<SPAN

4806:

style="mso-spacerun: yes">  The nature of these instruments

4807:

and the Company's operations expose the Company to foreign currency risk,

4808:

interest rate risk and industry credit risk.<SPAN

4809:

style="mso-spacerun: yes">  </TD>

4810:

4811:

4812:

4813:

4814:

4815:

4816:

4817:

<TD class=xl39>Foreign currency risk:</TD>

4818:

4819:

4820:

4821:

4822:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>A significant

4823:

portion of the Company's operations are located in the United States and

4824:

the Company manages its exposure to foreign currency fluctuations by

4825:

maintaining U.S. currency bank accounts and denominates its commitments

4826:

and contracts in U.S. dollar equivalents.</TD>

4827:

4828:

4829:

4830:

4831:

4832:

4833:

4834:

<TD class=xl39>Credit risk:</TD>

4835:

4836:

4837:

4838:

4839:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company's

4840:

receivables are mainly for cost recoveries from related parties.<SPAN

4841:

style="mso-spacerun: yes">  The Company has no significant

4842:

credit risk as it has the ability to net amounts receivable against

4843:

accounts payable for services rendered by these parties.</TD>

4844:

4845:

4846:

4847:

4848:

4849:

4850:

4851:

<TD class=xl80>Commitments:</TD>

4852:

4853:

4854:

4855:

4856:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The Company is

4857:

committed under option and lease agreements to expend on exploration

4858:

expenditures and property option payments amounts as disclosed in Notes 4

4859:

(a), (b), and (c) in the form of cash and/or stock as detailed therein.</TD>

4860:

4861:

4862:

4863:

4864:

4865:

4866:

4867:

<TD class=xl80>Comparative figures:</TD>

4868:

4869:

4870:

4871:

4872:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Certain balances

4873:

in the preceding period have been reclassified to conform with the current

4874:

year's financial statement presentation.</TD>

4875:

4876:

4877:

4878:

4879:

4880:

4881:

4882:

<TD class=xl80>Subsequent event:</TD>

4883:

4884:

4885:

4886:

4887:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Subsequent to May

4888:

31, 2002, the Company settled $36,889 of trade accounts payable with

4889:

67,500 common shares valued at $38,800.</TD>

4890:

4891:

4892:

4893:

4894:

4895:

4896:

4897:

<TD class=xl159 style="WIDTH: 448pt" width=597 colSpan=5>Differences

4898:

between Canadian and United States of America generally accepted

4899:

accounting principles:</TD>

4900:

4901:

4902:

4903:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Generally accepted

4904:

accounting principles (“GAAP”) and practices in the United States of

4905:

America (“U.S. GAAP”) differ in certain respects from Canadian GAAP.

4906:

Differences which may materially affect these consolidated financial

4907:

statements are:</TD>

4908:

4909:

4910:

4911:

4912:

4913:

4914:

4915:

<TD class=xl25 colSpan=3>Mineral property exploration and development

4916:

expenditures</TD>

4917:

4918:

4919:

4920:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5

4921:

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

4922:

of Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for

4923:

the Impairment of Long-Lived Assets and for Long-Lived Assets to be

4924:

Disposed of" in the U.S. requires that long-lived assets be reviewed for

4925:

impairment whenever events or changes in circumstances indicate that the

4926:

carrying amount of an asset may not be recoverable.<SPAN

4927:

style="mso-spacerun: yes">  In performing the review for

4928:

recoverability, the Company is to estimate the future cash flows expected

4929:

to result from the use of the asset and its eventual disposition.<SPAN

4930:

style="mso-spacerun: yes">  If the sum of the expected future

4931:

cash flows (undiscounted and without interest charges) is less than the

4932:

carrying amount of the asset, an impairment loss is measured, equal to the

4933:

excess of the carrying amount over the fair value of the assets.<SPAN

4934:

style="mso-spacerun: yes">  United States Security and

4935:

Exchange Commission staff have indicated that their interpretation of SFAS

4936:

121 requires mineral property exploration and development costs to be

4937:

expensed as incurred until commercially minable deposits are determined to

4938:

exist within a particular property as cash flows cannot be reasonably

4939:

estimated prior to such determination.<SPAN

4940:

style="mso-spacerun: yes">  </TD>

4941:

4942:

4943:

4944:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Accordingly, for

4945:

all periods presented, the Company has expensed exploration and

4946:

development costs incurred for U.S. GAAP purposes.<SPAN

4947:

style="mso-spacerun: yes">  Once proved and probable reserves

4948:

are established, capitalization of related costs would commence.<SPAN

4949:

style="mso-spacerun: yes">  This is significantly different

4950:

from the accounting policy under Canadian GAAP, as detailed in the mineral

4951:

properties significant accounting policy note.</TD>

4952:

4953:

4954:

4955:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>Under U.S. GAAP,

4956:

additional exploration costs for mineral properties that would be written

4957:

off are as follows:</TD>

4958:

4959:

4960:

4961:

4962:

4963:

4964:

4965:

4966:

4967:

4968:

4969:

4970:

4971:

4972:

4973:

4974:

4975:

4976:

4977:

4978:

4979:

4980:

4981:

4982:

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Mineral exploration

4983:

and development costs</TD>

4984:

4985:

4986:

<TD class=xl136 x:num="122057"><SPAN

4987:

style="mso-spacerun: yes">          

4988:

122,057 </TD>

4989:

4990:

4991:

4992:

4993:

4994:

4995:

4996:

4997:

4998:

<TD>Stock-based compensation</TD>

4999:

5000:

5001:

5002:

5003:

5004:

5005:

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5

5006:

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

5007:

of Financial Accounting Standards No. 123 ("SFAS 123") requires that

5008:

stock-based compensation be accounted for based on a fair value

5009:

methodology, although it allows the effects to be disclosed in the notes

5010:

to the financial statements rather than in the statement of operations for

5011:

employee awards.  SFAS 123

5012:

allows an entity to continue to measure compensation costs for employee

5013:

stock-based compensation plans using the intrinsic value based method of

5014:

accounting as prescribed by APB Opinion No. 25 ("APB 25") and related

5015:

interpretations.  The Company

5016:

has elected to measure compensation cost for those employee plans using

5017:

APB 25.  As such, compensation

5018:

expense under fixed plans is recorded only if the market value of the

5019:

underlying stock at the date of granting exceeds the exercise price.<SPAN

5020:

style="mso-spacerun: yes">  If the exercise price of a fixed

5021:

option award is reduced, the award is accounted for as a variable award

5022:

from the date of modification to the final measurement date upon which the

5023:

award is exercised, is forfeited, or expires unexercised.<SPAN

5024:

style="mso-spacerun: yes">  Compensation cost is adjusted in

5025:

subsequent periods up to the measurement date for changes in the quoted

5026:

market price.  </TD>

5027:

5028:

5029:

5030:

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5

5031:

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

5032:

expense (recovery) recognized for employee fixed and variable awards for

5033:

the year ended May 31, 2002 would be $(65,940) (2001 - $123,638; 2000 -

5034:

$nil). </TD>

5035:

5036:

5037:

5038:

5039:

5040:

5041:

5042:

5043:

5044:

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>The Company has

5045:

150,000 common shares held in escrow.<SPAN

5046:

style="mso-spacerun: yes">  The release of the shares is

5047:

contingent on certain performance conditions.<SPAN

5048:

style="mso-spacerun: yes">  Compensation under U.S. GAAP, if

5049:

any, is recognized when the contingency is resolved and the shares are

5050:

released from escrow based upon value of the shares as they become

5051:

releasable.  As at May 31,

5052:

2002, no shares are releaseable from escrow. No similiar compensation

5053:

expense would be recognized under Canadian GAAP.</TD>

5054:

5055:

5056:

5057:

5058:

5059:

5060:

5061:

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>Under Canadian

5062:

GAAP, future tax assets and liabilities are recorded at substantially

5063:

enacted tax rates.  Under U.S.

5064:

GAAP, deferred tax assets and liabilities are recorded at enacted tax

5065:

rates.  Recording Canadian

5066:

deferred tax assets and liabilities at enacted tax rates would not change

5067:

recorded net assets or shareholders' equity under U.S. GAAP.</TD>

5068:

5069:

5070:

5071:

5072:

5073:

5074:

5075:

5076:

5077:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>The following

5078:

table presents the consolidated balance sheet, statement of operations and

5079:

deficit, and cash flows under U.S. GAAP:</TD>

5080:

5081:

5082:

5083:

5084:

5085:

5086:

5087:

<TD class=xl48>Balance Sheet</TD>

5088:

5089:

5090:

5091:

5092:

5093:

5094:

5095:

5096:

5097:

5098:

5099:

5100:

5101:

5102:

5103:

5104:

5105:

5106:

5107:

5108:

5109:

5110:

5111:

5112:

5113:

5114:

<TD class=xl37>Total assets under Canadian GAAP</TD>

5115:

5116:

5117:

<TD class=xl31 x:num="13166041"><SPAN

5118:

style="mso-spacerun: yes"> $<SPAN

5119:

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

5120:

<TD class=xl31 x:num="12787777"><SPAN

5121:

style="mso-spacerun: yes"> $<SPAN

5122:

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

5123:

5124:

5125:

5126:

<TD class=xl37 style="mso-ignore: colspan" colSpan=3>Adjustments to

5127:

mineral property exploration and development</TD>

5128:

5129:

5130:

5131:

5132:

expenditures  (a)</TD>

5133:

5134:

5135:

<TD class=xl46 x:num="-12681453"><SPAN

5136:

style="mso-spacerun: yes">     (12,681,453)</TD>

5137:

<TD class=xl75 x:num="-12202896"><SPAN

5138:

style="mso-spacerun: yes">     

5139:

(12,202,896)</TD>

5140:

5141:

5142:

5143:

5144:

5145:

5146:

5147:

5148:

5149:

5150:

<TD class=xl63>Total assets under U.S. GAAP</TD>

5151:

5152:

5153:

<TD class=xl55 x:num="484588" x:fmla="=SUM(E601:E603)"><SPAN

5154:

style="mso-spacerun: yes">         

5155:

484,588 </TD>

5156:

<TD class=xl55 x:num="584881" x:fmla="=SUM(F601:F603)"><SPAN

5157:

style="mso-spacerun: yes">          

5158:

584,881 </TD>

5159:

5160:

5161:

5162:

5163:

5164:

5165:

5166:

5167:

5168:

5169:

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

5170:

under Canadian and U.S. GAAP</TD>

5171:

5172:

<TD class=xl117 x:num="8080540"><SPAN

5173:

style="mso-spacerun: yes"> $<SPAN

5174:

style="mso-spacerun: yes">     8,080,540 </TD>

5175:

<TD class=xl117 x:num="7397567"><SPAN

5176:

style="mso-spacerun: yes"> $<SPAN

5177:

style="mso-spacerun: yes">      7,397,567

5178:

</TD>

5179:

5180:

5181:

5182:

5183:

5184:

5185:

5186:

5187:

5188:

5189:

<TD class=xl37>Share capital, Canadian GAAP</TD>

5190:

5191:

5192:

<TD class=xl73 x:num="22322607"><SPAN

5193:

style="mso-spacerun: yes">      22,322,607

5194:

</TD>

5195:

<TD class=xl73 x:num="22076307"><SPAN

5196:

style="mso-spacerun: yes">      

5197:

22,076,307 </TD>

5198:

5199:

5200:

5201:

<TD class=xl37>Gain on sale of subsidiary</TD>

5202:

5203:

5204:

<TD class=xl73 x:num="-430000"><SPAN

5205:

style="mso-spacerun: yes">        

5206:

(430,000)</TD>

5207:

<TD class=xl73 x:num="-430000"><SPAN

5208:

style="mso-spacerun: yes">         

5209:

(430,000)</TD>

5210:

5211:

5212:

5213:

<TD class=xl37>Stock-based compensation<SPAN

5214:

style="mso-spacerun: yes">  (b)</TD>

5215:

5216:

5217:

<TD class=xl73 x:num="57698"><SPAN

5218:

style="mso-spacerun: yes">           

5219:

57,698 </TD>

5220:

<TD class=xl73 x:num="123638"><SPAN

5221:

style="mso-spacerun: yes">          

5222:

123,638 </TD>

5223:

5224:

5225:

5226:

5227:

5228:

5229:

5230:

5231:

5232:

5233:

5234:

<TD class=xl37>Share capital, U.S. GAAP</TD>

5235:

5236:

5237:

<TD class=xl73 x:num="21950305" x:fmla="=SUM(E609:E611)"><SPAN

5238:

style="mso-spacerun: yes">      21,950,305

5239:

</TD>

5240:

<TD class=xl73 x:num="21769945" x:fmla="=SUM(F609:F611)"><SPAN

5241:

style="mso-spacerun: yes">      

5242:

21,769,945 </TD>

5243:

5244:

5245:

5246:

<TD class=xl37>Accumulated deficit, U.S. GAAP</TD>

5247:

5248:

5249:

<TD class=xl73 x:num="-29546257"><SPAN

5250:

style="mso-spacerun: yes">     (29,546,257)</TD>

5251:

<TD class=xl73 x:num="-28582631"><SPAN

5252:

style="mso-spacerun: yes">     

5253:

(28,582,631)</TD>

5254:

5255:

5256:

5257:

5258:

5259:

5260:

5261:

5262:

5263:

5264:

5265:

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

5266:

deficiency, U.S. GAAP</TD>

5267:

5268:

<TD class=xl73 x:num="-7595952" x:fmla="=SUM(E613:E614)"><SPAN

5269:

style="mso-spacerun: yes">     

5270:

(7,595,952)</TD>

5271:

<TD class=xl73 x:num="-6812686" x:fmla="=SUM(F613:F614)"><SPAN

5272:

style="mso-spacerun: yes">       

5273:

(6,812,686)</TD>

5274:

5275:

5276:

5277:

5278:

5279:

5280:

5281:

5282:

5283:

5284:

<TD class=xl63 style="mso-ignore: colspan" colSpan=3>Shareholders’

5285:

deficiency and liabilities under U.S. GAAP</TD>

5286:

<TD class=xl35 x:num="484588"><SPAN

5287:

style="mso-spacerun: yes"> $<SPAN

5288:

style="mso-spacerun: yes">      

5289:

484,588 </TD>

5290:

<TD class=xl35 x:num="584881"><SPAN

5291:

style="mso-spacerun: yes"> $<SPAN

5292:

style="mso-spacerun: yes">        

5293:

584,881 </TD>

5294:

5295:

5296:

5297:

5298:

5299:

5300:

<TD class=xl156 colSpan=2>Statement of Operations and Deficit</TD>

5301:

5302:

5303:

5304:

5305:

5306:

5307:

5308:

5309:

5310:

5311:

5312:

5313:

<TD class=xl74>Cumulative from</TD>

5314:

<TD class=xl26>Year ended</TD>

5315:

<TD class=xl26>Year ended</TD>

5316:

<TD class=xl26>Year ended</TD>

5317:

5318:

5319:

5320:

5321:

<TD class=xl74>Inception to</TD>

5322:

5323:

5324:

5325:

5326:

5327:

5328:

5329:

5330:

5331:

5332:

5333:

5334:

5335:

5336:

5337:

5338:

5339:

5340:

5341:

<TD class=xl37>Net loss under Canadian GAAP</TD>

5342:

<TD class=xl31 x:num="-17237106"><SPAN

5343:

style="mso-spacerun: yes"> $(17,237,106)</TD>

5344:

<TD class=xl31 x:num="-551009"><SPAN

5345:

style="mso-spacerun: yes"> $<SPAN

5346:

style="mso-spacerun: yes">     

5347:

(551,009)</TD>

5348:

<TD class=xl31 x:num="-747868"><SPAN

5349:

style="mso-spacerun: yes"> $<SPAN

5350:

style="mso-spacerun: yes">     

5351:

(747,868)</TD>

5352:

<TD class=xl31 x:num="-11795043"><SPAN

5353:

style="mso-spacerun: yes"> $<SPAN

5354:

style="mso-spacerun: yes">   (11,795,043)</TD>

5355:

5356:

5357:

5358:

<TD class=xl37>Adjustments:</TD>

5359:

5360:

5361:

5362:

5363:

5364:

<TD class=xl37 x:str=" Mineral property exploration "><SPAN

5365:

style="mso-spacerun: yes">  Mineral property exploration </TD>

5366:

5367:

5368:

5369:

5370:

5371:

<TD class=xl37><SPAN

5372:

style="mso-spacerun: yes">       

5373:

and development expenditures</TD>

5374:

<TD class=xl73 x:num="-12681453"><SPAN

5375:

style="mso-spacerun: yes">   (12,681,453)</TD>

5376:

<TD class=xl73 x:num="-478557"><SPAN

5377:

style="mso-spacerun: yes">        

5378:

(478,557)</TD>

5379:

<TD class=xl73 x:num="-445729"><SPAN

5380:

style="mso-spacerun: yes">        

5381:

(445,729)</TD>

5382:

<TD class=xl73 x:num="-1879488"><SPAN

5383:

style="mso-spacerun: yes">       

5384:

(1,879,488)</TD>

5385:

5386:

5387:

5388:

<TD class=xl37 x:str=" Loss on mineral property "><SPAN

5389:

style="mso-spacerun: yes">  Loss on mineral property </TD>

5390:

5391:

5392:

5393:

5394:

<TD class=xl37><SPAN

5395:

style="mso-spacerun: yes">     

5396:

exploration previously recorded</TD>

5397:

5398:

5399:

5400:

5401:

<TD class=xl37><SPAN

5402:

style="mso-spacerun: yes">      for U.S.

5403:

GAAP</TD>

5404:

<TD class=xl73 x:num="0"><SPAN

5405:

style="mso-spacerun: yes">                  

5406:

- </TD>

5407:

<TD class=xl73 x:num="0"><SPAN

5408:

style="mso-spacerun: yes">                   

5409:

- </TD>

5410:

<TD class=xl73 x:num="312749"><SPAN

5411:

style="mso-spacerun: yes">         

5412:

312,749 </TD>

5413:

<TD class=xl73 x:num="11399044"><SPAN

5414:

style="mso-spacerun: yes">      

5415:

11,399,044 </TD>

5416:

5417:

5418:

5419:

<TD class=xl37>   Gain on

5420:

sale of subsidiary</TD>

5421:

<TD class=xl73 x:num="430000"><SPAN

5422:

style="mso-spacerun: yes">        

5423:

430,000 </TD>

5424:

<TD class=xl73 x:num="0"><SPAN

5425:

style="mso-spacerun: yes">                   

5426:

- </TD>

5427:

<TD class=xl73 x:num="0"><SPAN

5428:

style="mso-spacerun: yes">                    

5429:

- </TD>

5430:

<TD class=xl73 x:num="0"><SPAN

5431:

style="mso-spacerun: yes">                     

5432:

- </TD>

5433:

5434:

5435:

5436:

<TD class=xl37>Stock-based compensation</TD>

5437:

<TD class=xl73 x:num="-57698"><SPAN

5438:

style="mso-spacerun: yes">        

5439:

(57,698)</TD>

5440:

<TD class=xl73 x:num="65940"><SPAN

5441:

style="mso-spacerun: yes">          

5442:

65,940 </TD>

5443:

<TD class=xl73 x:num="-123638"><SPAN

5444:

style="mso-spacerun: yes">        

5445:

(123,638)</TD>

5446:

<TD class=xl73 x:num="0"><SPAN

5447:

style="mso-spacerun: yes">                     

5448:

- </TD>

5449:

5450:

5451:

5452:

5453:

5454:

5455:

5456:

5457:

5458:

5459:

5460:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Net loss, being

5461:

comprehensive loss,</TD>

5462:

5463:

5464:

5465:

5466:

5467:

under U.S. GAAP</TD>

5468:

<TD class=xl73 x:num="-29546257" x:fmla="=SUM(C626:C634)"><SPAN

5469:

style="mso-spacerun: yes">   (29,546,257)</TD>

5470:

<TD class=xl73 x:num="-963626" x:fmla="=SUM(D626:D634)"><SPAN

5471:

style="mso-spacerun: yes">        

5472:

(963,626)</TD>

5473:

<TD class=xl73 x:num="-1004486" x:fmla="=SUM(E626:E634)"><SPAN

5474:

style="mso-spacerun: yes">     

5475:

(1,004,486)</TD>

5476:

<TD class=xl73 x:num="-2275487" x:fmla="=SUM(F626:F634)"><SPAN

5477:

style="mso-spacerun: yes">       

5478:

(2,275,487)</TD>

5479:

5480:

5481:

5482:

5483:

5484:

5485:

5486:

5487:

<TD class=xl37>Accumulated opening deficit under</TD>

5488:

5489:

5490:

5491:

5492:

5493:

<TD class=xl73 x:num="0"><SPAN

5494:

style="mso-spacerun: yes">                  

5495:

- </TD>

5496:

<TD class=xl73 x:num="-28582631"><SPAN

5497:

style="mso-spacerun: yes">    (28,582,631)</TD>

5498:

<TD class=xl73 x:num="-27578145"><SPAN

5499:

style="mso-spacerun: yes">     (27,578,145)</TD>

5500:

<TD class=xl73 x:num="-25302658"><SPAN

5501:

style="mso-spacerun: yes">     

5502:

(25,302,658)</TD>

5503:

5504:

5505:

5506:

5507:

5508:

5509:

5510:

5511:

<TD class=xl63>Ending deficit, U.S. GAAP</TD>

5512:

<TD class=xl35 x:num="-29546257" x:fmla="=SUM(C637:C640)"><SPAN

5513:

style="mso-spacerun: yes"> $(29,546,257)</TD>

5514:

<TD class=xl35 x:num="-29546257" x:fmla="=SUM(D637:D640)"><SPAN

5515:

style="mso-spacerun: yes"> $ (29,546,257)</TD>

5516:

<TD class=xl35 x:num="-28582631" x:fmla="=SUM(E637:E640)"><SPAN

5517:

style="mso-spacerun: yes"> $<SPAN

5518:

style="mso-spacerun: yes">  (28,582,631)</TD>

5519:

<TD class=xl35 x:num="-27578145" x:fmla="=SUM(F637:F640)"><SPAN

5520:

style="mso-spacerun: yes"> $<SPAN

5521:

style="mso-spacerun: yes">   (27,578,145)</TD>

5522:

5523:

5524:

5525:

5526:

5527:

5528:

5529:

5530:

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Net loss per share,

5531:

basic and diluted, U.S. GAAP</TD>

5532:

<TD class=xl155 x:num="-00.09"><SPAN

5533:

style="mso-spacerun: yes"> $<SPAN

5534:

style="mso-spacerun: yes">          

5535:

(0.09)</TD>

5536:

<TD class=xl155 x:num="-00.1"><SPAN

5537:

style="mso-spacerun: yes"> $<SPAN

5538:

style="mso-spacerun: yes">           

5539:

(0.10)</TD>

5540:

<TD class=xl155 x:num="-00.24"><SPAN

5541:

style="mso-spacerun: yes"> $<SPAN

5542:

style="mso-spacerun: yes">            

5543:

(0.24)</TD>

5544:

5545:

5546:

5547:

5548:

5549:

5550:

5551:

5552:

5553:

<TD class=xl156 colSpan=2>Statement of Cash Flows</TD>

5554:

5555:

5556:

5557:

<TD class=xl85 style="WIDTH: 448pt" width=597 colSpan=5>For Canadian GAAP,

5558:

cash flows relating to mineral property exploration and development

5559:

expenditures are reported as investing activities.<SPAN

5560:

style="mso-spacerun: yes">  For U.S. GAAP purposes, these

5561:

costs would be characterized as operating activities.<SPAN

5562:

style="mso-spacerun: yes">  Under U.S. GAAP financing

5563:

activities would include financing through the Company's bank

5564:

overdraft.  Accordingly, the

5565:

effect of these differences on the statements of cash flows are summarized

5566:

as follows:</TD>

5567:

5568:

5569:

5570:

5571:

5572:

5573:

5574:

5575:

5576:

5577:

5578:

5579:

5580:

5581:

5582:

5583:

5584:

5585:

<TD style="HEIGHT: 27.75pt; mso-ignore: colspan" colSpan=17

5586:

height=37></TD></TR>

5587:

5588:

5589:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash used in

5590:

operations under Canadian GAAP</TD>

5591:

<TD class=xl31 x:num="-662117"><SPAN

5592:

style="mso-spacerun: yes"> $<SPAN

5593:

style="mso-spacerun: yes">     

5594:

(662,117)</TD>

5595:

<TD class=xl31 x:num="-220977"><SPAN

5596:

style="mso-spacerun: yes"> $<SPAN

5597:

style="mso-spacerun: yes">     

5598:

(220,977)</TD>

5599:

<TD class=xl31 x:num="-397996"><SPAN

5600:

style="mso-spacerun: yes"> $<SPAN

5601:

style="mso-spacerun: yes">       

5602:

(397,996)</TD>

5603:

5604:

5605:

5606:

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

5607:

mineral exploration costs</TD>

5608:

<TD class=xl75 x:num="-289106"><SPAN

5609:

style="mso-spacerun: yes">        

5610:

(289,106)</TD>

5611:

<TD class=xl75 x:num="-373383"><SPAN

5612:

style="mso-spacerun: yes">        

5613:

(373,383)</TD>

5614:

<TD class=xl75 x:num="-122057"><SPAN

5615:

style="mso-spacerun: yes">         

5616:

(122,057)</TD>

5617:

5618:

5619:

5620:

5621:

5622:

5623:

5624:

5625:

5626:

5627:

5628:

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Cash used in

5629:

operations under U.S. GAAP</TD>

5630:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-951223"

5631:

x:fmla="=SUM(D651:D652)"><SPAN

5632:

style="mso-spacerun: yes">        

5633:

(951,223)</TD>

5634:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-594360"

5635:

x:fmla="=SUM(E651:E652)"><SPAN

5636:

style="mso-spacerun: yes">        

5637:

(594,360)</TD>

5638:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="-520053"

5639:

x:fmla="=SUM(F651:F652)"><SPAN

5640:

style="mso-spacerun: yes">         

5641:

(520,053)</TD>

5642:

5643:

5644:

5645:

5646:

5647:

5648:

5649:

5650:

5651:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash provided by

5652:

(used in) investments under</TD>

5653:

5654:

5655:

5656:

5657:

<TD class=xl37>  Canadian

5658:

GAAP</TD>

5659:

5660:

<TD class=xl75 x:num="-282200"><SPAN

5661:

style="mso-spacerun: yes">        

5662:

(282,200)</TD>

5663:

<TD class=xl75 x:num="-374799"><SPAN

5664:

style="mso-spacerun: yes">        

5665:

(374,799)</TD>

5666:

<TD class=xl75 x:num="190868"><SPAN

5667:

style="mso-spacerun: yes">          

5668:

190,868 </TD>

5669:

5670:

5671:

5672:

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

5673:

mineral exploration costs</TD>

5674:

<TD class=xl75 x:num="289106"><SPAN

5675:

style="mso-spacerun: yes">         

5676:

289,106 </TD>

5677:

<TD class=xl75 x:num="373383"><SPAN

5678:

style="mso-spacerun: yes">         

5679:

373,383 </TD>

5680:

<TD class=xl75 x:num="122057"><SPAN

5681:

style="mso-spacerun: yes">          

5682:

122,057 </TD>

5683:

5684:

5685:

5686:

5687:

5688:

5689:

5690:

5691:

5692:

5693:

5694:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Cash provided by

5695:

(used in) investments</TD>

5696:

5697:

5698:

5699:

5700:

<TD class=xl128>   under

5701:

U.S. GAAP</TD>

5702:

5703:

<TD class=xl144 x:num="6906" x:fmla="=SUM(D657:D658)"><SPAN

5704:

style="mso-spacerun: yes"> $<SPAN

5705:

style="mso-spacerun: yes">         

5706:

6,906 </TD>

5707:

<TD class=xl144 x:num="-1416" x:fmla="=SUM(E657:E658)"><SPAN

5708:

style="mso-spacerun: yes"> $<SPAN

5709:

style="mso-spacerun: yes">         

5710:

(1,416)</TD>

5711:

<TD class=xl144 x:num="312925" x:fmla="=SUM(F657:F658)"><SPAN

5712:

style="mso-spacerun: yes"> $<SPAN

5713:

style="mso-spacerun: yes">        

5714:

312,925 </TD>

5715:

5716:

5717:

5718:

5719:

5720:

5721:

5722:

5723:

5724:

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

5725:

under Canadian GAAP</TD>

5726:

<TD class=xl31 x:num="934286"><SPAN

5727:

style="mso-spacerun: yes"> $<SPAN

5728:

style="mso-spacerun: yes">      

5729:

934,286 </TD>

5730:

<TD class=xl31 x:num="608954"><SPAN

5731:

style="mso-spacerun: yes"> $<SPAN

5732:

style="mso-spacerun: yes">      

5733:

608,954 </TD>

5734:

<TD class=xl31 x:num="187802"><SPAN

5735:

style="mso-spacerun: yes"> $<SPAN

5736:

style="mso-spacerun: yes">        

5737:

187,802 </TD>

5738:

5739:

5740:

5741:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Increase (decrease)

5742:

in bank overdraft</TD>

5743:

<TD class=xl75 x:num="9399"><SPAN

5744:

style="mso-spacerun: yes">            

5745:

9,399 </TD>

5746:

<TD class=xl75 x:num="-12546"><SPAN

5747:

style="mso-spacerun: yes">          

5748:

(12,546)</TD>

5749:

<TD class=xl75 x:num="12546"><SPAN

5750:

style="mso-spacerun: yes">            

5751:

12,546 </TD>

5752:

5753:

5754:

5755:

5756:

5757:

5758:

5759:

5760:

5761:

5762:

5763:

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Financing activities

5764:

under U.S. GAAP</TD>

5765:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="943685"><SPAN

5766:

style="mso-spacerun: yes">         

5767:

943,685 </TD>

5768:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="596408"><SPAN

5769:

style="mso-spacerun: yes">         

5770:

596,408 </TD>

5771:

<TD class=xl129 style="BORDER-TOP: medium none" x:num="200348"

5772:

x:fmla="=SUM(F663:F664)"><SPAN

5773:

style="mso-spacerun: yes">          

5774:

200,348 </TD>

5775:

5776:

5777:

5778:

5779:

5780:

5781:

5782:

5783:

5784:

<TD class=xl37 style="mso-ignore: colspan" colSpan=2>Increase (decrease)

5785:

in cash under Canadian GAAP</TD>

5786:

<TD class=xl75 x:num="-10031"><SPAN

5787:

style="mso-spacerun: yes">         

5788:

(10,031)</TD>

5789:

<TD class=xl75 x:num="13178"><SPAN

5790:

style="mso-spacerun: yes">           

5791:

13,178 </TD>

5792:

<TD class=xl75 x:num="-19326"><SPAN

5793:

style="mso-spacerun: yes">           

5794:

(19,326)</TD>

5795:

5796:

5797:

5798:

5799:

5800:

5801:

5802:

5803:

5804:

<TD class=xl128 style="mso-ignore: colspan" colSpan=2>Additional bank

5805:

overdraft financing (repayment)</TD>

5806:

<TD class=xl78 x:num="9399"><SPAN

5807:

style="mso-spacerun: yes">            

5808:

9,399 </TD>

5809:

<TD class=xl78 x:num="-12546"><SPAN

5810:

style="mso-spacerun: yes">          

5811:

(12,546)</TD>

5812:

<TD class=xl78 x:num="12456"><SPAN

5813:

style="mso-spacerun: yes">            

5814:

12,456 </TD>

5815:

5816:

5817:

5818:

5819:

5820:

5821:

5822:

5823:

5824:

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Increase (decrease)

5825:

in cash under U.S. GAAP</TD>

5826:

<TD class=xl35 x:num="-632"><SPAN

5827:

style="mso-spacerun: yes"> $<SPAN

5828:

style="mso-spacerun: yes">           

5829:

(632)</TD>

5830:

<TD class=xl35 x:num="632"><SPAN

5831:

style="mso-spacerun: yes"> $<SPAN

5832:

style="mso-spacerun: yes">             

5833:

632 </TD>

5834:

<TD class=xl35 x:num="-6780"><SPAN

5835:

style="mso-spacerun: yes"> $<SPAN

5836:

style="mso-spacerun: yes">          

5837:

(6,780)</TD>

5838:

5839:

5840:

5841:

5842:

5843:

5844:

5845:

5846:

5847:

5848:

5849:

<TD class=xl63 style="mso-ignore: colspan" colSpan=2>Cash, beginning of

5850:

year, U.S. GAAP</TD>

5851:

<TD class=xl35 x:num="632"><SPAN

5852:

style="mso-spacerun: yes"> $<SPAN

5853:

style="mso-spacerun: yes">            

5854:

632 </TD>

5855:

<TD class=xl35 x:num="0"><SPAN

5856:

style="mso-spacerun: yes"> $<SPAN

5857:

style="mso-spacerun: yes">                 

5858:

- </TD>

5859:

<TD class=xl35 x:num="6780"><SPAN

5860:

style="mso-spacerun: yes"> $<SPAN

5861:

style="mso-spacerun: yes">           

5862:

6,780 </TD>

5863:

5864:

5865:

5866:

5867:

5868:

5869:

5870:

5871:

5872:

5873:

5874:

<TD class=xl35 x:num="0"><SPAN

5875:

style="mso-spacerun: yes"> $<SPAN

5876:

style="mso-spacerun: yes">                

5877:

- </TD>

5878:

<TD class=xl35 x:num="632"><SPAN

5879:

style="mso-spacerun: yes"> $<SPAN

5880:

style="mso-spacerun: yes">             

5881:

632 </TD>

5882:

<TD class=xl35 x:num="0"><SPAN

5883:

style="mso-spacerun: yes"> $<SPAN

5884:

style="mso-spacerun: yes">                  

5885:

- </TD>

5886:

5887:

5888:

<TD style="HEIGHT: 12.75pt; mso-ignore: colspan" colSpan=17

5889:

height=17></TD></TR>

5890:

5891:

5892:

<TD class=xl24>Development stage enterprise:</TD>

5893:

5894:

5895:

5896:

5897:

5898:

5899:

5900:

<TD class=xl42 style="WIDTH: 448pt" width=597 colSpan=5>The Company meets

5901:

the definition of a Development stage enterprises under FAS No. 7.<SPAN

5902:

style="mso-spacerun: yes">  The following additional

5903:

disclosures would be required under U.S. GAAP.</TD>

5904:

5905:

5906:

5907:

5908:

5909:

5910:

5911:

<TD class=xl24 colSpan=4

5912:

x:str="Consolidated statements of operations and deficit (U.S. GAAP) ">Consolidated

5913:

statements of operations and deficit (U.S. GAAP) </TD>

5914:

5915:

5916:

5917:

5918:

5919:

5920:

5921:

5922:

5923:

5924:

5925:

<TD class=xl123>Cumulative</TD>

5926:

5927:

5928:

5929:

5930:

5931:

<TD class=xl26>from inception</TD>

5932:

5933:

5934:

5935:

5936:

5937:

5938:

<TD class=xl124> Dec 30,

5939:

1986</TD>

5940:

5941:

5942:

5943:

5944:

5945:

5946:

5947:

5948:

5949:

5950:

5951:

5952:

5953:

5954:

5955:

5956:

5957:

5958:

5959:

5960:

5961:

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

5962:

exploration and administrative expenses</TD>

5963:

5964:

<TD class=xl45 x:num="-21536007"><SPAN

5965:

style="mso-spacerun: yes"> $<SPAN

5966:

style="mso-spacerun: yes">   (21,536,007)</TD>

5967:

5968:

5969:

5970:

<TD class=xl24>Loss on disposition of subsidiary</TD>

5971:

5972:

5973:

<TD class=xl46 x:num="-12107072"><SPAN

5974:

style="mso-spacerun: yes">     

5975:

(12,107,072)</TD>

5976:

5977:

5978:

5979:

<TD class=xl24>Other income</TD>

5980:

5981:

5982:

<TD class=xl46 x:num="4096822"><SPAN

5983:

style="mso-spacerun: yes">        

5984:

4,096,822 </TD>

5985:

5986:

5987:

5988:

5989:

5990:

5991:

5992:

<TD class=xl34 style="mso-ignore: colspan" colSpan=3>Net loss for the

5993:

period since inception to May 31, 2002</TD>

5994:

5995:

<TD class=xl105 x:num="-29546257" x:fmla="=SUM(F690:F692)"><SPAN

5996:

style="mso-spacerun: yes"> $<SPAN

5997:

style="mso-spacerun: yes">   (29,546,257)</TD>

5998:

5999:

6000:

6001:

6002:

6003:

6004:

6005:

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

6006:

statements of cash flows</TD>

6007:

6008:

6009:

6010:

6011:

6012:

6013:

6014:

6015:

6016:

6017:

6018:

<TD class=xl123>Cumulative</TD>

6019:

6020:

6021:

6022:

6023:

6024:

<TD class=xl26>from inception</TD>

6025:

6026:

6027:

6028:

6029:

6030:

6031:

<TD class=xl124> Dec 30,

6032:

1986</TD>

6033:

6034:

6035:

6036:

6037:

6038:

6039:

6040:

6041:

6042:

6043:

6044:

6045:

6046:

6047:

6048:

6049:

6050:

6051:

6052:

6053:

6054:

<TD class=xl24>Operating activities</TD>

6055:

6056:

6057:

<TD class=xl45 x:num="-9968960"><SPAN

6058:

style="mso-spacerun: yes"> $<SPAN

6059:

style="mso-spacerun: yes">     (9,968,960)</TD>

6060:

6061:

6062:

6063:

<TD class=xl24>Financing activities</TD>

6064:

6065:

6066:

<TD class=xl46 x:num="15695740"><SPAN

6067:

style="mso-spacerun: yes">      

6068:

15,695,740 </TD>

6069:

6070:

6071:

6072:

<TD class=xl24>Investing activities</TD>

6073:

6074:

6075:

<TD class=xl46 x:num="-5726780"><SPAN

6076:

style="mso-spacerun: yes">       

6077:

(5,726,780)</TD>

6078:

6079:

6080:

6081:

6082:

6083:

6084:

6085:

<TD class=xl34 style="mso-ignore: colspan" colSpan=2>Net cash inflows from

6086:

inception to May 31, 2002</TD>

6087:

6088:

6089:

<TD class=xl105 x:str="$ -"><SPAN

6090:

style="mso-spacerun: yes"> $<SPAN

6091:

style="mso-spacerun: yes">                  

6092:

- </TD>

6093:

6094:

6095:

6096:

6097:

6098:

6099:

6100:

<TD class=xl24 colSpan=4>Additional shareholders' equity disclosures

6101:

required under FAS No. 7 would include:</TD>

6102:

6103:

6104:

6105:

6106:

6107:

6108:

6109:

6110:

6111:

6112:

6113:

<TD class=xl123>Deficit</TD>

6114:

6115:

6116:

6117:

6118:

<TD class=xl157 colSpan=2>Common shares</TD>

6119:

<TD class=xl26>accumulated</TD>

6120:

6121:

6122:

6123:

6124:

6125:

<TD class=xl95>Number</TD>

6126:

<TD class=xl95>Amount</TD>

6127:

<TD class=xl125>since inception</TD>

6128:

6129:

6130:

6131:

6132:

6133:

6134:

6135:

<TD class=xl24>Balance at inception</TD>

6136:

6137:

<TD class=xl106 x:num="0"><SPAN

6138:

style="mso-spacerun: yes">                   

6139:

- </TD>

6140:

<TD>$<SPAN

6141:

style="mso-spacerun: yes">                   

6142:

-</TD>

6143:

<TD class=xl45 x:str="$ -"><SPAN

6144:

style="mso-spacerun: yes"> $<SPAN

6145:

style="mso-spacerun: yes">                  

6146:

- </TD>

6147:

6148:

6149:

6150:

<TD class=xl24>  Issued for

6151:

cash</TD>

6152:

6153:

6154:

6155:

6156:

6157:

6158:

6159:

December 1986</TD>

6160:

6161:

6162:

6163:

6164:

6165:

6166:

6167:

6168:

January 1987</TD>

6169:

6170:

<TD class=xl75 x:num="80000"><SPAN

6171:

style="mso-spacerun: yes">          

6172:

80,000 </TD>

6173:

<TD class=xl46 x:num="100000"><SPAN

6174:

style="mso-spacerun: yes">         

6175:

100,000 </TD>

6176:

6177:

6178:

6179:

6180:

6181:

April 1987</TD>

6182:

6183:

<TD class=xl106 x:num="150000"><SPAN

6184:

style="mso-spacerun: yes">         

6185:

150,000 </TD>

6186:

<TD class=xl46 x:num="7500"><SPAN

6187:

style="mso-spacerun: yes">             

6188:

7,500 </TD>

6189:

6190:

6191:

6192:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6193:

under U.S. GAAP</TD>

6194:

6195:

6196:

<TD class=xl46 x:num="-108647"><SPAN

6197:

style="mso-spacerun: yes">         

6198:

(108,647)</TD>

6199:

6200:

6201:

6202:

6203:

6204:

6205:

6206:

6207:

6208:

6209:

6210:

<TD class=xl24>Balance May 31, 1987</TD>

6211:

6212:

6213:

<TD class=xl45 x:num="107501"><SPAN

6214:

style="mso-spacerun: yes"> $<SPAN

6215:

style="mso-spacerun: yes">      

6216:

107,501 </TD>

6217:

<TD class=xl45 x:num="-108647"><SPAN

6218:

style="mso-spacerun: yes"> $<SPAN

6219:

style="mso-spacerun: yes">       

6220:

(108,647)</TD>

6221:

6222:

6223:

6224:

<TD class=xl24>  Issued for

6225:

cash</TD>

6226:

6227:

6228:

6229:

6230:

6231:

6232:

6233:

6234:

September 1987</TD>

6235:

6236:

<TD class=xl75 x:num="11600"><SPAN

6237:

style="mso-spacerun: yes">          

6238:

11,600 </TD>

6239:

<TD class=xl46 x:num="14500"><SPAN

6240:

style="mso-spacerun: yes">           

6241:

14,500 </TD>

6242:

6243:

6244:

6245:

6246:

6247:

March 1988</TD>

6248:

6249:

<TD class=xl75 x:num="100000"><SPAN

6250:

style="mso-spacerun: yes">         

6251:

100,000 </TD>

6252:

<TD class=xl46 x:num="150000"><SPAN

6253:

style="mso-spacerun: yes">         

6254:

150,000 </TD>

6255:

6256:

6257:

6258:

6259:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6260:

under U.S. GAAP</TD>

6261:

6262:

6263:

<TD class=xl46 x:num="-42412"><SPAN

6264:

style="mso-spacerun: yes">           

6265:

(42,412)</TD>

6266:

6267:

6268:

6269:

6270:

6271:

6272:

6273:

6274:

6275:

6276:

6277:

<TD class=xl24>Balance May 31, 1988</TD>

6278:

6279:

6280:

<TD class=xl45 x:num="272001"><SPAN

6281:

style="mso-spacerun: yes"> $<SPAN

6282:

style="mso-spacerun: yes">      

6283:

272,001 </TD>

6284:

<TD class=xl45 x:num="-151059"><SPAN

6285:

style="mso-spacerun: yes"> $<SPAN

6286:

style="mso-spacerun: yes">       

6287:

(151,059)</TD>

6288:

6289:

6290:

6291:

<TD class=xl24>  Issued for

6292:

cash</TD>

6293:

6294:

6295:

6296:

6297:

6298:

6299:

6300:

6301:

August 1988</TD>

6302:

6303:

<TD class=xl75 x:num="31000"><SPAN

6304:

style="mso-spacerun: yes">          

6305:

31,000 </TD>

6306:

<TD class=xl46 x:num="54250"><SPAN

6307:

style="mso-spacerun: yes">           

6308:

54,250 </TD>

6309:

6310:

6311:

6312:

6313:

<TD class=xl24>  Issued upon

6314:

exercise of warrants</TD>

6315:

6316:

6317:

6318:

6319:

6320:

6321:

6322:

August 1988</TD>

6323:

6324:

<TD class=xl75 x:num="20000"><SPAN

6325:

style="mso-spacerun: yes">          

6326:

20,000 </TD>

6327:

<TD class=xl46 x:num="40000"><SPAN

6328:

style="mso-spacerun: yes">           

6329:

40,000 </TD>

6330:

6331:

6332:

6333:

6334:

6335:

March 1989</TD>

6336:

6337:

<TD class=xl75 x:num="5000"><SPAN

6338:

style="mso-spacerun: yes">            

6339:

5,000 </TD>

6340:

<TD class=xl46 x:num="10000"><SPAN

6341:

style="mso-spacerun: yes">           

6342:

10,000 </TD>

6343:

6344:

6345:

6346:

6347:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6348:

under U.S. GAAP</TD>

6349:

6350:

6351:

<TD class=xl46 x:num="-185968"><SPAN

6352:

style="mso-spacerun: yes">         

6353:

(185,968)</TD>

6354:

6355:

6356:

6357:

6358:

6359:

6360:

6361:

6362:

6363:

6364:

6365:

<TD class=xl24>Balance May 31, 1989</TD>

6366:

6367:

6368:

<TD class=xl45 x:num="376251"><SPAN

6369:

style="mso-spacerun: yes"> $<SPAN

6370:

style="mso-spacerun: yes">      

6371:

376,251 </TD>

6372:

<TD class=xl45 x:num="-337027"><SPAN

6373:

style="mso-spacerun: yes"> $<SPAN

6374:

style="mso-spacerun: yes">       

6375:

(337,027)</TD>

6376:

6377:

6378:

6379:

<TD class=xl24>  Issued for

6380:

cash</TD>

6381:

6382:

6383:

6384:

6385:

6386:

6387:

6388:

6389:

July 1989</TD>

6390:

6391:

<TD class=xl75 x:num="40000"><SPAN

6392:

style="mso-spacerun: yes">          

6393:

40,000 </TD>

6394:

<TD class=xl46 x:num="136000"><SPAN

6395:

style="mso-spacerun: yes">         

6396:

136,000 </TD>

6397:

6398:

6399:

6400:

6401:

<TD class=xl24>  Issued upon

6402:

exercise of options</TD>

6403:

6404:

6405:

6406:

6407:

6408:

6409:

6410:

August 1989</TD>

6411:

6412:

<TD class=xl75 x:num="20000"><SPAN

6413:

style="mso-spacerun: yes">          

6414:

20,000 </TD>

6415:

<TD class=xl46 x:num="75000"><SPAN

6416:

style="mso-spacerun: yes">           

6417:

75,000 </TD>

6418:

6419:

6420:

6421:

6422:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6423:

under U.S. GAAP</TD>

6424:

6425:

6426:

<TD class=xl46 x:num="-54515"><SPAN

6427:

style="mso-spacerun: yes">           

6428:

(54,515)</TD>

6429:

6430:

6431:

6432:

6433:

6434:

6435:

6436:

6437:

6438:

6439:

6440:

<TD class=xl24>Balance May 31, 1990</TD>

6441:

6442:

6443:

<TD class=xl45 x:num="587251"><SPAN

6444:

style="mso-spacerun: yes"> $<SPAN

6445:

style="mso-spacerun: yes">      

6446:

587,251 </TD>

6447:

<TD class=xl45 x:num="391542"><SPAN

6448:

style="mso-spacerun: yes"> $<SPAN

6449:

style="mso-spacerun: yes">        

6450:

391,542 </TD>

6451:

6452:

6453:

6454:

<TD class=xl24>  Acquisition

6455:

of Cinsonix Limited</TD>

6456:

6457:

6458:

6459:

6460:

6461:

6462:

6463:

6464:

July 1989</TD>

6465:

6466:

<TD class=xl75 x:num="1000000"><SPAN

6467:

style="mso-spacerun: yes">      

6468:

1,000,000 </TD>

6469:

<TD class=xl46 x:num="750000"><SPAN

6470:

style="mso-spacerun: yes">         

6471:

750,000 </TD>

6472:

6473:

6474:

6475:

6476:

<TD class=xl24>  Issued for

6477:

finder's fee</TD>

6478:

6479:

<TD class=xl106 x:num="30000"><SPAN

6480:

style="mso-spacerun: yes">          

6481:

30,000 </TD>

6482:

<TD class=xl46 x:num="90000"><SPAN

6483:

style="mso-spacerun: yes">           

6484:

90,000 </TD>

6485:

6486:

6487:

6488:

6489:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6490:

under U.S. GAAP</TD>

6491:

6492:

6493:

<TD class=xl46 x:num="-1179904"><SPAN

6494:

style="mso-spacerun: yes">       

6495:

(1,179,904)</TD>

6496:

6497:

6498:

6499:

6500:

6501:

6502:

6503:

6504:

6505:

6506:

6507:

<TD class=xl24>Balance May 31, 1991</TD>

6508:

6509:

6510:

<TD class=xl45 x:num="1427251"><SPAN

6511:

style="mso-spacerun: yes"> $<SPAN

6512:

style="mso-spacerun: yes">     1,427,251 </TD>

6513:

<TD class=xl45 x:num="-1571446"><SPAN

6514:

style="mso-spacerun: yes"> $<SPAN

6515:

style="mso-spacerun: yes">     (1,571,446)</TD>

6516:

6517:

6518:

6519:

<TD class=xl24>  Issued for

6520:

mineral properties</TD>

6521:

6522:

6523:

6524:

6525:

6526:

6527:

6528:

6529:

April 1992</TD>

6530:

6531:

<TD class=xl75 x:num="50000"><SPAN

6532:

style="mso-spacerun: yes">          

6533:

50,000 </TD>

6534:

<TD class=xl46 x:num="20000"><SPAN

6535:

style="mso-spacerun: yes">           

6536:

20,000 </TD>

6537:

6538:

6539:

6540:

6541:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6542:

under U.S. GAAP</TD>

6543:

6544:

6545:

<TD class=xl46 x:num="-71702"><SPAN

6546:

style="mso-spacerun: yes">           

6547:

(71,702)</TD>

6548:

6549:

6550:

6551:

6552:

6553:

6554:

6555:

6556:

6557:

6558:

6559:

<TD class=xl24>Balance May 31, 1992</TD>

6560:

6561:

6562:

<TD class=xl45 x:num="1447251"><SPAN

6563:

style="mso-spacerun: yes"> $<SPAN

6564:

style="mso-spacerun: yes">     1,447,251 </TD>

6565:

<TD class=xl45 x:num="-1643148"><SPAN

6566:

style="mso-spacerun: yes"> $<SPAN

6567:

style="mso-spacerun: yes">     (1,643,148)</TD>

6568:

6569:

6570:

6571:

<TD class=xl24>  Issued for

6572:

cash</TD>

6573:

6574:

6575:

6576:

6577:

6578:

6579:

6580:

6581:

July 1992</TD>

6582:

6583:

<TD class=xl75 x:num="1000000"><SPAN

6584:

style="mso-spacerun: yes">      

6585:

1,000,000 </TD>

6586:

<TD class=xl46 x:num="150000"><SPAN

6587:

style="mso-spacerun: yes">         

6588:

150,000 </TD>

6589:

6590:

6591:

6592:

6593:

6594:

March 1993</TD>

6595:

6596:

<TD class=xl75 x:num="600000"><SPAN

6597:

style="mso-spacerun: yes">         

6598:

600,000 </TD>

6599:

<TD class=xl46 x:num="132000"><SPAN

6600:

style="mso-spacerun: yes">         

6601:

132,000 </TD>

6602:

6603:

6604:

6605:

6606:

<TD class=xl24>  Issued for

6607:

debt settlement</TD>

6608:

6609:

6610:

6611:

6612:

6613:

6614:

6615:

6616:

August 1992</TD>

6617:

6618:

<TD class=xl75 x:num="115468"><SPAN

6619:

style="mso-spacerun: yes">         

6620:

115,468 </TD>

6621:

<TD class=xl46 x:num="23094"><SPAN

6622:

style="mso-spacerun: yes">           

6623:

23,094 </TD>

6624:

6625:

6626:

6627:

6628:

<TD class=xl24>  Issued for

6629:

finder's fee</TD>

6630:

6631:

<TD class=xl75 x:num="30000"><SPAN

6632:

style="mso-spacerun: yes">          

6633:

30,000 </TD>

6634:

<TD class=xl46 x:num="26100"><SPAN

6635:

style="mso-spacerun: yes">           

6636:

26,100 </TD>

6637:

6638:

6639:

6640:

6641:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6642:

under U.S. GAAP</TD>

6643:

6644:

6645:

<TD class=xl46 x:num="-118136"><SPAN

6646:

style="mso-spacerun: yes">         

6647:

(118,136)</TD>

6648:

6649:

6650:

6651:

6652:

6653:

6654:

6655:

6656:

6657:

6658:

6659:

<TD class=xl24>Balance May 31, 1993</TD>

6660:

6661:

6662:

<TD class=xl45 x:num="1778445"><SPAN

6663:

style="mso-spacerun: yes"> $<SPAN

6664:

style="mso-spacerun: yes">     1,778,445 </TD>

6665:

<TD class=xl45 x:num="-1761284"><SPAN

6666:

style="mso-spacerun: yes"> $<SPAN

6667:

style="mso-spacerun: yes">     (1,761,284)</TD>

6668:

6669:

6670:

6671:

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

6672:

style="mso-spacerun: yes">  Issued for mineral properties Oct.

6673:

1993</TD>

6674:

<TD class=xl75 x:num="50000"><SPAN

6675:

style="mso-spacerun: yes">          

6676:

50,000 </TD>

6677:

<TD class=xl75 x:num="30500"><SPAN

6678:

style="mso-spacerun: yes">           

6679:

30,500 </TD>

6680:

6681:

6682:

6683:

6684:

<TD class=xl24>  Issued for

6685:

exercise of warrants</TD>

6686:

6687:

6688:

6689:

6690:

6691:

6692:

6693:

June 1993</TD>

6694:

6695:

<TD class=xl75 x:num="1000000"><SPAN

6696:

style="mso-spacerun: yes">      

6697:

1,000,000 </TD>

6698:

<TD class=xl46 x:num="150000"><SPAN

6699:

style="mso-spacerun: yes">         

6700:

150,000 </TD>

6701:

6702:

6703:

6704:

6705:

6706:

September 1993</TD>

6707:

6708:

<TD class=xl75 x:num="145000"><SPAN

6709:

style="mso-spacerun: yes">         

6710:

145,000 </TD>

6711:

<TD class=xl46 x:num="31900"><SPAN

6712:

style="mso-spacerun: yes">           

6713:

31,900 </TD>

6714:

6715:

6716:

6717:

6718:

<TD class=xl24>  Issued for

6719:

cash January 1994</TD>

6720:

6721:

<TD class=xl75 x:num="170000"><SPAN

6722:

style="mso-spacerun: yes">         

6723:

170,000 </TD>

6724:

<TD class=xl75 x:num="102000"><SPAN

6725:

style="mso-spacerun: yes">         

6726:

102,000 </TD>

6727:

6728:

6729:

6730:

6731:

<TD class=xl24 style="mso-ignore: colspan" colSpan=2>Net loss for the year

6732:

under U.S. GAAP</TD>

6733:

6734:

6735:

<TD class=xl46 x:num="-329175"><SPAN

6736:

style="mso-spacerun: yes">         

6737:

(329,175)</TD>

6738:

6739:

6740:

6741:

6742:

6743:

6744:

6745:

6746:

6747:

6748:

6749:

<TD class=xl24>Balance May 31, 1994</TD>

6750:

6751:

6752:

<TD class=xl45 x:num="2092845"><SPAN

6753:

style="mso-spacerun: yes"> $<SPAN

6754:

style="mso-spacerun: yes">     2,092,845 </TD>

6755:

<TD class=xl45 x:num="-2090459"><SPAN

6756:

style="mso-spacerun: yes"> $<SPAN

6757:

style="mso-spacerun: yes">     (2,090,459)</TD>

6758:

6759:

6760:

6761:

<TD class=xl24>  Issued for

6762:

cash November 1994</TD>

6763:

6764:

<TD class=xl75 x:num="200000"><SPAN

6765:

style="mso-spacerun: yes">         

6766:

200,000 </TD>

6767:

<TD class=xl75 x:num="150000"><SPAN

6768:

style="mso-spacerun: yes">         

6769:

150,000 </TD>

6770:

6771:

6772:

6773:

6774:

<TD class=xl24>  Issued for

6775:

exercise of warrants</TD>

6776:

6777:

6778:

6779:

6780:

6781:

6782:

6783:

October 1994</TD>

6784:

6785:

<TD class=xl75 x:num="205000"><SPAN

6786:

style="mso-spacerun: yes">         

6787:

205,000 </TD>

6788:

<TD class=xl46 x:num="55000"><SPAN

6789:

style="mso-spacerun: yes">           

6790:

55,000 </TD>

6791:

6792:

6793:

6794:

6795:

6796:

December 1994</TD>

6797:

6798:

<TD class=xl75 x:num="40000"><SPAN

6799:

style="mso-spacerun: yes">&