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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 AND 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of                                                                                                                                                  January  2003

DESERT SUN MINING CORP.

(Name of Registrant)

65 Queen Street West, Suite 810, P.O. Box 67, Toronto ,Ontario, Canada  M5H 2M5

Executive Offices

1. Form 51-901F Schedule B &C, Quarterly Report (Schedule A, Audited Financial Statements incorporated

    by reference to Form 20F/A filed with the Securities Exchange Commission on January 23, 2004)

    August 31, 2002

2. Form 51-901F Schedule A, Interim Financial Statements, and B &C, Quarterly Report

   November 30, 2002

3. Form 51-901F Schedule A, Interim Financial Statements, and B &C, Quarterly Report

   February 28, 2003

4. Form 51-901F Schedule A, Interim Financial Statements, and B &C, Quarterly Report

   May 31, 2003

Indicate by check mark whether the Registrant files annual reports under cover of Form 20-F or Form 40-F. Form 20-F xxx   Form 40-F ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether the Registrant by furnishing  the  information  contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under Securities Exchange Act of 1934.    Yes ___     No xxx

SEC 1815 (11-2002)

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

DESERT SUN MINING CORP.

CONSOLIDATED BALANCE SHEETS

(PREPARED BY MANAGEMENT)

February 28,

August 31,

2003

2002

(Unaudited)

(Audited)

Assets

Current

Cash and cash equivalents (Note 2)

$

4,349,472

$

1,735,139

Funds in trust

425,000

-

Accounts receivable

38,151

6,652

Prepaid expenses

             25,644

            34,661

4,838,267

1,776,452

Capital assets

42,624

-

Resource property costs

          840,592

            35,836

$

       5,721,483

$

      1,812,288

Liabilities

Current

Accounts payable and accrued liabilities

$

           29,454

$

           15,970

Shareholders' Equity

Share capital (Note 3)

13,727,763

7,132,582

Special Warrants

-

1,872,475

Contributed surplus (Note 5)

348,000

-

Deficit

      (8,383,734)

      (7,208,739)

        5,692,029

         1,796,318

$

      5,721,483

$

      1,812,288

Responsibility for Financial Statements

The accompanying financial statements for Desert Sun Mining Corp. have been prepared by management in accordance with Canadian generally accepted accounting principles consistently applied.  The most significant of these accounting principles have been set out in the August 31, 2002 audited financial statements.  Only changes in accounting policies have been disclosed in these financial statements.  These statements are presented on the accrual  basis of accounting.  Accordingly, a precise determination of many assets and liabilities is dependant upon future events.  Therefore, estimates and approximations have been made using careful judgement.  Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these financial statements have been fairly presented.

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

(Prepared by Management) (Unaudited)

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

Three Months Ended

Six Months Ended

February 28,

February 28,

2003

2002

2003

2002

Expenses

Management and administrative

 services

$

250,050

$

(4,500)

$

404,148

$

-

Amortization

232

319

464

639

Investor relations and

    shareholders' information

91,825

-

119,686

Compensation expense (Note 5)

306,000

-

348,000

-

Travel and promotion

69,669

4,748

134,402

4,748

Professional fees

22,176

(100)

32,109

900

Office expenses, setup and

    general and administrative

47,842

-

145,003

76

Transfer agent fees

             10,000

              4,090

             11,215

              4,263

     Total expenses

797,794

4,557

1,195,027

10,626

Other income

Interest and investment income

(9,046)

179

(19,311)

174

Foreign exchange (gain) loss

              6,225

         -             

               (721)

          -          

Net loss for the period

(794,973)

(4,736)

(1,174,995)

(10,800)

DEFICIT, beginning of period

     (7,588,761)

     (7,089,382)

     (7,208,739)

     (7,083,318)

DEFICIT, end of period

$

     (8,383,734)

$

     (7,094,118)

$

     (8,383,734)

$

    (7,094,118)

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

(Prepared by Management) (Unaudited)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

February 28,

February 28,

2003

2002

2003

2002

Cash Provided by (Used in):

OPERATING ACTIVITIES

Loss for the period

$

(794,973)

$

(4,736)

$

(1,174,995)

$

(10,800)

Adjustment for items not involving cash:

Compensation expense (Note 5)

306,000

-

348,000

-

Amortization

232

319

464

639

Changes in non-cash working

capital relating to operations

          (21,786)

              5,979

            (8,998)

             11,736

         (510,527)

               1,562

         (835,529)

              1,575

INVESTING ACTIVITIES

Resource property costs

(366,681)

-

(804,756)

-

Acquisition of capital assets

           (33,798)

          -             

         (43,088)

           -           

         (400,479)

          -             

        (847,844)

         -          

FINANCING ACTIVITIES

Funds in trust

(425,000)

-

(425,000)

-

Issuance of common shares

       4,608,991

         -             

       4,722,706

           -           

        4,183,991

         -             

       4,297,706

           -           

CHANGE IN CASH AND

CASH EQUIVALENTS

3,272,985

1,562

2,614,333

1,575

CASH AND CASH EQUIVALENTS,

beginning of period

        1,076,487

                     6

        1,735,139

                    (7)

CASH AND CASH EQUIVALENTS,

end of period

$

       4,349,472

$

              1,568

$

      4,349,472

$

             1,568

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)  

SIX MONTHS ENDED FEBRUARY 28, 2003

1.

ACCOUNTING POLICIES

The management of Desert Sun Mining Corp. (the "Company") have prepared these consolidated financial statements in accordance with Canadian generally accepted accounting principles.

In the opinion of management, all adjustments considered necessary for fair presentation have been included in these unaudited consolidated financial statements.  Operating results for the six months  ended February 28, 2003 may not be indicative of the results that may be expected for the full year ending August 31, 2003.

These statements follow the same methods and policies used in the audited financial statements for  the year ended August 31, 2002, except for the following:

STOCK BASED COMPENSATION

Effective September 1, 2002, the Company adopted the recommendations of the Canadian Institute of Chartered Accountants Handbook Section 3870, Stock-based Compensation and Other Stock-based Payments. This Section defines recognition, measurement and disclosure standards for stock-based compensation to non-employees and employees. Under these new standards, all stock-based payments

made to non-employees must be systematically accounted for in the enterprise's financial statements.  These standards also define a fair value-based method of accounting for the stock-based employee compensation plans. Under this method, compensation cost should be measured at the grant date based on the fair value of the award and should be recognized over the related service period. An entity that does not adopt the fair value method of accounting for its awards granted to employees is required to include in its financial statements pro forma disclosures of net earnings and earnings per share as if the fair value method of accounting had been applied. The Company has chosen the latter alternative and the required pro forma information is presented in Note 4.

2.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprised cash on hand and short-term investments generally which mature within 90 days from date of acquisition. The investments are held in a Canadian chartered bank or a financial institution controlled by a Canadian chartered bank.

3.

SHARE CAPITAL

a)

Authorized - unlimited common shares without par value

b)

Issued

Number of Shares

Amount

====================================================================================

Beginning balance, August 31, 2002 (audited)

16,825,108

$

7,132,582

Adjustment

66

-

Exercise of stock options for cash

114,290

13,714

Private placement

4,701,065

4,548,992

Exercise of warrants

120,000

60,000

Conversion of special warrants

5,000,000

1,972,475

====================================================================================

Ending balance, February 28, 2003 (unaudited)

26,760,529

$

13,727,763

====================================================================================

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

SIX MONTHS ENDED FEBRUARY 28, 2003

4.

STOCK OPTIONS

Under the Company's Stock Option Plan (the "Plan") established in 2002 and approved by shareholders on February 12, 2003, the Company may grant to directors, officers, employees and consultants options to purchase common shares of the Company. The aggregate number of shares reserved for issuance under the Plan shall not exceed four million common shares. The total number of shares which may be reserved for issuance to any one individual under the Plan shall not exceed 5% of the total number of issued and outstanding shares (on a non-diluted basis) in any 12 month period. Options granted under the Plan have a five-year term and are priced at the TSX-V closing price of the Company's common shares on the day immediately prior to the date granting. Vesting provisions vary according to the terms of the individual granting and in accordance with the TSX-V exchange regulations.

The following summarizes the stock option activity during the six months ended February 28, 2003:

Number of

Weighted Average

options

Exercise Price

====================================================================================

Opening balance, August 31, 2002 (audited)

1,809,290

$

0.33

Granted

2,335,997

0.82

Exercised

(114,290)

0.12

Cancelled

(150,000)

0.38

====================================================================================

Balance, February 28, 2003 (unaudited)

3,880,997

$

0.62

====================================================================================

The remaining weighted average life of the stock options is 4.62 years.

As of February 28, 2003, the following options to acquire common shares were outstanding:

Expiry Date

Number of Options

Exercisable

Unexercisable

Exercise Price

Options

Options

====================================================================================

May 21, 2007

650,000

650,000

-

$0.28

July 11, 2007

895,000

447,500

447,500

  0.38

September 16, 2007

332,000

83,000

249,000

  0.40

September 16, 2007

132,000

33,000

99,000

  0.60

September 16, 2007

132,000

33,000

99,000

  0.80

October 15, 2007

300,000

75,000

225,000

  0.55

February 4, 2008

1,439,997

359,997

1,080,000

 1.00

====================================================================================

3,880,997

1,681,497

2,199,500

====================================================================================

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

SIX MONTHS ENDED FEBRUARY 28, 2003

5.

STOCK OPTION COMPENSATION ADJUSTMENT

The Company applies the intrinsic value based method of accounting for stock-based compensation awards to employees and accordingly no compensation cost is recognized. Had stock-based compensation for 1,835,997options granted to employees under the Plan since September 1, 2002 been determined on the basis of fair value at the date of grant in accordance with the fair value method of accounting for stock-based compensation, the Company's pro forma net loss and loss per share for the six months ended February 28,2003 would have been as follows:

  Loss Per

Loss

Share

====================================================================================

As reported

(1,174,995)

(0.05)

Pro forma

(2,297,293)

(0.11)

====================================================================================

The Company also applied the fair value method of accounting for stock based compensation awards to non-employees, and accordingly $348,000  was recorded as consulting expense and contributed surplus for the 100,000 options granted to non-employees in October 2002 and 400,000 options granted in February

2003.

For purposes of calculating the the fair-value method of accounting for stock options (as mentioned above) , the fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used: dividend yield of 0%, expected volatility of 100%, a risk-free interest rate that ranges from 4.4% to 4.5% and an expected life of 5 years.

6.

Warrants

Each warrant is convertible into one common share.

Expiry Date

Number of Warrants

Price

====================================================================================

May 21, 2004

500,000

$0.25 (Prior to May

21, 2003) or $0.28

August 3, 2004

2,880,000

$0.50

August 28, 2004

2,350,533

$1.25

====================================================================================

7.

INCOME TAXES

The estimated taxable income for the period is nil. Based upon the level of historical taxable income it cannot be reasonably estimated at this time if it is more likely than not the Company will realize the benefits from future income tax assets or the amounts owing from future income tax liabilities. Consequently, the future recovery or loss arising from differences in tax values and accounting values have been reduced by an equivalent estimated taxable temporary difference valuation allowance. The estimated taxable temporary difference valuation allowance will be adjusted in the period that it is determined that it is more likely than not that some portion or all of the future tax assets or future tax liabilities will be realized.

For further information on the Company's actual losses for tax purposes, refer to the August 31, 2002 audited financial statements. The benefit of these losses and the estimated loss for the period ended have not been recognized in these unaudited consolidated financial statements.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

SIX MONTHS ENDED FEBRUARY 28, 2003

8.

BASIC AND FULLY DILUTED LOSS PER SHARE

Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding during the period.  Fully diluted loss per share reflects the maximum possible dilution from the potential exercise of stock options and warrants.  Fully diluted loss per share is the same as basic loss per share since the conversion of stock options and warrants would be anti-dilutive.

The following tables sets forth the computation of basic and diluted earnings per share:

February 28,

2003

2002

====================================================================================

Basic loss per share

$

            (0.05)

$

              0.00

Fully diluted loss per share

$

           (0.05)

$

               0.00

Numerator for basic and fully diluted loss per share:

Net loss for the period

$

    (1,174,995)

$

         (10,800)

Denominator:

Weighted average of common shares

      21,792,818

      15,535,818

Weighted average number of fully

diluted shares

      21,792,818

      15,535,818

====================================================================================

9.

RELATED PARTY TRANSACTIONS

The Company paid a private company controlled by the president an aggregate of $45,000 for rent, administrative services, and expense reimbursements.

The Company paid compensation of $366,656 to officers and directors of the Company.

All transactions with related parties were measured at the exchange amount, which is the amount of consideration established and agreed to by both parties.

DESERT SUN MINING CORP.

SUPPLEMENT TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

SIX MONTHS ENDED FEBRUARY 28, 2003

As of March 28, 2003 the following items were outstanding:

1)

26,760,529 common shares

2)

Warrants

Expiry Date

Number of Warrants

Price

======================================================================================

May 21, 2004

500,000

$0.25 (Prior to May

21, 2003) or $0.28

August 3, 2004

2,880,000

$0.50

August 28, 2004

2,350,533

$1.25

======================================================================================

3)

Stock Options

Expiry Date

Number of Options

Exercise Price

======================================================================================

May 21, 2007

650,000

$0.28

July 11, 2007

895,000

  0.38

September 16, 2007

332,000

  0.40

September 16, 2007

132,000

  0.60

September 16, 2007

132,000

  0.80

October 15, 2007

300,000

  0.55

February 4, 2008

1,439,997

  1.00

======================================================================================

3,880,997

======================================================================================

DESERT SUN MINING CORP.

CONSOLIDATED BALANCE SHEETS

(PREPARED BY MANAGEMENT)

May 31,

August 31,

2003

2002

(Unaudited)

(Audited)

Assets

Current

Cash and cash equivalents (Note 2)

$

3,565,282

$

1,735,139

Accounts receivable

72,340

6,652

Prepaid expenses

               4,614

            34,661

3,642,236

1,776,452

Capital assets

19,157

-

Resource property costs

        1,606,729

           35,836

$

      5,268,122

$

       1,812,288

Liabilities

Current

Accounts payable and accrued liabilities

$

          39,212

$

          15,970

Shareholders' Equity

Share capital (Note 3)

13,687,304

7,132,582

Special Warrants

-

1,872,475

Contributed surplus (Note 5)

367,125

-

Deficit

      (8,825,519)

     (7,208,739)

       5,228,910

        1,796,318

$

      5,268,122

$

       1,812,288

Responsibility for Financial Statements

The accompanying financial statements for Desert Sun Mining Corp. have been prepared by management in accordance with Canadian generally accepted accounting principles consistently applied.  The most significant of these accounting principles have been set out in the August 31, 2002 audited financial statements.  Only changes in accounting policies have been disclosed in these financial statements.  These statements are presented on the accrual  basis of accounting.  Accordingly, a precise determination of many assets and liabilities is dependent upon future events.  Therefore, estimates and approximations have been made using careful judgement.  Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these financial statements have been fairly presented.

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

(Prepared by Management) (Unaudited)

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

Three Months Ended

Nine Months Ended

May 31,

May 31,

2003

2002

2003

2002

Expenses

Management and administrative

 services

$

122,547

$

400

$

526,695

$

400

Amortization

3,307

320

3,771

959

Investor relations and

    shareholders' information

171,419

-

291,105

Compensation expense (Note 5)

19,125

-

367,125

-

Travel and promotion

77,346

-

211,748

4,748

General exploration expenses

833

-

833

-

Professional fees

24,658

2,549

56,767

3,449

Office expenses, setup and

    general and administrative

36,711

5,943

181,714

6,193

Transfer agent fees

             4,946

            1,667

            16,161

             5,930

     Total expenses

460,892

10,879

1,655,919

21,679

Other (income) loss

Interest and investment income

(21,052)

-

(40,363)

-

Foreign exchange loss

              1,945

          -          

               1,224

          -          

Net loss for the period

(441,785)

(10,879)

(1,616,780)

(21,679)

DEFICIT, beginning of period

     (8,383,734)

    (7,094,118)

     (7,208,739)

     (7,083,318)

DEFICIT, end of period

$

    (8,825,519)

$

    (7,104,997)

$

    (8,825,519)

$

    (7,104,997)

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

(Prepared by Management) (Unaudited)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Nine Months Ended

May 31,

May 31,

2003

2002

2003

2002

Cash Provided by (Used in):

OPERATING ACTIVITIES

Loss for the period

$

(441,785)

$

(10,879)

$

(1,616,780)

$

(21,679)

Adjustment for items not involving cash:

Compensation expense (Note 5)

19,125

-

367,125

-

Amortization

3,307

320

3,771

959

Changes in non-cash working

capital relating to operations

           (3,401)

          (22,350)

          (12,399)

         (10,614)

         (422,754)

         (32,909)

     (1,258,283)

           (31,334)

INVESTING ACTIVITIES

Resource property costs

(766,137)

(25,000)

(1,570,893)

(25,000)

Acquisition of capital assets

             20,160

         -           

          (22,928)

        -           

        (745,977)

         (25,000)

     (1,593,821)

         (25,000)

FINANCING ACTIVITIES

Funds in trust

425,000

-

-

-

Issuance of common shares

-

100,000

4,868,674

100,000

Shares issue costs

          (40,459)

           (2,500)

        (186,427)

            (2,500)

            384,541

            97,500

        4,682,247

            97,500

CHANGE IN CASH AND

CASH EQUIVALENTS

(784,190)

39,591

1,830,143

41,166

CASH AND CASH EQUIVALENTS,

beginning of period

        4,349,472

            1,568

       1,735,139

                  (7)

CASH AND CASH EQUIVALENTS,

end of period

$

       3,565,282

$

          41,159

$

       3,565,282

$

          41,159

See notes to the consolidated financial statements

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)  

NINE MONTHS ENDED MAY 31, 2003

1.

ACCOUNTING POLICIES

The management of Desert Sun Mining Corp. (the "Company") have prepared these consolidated financial statements in accordance with Canadian generally accepted accounting principles.

In the opinion of management, all adjustments considered necessary for fair presentation have been included in these unaudited consolidated financial statements.  Operating results for the nine months ended May 31, 2003 may not be indicative of the results that may be expected for the full year ending August 31, 2003.

These statements follow the same methods and policies used in the audited financial statements for the year ended August 31, 2002, except for the following:

STOCK BASED COMPENSATION

Effective September 1, 2002, the Company adopted the recommendations of the Canadian Institute of Chartered Accountants Handbook Section 3870, Stock-based Compensation and Other Stock-based Payments. This Section defines recognition, measurement and disclosure standards for stock-based compensation to non-employees and employees. Under these new standards, all stock-based payments made to non-employees must be systematically accounted for in the enterprise's financial statements.  These standards also define a fair value-based method of accounting for the stock-based employee compensation plans. Under this method, compensation cost should be measured at the grant date based on the fair value of the award and should be recognized over the related service period. An entity that does not adopt the fair value method of accounting for its awards granted to employees is required to include in its financial statements pro forma disclosures of net earnings and earnings per share as if the fair value method of accounting had been applied. The Company has chosen the latter alternative and the required pro forma information is presented in Note 5.

2.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprised cash on hand and short-term investments generally which mature within 90 days from date of acquisition. The investments are held in a Canadian chartered bank or a financial institution controlled by a Canadian chartered bank.

3.

SHARE CAPITAL

a)

Authorized - unlimited common shares without par value

b)

Issued

Number of Shares

Amount

===================================================================================

Beginning balance, August 31, 2002 (audited)

16,825,108

$

7,132,582

Adjustment

66

-

Exercise of stock options for cash

114,290

13,714

Private placement

4,701,065

4,508,533

Exercise of warrants

120,000

60,000

Conversion of special warrants

5,000,000

1,972,475

====================================================================================

Ending balance, May 31, 2003 (unaudited)

26,760,529

$

13,687,304

====================================================================================

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

NINE MONTHS ENDED MAY 31, 2003

4.

STOCK OPTIONS

Under the Company's Stock Option Plan (the "Plan") established in 2002 and approved by shareholders on February 12, 2003, the Company may grant to directors, officers, employees and consultants options to purchase common shares of the Company. The aggregate number of shares reserved for issuance under the Plan shall not exceed four million common shares. The total number of shares which may be reserved for issuance to any one individual under the Plan shall not exceed 5% of the total number of issued and outstanding shares (on a non-diluted basis) in any 12 month period. Options granted under the Plan have a five-year term and are priced at the TSX-V closing price of the Company's common shares on the day immediately prior to the date of granting. Vesting provisions vary according to the terms of the individual grant and in accordance with the TSX-V exchange regulations.

The following summarizes the stock option activity during the nine months ended May 31, 2003:

Number of

Weighted Average

options

Exercise Price

===================================================================================

Opening balance, August 31, 2002 (audited)

1,809,290

$

0.33

Granted

2,610,997

0.84

Exercised

(114,290)

0.12

Cancelled

(500,000)

0.45

===================================================================================

Balance, May 31, 2003 (unaudited)

3,805,997

$

0.66

===================================================================================

The remaining weighted average life of the stock options is 4.37 years.

As of May 31, 2003, the following options to acquire common shares were outstanding:

Expiry Date

Number of Options

Exercisable

Unexercisable

Exercise Price

Options

Options

===================================================================================

May 21, 2007

650,000

650,000

-

$0.28

July 11, 2007

895,000

447,500

447,500

  0.38

September 16, 2007

232,000

116,000

116,000

  0.40

September 16, 2007

132,000

66,000

66,000

  0.60

September 16, 2007

132,000

66,000

66,000

  0.80

October 15, 2007

100,000

50,000

50,000

  0.55

February 4, 2008

1,389,997

347,499

1,042,498

  1.00

April 23, 2008

275,000

31,250

243,750

  1.00

===================================================================================

3,805,997

1,774,249

2,031,748

===================================================================================

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

NINE MONTHS ENDED MAY 31, 2003

5.

STOCK OPTION COMPENSATION ADJUSTMENT

The Company applies the intrinsic value based method of accounting for stock-based compensation awards to employees and accordingly no compensation cost is recognized. Had stock-based compensation for 2,085,997 options granted to employees under the Plan since September 1, 2002 been determined on the basis of fair value at the date of grant in accordance with the fair value method of accounting for stock-based compensation, the Company's pro forma net loss and loss per share for the nine months ended May 31, 2003 would have been as follows:

Loss Per

Share

==================================================================================

As reported

(1,616,780)

(0.07)

Pro forma

(2,930,328)

(0.13)

==================================================================================

The Company also applied the fair value method of accounting for stock based compensation awards to non-employees, and accordingly $367,125  was recorded as consulting expense and contributed surplus for the 525,000 options granted to non-employees during the nine months ended May 31, 2003.

For purposes of calculating the the fair-value method of accounting for stock options (as mentioned above) , the fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used: dividend yield of 0%, expected volatility of 100%, a risk-free interest rate that ranges from 4.4% to 4.5% and an expected life of 5 years.

6.

WARRANTS

Each warrant is convertible into one common share.

Expiry Date

Number of Warrants

Price

============================================================================

April 17, 2004

500,000

$0.28

August 3, 2004

2,880,000

$0.50

August 28, 2004

2,350,533

$1.25

=============================================================================

7.

INCOME TAXES

The estimated taxable income for the period is nil. Based upon the level of historical taxable income it cannot be reasonably estimated at this time if it is more likely than not the Company will realize the benefits from future income tax assets or the amounts owing from future income tax liabilities.  Consequently, the future recovery or loss arising from differences in tax values and accounting values have been reduced by an equivalent estimated taxable temporary difference valuation allowance. The estimated taxable temporary difference valuation allowance will be adjusted in the period that it is determined that it is more likely than not that some portion or all of the future tax assets or future tax liabilities will be realized.

For further information on the Company's actual losses for tax purposes, refer to the August 31, 2002 audited financial statements. The benefit of these losses and the estimated loss for the period ended have not been recognized in these unaudited consolidated financial statements.

DESERT SUN MINING CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

NINE MONTHS ENDED MAY 31, 2003

8.

BASIC AND FULLY DILUTED LOSS PER SHARE

Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding during the period.  Fully diluted loss per share reflects the maximum possible dilution from the potential exercise of stock options and warrants.  Fully diluted loss per share is the same as basic loss per share since the conversion of stock options and warrants would be anti-dilutive.

The following tables sets forth the computation of basic and diluted earnings per share:

May 31,

2003

2002

==================================================================================

Basic loss per share

$

           (0.07)

$

               0.00

Fully diluted loss per share

$

           (0.07)

$

             0.00

Numerator for basic and fully diluted loss per share:

Net loss for the period

$

     (1,616,780)

$

        (21,679)

Denominator:

Weighted average of common shares

     21,792,818

      15,535,818

Weighted average number of fully

diluted shares

     21,792,818

      15,535,818

==================================================================================

9.

RELATED PARTY TRANSACTIONS

The Company paid a private company (controlled by the Company's president) an aggregate of $67,500 for rent, administrative services, and expense reimbursements.

The Company paid compensation of $459,195 to officers and directors of the Company.

All transactions with related parties were measured at the exchange amount, which is the amount of consideration established and agreed to by both parties.

DESERT SUN MINING CORP.

SUPPLEMENT TO CONSOLIDATED FINANCIAL STATEMENTS

(Prepared by Management - Unaudited)   

NINE MONTHS ENDED MAY 31, 2003

As of June 20, 2003 the following items were outstanding:

1)

26,760,529 common shares

2)

Warrants

Expiry Date

Number of Warrants

Price

===================================================================================

April 17, 2004

500,000

 $0.28

August 3, 2004

2,880,000

$0.50

August 28, 2004

2,350,533

$1.25

===================================================================================

3)

Stock Options

Expiry Date

Number of Options

Exercise Price

===================================================================================

May 21, 2007

650,000

$0.28

July 11, 2007

895,000

  0.38

September 16, 2007

232,000

  0.40

September 16, 2007

132,000

  0.60

September 16, 2007

132,000

  0.80

October 15, 2007

100,000

   0.55

February 4, 2008

1,389,997

  1.00

April 23, 2008

275,000

  1.00

===================================================================================

3,805,997

===================================================================================

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Form 6-K to be signed on its behalf by the undersigned, thereunto duly authorized.

Desert Sun Mining Corp. -- SEC File No. 000-29610

(Registrant)

Date: January 29, 2004       By /s/ Stan Bharti_______________________________

                                            Stan Bharti, President/CEO/Director