7.	INCOME TAXES

A reconciliation of income taxes at statutory rates with the reported taxes is as follows for the years ended December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Loss before income taxes	$	(6,432,057)		$	(7,190,628)
Statutory Canadian corporate tax rate		26.00	%		25.00	%

Expected income tax (recovery)	$	(1,672,335)		$	(1,797,657)
Share-based payments		115,324			27,132
Difference in tax rates in other jurisdictions		(805,662)			(1,073,449)
Effect of change in tax rate		26,455,632			-
Derecognition of derivative liability		(1,824,065)			-
Share issue cost		(14,540)			173,684
Adjustment to prior years provision versus statutory tax returns		(1,509,364)			-
Expiry of donations		64,554			-
Expiry of losses		20,280			-
Change in unrecognized deductible temporary differences		(20,829,824)			2,670,290
Total income tax expense (recovery)	$	-		$	-

The significant components of the Company’s deferred tax assets are as follows:

	December 31, 2017		December 31, 2016
Deferred income tax assets (liabilities):
Mineral properties	$	23,391,666	$	57,243,323
Derivative liability		-		(1,824,065)
Donations		-		92,160
Property and equipment		6,448		9,828
Share issue costs		36,483		31,830
Marketable securities		54,073		45,754
Losses available for future periods		47,278,286		35,997,950
		70,766,956		91,596,780
Valuation allowance		(70,766,956)		(91,596,780)
Net deferred tax asset	$	-	$	-

At December 31, 2017, the Company has available net operating losses for Canadian income tax purposes of approximately $20,576,000 and net operating losses for US income tax purposes of approximately $137,245,000 available for carry-forward to reduce future years’ taxable income, if not utilized, expiring as follows:

	Canada		United States

2037	$	1,394,000	$	8,892,000
2036		1,383,000		8,798,000
2035		406,000		10,703,000
2034		1,694,000		12,587,000
2033		1,827,000		14,208,000
2032		2,629,000		16,798,000
2031		4,180,000		40,825,000
2030		2,829,000		18,765,000
2029		2,074,000		2,973,000
2028		1,253,000		1,412,000
2027		907,000		1,284,000
		20,576,000		137,245,000

The Company also has available mineral resource expenses that are related to the Company’s exploration activities in the United States of approximately $132,150,000 which may be deductible for U.S. tax purposes. Future tax benefits, which may arise as a result of applying these deductions to taxable income, have not been recognized in these accounts due to the uncertainty of future taxable income.