10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the quarterly period ended August 31, 2012.

[   ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the transition period from _________ to _______ .

Commission file number: 000-51775

STERLING GROUP VENTURES, INC.
(Exact name of registrant as specified in its charter)

Nevada	72-1535634
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

308 - 1228 Marinaside Cr., Vancouver, B.C. V6Z 2W4
(Address of principal executive offices) (Zip Code)

(604) 689-4407
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changes since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]    No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S–T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X]    No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [   ] Accelerated filer [   ] Non-accelerated filer [   ] Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [   ]     No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of October 12, 2012.

Title of each class	Number of shares
Common Stock, par value $0.001 per share	75,730,341

1

STERLING GROUP VENTURES, INC.
FORM 10-Q
INDEX

		Page
PART I - FINANCIAL INFORMATION		3
Item 1.	Financial Statements (unaudited)	3
	Unaudited Interim Consolidated Balance Sheets of Sterling Group Ventures, Inc. at August 31, 2012 and May 31, 2012	3
	Unaudited Interim Consolidated Statements of Operations for the three months and nine months ended August 31, 2012 and August 31, 2011 and for the Period from July 27, 1994 (Date of Inception) to August 31, 2012	4
	Unaudited Interim Consolidated Statements of Changes in Stockholders' Equity (Capital Deficit) for the period from July 27, 1994 (Date of Inception) to August 31, 2012 ..	5-6
	Unaudited Interim Consolidated Statements of Cash Flows for the three months ended August 31, 2012 and August 31, 2011 and for the Period from July 27, 1994 (Date of Inception) to August 31, 2012	7
	Notes to the Unaudited Interim Consolidated Financial Statements	8-18
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls And Procedures	24
PART II - OTHER INFORMATION		24
Item 1.	Legal Proceedings	24
Item 1A	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	27
Signatures		27
Index to Exhibits		28

2

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

STERLING GROUP VENTURES, INC.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
August 31, 2012 and May 31, 2012

Stated in U.S. dollars		August 31, 2012			May 31, 2012
		(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	2,508,825		$	1,262,278
Interest receivable		291			-
HST receivable		25,082			20,418
Prepaid expenses and other receivable		16,166			31,629
Total current assets		2,550,364			1,314,325
Equipment - Note 4		206,914			153,392
Environmental deposit - Note 3(a)		124,416			123,990
Mineral Properties - Note 3(a)		3,148,740			3,148,740
Total Assets	$	6,030,434		$	4,740,447
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and other accrued liabilities - Note 5	$	504,925		$	476,069
Deferred income tax liability - Note 3(a)		732,687			732,687
Total Liabilities		1,237,612			1,208,756
Stockholders' Equity
Common Stock : $0.001 Par Value - Note 6
Authorized : 500,000,000         Issued and Outstanding : 75,730,341 (May 31, 2012: 75,730,341)		75,730			75,730
Additional Paid In Capital - Note 6		9,799,493			9,799,493
Accumulated Other Comprehensive Loss		(582	)		(582	)
Deficit accumulated during the exploration stage		(5,081,819	)		(6,342,950	)
Total Stockholders' Equity		4,792,822			3,531,691
Total Liabilities and Stockholders' Equity	$	6,030,434		$	4,740,447

See accompanying notes to consolidated financial statements

3

STERLING GROUP VENTURES, INC.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended August 31, 2012 and 2011 and
for the period from July 27, 1994 (date of inception) to August 31, 2012
(Unaudited)

								July 27, 1994
								(Date of
								inception)
		Three months ended August 31,						to August 31,
Stated in U.S. dollars		2012			2011			2012
Expenses
Accounting, audit, legal and professional fees	$	28,611		$	32,566		$	651,608
Bank charges		257			339			3,402
Consulting fees - Notes 5, 6 (b & c)		6,288			6,874			3,840,947
Depreciation		4,159			175			17,269
Filing fees and transfer agent		4,818			4,356			65,581
Foreign exchange loss (gain)		10,084			(9,050	)		(17,618	)
General and administrative		489			1,429			127,456
Mineral property costs - Note 3		145,949			15,111			1,568,673
Printing and mailing		-			5,000			22,432
Shareholder information and investor relations		1,699			77,863			166,214
Travel and entertainment		2,969			8,543			160,724
Recovery of doubtful collection		-			-			(272,358	)
Allowance for doubtful collection		-			-			246,708
		(205,323	)		(143,206	)		(6,581,038	)
Other item
Interest income		4,866			104			37,631
Other income - Note 3(b)		1,461,588			-			1,461,588
		1,466,454			104			1,499,219
Net income (loss) for the period	$	1,261,131		$	(143,102	)	$	(5,081,819	)
Currency translation adjustment		-			-			(582	)
Comprehensive income (loss) for the period	$	1,261,131		$	(143,102	)	$	(5,082,401	)
Basic and diluted earning (loss) per share	$	0.02		$	(0.00	)
Weighted average number of shares outstanding		75,730,341			71,925,993

See accompanying notes to consolidated financial statements

4

STERLING GROUP VENTURES, INC.
(An Exploration Stage Company)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (CAPITAL DEFICIT)
For the period from July 27, 1994 (date of inception) to August 31, 2012
(Unaudited)

													Deficit
										Accumulated			Accumulated
				Stock			Additional			Other			During The
	Common			Amount At			Paid In			Comprehensive			Exploration
Stated in U.S. dollars	Shares			Par Value			Capital			Income (Loss)			Stage			Total
Balance, July 27, 1994 (Date of inception)	-		$	-		$	-		$	-		$	-		$	-
Common stock	1			1			-			-			-			1
Amount contributed by director	-			-			1,881			-			-			1,881
Net loss for the periods	-			-			-			-			(7,902	)		(7,902	)
Balance, May 31, 2001	1		$	1		$	1,881		$	-		$	(7,902	)	$	(6,020	)
Net loss of the year	-			-			-			-			(1,860	)		(1,860	)
Balance, May 31, 2002	1		$	1		$	1,881		$	-		$	(9,762	)	$	(7,880	)
Net loss of the year	-			-			-			-			(1,360	)		(1,360	)
Balance, May 31, 2003	1		$	1		$	1,881		$	-		$	(11,122	)	$	(9,240	)
Reverse acquisition	(1	)		(1	)		(1,881	)		-			-			(1,882	)
acquisition	25,000,000			25,000			(23,119	)		-			-			1,881
Outstanding common shares of Company prior to acquisition	11,360,000			11,360			(10,883	)		(583	)		-			(106	)
Issuance of shares for cash pursuant to a private placement - at $0.50	1,766,000			1,766			881,234			-			-			883,000
Stock-based compensation	-			-			368,641			-			-			368,641
Net loss of the year	-			-			-			-			(527,446	)		(527,446	)
Balance, May 31, 2004	38,126,000		$	38,126		$	1,215,873		$	(583	)	$	(538,568	)	$	714,848
Issuance of shares for cash pursuant to a private placement - at $0.50	1,950,000			1,950			973,050			-			-			975,000
Issuance of shares for finder's fee of private placement	101,500			102			50,648			-			-			50,750
Finders' fees	-			-			(50,750	)		-			-			(50,750	)
Issuance of shares for services rendered	100,000			100			41,900			-			-			42,000
Net loss of the year	-			-			-			-			(818,954	)		(818,954	)
Balance, May 31, 2005	40,277,500		$	40,278		$	2,230,721		$	(583	)	$	(1,357,522	)	$	912,894
Net loss for the year	-			-			-			-			(461,201	)		(461,201	)
Balance, May 31, 2006	40,277,500		$	40,278		$	2,230,721		$	(583	)	$	(1,818,723	)	$	451,693
Issuance of shares for cash pursuant to a
private placement - at $0.15	2,750,300			2,750			409,795			-			-			412,545
Issuance of shares for finder's fee of private placement	123,690			124			21,522			-			-			21,646
Finders' fees	-			-			(21,646	)		-			-			(21,646	)
Share issuance costs	-			-			(3,687	)		-			-			(3,687	)
Issuance of shares for services rendered	350,000			350			48,650			-			-			49,000
Net loss for the year	-			-			-			-			(864,485	)		(864,485	)
Balance, May 31, 2007	43,501,490		$	43,502		$	2,685,355		$	(583	)	$	(2,683,208	)	$	45,066

5

											Deficit
								Accumulated			Accumulated
			Stock		Additional			Other			During The
	Common		Amount At		Paid In			Comprehensive			Exploration
Stated in U.S. dollars	Shares		Par Value		Capital			Income (Loss)			Stage			Total
Balance, May 31, 2007	43,501,490	$	43,502	$	2,685,355		$	(583	)	$	(2,683,208	)	$	45,066
Issuance of shares for services rendered at $0.06	324,685		324		19,156			-			-			19,480
Revaluation of share purchase warrants	-		-		409,525			-			-			409,525
Net loss for the year	-		-		-			-			(516,440	)		(516,440	)
Balance, May 31, 2008	43,826,175	$	43,826	$	3,114,036		$	(583	)	$	(3,199,648	)	$	(42,369	)
Revaluation of share purchase warrants	-		-		83,852			-			-			83,852
Net loss for the year	-		-		-			-			(245,405	)		(245,405	)
Balance, May 31, 2009	43,826,175	$	43,826	$	3,197,888		$	(583	)	$	(3,445,053	)	$	(203,922	)
Revaluation of share purchase warrants	-		-		91,704			-			-			91,704
Net loss for the year	-		-		-			-			(213,704	)		(213,704	)
Balance, May 31, 2010	43,826,175	$	43,826	$	3,289,592		$	(583	)	$	(3,658,757	)	$	(325,922	)
Issuance of shares for cash pursuant to a private placement - at $0.10	20,000,000		20,000		1,980,000			-			-			2,000,000
Issuance of shares for finder's fee of private placement	752,500		752		(752	)		-			-			-
Issuance of shares for exercise of "C" warrants - at $0.18	801,666		802		143,498			-			-			144,300
Issuance of shares for services rendered	350,000		350		80,150			-			-			80,500
Stock-based compensation	-		-		1,692,526			-			-			1,692,526
Currency translation adjustment	-		-		-			1			-			1
Net loss for the year	-		-		-			-			(1,863,448	)		(1,863,448	)
Balance, May 31, 2011	65,730,341	$	65,730	$	7,185,014		$	(582	)	$	(5,522,205	)	$	1,727,957
Issuance of shares for acquisition of the subsidiary - at $0.22	10,000,000		10,000		2,190,000			-			-			2,200,000
Stock-based compensation	-		-		424,479			-			-			424,479
Net loss for the year	-		-		-			-			(820,745	)		(820,745	)
Balance, May 31, 2012	75,730,341	$	75,730	$	9,799,493		$	(582	)	$	(6,342,950	)	$	3,531,691
Net income for the period											1,261,131			1,261,131
Balance, August 31, 2012	75,730,341	$	75,730	$	9,799,493		$	(582	)	$	(5,081,819	)	$	4,792,822

See accompanying notes to consolidated financial statements

6

STERLING GROUP VENTURES, INC.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended August 31, 2012 and 2011 and
for the period from July 27, 1994 (date of inception) to August 31, 2012
(Unaudited)

								July 27, 1994
								(Date of
								inception)
		Three months ended August 31,						to August 31,
Stated in U.S. dollars		2012			2011			2012
Cash flows from operating activities
Net loss for the period	$	1,261,131		$	(143,102	)	$	(5,081,819	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Stock compensation expenses		-			-			3,070,727
Depreciation		4,159			175			17,269
Permit and engineering studies		-			-			150,000
Shareholder information and investor relations		-			-			100,947
Accounting, audit and legal fees		-			-			49,000
Unrealized FV adjustment on cash		(1,145	)		(4,340	)		(4,550	)
Changes in non-cash working capital items related to operations
Interest receivable		(290	)		-			(290	)
GST/HST refundable		(4,664	)		2,628			(25,082	)
Prepaid expenses and other receivable		15,513			63,167			5,412
Accounts payable and accrued liabilities		14,926			(12,069	)		570,736
Net cash used in operating activities		1,289,630			(93,541	)		(1,147,650	)
Cash flows from investing activities
Advance on investment		-			-			(205,945	)
Additions to equipment		(57,010	)		(679	)		(223,633	)
Additions to mineral properties		-			(279,576	)		(280,651	)
Net change in cash held in trust		-			13,010			-
Net cash used in investing activities		(57,010	)		(267,245	)		(710,229	)
Cash flows from financing activities
Net proceeds on issuance of common stock		-			-			4,411,158
Amounts contributed by director		13,927			-			(44,454	)
Net cash provided by (used in) financing activities		13,927			-			4,366,704
Net increase (decrease) in cash		1,246,547			(360,786	)		2,508,825
Cash and cash equivalents - beginning of period		1,262,278			2,095,515			-
Cash and cash equivalents - end of period	$	2,508,825		$	1,734,729		$	2,508,825
Cash and cash equivalents consist of:
Interest	$	-		$	-		$	-
Income taxes	$	-		$	-		$	-
Non-cash Transactions :
Issuance of shares for commission paid to broker for           private placement	$	-		$	-		$	147,646
Issuance of shares for services rendered	$	-		$	-		$	171,500
Issuance of shares for settlement of accounts payable	$	-		$	-		$	19,480
Issuance of share purchase warrants for finder's fee           paid to broker for private placement	$	-		$	-		$	11,477
Issuance of shares for acquisition of the subsidiary	$	-		$	2,200,000		$	2,200,000

See accompanying notes to consolidated financial statements

7

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 1	Nature of Operations and Ability to Continue as a Going Concern
	Sterling Group Ventures, Inc. was incorporated in the State of Nevada on September 13, 2001 and its fiscal year-end is May 31. On January 20, 2004, the Company acquired all of the issued and outstanding shares of Micro Express Ltd. (“Micro”), which was incorporated on July 27, 1994. The business combination was accounted for as a reverse acquisition whereby the purchase method of accounting was used with Micro being the accounting acquirer and the Company being the accounting subsidiary. The cumulative figures are shown on a reverse acquisition basis with respect to the accounting acquirer’s date of inception, July 27, 1994.
	Sterling Group Ventures, Inc. (the “Company”) is in the exploration stage. The Company has entered into joint venture agreements to explore and develop mineral properties located in China and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts from these properties will be dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the joint venture agreements and to complete the development of the properties and upon future profitable production or proceeds from the sale thereof.
	These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown as these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At August 31, 2012, the Company generated a net income of $1,261,131 during the three months ended August 31, 2012 and the cumulative loss of $5,081,819 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available.
	These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Micro Express Holdings Inc., Micro Express Ltd., Huyana Ventures Limited, Makaelo Holdings Inc., Makaelo Limited, Silver Castle Investments Limited (“Silver Castle”) and its 100% controlled subsidiary, Chenxi County Hongyu Mining Co. Ltd. ("Hongyu"). All inter-company transactions and account balances have been eliminated.

8

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 2	Recent Accounting Pronouncements
	The Company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the Company’s consolidated financial statements.
	On June 1, 2012, the Company adopted the FASB ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. This ASU is intended to result in convergence between U.S. GAAP and International Financial Reporting Standards (“IFRS”) requirements for measurement of and disclosures about fair value. The amendments are not expected to have a significant impact on companies applying U.S. GAAP. Key provisions of the amendment include: a prohibition on grouping financial instruments for purposes of determining fair value, except when an entity manages market and credit risks on the basis of the entity’s net exposure to the group; an extension of the prohibition against the use of a blockage factor to all fair value measurements (that prohibition currently applies only to financial instruments with quoted prices in active markets); and a requirement that for recurring Level 3 fair value measurements, entities disclose quantitative information about unobservable inputs, a description of the valuation process used and qualitative details about the sensitivity of the measurements. In addition, for items not carried at fair value but for which fair value is disclosed, entities will be required to disclose the level within the fair value hierarchy that applies to the fair value measurement disclosed The adoption of this ASU did not have a significant impact on the Company’s fair value measurements, financial condition, results of operations or cash flows as the company’s financial instruments’ carrying values approximate fair value due to their short term nature.
	On June 1, 2012, the Company adopted the FASB ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. This ASU requires companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income. The adoption of this ASU did not have a material impact on the Company’s financial statements.

9

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 3	Mineral Properties
	A summary of mineral properties costs for the cumulative period from date of inception (July 27, 1994) to August 31, 2012 were incurred and accounted for in the consolidated statement of operations as follows:

		DXC		Gaoping
		Salt Lake		Phosphate
Summary of mineral property expenditures		Property		Property		Total
Balance, May 31, 2005	$	-			$	-
Administrative		5,560		-		5,560
Consulting fees		46,629		-		46,629
Engineering studies		26,933		-		26,933
Feasibility study		29,080		-		29,080
Geophysical study		31,114		-		31,114
Legal fees		623		-		623
Topography measurement		32,266		-		32,266
Travel		30,953		-		30,953
Wages and benefits		33,601		-		33,601
Balance, May 31, 2006		236,759		-		236,759
Administrative		5,200		-		5,200
Consulting fees		134,580		-		134,580
Engineering studies		38,063		-		38,063
Mining permit		382,920		-		382,920
Topography measurement		15,001		-		15,001
Legal fees		9,695		-		9,695
Travel		53,262		-		53,262
Wages and benefits		35,687		-		35,687
Balance, May 31, 2007		911,167		-		911,167
Administrative		706		-		706
Consulting fees		60,548		-		60,548
Travel		5,456		-		5,456
Legal fees		11,566		-		11,566
Balance, May 31, 2008		989,443		-		989,443
Administrative		867		-		867
Consulting fees		27,890		-		27,890
Travel		16,959		-		16,959
Legal fees		7,008		-		7,008
Balance, May 31, 2009		1,042,167		-		1,042,167
Balance, May 31, 2010		1,042,167		-		1,042,167
Balance, May 31, 2011		1,042,167		-		1,042,167
Administrative		-		11,736		11,736
Consulting fees		-		1,367		1,367
Engineering studies		-		959		959
Feasibility study		-		3,143		3,143
Field supplies		-		3,639		3,639
Project design and safety reports		-		25,143		25,143
Technical reports		-		39,663		39,663
Travel & promotion		-		35,324		35,324
Wages and benefits		-		37,356		37,356
Balance, May 31, 2012	$	1,042,167	$	158,330	$	1,200,497

10

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 3 Mineral Properties – (cont’d)

		DXC		Gaoping
		Salt Lake		Phosphate
Summary of mineral property expenditures		Property		Property		Total
Balance, May 31, 2012	$	1,042,167	$	158,330	$	1,200,497
Administrative		-		3,617		3,617
Consulting fees		-		3,944		3,944
Construction		-		89,929		89,929
Engineering studies		-		11,520		11,520
Field supplies		-		10,294		10,294
Travel & promotion		-		7,516		7,516
Wages and benefits		-		19,129		19,129
Balance, August 31, 2012	$	1,042,167	$	304,279	$	1,346,446

Not included in the table above was a total of $222,227 of costs incurred on other properties which were abandoned during the years ended May 31, 2006, 2007 and 2009.

a) Gaoping Phosphate Property

On October 18, 2010, the Company signed two agreements (the "Agreements") with Chenxi County Hongyu Mining Co. Ltd. ("Hongyu") and its shareholders ("Hongyu Shareholders") regarding the Gaoping phosphate mine (the "GP Property") located in Tanjiachang village, Chenxi County, Hunan Province, China and other phosphate resources in Hunan Province. Hongyu holds a business license and a mining permit in the GP Property which is in effect until November 10, 2014.

The Agreements required an investment company to be incorporated in Hong Kong (the “Investment Company”) which was to be owned 20% by the Hongyu Shareholders and 80% by the Company. On October 13, 2010, the Investment Company was incorporated in Hong Kong under the name Silver Castle Investments Ltd. (“Silver Castle”). Silver Castle acquired 90% of Hongyu with the other 10% of Hongyu transferred to the nominees of the Company. During the acquisition phase, the Company ensured that Hongyu’s net assets retained a minimum value of RMB 5,000,000 ($771,545). Upon completion of this acquisition, Hongyu became a Hong Kong / China joint venture company. The Company received all required approvals from Chinese authorities for the completion of its acquisition of Hongyu pursuant to the Agreements dated October 18, 2010. The Company paid RMB 200,000 ($30,934) to the Hongyu shareholders as a down payment on December 14, 2010, the Company also deferred $25,083 of legal fees related to the acquisition of Hongyu which was recorded as Advance on Investment as at May 31, 2011. The remaining RMB1,800,000 ($279,504) was paid on July 8, 2011, to complete the transaction, for a total of RMB 2,000,000 ($310,438).

Pursuant to the Agreements, Hongyu agreed to surrender its future exclusive cooperative rights to the Company, and the Hongyu Shareholders agreed that the Company shall have all Hongyu's title and interest in any phosphate properties, including but not limited to the GP Property, and the Company arranged for the financing of building a mining and processing plant on the GP Property together with other facilities required for a mining operation thereon.

11

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 3	Mineral Properties – (cont’d)
	a) Gaoping Phosphate Property – (cont’d)
	When requested by the Company, the Hongyu Shareholders agreed to sell their 20% interest in the Investment Company to the Company for the issuance of 10,000,000 common shares of the Company’s capital stock. On July 5, 2011, the Company issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders. As a result of this transaction, the Company effectively controls 100% of Hongyu through its wholly owned subsidiary, Silver Castle Investments Ltd. which holds 90% of Hongyu with the other 10% held by the nominees of the Company.
	The acquisition was treated as an acquisition of assets rather than a business combination because Hongyu does not constitute a business according to the definition of business under FASB ASC Topic 805 “Business Combinations”. The acquisition was accounted for based on the cash paid and quoted market price of the Company’s common shares issued as part of the transaction.
	There were no liabilities assumed during the acquisition. Details of the purchase consideration and net assets acquired are as follows:

Purchase price:
Cash consideration (1)	$	310,438
Common shares (1)		2,200,000
Transaction costs (2)		27,749
	$	2,538,187
Allocated to:
Environmental deposit	$	122,134
Mineral property		3,148,740
Deferred tax liability		(732,687	)
	$	2,538,187

(1) Consideration paid consisted of an aggregate cash payment of RMB2,000,000 ($310,438) and issuance of 10,000,000 shares of common stock at $0.22 per share which was the closing price of the Company’s shares on the date of acquisition.

(2) Incurred in connection with the acquisition were transaction costs of $27,749 which were included as part of the purchase consideration.

As of August 31, 2012, the Company has incurred mineral property costs of $304,279 on this property which have been expensed to the statement of operations as disclosed in the table above.

12

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 3	Mineral Properties – (cont’d)
	b) Dangxiongcuo Salt Lake Project
	On September 16, 2005, the Company, through its wholly owned subsidiary, Micro Express Holdings Inc. (“Micro”), signed an agreement (the “Mianping Agreement”) with Beijing Mianping Salt Lake Research Institute (“Mianping”) for the development of Dangxiongcuo salt lake property (“DXC Salt Lake”) in Nima county of Naqu district in Tibet, China.
	Pursuant to the Mianping Agreement, the parties agreed to set up a Cooperative Company, (the “Cooperative”) to develop the DXC Salt Lake. The objective of the Cooperative was to use the funds provided by the Company and the skills and technology provided by the other party to produce lithium carbonate and borate from brine. The Company, through Micro, was to own 65% of the Cooperative. It was anticipated that the total investment in the Cooperative would be approximately 240 million RMB (or approximately US$35 million). The Cooperative Company was never set up. On July 3, 2007, Micro received a letter from the other party to the Mianping Agreement stating that the agreement between Micro and the other party should be deemed terminated as a result of lack of progress in the approval for the establishment of the joint venture company and was considering a lawsuit against the Company and Micro. Micro has responded that the other party’s claim has no legal grounds as the lack of progress was not caused by Micro. There has been no legal action to date and none is expected. By letter dated August 25, 2008, Mianping has confirmed that the agreement dated September 16, 2005 was terminated effective July 8, 2008. This agreement was replaced by the agreement with Zhong Chuan International Mining Holdings Co. Ltd. (“Zhong Chuan”) dated July 8, 2008 (“the Agreement”).
	The Company received verbal termination of the Agreement with Zhong Chuan in July 2009, as advised by third party legal counsel, at a meeting in Beijing, China. The Agreement, in effect, allows Zhong Chuan to terminate the Agreement if it pays the Company double the amount of funds paid by the Company to date to secure and develop the DXC Project. Zhong Chuan has not paid the required amount anticipated by the Agreement to date. The delay in payment has delayed the termination process. At this point, the termination was incomplete.
	As Zhong Chuan did not fulfill the terms of the Agreement, DXC Salt Lake project was delayed again. The Company renegotiated with Mianping which still holds DXC Salt Lake project. On October 31, 2011, the Company and its wholly owned subsidiary, Micro Express Holdings Inc. (collectively "Micro Express"), signed an agreement (the "Termination Agreement") with Beijing Mianping Salt Lake Research Institute and Tibet Sunrise Mining Development Ltd. which is the actual control person of Beijing Mianping Salt Lake Research Institute (collectively "Sunrise") regarding amending and terminating the agreement dated September 16, 2005 between Micro Express Holdings Inc. and Beijing Mianping Salt Lake Research Institute for the development of the Dangxiongcuo (DXC) Salt Lake Project located in Nima County, Tibet, China ( the "Mianping Agreement").
	Pursuant to the Termination Agreement, the parties have confirmed that when Sunrise completes its shareholder's change and increases its registered capital to RMB 100 million, Sunrise warrants and agrees to pay lump sum RMB 10 million (approximately $1,570,200) to Micro Express immediately in exchange of the original receipts in total amount of RMB 6,218,451 which Micro Express has spent for the DXC project and the receipt of RMB 3,781,549 from Micro Express. Upon receipt of full payment of RMB 10,000,000 (approximately $1,570,200) from Sunrise, Micro Express shall quitclaim all of its interest in and to the DXC project and the Mianping Agreement and amendments thereto, if any, shall be deemed to be null and void effective immediately.
	As of August 31, 2012, the Company had incurred a total of $1,042,167 in mineral property costs on this property.
	On June 21, 2012, the Company received the full payment of RMB 10,000,000 from Sunrise, and had quitclaimed all of its interest in and to the DXC lithium project and the Mianping Agreement and amendments thereto, if any, were null and void. RMB700,000 was incurred as expenses for the collection of the refund. The net amount, RMB9,300,000 ($1,461,588) was recorded as other income in the consolidated statement of operations.

13

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 4 Equipment

								May 31,
		August 31, 2012						2012
				Accumulated		Net Book		Net Book
		Cost		Depreciation		Value		Value
Computer equipment	$	13,691	$	10,632	$	3,059	$	2,274
Automobile		58,236		5,474		52,762		55,483
Office equipment		3,506		547		2,959		3,240
Machinery		37,528		635		36,893		3,797
Construction in progress		111,241		-		111,241		88,598
	$	224,202	$	17,288	$	206,914	$	153,392

	The depreciation for the three months ended August 31, 2012 was $4,159 (2011: $175).
	The construction in progress represents the cost incurred for the extension of electric power line to the mining site.
Note 5	Related Party Transactions
	The Company was charged consulting fees for administrative, corporate, financial, engineering, and management services during the three months ended August 31, 2012 totaling $5,974 (2011: $6,176) by companies controlled by a director of the Company.
	Included in accounts payable and accrued liabilities is $477,898 (May 31, 2012: $463,971) which was due to companies controlled by the directors of the Company for their services provided.
	These transactions were measured at the exchange amount which represented the amount of consideration established and agreed to by the related parties.
Note 6	Capital Stock
	a) Capital Stock
	During the years ended May 31, 2004 and 2005, the Company completed a private placement of 3,716,000 units at $0.50 per unit for total proceeds of $1,858,000. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.75 per share, expiring on February 16, 2006 (the Series “A” Share Purchase Warrants). Upon exercise of the “A” share purchase warrant, an additional share purchase warrant will be granted at $1.00 per share, expiring February 16, 2007 (the Series “B” Share Purchase Warrants). An additional 101,500 units were issued as finders’ fees.
	On December 18, 2004, the Company issued 100,000 shares with a fair value of $42,000 to a consultant for investor relations services for a period of one year.
	During the year ended May 31, 2007, the Company completed a private placement of 2,750,300 units at $0.15 per unit for total proceeds of $412,545. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.18 per share expiring on December 29, 2006 (the Series “C” Share Purchase Warrants). An additional 123,690 units were issued as finders’ fees.

14

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 6	Capital Stock – (cont’d)
	a) Capital Stock – (cont’d)
	During the year ended May 31, 2008, the Company issued 324,685 common shares at $0.06 per share to settle accounts payable of $19,480.
	During the year ended May 31, 2011, the Company completed a private placement of 20,000,000 units at $0.10 per unit for total proceeds of $2,000,000. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.15 per share expiring on January 31, 2012 (the Series “D” Share Purchase Warrants). An additional 752,500 units were issued as finders’ fees.
	On May 25, 2011, the Company issued 350,000 shares at a quoted market price of $0.23 each to a consultant for its services.
	On July 5, 2011, Sterling issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders (Note 3).
	b) Stock Options
	During the year ended May 31, 2004, the Company granted 2,100,000 fully vested stock options to directors and officers of the Company at an exercise price of $0.50 per share. These stock options expired on February 3, 2009.
	The Company accounts for its stock based compensation plans using the intrinsic value method whereby no compensation costs had been recognized in the financial statements for stock options granted to employees and directors. If the fair value method had been used for options granted, a fair value of $504,000 would be recorded as compensation expenses.
	During the year ended May 31, 2004 the Company also granted 1,536,000 fully vested stock options to consultants at an exercise price of $0.50 per share. These stock option expired February 3, 2009. The fair value of options granted to non-employees and non-directors was $368,641 and had been recorded as stock-based compensation expense.
	The fair value of each option grant was $0.24 and was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for the options granted on February 3, 2004: dividend yield of 0%, expected volatility of 51.15%, risk-free interest rate of 3.26%, and an expected life of 5 years.
	On April 27, 2011, the Company granted 4,700,000 stock options to employees and consultants at an exercise price of $0.25 each expiring on February 3, 2019. The options were vested immediately.
	On November 3, 2011, the Company granted 500,000 stock options to a consultant at an exercise price of $0.25 each expiring on February 3, 2019. The options were vested immediately.
	The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions for grants as follows:

15

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 6	Capital Stock – (cont’d)
	b) Stock Options – (cont’d)

	Year ended
	May 31, 2012
Risk free interest rate	1.48%
Expected life of options in years	7.26 years
Expected volatility	233.3%
Dividend per share	$0.00

During the year ended May 31, 2012, the weighted average fair value of options granted was $0.08 per share. The Company recognized a total stock based compensation expense of $40,000 for options granted and vested using the Black-Scholes option pricing model.

At August 31, 2012, there were 5,200,000 stock options (May 31, 2012: 5,200,000) outstanding and exercisable with an exercise price at $0.25 each expiring on February 3, 2019, an aggregate intrinsic value of $nil (May 31, 2012: $1,300,000) and a weighted average remaining contractual term of 6.43 years (May 31, 2012: 6.82) .

c) Share Purchase Warrants

Changes in share purchase warrants for the three months ended August 31, 2012 and the year ended May 31, 2012 are summarized as follows:

			Weighted
			Average
	Number of		Exercise
	Shares		Price
Balance, May 31, 2011	24,570,000	$	0.204
Granted	-		-
Exercised	-		-
Expired	-		-
Balance, May 31, 2012 and August 31, 2012	24,570,000	$	0.204

Share purchase warrants outstanding at August 31, 2012:

Series	Number	Price	Expiry Date
"A"	3,817,500	$      0.50	February 15, 2013
"D"	20,752,500	$      0.15	February 15, 2013
	24,570,000

16

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 6	Capital Stock - (cont’d)
	c) Share Purchase Warrants - (cont’d)
	Each Series “A” warrant entitles the holder thereof the right to purchase one common share at $0.50 per share expiring on the earlier of:
	1)      February 16, 2008; or
	2)      The 30th day after the day on which the weighted average trading price of the Company's shares exceeds $0.80 per share for 20 consecutive trading days.
	Upon exercise of the Series "A" Share Purchase Warrant at $0.50 each, the holder will receive one Common Share of the Company and a Series "B" Share Purchase Warrant exercisable at $1.00 expiring one year after the occurrence of either (1) or (2) as described above. The Series "A" Share Purchase Warrants were originally issued in 2004 pursuant to a private placement commenced in February 2004.
	On February 7, 2008, the Company extended the expiry date of the 3,817,500 Series “A” Share Purchase Warrants from February 16, 2008 to February 16, 2009. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $252,989 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 218.52%, risk free interest rates of 2.08% and expected life of one year.
	On February 6, 2009, the Company re-extended the expiry date of 3,817,500 Series “A” Share Purchase Warrants from February 16, 2009 to February 16, 2010. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $35,593 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 223.36%, risk free interest rates of 0.82% and expected life of one year.
	On February 12, 2010, the Company re-extended the expiry date of 3,817,500 Series "A" Share Purchase Warrants from February 16, 2010 to February 16, 2011. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $44,283 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244%, risk free interest rates of 0.56% and expected life of one year.
	On February 14, 2011, the Company re-extended the expiry date of 3,817,500 Series "A" Share Purchase Warrants from February 16, 2011 to February 16, 2012. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $517,526 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 201%, risk free interest rates of 0.29% and expected life of one year.
	On January 26, 2012, the Company re-extended the expiry date of 3,817,500 Series "A" share purchase warrants from February 16, 2012 to the earlier of February 15, 2013 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The exercise price of the warrants remained unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $25,832 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 155.80%, risk-free interest rates of 0.12% and expected life of 1.05 years.

17

Sterling Group Ventures, Inc.
(An Exploration Stage Company)
Notes to Consolidated Financial Statements
August 31, 2012
(Stated in US Dollars)

Note 6	Capital Stock - (cont’d)
	c) Share Purchase Warrants - (cont’d)
	On February 7, 2008, the Company extended the expiry date of the 2,873,990 Series “C” Share Purchase Warrants from February 29, 2008 to February 27, 2009. The exercise price of the warrants remained unchanged at $0.18 per share. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $156,536 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 222.09%, risk-free interest rates of 2.08% and expected life of one year.
	On February 6, 2009, the Company re-extended the expiry date of 2,873,990 Series "C" share purchase Warrants from February 27, 2009 to February 26, 2010. The exercise price of the warrants remains unchanged at $0.18 per share. The Series "C" Share Purchase Warrants were originally issued in September 2006 pursuant to a private placement commenced in August 2006. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $48,259 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244.01%, risk-free interest rates of 0.82% and expected life of one year.
	On February 12, 2010, the Company re-extended the expiry date of 2,873,990 the Series "C" share purchase Warrants from February 26, 2010 to February 16, 2011. The exercise price of the warrants remains unchanged at $0.18 per share. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $47,421 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244%, risk-free interest rates of 0.56% and expected life of one year.
	During the year ended May 31, 2011, 801,666 Series "C" Share Purchase Warrants with an exercise price of $0.18 per share were exercised for gross proceeds of approximately $144,300. On February 16, 2011, the remaining Series "C" Share Purchase Warrants expired unexercised.
	On January 26, 2012, the Company extended the expiry date of the 20,752,500 Series "D" Share Purchase Warrants (the "D" Warrants) to the earlier of February 15, 2013 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The exercise price of the "D" Warrants remains unchanged at $0.15 per share. The additional fair value of the 20,752,500 extended life Series “D” Share Purchase Warrants was estimated at $358,647 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 157.29%, risk-free interest rates of 0.12% and expected life of 1.05 years.
Note 7	Foreign Currency Risk

The Company is exposed to fluctuations in foreign currencies through amounts held in China in RMB: Cash and cash equivalent $1,203,201 (May 31, 2012 - $10,924)

The Company is exposed to fluctuations in foreign currencies through amounts held in Canada in CAD: Cash $19,982 (May 31, 2012 - $50,850)

The Company is exposed to fluctuations in foreign currencies through amounts held in Hong Kong in HKD: Cash $467 (May 31, 2012 - $538)

18

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes for the year ended May 31, 2012, the financial statements and related notes in this Quarterly Report, the risk factors in our 10K for the year ended May 31, 2012, and all of the other information contained elsewhere in this report. .

As used in this quarterly report, the terms “we”, “us”, “our”, “our company”, “Company” and “Sterling” refer to Sterling Group Ventures, Inc. and its subsidiaries, unless otherwise indicated.

Forward-Looking Statements. When used in this Form 10-Q, the words “believe”, “may”, “will”, “plan”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “project”, “estimates”, and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties, including those set forth below under "Risks and Uncertainties," that could cause actual results to differ materially from those projected. These forward-looking statements speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

Overview

On October 18, 2010, Sterling signed two agreements (the "Agreements") with Chenxi County Hongyu Mining Co. Ltd. ("Hongyu") and its shareholders ("Hongyu Shareholders") regarding the Gaoping phosphate mine (the "GP Property") located in Tanjiachang village, Chenxi County, Hunan Province, China and other phosphate resources in Hunan Province. Hongyu holds a business license and a mining permit in the GP Property which is in effect until November 10, 2014 and covers 42.5 hectares.

The Agreements required an investment company to be incorporated in Hong Kong (the "Investment Company") which was to be owned 20% by the Hongyu Shareholders and 80% by Sterling. On October 13, 2010, the Investment Company was incorporated in Hong Kong under the name Silver Castle Investments Ltd. ("Silver Castle"). Silver Castle acquired 90% of Hongyu with the other 10% of Hongyu transferred to the nominees of Sterling. During the acquisition phase, Sterling ensured that Hongyu's net assets retained a minimum value of RMB 5,000,000 ($771,545). Upon completion of this acquisition, Hongyu became a Hong Kong / China joint venture company. Sterling received all required approvals from Chinese authorities for the completion of its acquisition of Hongyu pursuant to the Agreements dated October 18, 2010. Sterling paid a total RMB 2,000,000 ($310,438) to the Hongyu Shareholders with RMB 200,000 (US$30,934) paid as down payment on December 14, 2010 and the remaining RMB1,800,000 ($279,504) paid on July 8, 2011 for completion of the transaction.

Pursuant to the Agreements, Hongyu agreed to surrender its future exclusive cooperative rights to Sterling, and the Hongyu Shareholders agreed that Sterling shall have all Hongyu's title and interest in any phosphate properties, including but not limited to the GP Property, and Sterling should arrange for the financing of building a mining and processing plant on the GP Property together with other facilities required for a mining operation thereon.

When requested by Sterling, the Hongyu Shareholders agreed to sell their 20% interest in the Investment Company to Sterling for the issuance of 10,000,000 common shares of Sterling's capital stock. On July 5, 2011, Sterling issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders. As a result of this transaction, Sterling effectively controls 100% of Hongyu through its wholly owned subsidiary, Silver Castle Investments Ltd. which holds 90% of Hongyu with the other 10% held by the nominees of Sterling.

Sterling through its subsidiary company, Silver Castle Investments Ltd., also signed a letter of intent for a larger area known as Tanjiachang Exploration Concession with Chenxi County Merchants Bureau, Hunan Province, China. Tanjiachang Exploration Concession is surrounding the Gaoping Mining permit.

Sterling is currently preparing plans to put its phosphate deposit into production.

19

Hongyu is currently working on putting its phosphate deposit into production. As mining license was obtained for the Gaoping Phosphate Property and a Chinese engineering report was completed, Hongyu moved into the development stage of this property in the early of 2012. On February 13, 2012, Hongyu received approval for installing the power line for the Gaoping Phosphate Property. Hongyu also reached understanding for land rental with local village committee on March 17, 2012. Hongyu signed and completed land rental agreement with each family in the mining area on March 27, 2012. On April 1, 2012, Hongyu also received conditional safety approval from Supervision and Management Bureau for Safety Operation of Chenxi County and the project is essentially ready to begin production on a small scale basis to be further ramped up as the development and production plan takes effect. The conditional safety approval is expected to become final after inspection when the mine construction is completed. On April 22, 2012, Hongyu signed a mining agreement with the mining contractor, Yichang Rongchang Mining Co. Ltd., to be the operator of the mining and production activities on the project. On June 16, 2012, Hongyu completed power line construction. On July 19, 2012, Hongyu received the explosive operation permit. Currently, accommodation for mining people has been built and our mining contractor has started excavation works.

On September 16, 2005, the Company, through its wholly owned subsidiary, Micro Express Holdings Inc. ("Micro"), signed an agreement (the "Mianping Agreement") with Beijing Mianping Salt Lake Research Institute ("Mianping") for the development of Dangxiongcuo salt lake property ("DXC Salt Lake") in Nima county of Naqu district in Tibet, China.

Pursuant to the Mianping Agreement, the parties agreed to set up a Cooperative Company (the "Cooperative") to develop the DXC Salt Lake. The objective of the Cooperative was to use the funds provided by the Company and the skills and technology provided by the other party to produce lithium carbonate and borate from brine. The Company, through Micro, was to own 65% of the Cooperative. It was anticipated that the total investment in the Cooperative would be approximately RMB 240 million (or approximately US$35 million). The Cooperative Company was never set up. On July 3, 2007, Micro received a letter from the other party to the Mianping Agreement stating that the agreement between Micro and the other party should be deemed terminated as a result of lack of progress in the approval for the establishment of the joint venture company and is considering a lawsuit against the Company and Micro. Micro has responded that the other party's claim has no legal grounds as the lack of progress is not caused by Micro. There has been no legal action to date and none is expected. By letter dated August 25, 2008, Mianping has confirmed that the agreement dated September 16, 2005 was terminated effective July 8, 2008. This agreement was replaced by the agreement with Zhong Chuan International Mining Holdings Co. Ltd. ("Zhong Chuan") dated July 8, 2008("the Agreement").

In July 2009, the Company received verbal termination of the Agreement with Zhong Chuan as advised by third party legal counsel at a meeting in Beijing, China. The Agreement, in effect, allows Zhong Chuan to terminate the Agreement if it pays the Company double the amount of funds paid by the Company to date to secure and develop the DXC Project. Zhong Chuan has not paid the required amount anticipated by the Agreement to date. The delay in payment has delayed the termination process. At this point, the termination is incomplete.

As Zhong Chuan did not fulfill the terms of the Agreement, DXC Salt Lake project was delayed again. The Company renegotiated with Mianping which still holds DXC Salt Lake project. On October 31, 2011, the Company and its wholly owned subsidiary, Micro Express Holdings Inc. (collectively "Micro Express"), signed an agreement (the "Termination Agreement") with Beijing Mianping Salt Lake Research Institute and Tibet Sunrise Mining Development Ltd. which is actual control person of Beijing Mianping Salt Lake Research Institute (collectively "Sunrise") regarding amending and terminating the Mainping Agreement dated September 16, 2005 between Micro Express Holdings Inc. and Beijing Mianping Salt Lake Research Institute for the development of the Dangxiongcuo (DXC) Salt Lake Project located in Nima County, Tibet, China.

Pursuant to the Termination Agreement, the parties have confirmed that when Sunrise completes its shareholder's change and increases its registered capital to RMB 100 million, Sunrise warrants and agrees to pay lump sum RMB 10 million (approximately $1,570,200) to Micro Express immediately in exchange of the original receipts in total amount of RMB 6,218,451 which Micro Express has spent for the DXC project and the receipt of RMB 3,781,549 from Micro Express. Upon receipt of full payment of RMB 10,000,000 from Sunrise, Micro Express shall quitclaim all of its interest in and to the DXC project and the Mianping Agreement and amendments thereto, if any, shall be deemed to be null and void effective immediately.

On June 21, 2012, the Company received the full payment of RMB10,000,000 from Sunrise. The termination of the DXC Lithium Project is complete.

20

Business of Sterling Group Ventures Inc.

Sterling is a natural resource company engaged in acquisition, exploration and development of mineral properties. At present, the Company acquired the Gaoping phosphate Property and is developing the Gaoping phosphate property for the exploration and production of phosphate fertilizer.

Application of Critical Accounting Policies and Use of Estimates

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ significantly from these estimates under different assumptions or conditions. There have been no material changes to these estimates for the periods presented in this quarterly report.

We believe that of our significant accounting policies, which are described in Note 2 to our annual financial statements, the following accounting policies involve a greater degree of judgment and complexity. Accordingly, the following policies are the most critical to aid in fully understanding and evaluating our financial condition and results of operations.

Basis of Presentation

These consolidated financial statements include the accounts of our Company and our wholly-owned subsidiaries, Micro Express Holdings Inc., Micro Express Ltd., Huyana Ventures Limited, Makaelo Holdings Inc., Makaelo Limited, Silver Castle Investments Limited ("Silver Castle") and our 100% controlled subsidiary, Chenxi County Hongyu Mining Co. Ltd. ("Hongyu"). All inter-company transactions and account balances have been eliminated.

Interim Reporting

The information presented in the accompanying interim consolidated financial statements is without audit pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the interim consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. Except where noted, the interim consolidated financial statements follow the same accounting policies and methods of their application as our May 31, 2012 annual consolidated financial statements. All adjustments are of a normal recurring nature. It is suggested that these interim consolidated financial statements be read in conjunction with our May 31, 2012 annual consolidated financial statements.

Operating results for the three months ended August 31, 2012 are not necessarily indicative of the results that can be expected for the year ending May 31, 2013.

Mineral Property Costs

Costs of acquiring mineral properties are capitalized by the project area unless the mineral properties do not have proven reserves. Costs to maintain mineral rights and leases are expensed as incurred. When a property reaches the production state, the related capitalized costs are amortized using the unit of production method on the basis of annual estimates of ore reserves. The Company does not consider a resource property to be at the development stage until such time as either mineral reserve are proven or permits to operate the mineral resource property are received and financing to complete the development has been obtained. Development expenditures incurred subsequent to a development decision, and to increase or to extend the life of existing production, are capitalized and amortized on the unit of production method based upon estimated proven and probable reserves or resources.

Management reviews the carrying value of mineral properties at least annually and will recognize impairment in value based upon current exploration results, and any impairment or subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Mineral property exploration costs are expensed as incurred. Exploration activities conducted jointly with others are reflected at the Company's proportionate interest in such activities. As of August 31, 2012, the Company did not have proven or probable ore reserves.

21

Stock-based Compensation

On June 1, 2006, the Company accounts for stock-based compensation in accordance with ASC Topic 718-10, Compensation - Stock Compensation - Overall.

In accordance with ASC Topic 718-10 compensation expenses is amortized on a straight-line basis over the requisite service period which approximates the vesting period rather than as a reduction of taxes paid. The Company has elected to use the Black-Scholes option pricing model to determine the fair value of options and the extension of the expiry date of share purchase warrants previously granted. The Company has estimated the fair value of share purchase warrants and options for the period ended August 31, 2012 and the year ended May 31, 2012 using the assumptions more fully described in Note 6(b) & (c) to the financial statements.

Foreign Currency Translation

Our functional and reporting currency is U.S. dollars. Our consolidated financial statements are translated to U.S. dollars in accordance with ASC 830, "Foreign Currency Matters". Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. We have not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Going Concern

These consolidated financial statements have been prepared on a going concern basis which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. These consolidated financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary if we are unable to continue as a going concern.

In order to continue as a going concern, we require additional financing. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to continue as a going concern, we would likely be unable to realize the carrying value of our assets reflected in the balances set out in the preparation of the consolidated financial statements.

At August 31, 2012, the Company had not yet achieved profitable operations and has accumulated losses of $5,081,819 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available.

22

Results Of Operations

The operating income is $1,261,131 for the quarter ended August 31, 2012, as compared to operating loss of $143,102 for the quarter ended August 31, 2011 mainly due to the income of $1,461,588 from sale of DXC lithium project.

Mineral property costs increased by $130,838 for the three months ended August 31, 2012 when compared to the same period in 2011 mainly because of the development of the Gaoping phosphate property.

Foreign exchange loss increased by $19,134 for the three months ended August 31, 2012 when compared to the same period in 2011 because of the exchange rate fluctuation among US dollar, Canadian dollar and RMB.

Shareholder information and Investor relations costs decreased by $76,164 for the three months ended August 31, 2012 when compared to the same period in 2011 because $73,500 were paid by shares to a consultant for the investor relation services in the three months ended August 31, 2011 .

Travel and entertainment decreased by $5,574 for the three months ended August 31, 2012 when compared to the same period in 2011.

The Company expects the trend of losses to continue until we can achieve commercial production on some of the mineral properties, of which there can be no assurance as described in Risk Factors.

Liquidity And Working Capital

As of August 31, 2012, the Company had total current assets of $2,550,364 and total liabilities of $504,925. As of August 31, 2012, the Company had cash totaling $2,508,825, and a working capital surplus of $2,045,439.

During the quarter ended August 31, 2012, the Company received the other income of $1,461,588 from the sale of its DXC lithium project and its working capital increased accordingly.

The Company has no other capital resources other than the ability to use its common stock to raise additional capital or the exercise of the warrants by the unit holders. If all warrants outstanding including bonus warrants are exercised, the Company will receive approximately $10 million in cash. The Company's current cash can meet its short term need. The cash will be mainly used for mining property exploration and development, general administrative, corporate (accounting, audit, and legal), financing and management.

No other commitments to provide additional funds have been made by management or other stockholders except as set forth above. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover operation expenses. This raises substantial doubt that the Company will be able to continue as a going concern unless additional capital is raised.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In addition to the U.S. Dollar, we conduct our business in Chinese Yuan (RMB) and Canadian Dollar and, therefore, are subject to foreign currency exchange risk on cash flows related to expenses and investing transactions. In July 2005, the Chinese government began to permit the Chinese Yuan to float against the U.S. Dollar. All of our costs to operate our Chinese project are paid in Chinese Yuan and all of our costs to operate our principal executive office in Canada are paid in Canadian dollar. Our mining costs in China may be incurred under contracts denominated in Chinese Yuan or U.S. Dollars. If the Chinese Yuan continues to appreciate with respect to the U.S. Dollar, our costs in China may increase. If the Canadian Dollar continues to appreciate with respect to the U.S. Dollar, our costs in Canada may increase. To date we have not engaged in hedging activities to hedge our foreign currency exposure. In the future, we may enter into hedging instruments to manage our foreign currency exchange risk or continue to be subject to exchange rate risk.

Although inflation has not materially impacted our operations in the recent past, increased inflation in China or Canada could have a negative impact on our operating and general and administrative expenses, as these costs could increase. China has recently experienced inflationary pressures, which could increase our costs associated with our operations in China. If there are material changes in our costs, we may seek to raise additional funds earlier than anticipated.

23

ITEM 4. CONTROLS AND PROCEDURES

a.        Evaluation of Disclosure Controls and Procedures:

We carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) of the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

b.        Changes in Internal Control over Financial Reporting:

There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

We have sought to identify what we believe to be the most significant risks to our business. However, we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our Common Stock. We provide the following cautionary discussion of risks, uncertainties and possible inaccurate assumptions relevant to our business. These are factors that we think could cause our actual results to differ materially from expected results. Other factors besides those listed here could adversely affect us.

Factors That May Affect Future Results and Market Price of Stock

The business of the Company involves a number of risks and uncertainties that could cause actual results to differ materially from results projected in any forward-looking statement, or statements, made in this report. These risks and uncertainties include, but are not necessarily limited to the risks set forth below. The Company's securities are speculative and investment in the Company's securities involves a high degree of risk and the possibility that the investor will suffer the loss of the entire amount invested.

There is Substantial Doubt About the Company's Ability to Continue as a Going Concern

Sterling is engaged in acquisition, exploration and development of mineral properties. The Company has acquired the Gaoping phosphate properties located in Chenxi County, Hunan Province, China. The Company has not yet achieved profitable operations and is dependent on its ability to raise capital from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. These factors raise substantial doubt that the Company will be able to continue as a going concern.

Lack of Technical Training of Management

The Management of our Company has academic and scientific experience related to mining issues but lacks technical training and experience exploring for, commissioning and operating a mine. With no direct training or experience in these areas, management may not be fully aware of many of the specific requirements related to working within this industry. The decisions and choices may not take into account standard engineering or managerial approaches mineral exploration companies commonly use. Consequently, operations, earnings and the ultimate financial success of the Company could suffer irreparable harm due to management's lack of experience in this industry. The company has recently hired an experienced mining engineer.

24

Exploration Risk

Development of mineral properties is contingent upon obtaining satisfactory exploration results. Mineral exploration and development involves substantial expenses and a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate.

The Gaoping property has been examined in the field by professional geologists/mining engineers. The Company received the national instrument 43-101 report (Canadian Standard). Professional geologist also made an exploration proposal for Tanjiachang Exploration Concession which is surrounding Gaoping property which is under letter of intent with Chenxi County Merchants Bureau, Hunan Province, China. There is no assurance that commercial quantities of ore will be discovered on the Tanjiachang Exploration Concession. There is also no assurance that, even if commercial quantities of ore are discovered, the Tanjiachang Exploration Concession will be brought into commercial production. The discovery of mineral deposits is dependent upon a number of factors not the least of which is the technical skill of the exploration personnel involved. The commercial viability of a mineral deposit, once discovered, is also dependent upon a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure, metal prices and government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals, and environmental protection. In addition, assuming discovery of a commercial ore body, depending on the type of mining operation involved, several years can elapse from the initial phase of drilling until commercial operations are commenced. Most of the above factors are beyond the control of the Company.

The properties may need exploration and such exploration processes shall be conducted in phases. When each phase of a particular project is completed, and upon analysis of the results thereto, the Company will make a decision on whether to proceed with each successive phase of the exploration program. There is no assurance that projects will be carried to completion.

Limited Management Resource Development Experience

The Company does not have a track record of exploration and mining operation history. The Company's management has limited experience in mineral resource development and exploitation, and has relied on and may continue to rely upon consultants and others for development and operation expertise. The company recently hired an experienced mining engineer.

Limited Financial Resources

Furthermore, the Company has limited financial resources with no assurance that sufficient funding will be available to it for future exploration and development or to fulfill its obligations under current agreements. There is no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of its projects.

Limited Public Market, Possible Volatility of Share Price

The Company's Common Stock is currently quoted on the NASD OTC QB under the ticker symbol SGGV and is listed on Berlin Bremen Stock Exchange under the symbol GD7. As of August 31, 2012, there were 75,730,341 shares of common stock outstanding. There can be no assurance that a trading market will be sustained in the future.

Dependence on Executive Officers and Technical Personnel

The success of our business plan depends on attracting qualified personnel, and failure to retain the necessary personnel could adversely affect our business. Competition for qualified personnel is intense, and we may need to pay premium wages to attract and retain personnel. Attracting and retaining qualified personnel is critical to our business. Inability to attract and retain the qualified personnel necessary would limit our ability to implement our business plan successfully.

25

Need for Additional Financing

The Company believes it has sufficient capital to meet its short-term cash needs, including the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934. However, if losses continue, it may have to seek loans or equity placements to cover longer-term cash needs to continue operations and expansion.

No commitments to provide additional funds have been made by management or other stockholders. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover operation expenses.

If future operations are unprofitable, it will be forced to develop another line of business, or to finance its operations through the sale of assets it has, or enter into the sale of stock for additional capital, none of which may be feasible when needed. The Company has no specific management ability or financial resources or plans to enter any other business as of this date.

Dilution to the Existing Shareholders

The Company has no other capital resources other than the ability to use its common stock to raise additional capital or the exercise of the warrants by the unit holders, which will significantly dilute the Company's stockholders.

Market Risk and Political Risks

The Company does not hold any derivatives or other investments that are subject to market risk. The carrying values of any financial instruments, approximate fair value as of those dates because of the relatively short-term maturity of these instruments, which eliminates any potential market risk associated with such instruments.

The market in China is monitored by the government, which could impose taxes or restrictions at any time which would make operations unprofitable and infeasible and cause a write-off of investment in the mineral properties. Other factors include political policy on foreign ownership, political policy to open the doors to foreign investors, and political policy on mineral claims and metal prices.

The disruptions in the financial markets and economic conditions have adversely affected the US and the world economy. Turmoil in global credit markets and turmoil in the geopolitical environment in many parts of the world have adversely affected global economic conditions. There can be no assurances that government responses to the disruptions in financial markets will restore investor confidence and economic activity. This could affect our ability to raise capital.

Additionally, the uncertain economic environment may cause farmers to use less fertilizer to cut costs, which will adversely affect the demand for phosphate. A similar situation occurred in 2008 leading to a sharp decline in phosphate prices.

The Hongyu phosphate deposit is located in China which, as a result of its operations, exposes the Company to political and market risks in China. Exports of phosphate rock are currently subject to an export tax due to domestic phosphate requirements.

Other Risks and Uncertainties

The business of mineral deposit exploration and development involves a high degree of risk. Few properties that are explored are ultimately developed into production. Other risks facing the Company include competition, reliance on third parties and joint-venture partners, environmental and insurance risks, political and environmental instability, statutory and regulatory requirements, fluctuations in mineral prices and foreign currency, share price volatility, title risks, and uncertainty of additional financing.

Since October 2008, a severe general downturn in the U. S. economy and global economy slowdown which already affected the securities markets took place. Such a deleterious turn of events has made it much more difficult for the Company to access financing should it be required to do so. The outlook remains uncertain as growth in the US and Europe experienced another downturn such that another recession is now possible in the US and Europe.

26

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the year ended May 31, 2011, the Company completed a private placement of 20,000,000 units at $0.10 per unit for total proceeds of $2,000,000. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.15 per share expiring on January 31, 2012 (the Series "D" Share Purchase Warrants). An additional 752,500 units were issued as finders' fees. The proceeds from this private placement will be used for the phosphate projects in Hunan, China and general working capital.

On May 25, 2011, the Company issued 350,000 shares at a quoted market price of $0.23 each to a consultant for its services.

On July 5, 2011, Sterling issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibits required to be attached by Item 601 of Regulation S-K are listed in the Index to Exhibits beginning on page 28 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

SIGNATURES

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

	Sterling Group Ventures Inc.
	/s/ Raoul Tsakok
	Raoul Tsakok, Chairman and Chief Executive Officer
Date: October 12, 2012
	/s/ Richard Shao
	Richard Shao, President and Chief Financial Officer
Date: October 12, 2012

27

INDEX OF EXHIBITS

Exhibit
Number	Description
3.1	Articles of Incorporation of the Company, (filed as Exhibit 3.1 to the Company's Registration Statement on Form SB-2 filed on July 26, 2002, and incorporated herein by reference).
3.2	Bylaws of the Company (filed as Exhibit 3.2 to the Company's Registration Statement on Form SB-2 filed on July 26, 2002, and incorporated herein by reference).
4.1	Specimen stock certificate (filed as Exhibit 4.1 to the Company's Registration Statement on Form SB-2 filed on July 26, 2002, and incorporated herein by reference).
10.1	Acquisition Agreement between the Company and Micro Express Ltd., dated January 20, 2004. (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on January 29, 2004, and incorporated herein by reference).
10.2	Joint Venture Contract between Micro Express Ltd. .(the Company’s wholly subsidiary) and Sichuan Province Mining Ltd., dated April 5, 2005 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on April 11, 2005, and incorporated herein by reference).
10.3	Agreement for Development of DXC Salt Lake Property between Micro Express Holdings Inc. .(the Company’s wholly subsidiary) and Beijing Mianping Salt Lake Research Institute, dated September 16, 2005 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on September 21, 2005, and incorporated herein by reference).
10.4	Agreement for Termination of Joint Venture between Micro Express Ltd. and Sichuan Province Mining Ltd., dated March 3, 2006 (Filed as Exhibit 10.1 to the Company's current report on Form 8- K filed on March 6, 2006, and incorporated herein by reference).
10.5	Agreement between the Company, Zhong Chuan International Mining Holding Co., Ltd. , and shareholders of Monte Sea Holdings Ltd., dated July 8, 2008 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on July 15, 2008, and incorporated herein by reference).
10.6	Agreement between the Company, Hongyu Mining Co., Ltd. , and shareholders of Hongyu Mining Co., Ltd., dated October 18, 2010 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on October 21, 2010, and incorporated herein by reference).
10.7	Letter of Intent between the Company and Shimen County Merchants Bureau, dated November 10, 2010 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on November 16, 2010, and incorporated herein by reference).
10.8	Agreement for Termination of Joint Venture between the Company, Micro Express Holdings Inc. and Beijing Mianping Salt Lake Research Institute, dated October 31, 2011 (Filed as Exhibit 10.1 to the Company's current report on Form 8-K filed on November 3, 2011, and incorporated herein by reference).
14.1	Code of Ethics. ( Filed as Exhibit 14.1 to the Company's Annual report on Form 10-K filed on August 28, 2009, and incorporated herein by reference)
31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Sec. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Sec. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
99.1	Audit Committee Charter. (Filed as Exhibit 99.1 to the Company's Annual report on Form 10-K filed on August 28, 2009, and incorporated herein by reference)
101.INS	XBRL Instance Document. Furnished herewith.
101.SCH	XBRL Taxonomy Extension Schema Document. Furnished herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. Furnished herewith.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. Furnished herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. Furnished herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. Furnished herewith.

28

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Raoul Tsakok, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Sterling Group Ventures, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant 's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant 's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant 's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant 's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant 's internal control over financial reporting; and
5.	The registrant 's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant 's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

By:	/s/ Raoul Tsakok
	Raoul Tsakok
	Chairman & CEO
	Date: October 12, 2012

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Richard (Xuxin) Shao, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Sterling Group Ventures, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant 's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant 's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant 's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant 's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant 's internal control over financial reporting; and
5.	The registrant 's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant 's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

By:	/s/ Richard (Xuxin) Shao
	Richard (Xuxin) Shao
	President & CFO
	Date: October 12, 2012

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Sterling Group Ventures, Inc. (the "Company") on Form 10-Q for the quarter ended August 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the " Report"), I, Raoul Tsakok, as Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Raoul Tsakok
	Raoul Tsakok
	Chairman & CEO
	Date: October 12, 2012

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Sterling Group Ventures, Inc. (the "Company") on Form 10-Q for the quarter ended August 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the " Report"), I, Richard (Xuxin) Shao, as Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Richard (Xuxin) Shao
	Richard (Xuxin) Shao
	President & CFO
	Date: October 12, 2012

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Schedule of Purchase Price Allocation (Details)	3 Months Ended
	Aug. 31, 2012
Mineral Properties Schedule Of Purchase Price Allocation 1	2,538,187
Mineral Properties Schedule Of Purchase Price Allocation 2	122,134
Mineral Properties Schedule Of Purchase Price Allocation 3	3,148,740
Mineral Properties Schedule Of Purchase Price Allocation 4	(732,687)
Mineral Properties Schedule Of Purchase Price Allocation 5	2,538,187

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Mineral Properties

3 Months Ended

Aug. 31, 2012

Mineral Properties [Text Block]

Note 3	Mineral Properties
	A summary of mineral properties costs for the cumulative period from date of inception (July 27, 1994) to August 31, 2012 were incurred and accounted for in the consolidated statement of operations as follows:

		DXC		Gaoping
		Salt Lake		Phosphate
Summary of mineral property expenditures		Property		Property		Total
Balance, May 31, 2005	$	-			$	-
Administrative		5,560		-		5,560
Consulting fees		46,629		-		46,629
Engineering studies		26,933		-		26,933
Feasibility study		29,080		-		29,080
Geophysical study		31,114		-		31,114
Legal fees		623		-		623
Topography measurement		32,266		-		32,266
Travel		30,953		-		30,953
Wages and benefits		33,601		-		33,601
Balance, May 31, 2006		236,759		-		236,759
Administrative		5,200		-		5,200
Consulting fees		134,580		-		134,580
Engineering studies		38,063		-		38,063
Mining permit		382,920		-		382,920
Topography measurement		15,001		-		15,001
Legal fees		9,695		-		9,695
Travel		53,262		-		53,262
Wages and benefits		35,687		-		35,687
Balance, May 31, 2007		911,167		-		911,167
Administrative		706		-		706
Consulting fees		60,548		-		60,548
Travel		5,456		-		5,456
Legal fees		11,566		-		11,566
Balance, May 31, 2008		989,443		-		989,443
Administrative		867		-		867
Consulting fees		27,890		-		27,890
Travel		16,959		-		16,959
Legal fees		7,008		-		7,008
Balance, May 31, 2009		1,042,167		-		1,042,167
Balance, May 31, 2010		1,042,167		-		1,042,167
Balance, May 31, 2011		1,042,167		-		1,042,167
Administrative		-		11,736		11,736
Consulting fees		-		1,367		1,367
Engineering studies		-		959		959
Feasibility study		-		3,143		3,143
Field supplies		-		3,639		3,639
Project design and safety reports		-		25,143		25,143
Technical reports		-		39,663		39,663
Travel & promotion		-		35,324		35,324
Wages and benefits		-		37,356		37,356
Balance, May 31, 2012	$	1,042,167	$	158,330	$	1,200,497
Administrative		-		3,617		3,617
Consulting fees		-		3,944		3,944
Construction		-		89,929		89,929
Engineering studies		-		11,520		11,520
Field supplies		-		10,294		10,294
Travel & promotion		-		7,516		7,516
Wages and benefits		-		19,129		19,129
Balance, August 31, 2012	$	1,042,167	$	304,279	$	1,346,446

Not included in the table above was a total of $222,227 of costs incurred on other properties which were abandoned during the years ended May 31, 2006, 2007 and 2009.

a) Gaoping Phosphate Property

On October 18, 2010, the Company signed two agreements (the "Agreements") with Chenxi County Hongyu Mining Co. Ltd. ("Hongyu") and its shareholders ("Hongyu Shareholders") regarding the Gaoping phosphate mine (the "GP Property") located in Tanjiachang village, Chenxi County, Hunan Province, China and other phosphate resources in Hunan Province. Hongyu holds a business license and a mining permit in the GP Property which is in effect until November 10, 2014.

The Agreements required an investment company to be incorporated in Hong Kong (the “Investment Company”) which was to be owned 20% by the Hongyu Shareholders and 80% by the Company. On October 13, 2010, the Investment Company was incorporated in Hong Kong under the name Silver Castle Investments Ltd. (“Silver Castle”). Silver Castle acquired 90% of Hongyu with the other 10% of Hongyu transferred to the nominees of the Company. During the acquisition phase, the Company ensured that Hongyu’s net assets retained a minimum value of RMB5,000,000 ($771,545). Upon completion of this acquisition, Hongyu became a Hong Kong / China joint venture company. The Company received all required approvals from Chinese authorities for the completion of its acquisition of Hongyu pursuant to the Agreements dated October 18, 2010. The Company paid RMB200,000 ($30,934) to the Hongyu shareholders as a down payment on December 14, 2010, the Company also deferred $25,083 of legal fees related to the acquisition of Hongyu which was recorded as Advance on Investment as at May 31, 2011. The remaining RMB1,800,000 ($279,504) was paid on July 8, 2011, to complete the transaction, for a total of RMB2,000,000 ($310,438).

Pursuant to the Agreements, Hongyu agreed to surrender its future exclusive cooperative rights to the Company, and the Hongyu Shareholders agreed that the Company shall have all Hongyu's title and interest in any phosphate properties, including but not limited to the GP Property, and the Company arranged for the financing of building a mining and processing plant on the GP Property together with other facilities required for a mining operation thereon.

When requested by the Company, the Hongyu Shareholders agreed to sell their 20% interest in the Investment Company to the Company for the issuance of 10,000,000 common shares of the Company’s capital stock. On July 5, 2011, the Company issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders. As a result of this transaction, the Company effectively controls 100% of Hongyu through its wholly owned subsidiary, Silver Castle Investments Ltd. which holds 90% of Hongyu with the other 10% held by the nominees of the Company.

The acquisition was treated as an acquisition of assets rather than a business combination because Hongyu does not constitute a business according to the definition of business under FASB ASC Topic 805 “ Business Combinations ”. The acquisition was accounted for based on the cash paid and quoted market price of the Company’s common shares issued as part of the transaction.

There were no liabilities assumed during the acquisition. Details of the purchase consideration and net assets acquired are as follows:

Purchase price:
Cash consideration (1)	$	310,438
Common shares (1)		2,200,000
Transaction costs (2)		27,749

	$	2,538,187
Allocated to:
Environmental deposit	$	122,134
Mineral property		3,148,740
Deferred tax liability		(732,687	)
	$	2,538,187

(1) Consideration paid consisted of an aggregate cash payment of RMB2,000,000 ($310,438) and issuance of 10,000,000 shares of common stock at $0.22 per share which was the closing price of the Company’s shares on the date of acquisition.

(2) Incurred in connection with the acquisition were transaction costs of $27,749 which were included as part of the purchase consideration.

As of August 31, 2012, the Company has incurred mineral property costs of $304,279 on this property which have been expensed to the statement of operations as disclosed in the table above.

On September 16, 2005, the Company, through its wholly owned subsidiary, Micro Express Holdings Inc. (“Micro”), signed an agreement (the “Mianping Agreement”) with Beijing Mianping Salt Lake Research Institute (“Mianping”) for the development of Dangxiongcuo salt lake property (“DXC Salt Lake”) in Nima county of Naqu district in Tibet, China.

Pursuant to the Mianping Agreement, the parties agreed to set up a Cooperative Company, (the “Cooperative”) to develop the DXC Salt Lake. The objective of the Cooperative was to use the funds provided by the Company and the skills and technology provided by the other party to produce lithium carbonate and borate from brine. The Company, through Micro, was to own 65% of the Cooperative. It was anticipated that the total investment in the Cooperative would be approximately 240 million RMB (or approximately US$35 million). The Cooperative Company was never set up. On July 3, 2007, Micro received a letter from the other party to the Mianping Agreement stating that the agreement between Micro and the other party should be deemed terminated as a result of lack of progress in the approval for the establishment of the joint venture company and was considering a lawsuit against the Company and Micro. Micro has responded that the other party’s claim has no legal grounds as the lack of progress was not caused by Micro. There has been no legal action to date and none is expected. By letter dated August 25, 2008, Mianping has confirmed that the agreement dated September 16, 2005 was terminated effective July 8, 2008. This agreement was replaced by the agreement with Zhong Chuan International Mining Holdings Co. Ltd. (“Zhong Chuan”) dated July 8, 2008 (“the Agreement”).

The Company received verbal termination of the Agreement with Zhong Chuan in July 2009, as advised by third party legal counsel, at a meeting in Beijing, China. The Agreement, in effect, allows Zhong Chuan to terminate the Agreement if it pays the Company double the amount of funds paid by the Company to date to secure and develop the DXC Project. Zhong Chuan has not paid the required amount anticipated by the Agreement to date. The delay in payment has delayed the termination process. At this point, the termination was incomplete.

As Zhong Chuan did not fulfill the terms of the Agreement, DXC Salt Lake project was delayed again. The Company renegotiated with Mianping which still holds DXC Salt Lake project. On October 31, 2011, the Company and its wholly owned subsidiary, Micro Express Holdings Inc. (collectively "Micro Express"), signed an agreement (the "Termination Agreement") with Beijing Mianping Salt Lake Research Institute and Tibet Sunrise Mining Development Ltd. which is the actual control person of Beijing Mianping Salt Lake Research Institute (collectively "Sunrise") regarding amending and terminating the agreement dated September 16, 2005 between Micro Express Holdings Inc. and Beijing Mianping Salt Lake Research Institute for the development of the Dangxiongcuo (DXC) Salt Lake Project located in Nima County, Tibet, China ( the "Mianping Agreement").

Pursuant to the Termination Agreement, the parties have confirmed that when Sunrise completes its shareholder's change and increases its registered capital to RMB100 million, Sunrise warrants and agrees to pay lump sum RMB10 million (approximately $1,570,200) to Micro Express immediately in exchange of the original receipts in total amount of RMB6,218,451 which Micro Express has spent for the DXC project and the receipt of RMB3,781,549 from Micro Express. Upon receipt of full payment of RMB10,000,000 (approximately $1,570,200) from Sunrise, Micro Express shall quitclaim all of its interest in and to the DXC project and the Mianping Agreement and amendments thereto, if any, shall be deemed to be null and void effective immediately.

As of August 31, 2012, the Company had incurred a total of $1,042,167 in mineral property costs on this property.

On June 21, 2012, the Company received the full payment of RMB10,000,000 from Sunrise, and had quitclaimed all of its interest in and to the DXC lithium project and the Mianping Agreement and amendments thereto, if any, were null and void. RMB700,000 was incurred as expenses for the collection of the refund. The net amount, RMB9,300,000 ($1,461,588) was recorded as other income in the consolidated statement of operations.

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Schedule of Stockholders' Equity Note, Warrants or Rights (Details)	3 Months Ended
	Aug. 31, 2012
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 1	3,817,500
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 2	0.5
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 3	20,752,500
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 4	0.15
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights 5	24,570,000

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Schedule of Stockholders' Equity Note, Warrants or Rights, Activity (Details)	3 Months Ended
	Aug. 31, 2012
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 1	24,570,000
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 2	0.204
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 3	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 4	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 5	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 6	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 7	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 8	0
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 9	24,570,000
Capital Stock Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 10	0.204

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Recent Accounting Pronouncements

3 Months Ended

Aug. 31, 2012

Recent Accounting Pronouncements [Text Block]

Note 2	Recent Accounting Pronouncements
	The Company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the Company’s consolidated financial statements.
	On June 1, 2012, the Company adopted the FASB ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. This ASU is intended to result in convergence between U.S. GAAP and International Financial Reporting Standards (“IFRS”) requirements for measurement of and disclosures about fair value. The amendments are not expected to have a significant impact on companies applying U.S. GAAP. Key provisions of the amendment include: a prohibition on grouping financial instruments for purposes of determining fair value, except when an entity manages market and credit risks on the basis of the entity’s net exposure to the group; an extension of the prohibition against the use of a blockage factor to all fair value measurements (that prohibition currently applies only to financial instruments with quoted prices in active markets); and a requirement that for recurring Level 3 fair value measurements, entities disclose quantitative information about unobservable inputs, a description of the valuation process used and qualitative details about the sensitivity of the measurements. In addition, for items not carried at fair value but for which fair value is disclosed, entities will be required to disclose the level within the fair value hierarchy that applies to the fair value measurement disclosed The adoption of this ASU did not have a significant impact on the Company’s fair value measurements, financial condition, results of operations or cash flows as the company’s financial instruments’ carrying values approximate fair value due to their short term nature.
	On June 1, 2012, the Company adopted the FASB ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. This ASU requires companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income. The adoption of this ASU did not have a material impact on the Company’s financial statements.

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CONSOLIDATED BALANCE SHEETS (USD $)	Aug. 31, 2012	May 31, 2012
Current Assets
Cash and cash equivalents	$ 2,508,825	$ 1,262,278
Interest receivable	291	0
HST receivable	25,082	20,418
Prepaid expenses and other receivable	16,166	31,629
Total current assets	2,550,364	1,314,325
Equipment - Note 4	206,914	153,392
Environmental deposit - Note 3(a)	124,416	123,990
Mineral Properties - Note 3(a)	3,148,740	3,148,740
Total Assets	6,030,434	4,740,447
Current Liabilities
Accounts payable and other accrued liabilities - Note 5	504,925	476,069
Deferred income tax liability Note 3(a)	732,687	732,687
Total Liabilities	1,237,612	1,208,756
Stockholders' Equity
Common Stock : $0.001 Par Value - Note 6 Authorized : 500,000,000 Issued and Outstanding : 75,730,341 (May 31, 2012: 75,730,341)	75,730	75,730
Additional Paid In Capital - Note 6	9,799,493	9,799,493
Accumulated Other Comprehensive Loss	(582)	(582)
Deficit accumulated during the exploration stage	(5,081,819)	(6,342,950)
Total Stockholders' Equity	4,792,822	3,531,691
Total Liabilities and Stockholders' Equity	$ 6,030,434	$ 4,740,447

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (CAPITAL DEFICIT) (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Deficit Accumulated During the Exploration Stage [Member]	Total
Beginning Balance at Jul. 27, 1994
Common stock	$ 1				$ 1
Common stock (Shares)	1
Amount contributed by director		1,881			1,881
Net loss for the year				(7,902)	(7,902)
Ending Balance at May. 31, 2001	1	1,881		(7,902)	(6,020)
Ending Balance (Shares) at May. 31, 2001	1
Net loss for the year				(1,860)	(1,860)
Ending Balance at May. 31, 2002	1	1,881		(9,762)	(7,880)
Ending Balance (Shares) at May. 31, 2002	1
Net loss for the year				(1,360)	(1,360)
Ending Balance at May. 31, 2003	1	1,881		(11,122)	(9,240)
Beginning Balance (Shares) at May. 31, 2003	1
Reverse acquisition	(1)	(1,881)			(1,882)
Reverse acquisition (Shares)	(1)
Outstanding common shares of Company prior to acquisition	11,360	(10,883)	(583)		(106)
Outstanding common shares of Company prior to acquisition (Shares)	11,360,000
Issuance of shares for cash pursuant to a private placement - at $0.50	1,766	881,234			883,000
Issuance of shares for cash pursuant to a private placement - at $0.50 (Shares)	1,766,000
Stock-based compensation		368,641			368,641
acquisition	25,000	(23,119)			1,881
acquisition (Shares)	25,000,000
Net loss for the year				(527,446)	(527,446)
Ending Balance at May. 31, 2004	38,126	1,215,873	(583)	(538,568)	714,848
Ending Balance (Shares) at May. 31, 2004	38,126,000
Issuance of shares for cash pursuant to a private placement - at $0.50	1,950	973,050			975,000
Issuance of shares for cash pursuant to a private placement - at $0.50 (Shares)	1,950,000
Issuance of shares for finder's fee of private placement	102	50,648			50,750
Issuance of shares for finder's fee of private placement (Shares)	101,500
Finders' fees		(50,750)			(50,750)
Issuance of shares for services rendered	100	41,900			42,000
Issuance of shares for services rendered (Shares)	100,000
Net loss for the year				(818,954)	(818,954)
Ending Balance at May. 31, 2005	40,278	2,230,721	(583)	(1,357,522)	912,894
Ending Balance (Shares) at May. 31, 2005	40,277,500
Net loss for the year				(461,201)	(461,201)
Ending Balance at May. 31, 2006	40,278	2,230,721	(583)	(1,818,723)	451,693
Beginning Balance (Shares) at May. 31, 2006	40,277,500
Issuance of shares for finder's fee of private placement	124	21,522			21,646
Issuance of shares for finder's fee of private placement (Shares)	123,690
Finders' fees		(21,646)			(21,646)
Issuance of shares for services rendered	350	48,650			49,000
Issuance of shares for services rendered (Shares)	350,000
Issuance of shares for cash pursuant to a private placement - at $0.15	2,750	409,795			412,545
Issuance of shares for cash pursuant to a private placement - at $0.15 (Shares)	2,750,300
Share issuance costs		(3,687)			(3,687)
Net loss for the year				(864,485)	(864,485)
Ending Balance at May. 31, 2007	43,502	2,685,355	(583)	(2,683,208)	45,066
Ending Balance (Shares) at May. 31, 2007	43,501,490
Issuance of shares for services rendered at $0.06	324	19,156			19,480
Issuance of shares for services rendered at $0.06 (Shares)	324,685
Revaluation of share purchase warrants		409,525			409,525
Net loss for the year				(516,440)	(516,440)
Ending Balance at May. 31, 2008	43,826	3,114,036	(583)	(3,199,648)	(42,369)
Ending Balance (Shares) at May. 31, 2008	43,826,175
Revaluation of share purchase warrants		83,852			83,852
Net loss for the year				(245,405)	(245,405)
Ending Balance at May. 31, 2009	43,826	3,197,888	(583)	(3,445,053)	(203,922)
Ending Balance (Shares) at May. 31, 2009	43,826,175
Revaluation of share purchase warrants		91,704			91,704
Net loss for the year				(213,704)	(213,704)
Ending Balance at May. 31, 2010	43,826	3,289,592	(583)	(3,658,757)	(325,922)
Beginning Balance (Shares) at May. 31, 2010	43,826,175
Issuance of shares for finder's fee of private placement	752	(752)
Issuance of shares for finder's fee of private placement (Shares)	752,500
Issuance of shares for services rendered	350	80,150			80,500
Issuance of shares for services rendered (Shares)	350,000
Issuance of shares for cash pursuant to a private placement - at $0.10	20,000	1,980,000			2,000,000
Issuance of shares for cash pursuant to a private placement - at $0.10 (Shares)	20,000,000
Stock-based compensation		1,692,526			1,692,526
Issuance of shares for exercise of warrants - at $0.18	802	143,498			144,300
Issuance of shares for exercise of warrants - at $0.18 (Shares)	801,666
Currency translation adjustment			1		1
Net loss for the year				(1,863,448)	(1,863,448)
Ending Balance at May. 31, 2011	65,730	7,185,014	(582)	(5,522,205)	1,727,957
Ending Balance (Shares) at May. 31, 2011	65,730,341
Stock-based compensation		424,479			424,479
Issuance of shares for acquisition of the subsidiary - at $0.22	10,000	2,190,000			2,200,000
Issuance of shares for acquisition of the subsidiary - at $0.22 (Shares)	10,000,000
Net loss for the year				(820,745)	(820,745)
Ending Balance at May. 31, 2012	75,730	9,799,493	(582)	(6,342,950)	3,531,691
Ending Balance (Shares) at May. 31, 2012	75,730,341
Issuance of shares for services rendered					0
Net loss for the year				1,261,131	1,261,131
Ending Balance at Aug. 31, 2012	$ 75,730	$ 9,799,493	$ (582)	$ (5,081,819)	$ 4,792,822
Ending Balance (Shares) at Aug. 31, 2012	75,730,341

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Foreign Currency Risk (Narrative) (Details) (USD $)	3 Months Ended
	Aug. 31, 2012
Foreign Currency Risk 1	$ 1,203,201
Foreign Currency Risk 2	10,924
Foreign Currency Risk 3	19,982
Foreign Currency Risk 4	50,850
Foreign Currency Risk 5	467
Foreign Currency Risk 6	$ 538

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Schedule of Purchase Net Assets (Details)	3 Months Ended
	Aug. 31, 2012
Mineral Properties Schedule Of Purchase Net Assets 1	310,438
Mineral Properties Schedule Of Purchase Net Assets 2	2,200,000
Mineral Properties Schedule Of Purchase Net Assets 3	27,749

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Nature of Operations and Ability to Continue as a Going Concern

3 Months Ended

Aug. 31, 2012

Nature of Operations and Ability to Continue as a Going Concern [Text Block]

Note 1	Nature of Operations and Ability to Continue as a Going Concern
	Sterling Group Ventures, Inc. was incorporated in the State of Nevada on September 13, 2001 and its fiscal year-end is May 31. On January 20, 2004, the Company acquired all of the issued and outstanding shares of Micro Express Ltd. (“Micro”), which was incorporated on July 27, 1994. The business combination was accounted for as a reverse acquisition whereby the purchase method of accounting was used with Micro being the accounting acquirer and the Company being the accounting subsidiary. The cumulative figures are shown on a reverse acquisition basis with respect to the accounting acquirer’s date of inception, July 27, 1994.
	Sterling Group Ventures, Inc. (the “Company”) is in the exploration stage. The Company has entered into joint venture agreements to explore and develop mineral properties located in China and has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts from these properties will be dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the joint venture agreements and to complete the development of the properties and upon future profitable production or proceeds from the sale thereof.
	These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown as these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At August 31, 2012, the Company generated a net income of $1,261,131 during the three months ended August 31, 2012 and the cumulative loss of $5,081,819 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available.
	These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Micro Express Holdings Inc., Micro Express Ltd., Huyana Ventures Limited, Makaelo Holdings Inc., Makaelo Limited, Silver Castle Investments Limited (“Silver Castle”) and its 100% controlled subsidiary, Chenxi County Hongyu Mining Co. Ltd. ("Hongyu"). All inter-company transactions and account balances have been eliminated.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Aug. 31, 2012	May 31, 2012
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	75,730,341	75,730,341
Common Stock, Shares, Outstanding	75,730,341	75,730,341

XML

Nature of Operations and Ability to Continue as a Going Concern (Narrative) (Details) (USD $)	3 Months Ended
	Aug. 31, 2012
Nature Of Operations And Ability To Continue As A Going Concern 1	$ 1,261,131
Nature Of Operations And Ability To Continue As A Going Concern 2	$ 5,081,819
Nature Of Operations And Ability To Continue As A Going Concern 3	100.00%

XML

Document and Entity Information	3 Months Ended
	Aug. 31, 2012	Oct. 12, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2012
Trading Symbol	sggv
Entity Registrant Name	STERLING GROUP VENTURES INC
Entity Central Index Key	0001175416
Current Fiscal Year End Date	--05-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		75,730,341
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

XML

Mineral Properties (Narrative) (Details)	3 Months Ended
	Aug. 31, 2012 USD ($)	Aug. 31, 2012 CNY
Mineral Properties 1	$ 222,227
Mineral Properties 2	20.00%	20.00%
Mineral Properties 3	80.00%	80.00%
Mineral Properties 4	90.00%	90.00%
Mineral Properties 5	10.00%	10.00%
Mineral Properties 6		5,000,000
Mineral Properties 7	771,545
Mineral Properties 8		200,000
Mineral Properties 9	30,934
Mineral Properties 10	25,083
Mineral Properties 11		1,800,000
Mineral Properties 12	279,504
Mineral Properties 13		2,000,000
Mineral Properties 14	310,438
Mineral Properties 15	20.00%	20.00%
Mineral Properties 16	10,000,000	10,000,000
Mineral Properties 17	10,000,000	10,000,000
Mineral Properties 18	0.22
Mineral Properties 19	20.00%	20.00%
Mineral Properties 20	100.00%	100.00%
Mineral Properties 21	90.00%	90.00%
Mineral Properties 22	10.00%	10.00%
Mineral Properties 23		2,000,000
Mineral Properties 24	310,438
Mineral Properties 25	10,000,000	10,000,000
Mineral Properties 26	$ 0.22
Mineral Properties 27	27,749
Mineral Properties 28	304,279
Mineral Properties 29	65.00%	65.00%
Mineral Properties 30	240,000,000	240,000,000
Mineral Properties 31	35,000,000
Mineral Properties 32		100,000,000
Mineral Properties 33		10,000,000
Mineral Properties 34	1,570,200
Mineral Properties 35		6,218,451
Mineral Properties 36		3,781,549
Mineral Properties 37		10,000,000
Mineral Properties 38	1,570,200
Mineral Properties 39	1,042,167
Mineral Properties 40		10,000,000
Mineral Properties 41		700,000
Mineral Properties 42		9,300,000
Mineral Properties 43	$ 1,461,588

XML

CONSOLIDATED STATEMENTS OF OPERATIONS COMPREHENSIVE LOSS (USD $)	3 Months Ended		217 Months Ended
	Aug. 31, 2012	Aug. 31, 2011	Aug. 31, 2012
Expenses
Accounting, audit, legal and professional fees	$ 28,611	$ 32,566	$ 651,608
Bank charges	257	339	3,402
Consulting fees - Note 5, 6 (b&c)	6,288	6,874	3,840,947
Depreciation	4,159	175	17,269
Filing fees and transfer agent	4,818	4,356	65,581
Foreign exchange loss (gain)	10,084	(9,050)	(17,618)
General and administrative	489	1,429	127,456
Mineral property costs - Note 3	145,949	15,111	1,568,673
Printing and mailing	0	5,000	22,432
Shareholder information and investor relations	1,699	77,863	166,214
Travel and entertainment	2,969	8,543	160,724
Recovery of doubtful collection	0	0	(272,358)
Allowance for doubtful collection	0	0	246,708
Total Operating Expenses	(205,323)	(143,206)	(6,581,038)
Other item
Interest income	4,866	104	37,631
Other income - Note 3(b)	1,461,588	0	1,461,588
Nonoperating Income (Expense)	1,466,454	104	1,499,219
Net income (loss) for the period	1,261,131	(143,102)	(5,081,819)
Currency translation adjustment	0	0	(582)
Comprehensive income (loss) for the period	$ 1,261,131	$ (143,102)	$ (5,082,401)
Basic and diluted earning (loss) per share	$ 0.02	$ 0.00
Weighted average number of shares outstanding	75,730,341	71,925,993

XML

Capital Stock

3 Months Ended

Aug. 31, 2012

Capital Stock [Text Block]

Note 6	Capital Stock
	a) Capital Stock
	During the years ended May 31, 2004 and 2005, the Company completed a private placement of 3,716,000 units at $0.50 per unit for total proceeds of $1,858,000. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.75 per share, expiring on February 16, 2006 (the Series “A” Share Purchase Warrants). Upon exercise of the “A” share purchase warrant, an additional share purchase warrant will be granted at $1.00 per share, expiring February 16, 2007 (the Series “B” Share Purchase Warrants). An additional 101,500 units were issued as finders’ fees.
	On December 18, 2004, the Company issued 100,000 shares with a fair value of $42,000 to a consultant for investor relations services for a period of one year.
	During the year ended May 31, 2007, the Company completed a private placement of 2,750,300 units at $0.15 per unit for total proceeds of $412,545. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.18 per share expiring on December 29, 2006 (the Series “C” Share Purchase Warrants). An additional 123,690 units were issued as finders’ fees.

During the year ended May 31, 2008, the Company issued 324,685 common shares at $0.06 per share to settle accounts payable of $19,480.

During the year ended May 31, 2011, the Company completed a private placement of 20,000,000 units at $0.10 per unit for total proceeds of $2,000,000. Each unit consists of one common share and one share purchase warrant entitling the holder the right to purchase one common share at $0.15 per share expiring on January 31, 2012 (the Series “D” Share Purchase Warrants). An additional 752,500 units were issued as finders’ fees.

On May 25, 2011, the Company issued 350,000 shares at a quoted market price of $0.23 each to a consultant for its services.

On July 5, 2011, Sterling issued 10,000,000 shares to the Hongyu Shareholders with the closing market price of the shares at $0.22 for acquiring the remaining 20% equity interest in Silver Castle from the Hongyu Shareholders (Note 3).

b) Stock Options

During the year ended May 31, 2004, the Company granted 2,100,000 fully vested stock options to directors and officers of the Company at an exercise price of $0.50 per share. These stock options expired on February 3, 2009.

The Company accounts for its stock based compensation plans using the intrinsic value method whereby no compensation costs had been recognized in the financial statements for stock options granted to employees and directors. If the fair value method had been used for options granted, a fair value of $504,000 would be recorded as compensation expenses.

During the year ended May 31, 2004 the Company also granted 1,536,000 fully vested stock options to consultants at an exercise price of $0.50 per share. These stock option expired February 3, 2009. The fair value of options granted to non-employees and non-directors was $368,641 and had been recorded as stock-based compensation expense.

The fair value of each option grant was $0.24 and was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for the options granted on February 3, 2004: dividend yield of 0%, expected volatility of 51.15%, risk-free interest rate of 3.26%, and an expected life of 5 years.

On April 27, 2011, the Company granted 4,700,000 stock options to employees and consultants at an exercise price of $0.25 each expiring on February 3, 2019. The options were vested immediately.

On November 3, 2011, the Company granted 500,000 stock options to a consultant at an exercise price of $0.25 each expiring on February 3, 2019. The options were vested immediately.

The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions for grants as follows:

	Year ended
	May 31, 2012
Risk free interest rate	1.48%
Expected life of options in years	7.26 years
Expected volatility	233.3%
Dividend per share	$0.00

During the year ended May 31, 2012, the weighted average fair value of options granted was $0.08 per share. The Company recognized a total stock based compensation expense of $40,000 for options granted and vested using the Black-Scholes option pricing model.

At August 31, 2012, there were 5,200,000 stock options (May 31, 2012: 5,200,000) outstanding and exercisable with an exercise price at $0.25 each expiring on February 3, 2019, an aggregate intrinsic value of $nil (May 31, 2012: $1,300,000) and a weighted average remaining contractual term of 6.43 years (May 31, 2012: 6.82) .

c) Share Purchase Warrants

Changes in share purchase warrants for the three months ended August 31, 2012 and the year ended May 31, 2012 are summarized as follows:

			Weighted
			Average
	Number of		Exercise
	Shares		Price
Balance, May 31, 2011	24,570,000	$	0.204
Granted	-		-
Exercised	-		-
Expired	-		-
Balance, May 31, 2012 and August 31, 2012	24,570,000	$	0.204

Share purchase warrants outstanding at August 31, 2012:

Series	Number	Price	Expiry Date
"A"	3,817,500	$      0.50	February 15, 2013
"D"	20,752,500	$      0.15	February 15, 2013
	24,570,000

Each Series “A” warrant entitles the holder thereof the right to purchase one common share at $0.50 per share expiring on the earlier of:

1)      February 16, 2008; or

2)      The 30th day after the day on which the weighted average trading price of the Company's shares exceeds $0.80 per share for 20 consecutive trading days.

Upon exercise of the Series "A" Share Purchase Warrant at $0.50 each, the holder will receive one Common Share of the Company and a Series "B" Share Purchase Warrant exercisable at $1.00 expiring one year after the occurrence of either (1) or (2) as described above. The Series "A" Share Purchase Warrants were originally issued in 2004 pursuant to a private placement commenced in February 2004.

On February 7, 2008, the Company extended the expiry date of the 3,817,500 Series “A” Share Purchase Warrants from February 16, 2008 to February 16, 2009. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $252,989 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 218.52%, risk free interest rates of 2.08% and expected life of one year.

On February 6, 2009, the Company re-extended the expiry date of 3,817,500 Series “A” Share Purchase Warrants from February 16, 2009 to February 16, 2010. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $35,593 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 223.36%, risk free interest rates of 0.82% and expected life of one year.

On February 12, 2010, the Company re-extended the expiry date of 3,817,500 Series "A" Share Purchase Warrants from February 16, 2010 to February 16, 2011. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $44,283 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244%, risk free interest rates of 0.56% and expected life of one year.

On February 14, 2011, the Company re-extended the expiry date of 3,817,500 Series "A" Share Purchase Warrants from February 16, 2011 to February 16, 2012. The exercise price of the warrants remains unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $517,526 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 201%, risk free interest rates of 0.29% and expected life of one year.

On January 26, 2012, the Company re-extended the expiry date of 3,817,500 Series "A" share purchase warrants from February 16, 2012 to the earlier of February 15, 2013 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The exercise price of the warrants remained unchanged at $0.50 per share. The additional fair value of the 3,817,500 extended life Series “A” Share Purchase Warrants was estimated at $25,832 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 155.80%, risk-free interest rates of 0.12% and expected life of 1.05 years.

On February 7, 2008, the Company extended the expiry date of the 2,873,990 Series “C” Share Purchase Warrants from February 29, 2008 to February 27, 2009. The exercise price of the warrants remained unchanged at $0.18 per share. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $156,536 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 222.09%, risk-free interest rates of 2.08% and expected life of one year.

On February 6, 2009, the Company re-extended the expiry date of 2,873,990 Series "C" share purchase Warrants from February 27, 2009 to February 26, 2010. The exercise price of the warrants remains unchanged at $0.18 per share. The Series "C" Share Purchase Warrants were originally issued in September 2006 pursuant to a private placement commenced in August 2006. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $48,259 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244.01%, risk-free interest rates of 0.82% and expected life of one year.

On February 12, 2010, the Company re-extended the expiry date of 2,873,990 the Series "C" share purchase Warrants from February 26, 2010 to February 16, 2011. The exercise price of the warrants remains unchanged at $0.18 per share. The additional fair value of the 2,873,990 extended life Series “C” Share Purchase Warrants was estimated at $47,421 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 244%, risk-free interest rates of 0.56% and expected life of one year.

During the year ended May 31, 2011, 801,666 Series "C" Share Purchase Warrants with an exercise price of $0.18 per share were exercised for gross proceeds of approximately $144,300. On February 16, 2011, the remaining Series "C" Share Purchase Warrants expired unexercised.

On January 26, 2012, the Company extended the expiry date of the 20,752,500 Series "D" Share Purchase Warrants (the "D" Warrants) to the earlier of February 15, 2013 or the close of business on the 30th day after a takeover bid for the Company's issued and outstanding share capital has been made by a third party and approved by the shareholders of the Company. The exercise price of the "D" Warrants remains unchanged at $0.15 per share. The additional fair value of the 20,752,500 extended life Series “D” Share Purchase Warrants was estimated at $358,647 using the Black-Scholes Option Pricing Model with the following weighted average assumptions: dividend yield of 0%, expected volatility of 157.29%, risk-free interest rates of 0.12% and expected life of 1.05 years.

XML

Related Party Transactions

3 Months Ended

Aug. 31, 2012

Related Party Transactions [Text Block]

Note 5	Related Party Transactions
	The Company was charged consulting fees for administrative, corporate, financial, engineering, and management services during the three months ended August 31, 2012 totaling $5,974 (2011: $6,176) by companies controlled by a director of the Company.
	Included in accounts payable and accrued liabilities is $477,898 (May 31, 2012: $463,971) which was due to companies controlled by the directors of the Company for their services provided.
	These transactions were measured at the exchange amount which represented the amount of consideration established and agreed to by the related parties.

XML

Summary of mineral property expenditures (Details)	3 Months Ended
	Aug. 31, 2012
Mineral Properties Summary Of Mineral Property Expenditures 1	0
Mineral Properties Summary Of Mineral Property Expenditures 2	0
Mineral Properties Summary Of Mineral Property Expenditures 3	5,560
Mineral Properties Summary Of Mineral Property Expenditures 4	0
Mineral Properties Summary Of Mineral Property Expenditures 5	5,560
Mineral Properties Summary Of Mineral Property Expenditures 6	46,629
Mineral Properties Summary Of Mineral Property Expenditures 7	0
Mineral Properties Summary Of Mineral Property Expenditures 8	46,629
Mineral Properties Summary Of Mineral Property Expenditures 9	26,933
Mineral Properties Summary Of Mineral Property Expenditures 10	0
Mineral Properties Summary Of Mineral Property Expenditures 11	26,933
Mineral Properties Summary Of Mineral Property Expenditures 12	29,080
Mineral Properties Summary Of Mineral Property Expenditures 13	0
Mineral Properties Summary Of Mineral Property Expenditures 14	29,080
Mineral Properties Summary Of Mineral Property Expenditures 15	31,114
Mineral Properties Summary Of Mineral Property Expenditures 16	0
Mineral Properties Summary Of Mineral Property Expenditures 17	31,114
Mineral Properties Summary Of Mineral Property Expenditures 18	623
Mineral Properties Summary Of Mineral Property Expenditures 19	0
Mineral Properties Summary Of Mineral Property Expenditures 20	623
Mineral Properties Summary Of Mineral Property Expenditures 21	32,266
Mineral Properties Summary Of Mineral Property Expenditures 22	0
Mineral Properties Summary Of Mineral Property Expenditures 23	32,266
Mineral Properties Summary Of Mineral Property Expenditures 24	30,953
Mineral Properties Summary Of Mineral Property Expenditures 25	0
Mineral Properties Summary Of Mineral Property Expenditures 26	30,953
Mineral Properties Summary Of Mineral Property Expenditures 27	33,601
Mineral Properties Summary Of Mineral Property Expenditures 28	0
Mineral Properties Summary Of Mineral Property Expenditures 29	33,601
Mineral Properties Summary Of Mineral Property Expenditures 30	236,759
Mineral Properties Summary Of Mineral Property Expenditures 31	0
Mineral Properties Summary Of Mineral Property Expenditures 32	236,759
Mineral Properties Summary Of Mineral Property Expenditures 33	5,200
Mineral Properties Summary Of Mineral Property Expenditures 34	0
Mineral Properties Summary Of Mineral Property Expenditures 35	5,200
Mineral Properties Summary Of Mineral Property Expenditures 36	134,580
Mineral Properties Summary Of Mineral Property Expenditures 37	0
Mineral Properties Summary Of Mineral Property Expenditures 38	134,580
Mineral Properties Summary Of Mineral Property Expenditures 39	38,063
Mineral Properties Summary Of Mineral Property Expenditures 40	0
Mineral Properties Summary Of Mineral Property Expenditures 41	38,063
Mineral Properties Summary Of Mineral Property Expenditures 42	382,920
Mineral Properties Summary Of Mineral Property Expenditures 43	0
Mineral Properties Summary Of Mineral Property Expenditures 44	382,920
Mineral Properties Summary Of Mineral Property Expenditures 45	15,001
Mineral Properties Summary Of Mineral Property Expenditures 46	0
Mineral Properties Summary Of Mineral Property Expenditures 47	15,001
Mineral Properties Summary Of Mineral Property Expenditures 48	9,695
Mineral Properties Summary Of Mineral Property Expenditures 49	0
Mineral Properties Summary Of Mineral Property Expenditures 50	9,695
Mineral Properties Summary Of Mineral Property Expenditures 51	53,262
Mineral Properties Summary Of Mineral Property Expenditures 52	0
Mineral Properties Summary Of Mineral Property Expenditures 53	53,262
Mineral Properties Summary Of Mineral Property Expenditures 54	35,687
Mineral Properties Summary Of Mineral Property Expenditures 55	0
Mineral Properties Summary Of Mineral Property Expenditures 56	35,687
Mineral Properties Summary Of Mineral Property Expenditures 57	911,167
Mineral Properties Summary Of Mineral Property Expenditures 58	0
Mineral Properties Summary Of Mineral Property Expenditures 59	911,167
Mineral Properties Summary Of Mineral Property Expenditures 60	706
Mineral Properties Summary Of Mineral Property Expenditures 61	0
Mineral Properties Summary Of Mineral Property Expenditures 62	706
Mineral Properties Summary Of Mineral Property Expenditures 63	60,548
Mineral Properties Summary Of Mineral Property Expenditures 64	0
Mineral Properties Summary Of Mineral Property Expenditures 65	60,548
Mineral Properties Summary Of Mineral Property Expenditures 66	5,456
Mineral Properties Summary Of Mineral Property Expenditures 67	0
Mineral Properties Summary Of Mineral Property Expenditures 68	5,456
Mineral Properties Summary Of Mineral Property Expenditures 69	11,566
Mineral Properties Summary Of Mineral Property Expenditures 70	0
Mineral Properties Summary Of Mineral Property Expenditures 71	11,566
Mineral Properties Summary Of Mineral Property Expenditures 72	989,443
Mineral Properties Summary Of Mineral Property Expenditures 73	0
Mineral Properties Summary Of Mineral Property Expenditures 74	989,443
Mineral Properties Summary Of Mineral Property Expenditures 75	867
Mineral Properties Summary Of Mineral Property Expenditures 76	0
Mineral Properties Summary Of Mineral Property Expenditures 77	867
Mineral Properties Summary Of Mineral Property Expenditures 78	27,890
Mineral Properties Summary Of Mineral Property Expenditures 79	0
Mineral Properties Summary Of Mineral Property Expenditures 80	27,890
Mineral Properties Summary Of Mineral Property Expenditures 81	16,959
Mineral Properties Summary Of Mineral Property Expenditures 82	0
Mineral Properties Summary Of Mineral Property Expenditures 83	16,959
Mineral Properties Summary Of Mineral Property Expenditures 84	7,008
Mineral Properties Summary Of Mineral Property Expenditures 85	0
Mineral Properties Summary Of Mineral Property Expenditures 86	7,008
Mineral Properties Summary Of Mineral Property Expenditures 87	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 88	0
Mineral Properties Summary Of Mineral Property Expenditures 89	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 90	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 91	0
Mineral Properties Summary Of Mineral Property Expenditures 92	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 93	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 94	0
Mineral Properties Summary Of Mineral Property Expenditures 95	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 96	0
Mineral Properties Summary Of Mineral Property Expenditures 97	11,736
Mineral Properties Summary Of Mineral Property Expenditures 98	11,736
Mineral Properties Summary Of Mineral Property Expenditures 99	0
Mineral Properties Summary Of Mineral Property Expenditures 100	1,367
Mineral Properties Summary Of Mineral Property Expenditures 101	1,367
Mineral Properties Summary Of Mineral Property Expenditures 102	0
Mineral Properties Summary Of Mineral Property Expenditures 103	959
Mineral Properties Summary Of Mineral Property Expenditures 104	959
Mineral Properties Summary Of Mineral Property Expenditures 105	0
Mineral Properties Summary Of Mineral Property Expenditures 106	3,143
Mineral Properties Summary Of Mineral Property Expenditures 107	3,143
Mineral Properties Summary Of Mineral Property Expenditures 108	0
Mineral Properties Summary Of Mineral Property Expenditures 109	3,639
Mineral Properties Summary Of Mineral Property Expenditures 110	3,639
Mineral Properties Summary Of Mineral Property Expenditures 111	0
Mineral Properties Summary Of Mineral Property Expenditures 112	25,143
Mineral Properties Summary Of Mineral Property Expenditures 113	25,143
Mineral Properties Summary Of Mineral Property Expenditures 114	0
Mineral Properties Summary Of Mineral Property Expenditures 115	39,663
Mineral Properties Summary Of Mineral Property Expenditures 116	39,663
Mineral Properties Summary Of Mineral Property Expenditures 117	0
Mineral Properties Summary Of Mineral Property Expenditures 118	35,324
Mineral Properties Summary Of Mineral Property Expenditures 119	35,324
Mineral Properties Summary Of Mineral Property Expenditures 120	0
Mineral Properties Summary Of Mineral Property Expenditures 121	37,356
Mineral Properties Summary Of Mineral Property Expenditures 122	37,356
Mineral Properties Summary Of Mineral Property Expenditures 123	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 124	158,330
Mineral Properties Summary Of Mineral Property Expenditures 125	1,200,497
Mineral Properties Summary Of Mineral Property Expenditures 126	0
Mineral Properties Summary Of Mineral Property Expenditures 127	3,617
Mineral Properties Summary Of Mineral Property Expenditures 128	3,617
Mineral Properties Summary Of Mineral Property Expenditures 129	0
Mineral Properties Summary Of Mineral Property Expenditures 130	3,944
Mineral Properties Summary Of Mineral Property Expenditures 131	3,944
Mineral Properties Summary Of Mineral Property Expenditures 132	0
Mineral Properties Summary Of Mineral Property Expenditures 133	89,929
Mineral Properties Summary Of Mineral Property Expenditures 134	89,929
Mineral Properties Summary Of Mineral Property Expenditures 135	0
Mineral Properties Summary Of Mineral Property Expenditures 136	11,520
Mineral Properties Summary Of Mineral Property Expenditures 137	11,520
Mineral Properties Summary Of Mineral Property Expenditures 138	0
Mineral Properties Summary Of Mineral Property Expenditures 139	10,294
Mineral Properties Summary Of Mineral Property Expenditures 140	10,294
Mineral Properties Summary Of Mineral Property Expenditures 141	0
Mineral Properties Summary Of Mineral Property Expenditures 142	7,516
Mineral Properties Summary Of Mineral Property Expenditures 143	7,516
Mineral Properties Summary Of Mineral Property Expenditures 144	0
Mineral Properties Summary Of Mineral Property Expenditures 145	19,129
Mineral Properties Summary Of Mineral Property Expenditures 146	19,129
Mineral Properties Summary Of Mineral Property Expenditures 147	1,042,167
Mineral Properties Summary Of Mineral Property Expenditures 148	304,279
Mineral Properties Summary Of Mineral Property Expenditures 149	1,346,446

XML

Equipment (Narrative) (Details) (USD $)	3 Months Ended
	Aug. 31, 2012
Equipment 1	$ 4,159
Equipment 2	$ 175

XML

Equipment (Tables)

3 Months Ended

Aug. 31, 2012

Property, Plant and Equipment [Table Text Block]

								May 31,
		August 31, 2012						2012
				Accumulated		Net Book		Net Book
		Cost		Depreciation		Value		Value
Computer equipment	$	13,691	$	10,632	$	3,059	$	2,274
Automobile		58,236		5,474		52,762		55,483
Office equipment		3,506		547		2,959		3,240
Machinery		37,528		635		36,893		3,797
Construction in progress		111,241		-		111,241		88,598
	$	224,202	$	17,288	$	206,914	$	153,392

XML

Foreign Currency Risk

3 Months Ended

Aug. 31, 2012

Foreign Currency Risk [Text Block]

Note 7 Foreign Currency Risk

The Company is exposed to fluctuations in foreign currencies through amounts held in China in RMB: Cash and cash equivalent $1,203,201 (May 31, 2012 - $10,924)

The Company is exposed to fluctuations in foreign currencies through amounts held in Canada in CAD: Cash $19,982 (May 31, 2012 - $50,850)

The Company is exposed to fluctuations in foreign currencies through amounts held in Hong Kong in HKD: Cash $467 (May 31, 2012 - $538)

XML

Mineral Properties (Tables)

3 Months Ended

Aug. 31, 2012

Summary of mineral property expenditures [Table Text Block]

		DXC		Gaoping
		Salt Lake		Phosphate
Summary of mineral property expenditures		Property		Property		Total
Balance, May 31, 2005	$	-			$	-
Administrative		5,560		-		5,560
Consulting fees		46,629		-		46,629
Engineering studies		26,933		-		26,933
Feasibility study		29,080		-		29,080
Geophysical study		31,114		-		31,114
Legal fees		623		-		623
Topography measurement		32,266		-		32,266
Travel		30,953		-		30,953
Wages and benefits		33,601		-		33,601
Balance, May 31, 2006		236,759		-		236,759
Administrative		5,200		-		5,200
Consulting fees		134,580		-		134,580
Engineering studies		38,063		-		38,063
Mining permit		382,920		-		382,920
Topography measurement		15,001		-		15,001
Legal fees		9,695		-		9,695
Travel		53,262		-		53,262
Wages and benefits		35,687		-		35,687
Balance, May 31, 2007		911,167		-		911,167
Administrative		706		-		706
Consulting fees		60,548		-		60,548
Travel		5,456		-		5,456
Legal fees		11,566		-		11,566
Balance, May 31, 2008		989,443		-		989,443
Administrative		867		-		867
Consulting fees		27,890		-		27,890
Travel		16,959		-		16,959
Legal fees		7,008		-		7,008
Balance, May 31, 2009		1,042,167		-		1,042,167
Balance, May 31, 2010		1,042,167		-		1,042,167
Balance, May 31, 2011		1,042,167		-		1,042,167
Administrative		-		11,736		11,736
Consulting fees		-		1,367		1,367
Engineering studies		-		959		959
Feasibility study		-		3,143		3,143
Field supplies		-		3,639		3,639
Project design and safety reports		-		25,143		25,143
Technical reports		-		39,663		39,663
Travel & promotion		-		35,324		35,324
Wages and benefits		-		37,356		37,356
Balance, May 31, 2012	$	1,042,167	$	158,330	$	1,200,497
Administrative		-		3,617		3,617
Consulting fees		-		3,944		3,944
Construction		-		89,929		89,929
Engineering studies		-		11,520		11,520
Field supplies		-		10,294		10,294
Travel & promotion		-		7,516		7,516
Wages and benefits		-		19,129		19,129
Balance, August 31, 2012	$	1,042,167	$	304,279	$	1,346,446

Schedule of Purchase Net Assets [Table Text Block]

Purchase price:
Cash consideration (1)	$	310,438
Common shares (1)		2,200,000
Transaction costs (2)		27,749

Schedule of Purchase Price Allocation [Table Text Block]

	$	2,538,187
Allocated to:
Environmental deposit	$	122,134
Mineral property		3,148,740
Deferred tax liability		(732,687	)
	$	2,538,187

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Capital Stock (Tables)

3 Months Ended

Aug. 31, 2012

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year ended
	May 31, 2012
Risk free interest rate	1.48%
Expected life of options in years	7.26 years
Expected volatility	233.3%
Dividend per share	$0.00

Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block]

			Weighted
			Average
	Number of		Exercise
	Shares		Price
Balance, May 31, 2011	24,570,000	$	0.204
Granted	-		-
Exercised	-		-
Expired	-		-
Balance, May 31, 2012 and August 31, 2012	24,570,000	$	0.204

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Series	Number	Price	Expiry Date
"A"	3,817,500	$      0.50	February 15, 2013
"D"	20,752,500	$      0.15	February 15, 2013
	24,570,000

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Capital Stock (Narrative) (Details) (USD $)	3 Months Ended
	Aug. 31, 2012 years options units
Capital Stock 1	3,716,000
Capital Stock 2	$ 0.5
Capital Stock 3	$ 1,858,000
Capital Stock 4	$ 0.75
Capital Stock 5	$ 1
Capital Stock 6	101,500
Capital Stock 7	100,000
Capital Stock 8	42,000
Capital Stock 9	2,750,300
Capital Stock 10	$ 0.15
Capital Stock 11	412,545
Capital Stock 12	$ 0.18
Capital Stock 13	123,690
Capital Stock 14	324,685
Capital Stock 15	$ 0.06
Capital Stock 16	19,480
Capital Stock 17	20,000,000
Capital Stock 18	$ 0.1
Capital Stock 19	2,000,000
Capital Stock 20	$ 0.15
Capital Stock 21	752,500
Capital Stock 22	350,000
Capital Stock 23	0.23
Capital Stock 24	10,000,000
Capital Stock 25	0.22
Capital Stock 26	20.00%
Capital Stock 27	2,100,000
Capital Stock 28	$ 0.5
Capital Stock 29	504,000
Capital Stock 30	1,536,000
Capital Stock 31	$ 0.5
Capital Stock 32	368,641
Capital Stock 33	0.24
Capital Stock 34	0.00%
Capital Stock 35	51.15%
Capital Stock 36	3.26%
Capital Stock 37	5
Capital Stock 38	4,700,000
Capital Stock 39	0.25
Capital Stock 40	500,000
Capital Stock 41	0.25
Capital Stock 42	$ 0.08
Capital Stock 43	40,000
Capital Stock 44	5,200,000
Capital Stock 45	5,200,000
Capital Stock 46	0.25
Capital Stock 47	0
Capital Stock 48	1,300,000
Capital Stock 49	6.43
Capital Stock 50	6.82
Capital Stock 51	$ 0.5
Capital Stock 52	$ 0.8
Capital Stock 53	20
Capital Stock 54	0.5
Capital Stock 55	1
Capital Stock 56	3,817,500
Capital Stock 57	$ 0.5
Capital Stock 58	3,817,500
Capital Stock 59	252,989
Capital Stock 60	0.00%
Capital Stock 61	218.52%
Capital Stock 62	2.08%
Capital Stock 63	3,817,500
Capital Stock 64	$ 0.5
Capital Stock 65	3,817,500
Capital Stock 66	35,593
Capital Stock 67	0.00%
Capital Stock 68	223.36%
Capital Stock 69	0.81%
Capital Stock 70	3,817,500
Capital Stock 71	$ 0.5
Capital Stock 72	3,817,500
Capital Stock 73	44,283
Capital Stock 74	0.00%
Capital Stock 75	244.00%
Capital Stock 76	0.56%
Capital Stock 77	3,817,500
Capital Stock 78	$ 0.5
Capital Stock 79	3,817,500
Capital Stock 80	517,526
Capital Stock 81	0.00%
Capital Stock 82	201.00%
Capital Stock 83	0.29%
Capital Stock 84	3,817,500
Capital Stock 85	$ 0.5
Capital Stock 86	3,817,500
Capital Stock 87	25,832
Capital Stock 88	0.00%
Capital Stock 89	155.80%
Capital Stock 90	0.12%
Capital Stock 91	1.05
Capital Stock 92	2,873,990
Capital Stock 93	$ 0.18
Capital Stock 94	2,873,990
Capital Stock 95	156,536
Capital Stock 96	0.00%
Capital Stock 97	222.09%
Capital Stock 98	2.08%
Capital Stock 99	2,873,990
Capital Stock 100	$ 0.18
Capital Stock 101	2,873,990
Capital Stock 102	48,259
Capital Stock 103	0.00%
Capital Stock 104	244.00%
Capital Stock 105	0.81%
Capital Stock 106	2,873,990
Capital Stock 107	$ 0.18
Capital Stock 108	2,873,990
Capital Stock 109	47,421
Capital Stock 110	0.00%
Capital Stock 111	244.00%
Capital Stock 112	0.56%
Capital Stock 113	801,666
Capital Stock 114	$ 0.18
Capital Stock 115	144,300
Capital Stock 116	20,752,500
Capital Stock 117	$ 0.15
Capital Stock 118	20,752,500
Capital Stock 119	$ 358,647
Capital Stock 120	0.00%
Capital Stock 121	157.29%
Capital Stock 122	0.12%
Capital Stock 123	1.05

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Property, Plant and Equipment (Details)	3 Months Ended
	Aug. 31, 2012
Equipment Property, Plant And Equipment 1	13,691
Equipment Property, Plant And Equipment 2	10,632
Equipment Property, Plant And Equipment 3	3,059
Equipment Property, Plant And Equipment 4	2,274
Equipment Property, Plant And Equipment 5	58,236
Equipment Property, Plant And Equipment 6	5,474
Equipment Property, Plant And Equipment 7	52,762
Equipment Property, Plant And Equipment 8	55,483
Equipment Property, Plant And Equipment 9	3,506
Equipment Property, Plant And Equipment 10	547
Equipment Property, Plant And Equipment 11	2,959
Equipment Property, Plant And Equipment 12	3,240
Equipment Property, Plant And Equipment 13	37,528
Equipment Property, Plant And Equipment 14	635
Equipment Property, Plant And Equipment 15	36,893
Equipment Property, Plant And Equipment 16	3,797
Equipment Property, Plant And Equipment 17	111,241
Equipment Property, Plant And Equipment 18	0
Equipment Property, Plant And Equipment 19	111,241
Equipment Property, Plant And Equipment 20	88,598
Equipment Property, Plant And Equipment 21	224,202
Equipment Property, Plant And Equipment 22	17,288
Equipment Property, Plant And Equipment 23	206,914
Equipment Property, Plant And Equipment 24	153,392

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended		217 Months Ended
	Aug. 31, 2012	Aug. 31, 2011	Aug. 31, 2012
Cash flows from operating activities
Net loss for the period	$ 1,261,131	$ (143,102)	$ (5,081,819)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Stock compensation expenses	0	0	3,070,727
Depreciation	4,159	175	17,269
Permit and engineering studies	0	0	150,000
Shareholder information and investor relations	0	0	100,947
Accounting, audit and legal fees	0	0	49,000
Unrealized FV adjustment on cash	(1,145)	(4,340)	(4,550)
Changes in non-cash working capital items related to operations
Interest receivable	(290)	0	(290)
GST/HST refundable	(4,664)	2,628	(25,082)
Prepaid expenses and other receivable	15,513	63,167	5,412
Accounts payable and accrued liabilities	14,926	(12,069)	570,736
Net cash used in operating activities	1,289,630	(93,541)	(1,147,650)
Cash flows from investing activities
Advance on investment	0	0	(205,945)
Additions to equipment	(57,010)	(679)	(223,633)
Additions to mineral properties	0	(279,576)	(280,651)
Net change in cash held in trust	0	13,010	0
Net cash used in investing activities	(57,010)	(267,245)	(710,229)
Cash flows from financing activities
Net proceeds on issuance of common stock	0	0	4,411,158
Amounts contributed by director	13,927	0	(44,454)
Net cash provided by (used in) financing activities	13,927	0	4,366,704
Net increase (decrease) in cash	1,246,547	(360,786)	2,508,825
Cash and cash equivalents - beginning of period	1,262,278	2,095,515	0
Cash and cash equivalents - end of period	2,508,825	1,734,729	2,508,825
Supplemental Information :
Interest	0	0	0
Income taxes	0	0	0
Non-cash Transactions :
Issuance of shares for commission paid to broker for private placement	0	0	147,646
Issuance of shares for services rendered	0	0	171,500
Issuance of shares for settlement of accounts payable	0	0	19,480
Issuance of share purchase warrants for finder's fee paid to broker for private placement	0	0	11,477
Issuance of shares for acquisition of the subsidiary	$ 0	$ 2,200,000	$ 2,200,000

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Equipment

3 Months Ended

Aug. 31, 2012

Equipment [Text Block]

Note 4 Equipment

								May 31,
		August 31, 2012						2012
				Accumulated		Net Book		Net Book
		Cost		Depreciation		Value		Value
Computer equipment	$	13,691	$	10,632	$	3,059	$	2,274
Automobile		58,236		5,474		52,762		55,483
Office equipment		3,506		547		2,959		3,240
Machinery		37,528		635		36,893		3,797
Construction in progress		111,241		-		111,241		88,598
	$	224,202	$	17,288	$	206,914	$	153,392

The depreciation for the three months ended August 31, 2012 was $4,159 (2011: $175).

The construction in progress represents the cost incurred for the extension of electric power line to the mining site.

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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (USD $)	3 Months Ended
	Aug. 31, 2012 years
Capital Stock Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 1	1.48%
Capital Stock Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 2	7.26
Capital Stock Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 3	233.30%
Capital Stock Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 4	$ 0

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Related Party Transactions (Narrative) (Details) (USD $)	3 Months Ended
	Aug. 31, 2012
Related Party Transactions 1	$ 5,974
Related Party Transactions 2	6,176
Related Party Transactions 3	477,898
Related Party Transactions 4	$ 463,971