-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KO2Nr44vfleFyILu6vY0nC3BxpXlIv7Yxa0wNiun04dfWLJotqCO5lcTv9HcQIau yRF3aH4zKhBEWr9v7OlEFw== 0001062993-06-000503.txt : 20060222 0001062993-06-000503.hdr.sgml : 20060222 20060221193855 ACCESSION NUMBER: 0001062993-06-000503 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 28 CONFORMED PERIOD OF REPORT: 20050622 FILED AS OF DATE: 20060222 DATE AS OF CHANGE: 20060221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Sutcliffe Resources Ltd. CENTRAL INDEX KEY: 0001341313 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 000000000 STATE OF INCORPORATION: A0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51570 FILM NUMBER: 06634446 BUSINESS ADDRESS: STREET 1: 420 - 625 HOWE STREET CITY: VANCOUVER STATE: A1 ZIP: V6C 2T6 BUSINESS PHONE: 604 608 0223 MAIL ADDRESS: STREET 1: 420 - 625 HOWE STREET CITY: VANCOUVER STATE: A1 ZIP: V6C 2T6 6-K 1 form6k.htm REPORT OF FOREIGN PRIVATE ISSUER Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Form 6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the period of June 22, 2005 - December 31, 2005

Commission File Number: 000-51570

SUTCLIFFE RESOURCES LTD.
(Translation of registrant's name into English)

420-625 Howe Street, Vancouver
British Columbia, Canada V6C 2T6

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

x Form 20-F   ¨ Form 40-F

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

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

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _________


SUBMITTED HEREWITH

Exhibits

  99.1 News Release dated December 30, 2005
     
  99.2 News Release dated December 22, 2005
     
  99.3 News Release dated December 12, 2005
     
  99.4 Notice of Meeting of Shareholders by Computershare Trust Company of Canada dated December 8, 2005
     
  99.5 Interim Financials Statements for the Quarter ended September 30, 2005
     
  99.6 Form 52-109FT2 - Certification of Interim Filings - CEO
     
  99.7 Form 52-109FT2 - Certification of Interim Filings - CFO
     
  99.8 Management's Discussion and Analysis for the Quarter ended September 30, 2005
     
  99.9 News Release dated September 30, 2005
     
  99.10 News Release dated September 19, 2005
     
  99.11 News Release dated September 16, 2005
     
  99.12 Interim Financial Statements for the Quarter ended June 30, 2005
     
  99.13 Management's Discussion and Analysis for the Quarter ended June 30, 2005
     
  99.14 Form 52-109FT2 - Certification of Interim Filings During Transition Period - CEO
     
  99.15 Form 52-109FT2 - Certification of Interim Filings During Transition Period - CFO
     
  99.16 News Release dated August 29, 2005
     
  99.17 News Release dated July 11, 2005
     
  99.18 News Release dated July 11, 2005
     
  99.19 Material Change dated June 22, 2005
     
  99.20 News Release dated June 22, 2005

 


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.

  Sutcliffe Resources Ltd.
  (Registrant)
     
Date: February 17, 2006 By: /s/ Laurence Stephenson
    Laurence Stephenson
     
  Title: Chairman, President & CEO

 


EX-99.1 2 exhibit99-1.htm NEWS RELEASE DATED DECEMBER 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.1

Press Release SR #09-05

December 30, 2005

PRIVATE PLACEMENT FINANCING COMPLETED

Sutcliffe Resources Ltd. (the “Company”) announced today that it has completed the private placement announced on December 12, 2005 as follows:

(i)

2,444,000 flow-through common shares at a price of $0.40 per share for total gross proceeds of $977,600; and

 

 

(ii)

437,500 units at a price of $0.40 per unit for total gross proceeds of $175,000, each unit consisting of one common share and one common share purchase warrant, each common share purchase warrant entitling the holder thereof to acquire one common share at a price of $0.60 per share for a period of two year from the closing of the private placement.

All securities issuable under the private placement are subject to a four month hold period and are subject to restrictions on resale prior to May 1, 2006.

The funds raised will be used for exploration on the Company’s Harrison Lake and Beale Lake properties and for working capital purposes.

In connection with the private placement, the Company paid a Finder’s fee in the amount of $61,860 to Carl Jones, an arm’s length party.

On behalf of the Board of Directors

“Laurence Stephenson”

Laurence Stephenson,
President

 

Forward-looking statements - statements included in this news release that are not historical facts may be considered "forward-looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223
   •    Fax: 604.608.0344    •    North America Toll-free: 1.877.233.2244


EX-99.2 3 exhibit99-2.htm NEWS RELEASE DATED DECEMBER 22, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.2

Press Release SR #08-05

December 22, 2005

MAJOR LAND ACQUISITION CONDITIONALLY
ACCEPTED BY TSX VENTURE EXCHANGE

 

Sutcliffe Resources Ltd. (the “Company”) has received notification that the TSX Venture Exchange (the “Exchange”) has conditionally accepted the Company’s arm’s length proposal to acquire a 100% interest in 53 mining claims representing approximately 22,800 hectares surrounding the Company’s Beale Lake property. The proposed agreement calls for a cash payment of $200,000, the issuance of 2,500,000 shares and is subject to a 2% net smelter royalty.

The Company has received drilling permits for 4,000 meters of diamond drilling on its core Beale Lake claims and anticipates drilling to commence by mid January, 2006.

 

On behalf of the Board of Directors

“Laurence Stephenson”

Laurence Stephenson,
President

 

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223
   •    Fax: 604.608.0344    •    North America Toll-free: 1.877.233.2244


EX-99.3 4 exhibit99-3.htm NEWS RELEASE DATED DECEMBER 12, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.3

Press Release SR #07-05

December 12, 2005

 

PRIVATE PLACEMENT FINANCING

 

Sutcliffe Resources Ltd. (the “Company”) announces a Flow-through and non Flow-through private placement in an aggregate amount up to $1,400,000. The Flow-through portion will consist of up to 3,000,000 flow-through common shares at $0.40 per share and the non Flow-through portion will consist of up to 500,000 units at $0.40 per unit. Each unit will consist of one common share and one share purchase warrant. Each share purchase warrant will entitle the warrant holder to purchase an additional share at $0.60 per share for a period of two years from closing.

The funds raised will be used for exploration on the Company’s Harrison Lake and Beale Lake projects and for working capital purposes.

Finders fees will be paid, where applicable, commensurate with TSX Venture Exchange policies.

 

On behalf of the Board of Directors

“Laurence Stephenson”

Laurence Stephenson,
President

 

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223
   •    Fax: 604.608.0344    •    North America Toll-free: 1.877.233.2244


EX-99.4 5 exhibit99-4.htm NOTICE OF MEETING OF SHAREHOLDERS BY COMPUTERSHARE TRUST COMPANY OF CANADA DATED DECEMBER 8, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.4
 
Computershare Trust Company of Canada
510 Burrard Street, 3rd floor
Vancouver, BC V6C 3B9
Tel: 604.661.9400
Fax: 604.661.9401

 

 

December 8, 2005
 
Dear Sirs: All applicable Exchanges and Commissions
   
Subject: SUTCLIFFE RESOURCES LTD.
   
We advise the following with respect to the upcoming Meeting of Shareholders for the subject Corporation:


1.   Meeting Type : Annual General Meeting
2.   CUSIP/Class of Security entitled to receive notification : 86932E101/CA86932E1016/COMMON
3.   CUSIP/Class of Security entitled to vote : 86932E101/CA86932E1016/COMMON
4.    Record Date for Notice : 30/12/2005
5.   Record date for Voting : 30/12/2005
6.   Beneficial Ownership determination date : 30/12/2005
7.   Meeting Date : 30/01/2006
8.   Meeting Location : Vancouver, BC

 

Yours Truly

“Stacey McGlynn”
Assistant Account Manager
Stock transfer Department
Tel: 604.661.9400 Ext 4204
Fax: 604.661.9401


EX-99.5 6 exhibit99-5.htm INTERIM FINANCIALS STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.5

 

SUTCLIFFE RESOURCES LTD.

INTERIM FINANCIAL STATEMENTS

FOR THE THIRD QUARTER ENDED
SEPTEMBER 30, 2005 AND 2004

(Exploration Stage Company)
(Presented in Canadian Dollars)

(Unaudited – Prepared by Management)

 


 

 

To the Shareholders of Sutcliffe Resources Ltd.

These interim financial statements for the third quarter ended September 30, 2005 and 2004, comprised of the balance sheet and the statements of operations and deficit as well as changes in cash flows, have been compiled by management. These interim financial statements, along with the accompanying notes, have been reviewed and approved by the members of the Company’s audit committee. In accordance with Canadian Securities Administrators National Instrument 51-102, the Company discloses that these unaudited interim financial statements have not been reviewed by the Company’s auditors.

 

Vancouver, B,C.  
November 28, 2005 MANAGEMENT


SUTCLIFFE RESOURCES LTD.

INTERIM BALANCE SHEET

SEPTEMBER 30, 2005

(Unaudited – Prepared by Management)

(Exploration Stage Company)
(Presented in Canadian Dollars)

    (Unaudited)     (Audited)  
    Sep 30,2005     Dec 31,2004  
    $     $  
             
ASSETS  
             
CURRENT            
 Cash   466,466     50,248  
 Accounts receivable   48,509     14,438  
 Prepaid expenses and deposits   324,182     50,000  
             
    839,157     114,686  
             
MINERAL INTERESTS (Note 3)   973,589     357,680  
             
    1,812,746     472,366  
             
LIABILITIES  
             
CURRENT            
 Accounts payable and accrued liabilities   39,858     115,095  
 Loans payable   -     336,843  
             
    39,858     451,938  
             
SHAREHOLDERS' EQUITY  
             
SHARE CAPITAL (Note 5)   7,884,173     5,753,710  
             
CONTRIBUTED SURPLUS (Note 5)   226,230     122,500  
             
DEFICIT   (6,337,515 )   (5,855,782 )
             
    1,772,888     20,428  
             
    1,812,746     472,366  

APPROVED BY THE DIRECTORS:    
     
   “Laurence Stephenson”      “Glen Indra”
Laurence Stephenson, Director   Glen Indra, Director


See accompanying notes to the interim financial statements


SUTCLIFFE RESOURCES LTD.
INTERIM STATEMENT OF OPERATIONS AND DEFICIT
FOR THE THIRD QUARTER ENDED SEPTEMBER 30
(Unaudited – Prepared by Management)

(Exploration Stage Company)
(Presented in Canadian Dollars)

                         
    Third Quarter ended     Year to date ended  
    Sep 30     Sep 30     Sep 30     Sep 30  
    2005     2004     2005     2004  
    $     $     $      
                         
GENERAL AND ADMINISTRATIVE EXPENSES                        
      Automotive and travel   449     2,324     1,362     3,452  
      Bank charges and interest   122     1,201     1,378     1,339  
      Consulting   27,000     -     43,308     -  
      Financing fees   30,575     -     84,449     -  
      Interest on demand loans   9,155     -     54,927     -  
      Investor relations and communications   18,564     -     18,888     -  
      Management fees   19,500     7,500     34,500     22,500  
      Office and rent   3,743     2,093     16,460     3,309  
      Professional fees   36,652     10,602     77,651     10,602  
      Regulatory and transfer agent fees   5,417     3,890     42,080     12,623  
      Stock-based compensation   108,834     -     108,834     -  
      Interest income   (1,918 )   -     (2,104 )   -  
                         
NET LOSS BEFORE THE FOLLOWING   258,093     27,610     481,733     53,825  
                         
Mineral interests abandoned   -     3,000     -     3,000  
                         
NET LOSS FOR THE PERIOD   258,093     30,610     481,733     56,825  
                         
DEFICIT, beginning of period   6,079,422     5,759,850     5,855,782     5,733,635  
                         
                         
DEFICIT, end of period   6,337,515     5,790,460     6,337,515     5,790,460  
                         
                         
Loss per share   0.0118     0.0026     0.0310     0.0066  
                         
Weighted average number of shares   21,913,870     11,633,900     15,539,421     8,604,975  

See accompanying notes to the interim financial statements


SUTCLIFFE RESOURCES LTD.
INTERIM STATEMENT OF CHANGES IN CASH FLOWS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30
(Unaudited – Prepared by Management)

(Exploration Stage Company)
(Presented in Canadian Dollars)

    Third Quarter ended     Year to date ended  
    Sep 30     Sep 30     Sep 30     Sep 30  
    2005     2004     2005     2004  
    $     $     $     $  
                         
                         
OPERATING ACTIVITIES                        
                         
     Net Loss   (258,093 )   (30,610 )   (481,733 )   (56,825 )
     Add non cash items:                        
                   Stock-based compensation:   108,834     -     108,834     -  
     Increase (Decrease) in non-cash working                        
         capital items:   -     (16,585 )   -     1,122,131  
                   Accounts receivable   (33,688 )   -     (34,071 )   -  
                   Prepaid expenses   (188,182 )   -     (274,182 )   -  
                   Accounts payable and accrued liabilities   (192,624 )   -     (75,237 )   -  
                         
    (563,753 )   (47,195 )   (756,389 )   1,065,306  
                         
FINANCING ACTIVITIES                        
                         
     Subscriptions payable   -     -     -     (1,000,710 )
     Issuance of shares net of issue costs   44,056     -     2,125,359     -  
     Loans payable   (191,844 )   54,980     (336,843 )   (20,020 )
                         
    (147,788 )   54,980     1,788,516     (1,020,730 )
                         
                         
INVESTING ACTIVITIES                        
                         
     Mineral interests (Note 3)   (499,810 )   (32,496 )   (615,909 )   (88,044 )
                         
    (499,810 )   (32,496 )   (615,909 )   (88,044 )
                         
                         
INCREASE (DECREASE)   (1,211,351 )   (24,711 )   416,218     (43,468 )
                         
                         
CASH, beginning of period   1,677,817     31,002     50,248     49,759  
                         
                         
CASH, end of period   466,466     6,291     466,466     6,291  

See accompanying notes to the interim financial statements


SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(Exploration Stage Company)
(Presented in Canadian Dollars)

Note 1

NATURE OF OPERATIONS AND GOING CONCERN

 

         

The Company was incorporated in British Columbia on February 6, 1996. By Articles of Continuances effective June 3, 1996, the Company was continued in Ontario under the Business Corporation Act (Ontario). On November 4, 1996, the Company was continued in Alberta under the name Latin American Mining Investment Corporation. On February 18, 1997, the Company was extra-provincially registered in British Columbia.

 

                 

The Company’s financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The continued operation of the Company is dependent, also, upon continued creditor support, the acquisition and discovery of economically recoverable mineral properties and reserves, confirmation of the Company's interest in underlying mineral claims, the ability of the Company to obtain necessary financing to complete property development and upon further profitable production. The Company is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, without sufficient financing it would be unlikely for the Company to continue as a going concern.

 

       

The officers and directors are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such person may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.

 

Note 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

 

a)      Foreign Currency Translation

 

       

Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the period end exchange rate, non-monetary assets are translated at historical exchange rates and all income and expenses are translated at average exchange rates prevailing during the period. Foreign currency translation adjustments are included in income.

 

 

b)      Loss Per Share

 

 

Loss per share has been calculated based on the weighted average number of shares outstanding.

 

 

c)      Fair Value of Financial Instruments

 

     

The respective carrying value of certain on-balance sheet financial instruments approximate their fair values. These financial statements include cash, receivables, advances receivable, cheques issued in excess of cash, accounts payable and property obligations payable.

 

         

Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Unless otherwise noted, fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.



SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE - 2 -

Note 2

SUMMARY OF SIGNIFICANT ACOUNTING POLICIES (continued)

 

 

d)      Deferred Costs

 

       

The company follows the practice of capitalizing all costs related to exploration projects, until such time as the project is put into commercial production, sold or abandoned. If commercial production commences, capitalized costs will be amortized on a unit-of-production basis. When mineral properties are abandoned, the related capitalized costs are expensed.

 

 

e)      Future Income Taxes

 

     

The company recognizes income taxes using an asset and liability approach. Future income tax assets and liabilities are computed annually for differences between the financial statements and tax bases using enacted tax laws and rates applicable to the periods in which the differences are expressed to affect taxable income, and where there is relative certainty the losses will be realized.

 

 

f)      Use of Estimates

 

         

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates.

 

 

g)      Stock-based Compensation

 

   

The company recognizes and values stock-based compensation on the Black-Scholes model of option pricing, as recommended by the CICA Handbook Section 3870.

 

Note 3

MINERAL PROPERTIES

 

 

a)      Beale Lake Property, Liard Mining District, British Columbia

 

     

By a Letter of Intent dated February 5, 2003 and amended by addendum on 15 September 2004, the Company received an option to acquire a 100% undivided interest in 2 mineral claims known as the Beale Lake property located in the Liard District of British Columbia, subject to a 2 1/2% net smelter return royalty payable to the vendor, and for the following payments and share issuances:


Date Payment Share Issuance
     
On signing Letter of Intent $ 7,500 (paid) nil
September 30, 2003 $15,000 (paid) nil
June 30, 2004 $17,500 (paid) nil
Closing of Prospectus Offering nil 150,000 common shares (issued)
June 30, 2005 $30,000 (paid) 100,000      “          “      (issued)
June 30, 2006 $50,000 100,000      “          “     


SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 3 –

Note 3

MINERAL PROPERTIES (continued)

 

 

 

An exploration program totaling $1,550,000 is to be completed as follows:


Date Expenditure Expended todate
     
October 31, 2005 $300,000 $ 300,000
October 31, 2006 $350,000 $ 12,150
October 31, 2007 $400,000  
October 31, 2008 $500,000  

A bonus of 650,000 common shares are payable to the vendor in the event that a positive feasibility study is completed and/or commercial production is attained. The Company, upon the payment of $1,000,000, also has the option to buyout 1% of the net smelter return royalty (40% of the total net smelter return royalty).

b)      Harrison Property, New Westminster Mining District, British Columbia

By a Sale, Purchase and Assignment Agreement dated March 7, 2003 and amended on November 5, 2004, the company received the exclusive right to purchase a 50% interest in 92 contiguous mineral claims comprising 906 claim units, situated in the New Westminster Mining District near Harrison Lake, British Columbia, subject to a 2% net smelter royalty as well as other royalties to the vendor. The terms required an initial payment of $5,000 by September 5, 2003 (paid), additional payment of $20,000 by November 30, 2004 (paid), the issuance of 200,000 common shares by March 15, 2005 (issued) and a minimum work program of $300,000 plus filing fees for assessment purposes to be completed by December 31, 2005.

c)      Mineral Interest expenditure breakdown:

    Beale Lake $     Harrison $     Total $  
                   
Balance, December 31, 2004   112,673     245,007     357,680  
                   
Property Acquisition Costs (cash)   51,000     -     51,000  
Property Acquisition Costs (shares)   37,500     30,000     67,500  
Assays and Reports   11,931     1,249     13,180  
Consulting and Engineering   12,891     18,608     31,499  
Equipment Rental and Supplies   82,402     107,475     189,877  
Field Personnel   70,221     81,017     151,238  
Filing Fees   2,363     -     2,363  
Geophysical Survey   30,150     39,120     69,270  
Mobilization/Demobilization   29,519     10,463     39,982  
                   
Net Mineral Interest Costs for the Period   327,977     287,932     615,909  
                   
Balance, September 30, 2005   440,650     532,939     973,589  


SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 4 –

Note 4

LOANS PAYABLE

 

 

   

The loans payable are unsecured amounts owing to unrelated parties with variable interest rates and are due on demand.


Note 5
SHARE CAPITAL
   
       
 
a)      Authorized – unlimited number of common shares without nominal or par value    
 
       
 
b)      Issued – 22,010,125 common shares as follows:
   
       
    # Shares $
 
       Balance, December 31, 2004
11,633,900 5,753,710
 
             Issued pursuant to Initial Public Offering (net of issue costs)
9,700,000 2,001,303
 
             Issued for cash, exercise of options
50,000 12,500
 
             Issued for cash, exercise of warrants
176,225 44,056
 
             Issued pursuant to property agreements
450,000 67,500
 
             Reclassification of contributed surplus due to exercise of
- 5,104
 
                   share purchase options
   
 
       Balance, September 30, 2005
22,010,125 7,884,173
       
  c)      Shares Held In Escrow    

A total of 2,100,000 common shares issued at nominal cost to the directors of the Company and, an additional 1,572,000 common shares beneficially owned, directly or indirectly, by directors and officers are subject to escrow agreements. As of September 30, 2005, 367,200 shares of the total 3,672,000 shares have been released from escrow and 3,304,800 shares remain in escrow.

d)      Stock Options

The following share purchase options are outstanding:

 
Date of Grant
 
 
Price
 
Balance
Dec. 31,
2004
 
Granted
 
 
Exercised
 
Balance
Sep. 30,
2005
Expiration
date
 
             
Dec 31, 2003 $0.25 1,200,000            - 50,000 1,150,000 Dec 30, 2008
July 11, 2005 $0.25 - 3,200,000 - 3,200,000 July 11, 2010
Total   1,200,000 3,200,000 50,000 4,350,000  
 
 
   

The Company accounts for its stock option plan under the fair value method and uses the Black-Scholes Model for calculating the fair value of the options based on the following;  


     - Risk-free interest rate 5%
     - Expected life of options 5 years
     - Expected volatility 30%


SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 5 –

Note 5 SHARE CAPITAL (continued)
   
  Contributed Surplus

    Sep 30,     Dec 31,  
    2005 $     2004 $  
Balance – beginning   122,500     122,500  
     •      Stock options – granted and vested   108,834     -  
     •      Stock options – exercised   (5,104 )   -  
    103,730     -  
Balance – ending   226,230     122,500  

e)      Warrants

Share purchase warrants outstanding:

  Date of
Financing
 
Price
 
Granted
 
Exercised
 
Expired
   Balance
Sep 30, 2005
Expiration
 date
Mar 31, 2004  $0.25 6,771,400 167,000 - 6,604,400 Mar 31, 2006
Jun 21, 2005  $0.35 4,850,000 - - 4,850,000 Jun 21, 2007
Jun 21, 2005  $0.25 1,104,000 9,225 - 1,094,775 Jun 21, 2007
                 
Total   12,725,400 176,225 - 12,549,175    

f)      Flow-through Shares

As part of the initial public offering, the Company issued 3,000,000 flow-through shares to finance some of its exploration activities. The Company will renounce the tax deductions arising from these flow-through expenditures to the flow-through subscribers.

Note 6

INCOME TAXES

 

     

The Company has non-capital income tax losses, which may be applied against future taxable income. The potential income tax benefits arising from these losses carry forward and expire between 2005 and 2009 and have not been reflected as future income tax assets on these financial statements.

 

Note 7

RELATED PARTY TRANSACTIONS

 

   

For the year to date ended September 30, 2005, the Company paid $34,500 for management services to a company controlled by a director.



SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 6 –

Note 8 SUBSEQUENT EVENTS
   
       

In November, 2005, the Company completed a purchase agreement with 606896 B.C. Ltd. to acquire the Bloom 1-10 mineral claims, located west of and adjoining the Harrison Lake Massive Sulphide Project, for cash payment of $40,000, the issuance of 500,000 common shares and a 2% Net Smelter Return (NSR).

 

       

The Company has also signed a letter agreement to acquire a 100% interest in 53 mining claims totaling approximately 22,800 hectares that encircle the current Beale Lake property. The purchase agreement requires a cash payment of $200,000, the issuance of 2,500,000 shares and is subject to a 2% NSR.


Note 9 UNITED STATES ACCOUNTING PRINCIPLES
   
     

These financial statements have been prepared in accordance with generally accepted accounting principles in Canada (CDN GAAP) which, in these financial statements, conform in all material respects with those in the United States (US GAAP), except as follows:


  a)

Exploration Expenditures

   

 

 

Under CDN GAAP, exploration expenditures are capitalized until the property is sold or abandoned. If developed, the deferred expenditures are amortized over the expected benefit period. There can be no assurance of the commencement of operations. US GAAP requires that exploration expenditures be expensed as incurred until it is determined that commercially viable operations exist and the expenditures then incurred are recoverable.

   

 

  b)

Flow-through Shares and Future Income Tax Recovery

   

 

 

Under Canadian GAAP flow-through shares are recorded at the value of compensation received less an amount equal to future income tax liability resulting from the related renunciation of qualified exploration expenditures as a reduction in share capital. The Company also recognizes in operations the realization of future income tax benefits of previously unrecorded future income tax assets on the date of renouncement of the expenditures to the flow-through share investors. Under US GAAP flow-through shares have a carrying value equal to that of non flow-through shares and the difference between the fair value of the shares and the value of compensation received is reported as a recovery of deferred tax benefit on the statement of operations. As the value of the compensation received for flow-through shares issued during the year was equal to the fair value of non flow-through shares on the date issued, no recovery of deferred tax benefit is required for US GAAP purposes.



SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 7 –

NOTE 9 UNITED STATES ACCOUNTING PRINCIPLES (continued)
     
  c) Comprehensive Income
   

                   

Under US GAAP, SFAS No. 130 requires that companies report comprehensive income as a measure of overall performance. Comprehensive income includes all changes in equity during a year except those resulting from investments by owners and distribution to owners. There is no similar concept under Canadian GAAP. The Company has determined that it had no comprehensive income other than the loss in any of the years presented.

   

  d)

Interest expense on related party debt

   

                       

Under US GAAP, in the absence of an established interest rate, the present value of the loan is determined by discounting the loan using an imputed rate of interest. The imputed interest rate used is one that approximates the rate that an independent borrower and lender would have negotiated in a similar transaction. Any difference between the face amount of the loan and its present value is accounted for as a discount or premium and amortized over the term of the loan. The Company had no interest expense on related party debt.

   

  e)

Escrow Shares

   

                                   

Under CDN GAAP shares issued with escrow restrictions are recorded at their issued price and are not revalued upon release from escrow. Under US GAAP escrow shares which are released upon the Company meeting certain criteria (performance-based) are considered to be contingently issuable. These shares are excluded from the weighted average shares calculation and the difference between the fair market value of the shares at the time of their release from escrow and the shares’ original issue price (being the market price at that time) is accounted for as a compensation expense and share capital at the time shares are released from escrow. The release of the Company’s escrow shares is not performance-based and therefore no adjustments have been made to the calculation of loss per share.

   

  f)

The following summarizes the balance sheet items with material variations under US GAAP:


    September 30     December 31  
    2005 $     2004 $  
Share capital   7,884,173     5,753,710  
Additional paid-in capital   226,230     122,500  
Deficit   (7,311,104 )   (6,213,462 )


SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited – Prepared by Management)

(An Exploration Stage Company)
(Presented in Canadian Dollars)

PAGE – 8 –

NOTE 9 UNITED STATES ACCOUNTING PRINCIPLES (continued)

  g)

The following table summarizes the effect on net loss after considering the US GAAP adjustments:


    Nine months ended  
    September 30     September 30  
    2005 $     2004 $  
Net loss under CDN GAAP   (481,733 )   (53,825 )
US GAAP material adjustments:            
     • Resource property expenditures   (497,409 )   (60,544 )
     • Shares for resource property   (67,500 )   -  
     • Cash payments for resource property   (51,000 )   (27,500 )
Net Loss under US GAAP   (1,097,642 )   (141,869 )
Loss per share under US GAAP   (0.0706 )   (0.0165 )

  h)

The following table summarizes the effect on shareholders’ equity (deficiency) after considering the US GAAP adjustments:


  Share   Additional   Accumulated   Total Shareholders’  
  Capital   paid-in   Deficit   equity (Deficiency)  
  $   Capital $   $   $  
Balance – December 31, 2004 5,753,710   122,500   (6,213,462 ) (337,252 )
                 
Share capital issued under CDN GAAP 2,125,359   -   -   2,125,359  
Contributed surplus under CDN GAAP -   108,834   -   108,834  
Reduction in contributed surplus due to                
exercise of stock options under CDN                
GAAP 5,104   (5,104 ) -   -  
Net loss under CDN GAAP -   -   (481,733 ) (481,733 )
US GAAP material adjustments:                
• Resource property costs expensed -   -   (615,909 ) (615,909 )
                 
Balance – September 30, 2005 7,884,173   226,230   (7,311,104 ) 799,299  


EX-99.6 7 exhibit99-6.htm FORM 52-109FT2 - CERTIFICATION OF INTERIM FILINGS - CEO Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resourcesw Ltd. - Exhibit 99.6

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS

I, Laurence Stephenson, Chief Executive Officer, certify that:

1.

I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings) of Sutcliffe Resources Ltd. (the Issuer) for the interim period ending September 30, 2005;

 

 

 

2.

Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings;

 

 

 

3.

Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the Issuer, as of the date and for the periods presented in the interim filings.

 

 

 

4.

The Issuer’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting for the Issuer, and we have:

 

 

 

(a)

designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the Issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the interim filings are being prepared;

 

 

 

(b)

designed such internal control over financial reporting, or caused it 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 the Issuer’s GAAP;

 

 

 

(c)

evaluated the effectiveness of the Issuer’s disclosure controls and procedures as of the end of the period covered by the interim filings and have caused the Issuer to disclose in the interim MD&A our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by the interim filings based on such evaluation.

 

 

 

5.

I have caused the Issuer to disclose in the interim MD&A any change in the Issuer’s internal control over financial reporting that occurred during the Issuer’s most recent interim period that has materially affected, or is reasonably likely to materially affect, the Issuer’s internal control over financial reporting.


Date: November 28, 2005  
   
“Laurence Stephenson”  
Chief Executive Officer  


EX-99.7 8 exhibit99-7.htm FORM 52-109FT2 - CERTIFICATION OF INTERIM FILINGS - CFO Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.7

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS

I, Susan Wong, Chief Financial Officer, certify that:

1.

I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings) of Sutcliffe Resources Ltd. (the Issuer) for the interim period ending September 30, 2005;

 

 

 

2.

Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings;

 

 

 

3.

Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the Issuer, as of the date and for the periods presented in the interim filings.

 

 

 

4.

The Issuer’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting for the Issuer, and we have:

 

 

 

(a)

designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the Issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the interim filings are being prepared;

 

 

 

(b)

designed such internal control over financial reporting, or caused it 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 the Issuer’s GAAP;

 

 

 

(c)

evaluated the effectiveness of the Issuer’s disclosure controls and procedures as of the end of the period covered by the interim filings and have caused the Issuer to disclose in the interim MD&A our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by the interim filings based on such evaluation.

 

 

 

5.

I have caused the Issuer to disclose in the interim MD&A any change in the Issuer’s internal control over financial reporting that occurred during the Issuer’s most recent interim period that has materially affected, or is reasonably likely to materially affect, the Issuer’s internal control over financial reporting.


Date: November 28, 2005  
   
   “Susan Wong”  
Chief Financial Officer  


EX-99.8 9 exhibit99-8.htm MD&A FOR THE QUARTER ENDED SEPTEMBER 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.8

SUTCLIFFE RESOURCES LTD.
Management’s Discussion & Analysis
For the third quarter ended September 30, 2005
Form 51-102F1 as at November 28, 2005

DESCRIPTION OF BUSINESS

The Company is in the business of acquiring and developing mineral exploration projects. The Company has interests in the Harrison Lake nickel-copper and precious metal project in southwestern British Columbia and in the Beale Lake gold property located in northern British Columbia.

The Harrison Lake Project is a belt of ultramafic and metavolcanics and metasediments which extend from the site of the former B.C. Nickel Mine, 7 kilometres north of Hope, B.C., over 60 kilometres along the east side of Harrison Lake. The Company had previously identified 15 high priority sulphide related Airborne ElectroMagnetic (AEM) targets. Field crews were on the property preparing grids for detailed ground geophysical surveying to assist in selecting drill hole locations. Two grids were prepared at the north end of a 4.3 kilometre long AEM target and another highly prospective AEM target to the northeast. A recent property investigation revealed a wide zone of gossanous sulphide material associated with the long AEM target and sulphide bearing boulders on the target immediately to the northeast.

The Beale Lake Project, 75 kilometers northeast of Dease Lake, B.C., is a sheeted stockwork quartz-sulphide-scheelite vein and siliceous replacement mineralization system that has characteristics of both the Alaska Fort Knox and Pogo intrusion related gold deposits. Field crews have prepared the Beale project grounds for an Induced Polarization (IP) survey which is designed to follow up on high grade gold samples as reported on by G.E. Nicholson, P.Geo. in his November 2004 report. The data from the IP 3D array survey and subsequent detailed geological mapping and geochemical sampling will be used to define drill target locations.

OPERATIONS AND EXPENDITURES

During the third quarter ended September 30, 2005, field programs for both the Beale Lake and Harrison Lake projects were initiated. The Harrison Lake program involved geophysical surveys using University of Toronto Electro-Magnetics (UTEM) conducted on 4 of the 15 high priority sulphide related AEM targets that were identified in the 2004 survey by Aeroquest of Toronto, Ontario. These surveys included a 1.2 km portion of the 4.3 km AEM target and established the dip and depth character of the anomalies allowing the identification of potential drill target sites. The Company is in the process of permitting for a proposed 10 hole, 1500 metre diamond drilling program to commence as soon as weather conditions and water availability allows. The Company also intends to continue airborne MAG and EM geophysical surveying over the balance of the northwestern section of its property. To secure the balance of favourable geology related to this area, the Company has negotiated to acquire a 100% interest in approximately 1,000 additional hectares on the western portion of its claim boundary.

A $250,000 ground IP geophysical survey was completed over the Beale Lake property, and the resulting data confirms results of previous detailed rock and soil geochemical surveys. Large zones of strong chargeability were directly correlative with delineated multi-element gold, silver and base metal soil anomalies and the chargeability is flanked by strong resistivity. The main anomaly measures approximately 400m by 1400m and is open to the south with a second anomaly measuring approximately 350m by 700m and a third of approximately 200m by 650m. The Company is applying for a 24 hole, 4,000 metre diamond drilling permit and will commence the drilling program as soon as the permit is received. The Company has negotiated an acquisition of 53 claims totaling approximately 22,800 hectares that encircle the present Beale Lake property.


Page 2

PROPOSED AND ACTUAL EXPENDITURES

The proposed initial phase work program and associated costs as set out in the Company’s prospectus dated May 27, 2005 and the actual expenditures incurred to September 30, 2005 are as follows:

Work Program   Projected Cost     Actual Expenditure  
    Beale L.     Harrison L.     Beale L.     Harrison L.  
Assays and Reports $  10,000   $  12,000   $  9,908   $  949  
Consulting and Engineering   20,000     26,500     12,891     18,608  
Diamond Drilling   150,000     180,000     -     -  
Equipment Rental and Supplies   45,000     22,500     82,402     101,902  
Field Personnel   30,000     30,000     70,221     78,497  
Filing Fees   -     -     2,363     -  
Geophysical Surveying   30,000     32,500     30,150     30,937  
Mobilization and Demobilization   15,000     26,500     29,519     10,463  
Total cost for initial stage (Actual                        
   expenditures incurred to Sept. 30, 2005) $ 300,000   $  330,000   $  237,454   $  241,356  

The actual expenditures have generally followed the projected cost except for diamond drilling which has been delayed due to a late start and inclement weather conditions, and equipment rental and supplies and field personnel, both of which have exceeded the projected cost.

USE OF PROCEEDS

The gross proceeds, after deduction of the agent’s commission, that was derived from the IPO offering amounted to $2,116,000. After allowing for a working capital deficiency of $337,252 as of December 31, 2004, the principal purposes for which the gross proceeds of the IPO offering were utilized during the nine month period ending September 30, 2005 compared to the uses budgeted in the IPO offering are as follows:

    Budgeted as per IPO     Actual Expenditures  
          (to Sept. 30, 2005)  
             
To pay the costs of the Offering $  85,000   $  114,697  
             
To pay the cost of Stage 1 of the Harrison Lake   330,000     241,356  
     mineral exploration program            
To pay the cost of Stage 1 of the Beale Lake   235,000     237,454  
     mineral exploration program            
To pay Administration costs for 12 months   198,000     372,899  
             
Unallocated working capital   930,748     812,342  

The use of proceeds for the nine month period ending September 30, 2005 varied in a number of categories from the budgeted usage as indicated in the IPO offering document. The costs of the offering was greater than expected and the Stage 1 exploration programs for both Harrison Lake and Beale Lake do not include diamond drilling which will come later. Also, administration expenses have been higher than budgeted as the Company encounters higher costs in its corporate development.


Page 3

SUMMARY OF QUARTERLY RESULTS

  2005   2004   2003  
  Sep 30 $   Jun 30 $   Mar 31 $   Dec 31 $   Sep 30 $   Jun 30 $   Mar 31 $   Dec 31 $  
Total revenue nil   nil   nil   nil   nil   nil   nil   nil  
Gen & Adm Exp. 149,259   177,188   46,452   16,806   27,610   10,688   15,527   42,159  
Stock-based Comp 108,834   nil   nil   nil   nil   nil   nil   122,500  
Loss (258,093 ) (177,188 ) (46,452 ) (16,806 ) (27,610 ) (10,688 ) (15,527 ) (164,659 )
Net Loss (258,093 ) (177,188 ) (46,452 ) (49,018 ) (30,610 ) (10,688 ) (15,527 ) (164,659 )
Loss/share (0.0118 ) (0.0137 ) (0.0040 ) (0.0042 ) (0.0026 ) (0.0009 ) (0.0062 ) (0.0683 )
Def Min Prop Costs 499,810   72,588   43,511   140,051   32,496   37,098   18,450   60,560  
Total Assets 1,812,746   2,302,417   490,281   472,366   316,812   337,192   268,251   263,838  

GENERAL AND ADMINISTRATIVE EXPENSES            
    3 months ended     3 months ended  
    Sep 30, 2005     Sep 30, 2004  
   Professional fees $  36,652   $  10,602  
   Consulting   27,000     -  
   Management and administration fees   19,500     7,500  
   Financing fees   30,575     -  
   Office, rent & supplies   3,743     2,093  
   Investor relations and communications   18,564     -  
   Regulatory and transfer agent fees   5,417     3,890  
   Automotive and travel   449     2,324  
   Interest on demand loans   9,155     -  
   Bank charges and interest (net)   (1,796 )   1,201  
   Total general and administrative expenses            
        for the third quarter $  149,259   $  27,610  

The administrative expenditures made during the quarter were indicative of the Company’s activities after completion of its public offering. The categories of professional fees, consulting, financing fees, investor relations and communications and interest on demand loans are all much higher compared to the previous fiscal period due to the ancillary costs of the prospectus financing and the costs involved in corporate developments such as preparation of materials for filing a 20-F document with the U.S. Securities and Exchange Commission.

RELATED PARTY TRANSACTIONS

For the third quarter ended September 30, 2005, management fees charged by a company controlled by a director totaled $19,500.


Page 4

LIQUIDITY AND SOLVENCY

The Company had working capital for the third quarter ending September 30, 2005 of $799,299 compared to a deficiency of $337,252 for the year ended December 31, 2004. The continued operations of the Company are dependent upon its ability to raise adequate financing. To this end the Company will be seeking future funding through private placement offerings as well as the exercise of outstanding share purchase warrants to maintain adequate working capital and to raise funds for exploration expenditures.

    Sep 30, 2005     Sep 30, 2004  
             
Working Capital (Deficiency) $  799,299   $  (171,879 )
Deficit $  (6,337,515 ) $  (5,790,460 )

There have been no changes in accounting policies and the Company has made no off-balance sheet arrangements and none are contemplated in the future. The Company does not utilize financial or other instruments in its operations.

CAPITALIZED EXPLORATION AND DEVELOPMENT COSTS                  
                   
    Beale Lake $     Harrison $     Total $  
                   
                   Balance, June 30, 2005   182,196     291,583     473,779  
                   
                                       Property Acquisition Costs (cash)   21,000     -     21,000  
                                       Assays and Reports   9,908     949     10,857  
                                       Consulting and Engineering   12,891     18,608     31,499  
                                       Equipment Rental and Supplies   82,402     101,902     184,304  
                                       Field Personnel   70,221     78,497     148,718  
                                       Filing Fees   2,363     -     2,363  
                                       Geophysical Survey   30,150     30,937     61,087  
                                       Mobilization/Demobilization   29,519     10,463     39,982  
                   
                   Mineral Interest Costs for the Three Month Period   258,454     241,356     499,810  
                   
                   Balance, September 30, 2005   440,650     532,939     973,589  

DISCLOSURE OF OUTSTANDING SHARE DATA as of November 28, 2005

Share Capital Authorized – unlimited common shares

Share Capital Issued – 22,510,125

Shares held in escrow 
     - -     3,304,800

Options Outstanding 
     - -     4,350,000 exercisable for 4,350,000 common shares at $0.25 per share

Warrants Outstanding 
     - -     6,604,400 warrants exercisable for 6,604,400 common shares at $0.25 per share 
     - -     4,850,000 warrants exercisable for 4,850,000 common shares at $0.35 per share 
     - -     1,094,775 agent’s warrants exercisable for 1,094,775 common shares at $0.25 per share


EX-99.9 10 exhibit99-9.htm NEWS RELEASE DATED SEPTEMBER 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.9

Press Release SR #06-05 
IR – Steve Johnston
Toll Free 1-877-233-2244
steve@sutclifferesources.com

September 30, 2005

MAJOR LAND ACQUISITION
Several Mineral Targets Identified

Sutcliffe Resources Ltd. has signed a letter agreement with the Beale Lake Syndicate pursuant to which the Company will acquire a 100% interest in 53 mining claims representing approximately 22,800 hectares surrounding its Beale Lake property. The agreement calls for a cash payment of $200,000 and the issuance of 2,500,000 shares, and is subject to a 2% NSR. A finders fee of 300,000 shares is payable to Yorkville Capital.

The successful exploration program to date (New Release #05-05, September 19, 2005) at Beale Lake has demonstrated that the area is a potential host for intrusion related precious metal mineralization. A BC Geological Survey publication, “Geological Fieldwork 2001”, Paper 2002-1 by Joanne Nelson M.Sc.P.Geo documents the mineral potential in the area covered by this acquisition:

The Beale Lake map area is host to a diverse set of mineral occurrences and exploration possibilities, many of them documented here for the first time. Types of deposits represented include the following:
   
1.

Intrusion-related gold-silver-polymetallic veins.

 
2.

Epithermal gold-silver-polymetallic veins.

 
3.  

Porphyry-style copper mineralization associated with zones of Intrusive breccias and silicification in the Nizi pluton.

 

In addition, geological evidence supports the possible occurrence of the following deposit types in the area:

 
1.    

Syngenetic massive Sulphide occurrences associated with pyrite-garnet-bearing (exhalative?) metachert in lower Dorsey assemblage.

 
2.  

Syngenetic massive Sulphide occurrences associated with felsic volcanics and pyrite-garnet-bearing (exhalative?) metachert in upper Dorsey assemblage.

 
3.    

Mesothermal gold-quartz veins associated with quartz- Carbonate-mariposite alteration in Slide Mountain ultramafic rocks.

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223 • Fax: 604.608.0344 • North America Toll-free: 1.877.233.2244


Numerous showings are located in the newly acquired claims including the 1000 meter outcrop and sub-outcrop YURSO vein with assays of grab samples of 1142 ppb gold and 1842 grams per tonne silver; also the Gunsight showing had chalcopyrite rich boulders that returned best values of 27 grams per tonne silver and 2.79% copper and a quartz vein that returned a 20 centimeter sample of .09 grams per tonne gold, 110 grams per tonne silver, 8.36% lead and 3.09% zinc (As reported in BCGS Paper 2002-1 by Joanne Nelson M.Sc.P.Geo.)

The 2006 exploration program on the new claims will commence with the flying of a helicopter airborne magnetic, electromagnetic and radiometric geophysical survey to define potential target areas and to establish signature patterns for follow up.

Sutcliffe is presently waiting for drilling permits on its core Beale Lake claims. Application was made for 4000 meters in 24 drillhole locations. This initial drilling is anticipated to be completed in 2005.

On behalf of the board of directors,

Laurence Stephenson”

Laurence Stephenson P.Eng, MBA
President

For further information please visit our website www.sutclifferesources.com or contact L. Stephenson at 604-608-0223 or Steve Johnston at toll free 1-877-233-2244.

 

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. The statements that are not historical facts are forward-looking statements involving known and unknown risk factors and uncertainties which may cause actual results to vary considerably from these statements.

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223 • Fax: 604.608.0344 • North America Toll-free: 1.877.233.2244


EX-99.10 11 exhibit99-10.htm NEWS RELEASE DATED SEPTEMBER 19, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.10

Press Release SR #05-05

September 19, 2005

Beale Lake Update

I.P. Geophysical Survey Confirms Large Anomalous Zones Coincident with Soil
and Rock Geochemical Surveys

Sutcliffe Resources Ltd. (TSX.V:SR) has recently completed a $250,000 ground I.P. geophysical survey over its Beale Lake property, confirming the results of detailed rock and soil geochemical surveys. Large zones of strong chargeability were directly correlative with delineated multi-element gold, silver and base metal soil anomalies flanked by strong resistivity. The main anomaly measures approximately 400m × 1400m and is open to the south, the second anomaly measures approximately 350m × 700m while the third is approximately 200m × 650m. Numerous other chargeability highs occur, clustered around these principal areas.

At Beale Lake the association of gold & silver with arsenic, tungsten and bismuth suggest an intrusive related stockwork of gold-silver mineralization similar to Fort Knox & Pogo, in east-central Alaska, which belong to a class of intrusion related gold deposits recognized worldwide. Sheeted, stockwork, and replacement styles of auriferous quartz-arsenopyrite-pyrite-scheelite mineralization at Beale Lake imply a relatively deep, intrusion proximal geological setting. Results to date suggest the possibility of near surface emplacement.

Sutcliffe is applying for a 24 hole, 4000 metre diamond drilling permit and will commence the drilling program as soon as permits are received.

The company is evaluating a proposal to acquire claims that encircle the current Beale Lake property which exhibit several mineral and geological occurrences with strong similarities to the targets defined for drilling.

For further information please visit our website www.sutclifferesources.com or contact L. Stephenson at 604-608-0223.

Laurence Stephenson”

Laurence Stephenson, President
Sutcliffe Resources Ltd.
Vancouver, B.C.

 

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223
   •    Fax: 604.608.0344    •    North America Toll-free: 1.877.233.2244


EX-99.11 12 exhibit99-11.htm NEWS RELEASE DATED SEPTEMBER 16, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.11

Press Release SR #04-05

September 16, 2005

Harrison Lake Massive Sulphide Update

Sutcliffe Resources Ltd. (TSX.V:SR) announces that having recently completed UTEM ground geophysics over 4 of its 15 identified airborne EM anomalies, it is proceeding with permitting for a proposed 10 hole, 1500 metre diamond drilling program targeting a portion of a 4.3 km long anomaly. This geophysical anomaly corresponds favourably with earlier completed geology and geochemistry and is in the north-western portion of the Harrison Lake property. Geophysical surveying and mapping suggests either parallel anomalous geological belts exist or the system is exhibiting bimodal features. The areas of interest continue northwest outside the original airborne geophysical surveying.

Upon receipt of drilling permits, Sutcliffe will prepare all drillsites for either a fall or spring drilling program subject to weather conditions and availability of water. Also, the Company intends to continue airborne MAG and EM geophysical surveying over the balance of the north-western corner of its claims.

To secure the balance of favourable geology related to this area, the company has negotiated with 606896 BC Ltd. to acquire a 100% interest in approximately 1000 additional hectares on the western claim boundary. The purchase price is $40,000, the issuance of 500,000 shares, and a 2% N.S.R. The shares will be subject to TSX-Venture exchange policies.

For further information please visit our website www.sutclifferesources.com or contact L. Stephenson at 604-608-0223.

 

Laurence Stephenson, President
Sutcliffe Resources Ltd.
Vancouver, B.C.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

420-625 Howe Street, Vancouver, British Columbia CANADA V6C 2T6
Tel.: 604.608.0223
   •    Fax: 604.608.0344    •    North America Toll-free: 1.877.233.2244


EX-99.12 13 exhibit99-12.htm INTERIM FINANCIAL STATEMENTS FOR THE QUARTER ENDED JUNE 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.12
 

 

 

   
  SUTCLIFFE RESOURCES LTD.
  INTERIM FINANCIAL STATEMENTS
  FOR THE SECOND QUARTER ENDED
  JUNE 30, 2005 and JUNE 30, 2004
   
  (Unaudited – Prepared by Management)
   

 

 


 

 

To the Shareholders of Sutcliffe Resources Ltd.

These financial statements for the second quarter ended June 30, 2005, comprised of the balance sheet and the statements of operations and deficit as well as changes in cash flows, have been compiled by management. These financial statements, along with the accompanying notes have been reviewed and approved by the members of the Company’s audit committee. In accordance with Canadian Securities Administrators National Instrument 51-102, the Company discloses that these unaudited financial statements have not been reviewed by the Company’s auditors.

 

Vancouver, B.C.  
22 August 2005 MANAGEMENT


SUTCLIFFE RESOURCES LTD.
INTERIM BALANCE SHEET
JUNE 30, 2005
(Unaudited – Prepared by Management)

             
    (Unaudited)     (Audited)  
    June 30, 2005 $     Dec 31, 2004 $  
             
ASSETS  
             
CURRENT            
 Cash   1,677,817     50,248  
 Accounts receivable   14,821     14,438  
 Prepaid expenses   136,000     50,000  
    1,828,638     114,686  
             
             
MINERAL INTERESTS (Note 3)   473,779     357,680  
             
    2,302,417     472,366  
             
LIABILITIES  
             
CURRENT            
 Accounts payable and accrued liabilities   232,482     115,095  
 Loans payable (Note 4)   191,844     336,843  
             
    424,326     451,938  
             
             
SHAREHOLDERS' EQUITY  
             
SHARE CAPITAL (Note 5)   7,840,117     5,753,710  
             
CONTRIBUTED SURPLUS   117,396     122,500  
             
DEFICIT   (6,079,422 )   (5,855,782 )
             
    1,878,091     20,428  
             
    2,302,417     472,366  

(See accompanying notes to the interim financial statements)

APPROVED BY THE DIRECTORS:

       
   “Laurence Stephenson” Director   “Glen Indra” Director


SUTCLIFFE RESOURCES LTD.
INTERIM STATEMENT OF OPERATIONS AND DEFICIT
FOR THE SECOND QUARTER ENDED JUNE 30
(Unaudited – Prepared by Management)

                         
    Second Quarter ended     Six months ended    
    June 30     June 30     June 30     June 30  
    2005 $     2004 $     2005 $     2004 $  
                         
GENERAL AND ADMINISTRATIVE EXPENSES                        
      Professional fees   31,249     -     40,999     -  
      Consulting fees   16,308     -     16,308     -  
      Management fees   7,500     7,500     15,000     15,000  
      Financing fees   53,874     -     53,874     -  
      Office and rent   9,717     -     12,717     1,216  
      Investor relations and communications   324     -     324     -  
      Regulatory and transfer agent fees   29,830     2,557     36,663     8,733  
      Automotive   450     564     913     1,128  
      Bank charges and interest   398     67     1,256     138  
      Interest on demand loans   27,647     -     45,772     -  
      Interest income   (109 )   -     (186 )   -  
                         
NET LOSS FOR THE PERIOD   177,188     10,688     223,640     26,215  
                         
DEFICIT, beginning of period   5,902,234     5,765,466     5,855,782     5,749,939  
                         
                         
DEFICIT, end of period   6,079,422     5,776,154     6,079,422     5,776,154  
                         
                         
Loss per share   0.0137     0.0009     0.0182     0.0037  
                         
Weighted average number of shares   12,920,264     11,633,900     12,299,470     7,074,165  

(See accompanying notes to the interim financial statements)


SUTCLIFFE RESOURCES LTD.
INTERIM STATEMENT OF CHANGES IN CASH FLOWS
FOR THE SECOND QUARTER ENDED JUNE 30
(Unaudited – Prepared by Management)

                         
    Second Quarter ended     Six months ended  
    June 30     June 30     June 30     June 30  
    2005 $     2004 $     2005 $     2004 $  
                         
                         
OPERATING ACTIVITIES                        
                         
     Net Loss   (177,188 )   (10,688 )   (223,640 )   (26,215 )
     Increase (Decrease) in non-cash working                        
         capital items                        
                   Accounts receivable   (12,685 )   (1,285 )   (383 )   (27,472 )
                   Prepaid expenses   (86,000 )   -     (86,000 )   (40,000 )
                   Related party transactions   -     26,500     -     59,409  
                   Accounts payable and accrued liabilities   83,020     (51,871 )   117,387     24,469  
                         
    (192,853 )   (37,344 )   (192,636 )   (9,809 )
                         
FINANCING ACTIVITIES                        
     Subscriptions payable         -           (1,000,710 )
     Issuance of shares net of issue costs   2,051,303     -     2,081,303     1,122,310  
     Loans payable   (144,999 )   105,000     (144,999 )   (75,000 )
                         
    1,906,304     105,000     1,936,304     46,600  
                         
INVESTING ACTIVITIES                        
     Mineral interests (Note 3)   (72,588 )   (37,098 )   (116,099 )   (55,548 )
                         
    (72,588 )   (37,089 )   (116,099 )   (55,548 )
                         
                         
INCREASE (DECREASE) IN CASH   1,640,863     30,558     1,627,569     (18,757 )
                         
CASH, beginning of period   36,954     444     50,248     49,759  
                         
CASH, end of period   1,677,817     31,002     1,677,817     31,002  

(See accompanying notes to the interim financial statements)



SUTCLIFFE RESOURCES LTD.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004
(Unaudited – Prepared by Management)
 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a)      Foreign Currency Translation

Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the period end exchange rate, non-monetary assets are translated at historical exchange rates and all income and expenses are translated at average exchange rates prevailing during the period. Foreign currency translation adjustments are included in income.

b)      Loss Per Share

Loss per share has been calculated based on the weighted average number of shares outstanding.

c)      Fair Value of Financial Instruments

The respective carrying value of certain on-balance sheet financial instruments approximate their fair values. These financial statements include cash, receivables, advances receivable, cheques issued in excess of cash, accounts payable and property obligations payable. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Unless otherwise noted, fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.

d)      Deferred Costs

The company follows the practice of capitalizing all costs related to exploration projects, until such time as the project is put into commercial production, sold or abandoned. If commercial production commences, capitalized costs will be amortized on a unit-of-production basis. When mineral properties are abandoned, the related capitalized costs are expensed.

e)      Future Income Taxes

The company recognizes income taxes using an asset and liability approach. Future income tax assets and liabilities are computed annually for differences between the financial statements and tax bases using enacted tax laws and rates applicable to the periods in which the differences are expressed to affect taxable income, and where there is relative certainty the losses will be realized.

f)      Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates. The assets which required management to make significant estimates and assumptions in determining carrying values included interests in mineral properties.

g)      Stock-based Compensation

The Company recognizes and values stock-based compensation on the Black-Scholes model of option pricing, as recommended by the CICA Handbook Section 3870.



SUTCLIFFE RESOURCES LTD. Page 2
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

2.

NATURE OF OPERATIONS AND CONTINUANCE OF OPERATIONS

 

 

The Company was incorporated in British Columbia on February 6, 1996. By Articles of Continuances effective June 3, 1996, the Company was continued in Ontario under the Business Corporation Act (Ontario). On November 4, 1996, the Company was continued in Alberta under the name Latin American Mining Investment Corporation. On February 18, 1997, the Company was extra-provincially registered in British Columbia. Through Articles of Amendment dated effective January 5, 1999, the Company effected a consolidation of its issued and outstanding share capital on the basis of one (1) new common share for each ten (10) common shares formerly issued and outstanding and changed its name to “Sutcliffe Resources Ltd.”

 

 

The continued operation of the Company is dependent upon continued creditor support, the acquisition and discovery of economically recoverable mineral properties and reserves, confirmation of the Company's interest in underlying mineral claims, the ability of the Company to obtain necessary financing to complete property development and upon further profitable production.

 

 

3.

MINERAL INTERESTS

a)      Beale Lake Property, Liard Mining District, British Columbia

By a Letter of Intent dated February 5, 2003, and amended by addendum on September 15, 2004, the Company received an option to acquire a 100% undivided interest in 2 mineral claims known as the Beale Lake property located in the Liard Mining District of British Columbia, subject to a 2 ½% net smelter return royalty payable to the vendor, and for the following payments and share issuances:

Date Payment Share Issuance
On signing Letter of Intent $ 7,500 (paid)        nil
September 30, 2003 $15,000 (paid)        nil
June 30, 2004 $17,500 (paid)        nil
Closing of Prospectus Offering nil 150,000 common shares (issued)
June 30, 2005 $30,000 (paid) 100,000        “          “    (issued)
June 30, 2006 $50,000 100,000        “          “    (issued)
     
An exploration program totaling $1,550,000 is to be completed as follows:    
     
Date Expenditure Expended todate
October 31, 2005 $300,000 $              74,696
October 31, 2006 $350,000  
October 31, 2007 $400,000  
October 31, 2008 $500,000  
.

A bonus of 650,000 common shares are payable to the vendor in the event that a positive feasibility study is completed and/or commercial production is attained. The 2 ½% net smelter return royalty is payable with a buyout for 1% (40% of the total net smelter return royalty) upon the payment of $1,000,000.



SUTCLIFFE RESOURCES LTD. Page 3
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

3. MINERAL INTERESTS (continued)

b)      Harrison Property

By a Sale, Purchase and Assignment Agreement dated March 7, 2003 and amended on November 5, 2004, the Company received the exclusive right to purchase a 50% interest in 92 contiguous mineral claims comprising 906 claim units, situated in the New Westminster Mining District near Harrison Lake, British Columbia, subject to a 2% net smelter royalty as well as other royalties to the vendor. The terms required an initial payment of $5,000 by September 5, 2003 (paid), additional payment of $20,000 by November 30, 2004 (paid), the issuance of 200,000 common shares by March 15, 2005 (issued) and a minimum work program of $300,000 plus filing fees for assessment purposes to be completed by December 31, 2005.

c)      Mineral Interest expenditure breakdown:

    Beale Lake $     Harrison $     Total $  
                   
Balance, December 31, 2004   112,673     245,007     357,680  
                   
                   Property Acquisition Costs (cash)   30,000     -     30,000  
                   Property Acquisition Costs (shares)   37,500     30,000     67,500  
                   Assays and Reports   2,023     300     2,323  
                   Equipment Rental and Supplies   -     5,573     5,573  
                   Field Personnel   -     2,520     2,520  
                   Geophysical Survey   -     8,183     8,183  
                   
                   Net Mineral Interest Costs for the Period   69,523     46,576     116,099  
                   
Balance, June 30, 2005   182,196     291,583     473,779  

4.

LOANS PAYABLE

 

 

The loans payable are unsecured amounts owing to unrelated parties with variable interest rates and are due on demand.




SUTCLIFFE RESOURCES LTD. Page 4
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

5.

SHARE CAPITAL

 

 

 

a)

Authorized           - Unlimited common shares without par value

 

 

 

b)

Issued                   - 21,833,900 common shares as follows:


             
    SHARES  
    #    
             
Balance, December 31, 2004   11,633,900     5,753,710  
                   Issued pursuant to Initial Public Offering   9,700,000     2,425,000  
                       (less share issuance costs)   -     (423,697 )
                   Issued for cash, exercise of options   50,000     12,500  
                   Issued pursuant to property agreements   450,000     67,500  
                   Reclassification of contributed surplus due            
                       to exercise of stock options   -     5,104  
             
Balance, June 30, 2005   21,833,900     7,840,117  
             

c)      Shares Held In Escrow

A total of 2,100,000 common shares issued at nominal cost to the directors of the Company and, an additional 1,572,000 common shares beneficially owned, directly or indirectly, by directors and officers are subject to escrow agreements. As of June 30, 2005, 367,200 shares of the total 3,672,000 shares have been released from escrow and 3,304,800 shares remain in escrow.

d)      Stock Options

There are 1,150,000 director and employee stock options available which may be exercised to purchase one common share at $0.25 per share until December 30, 2008.

The Company accounts for its stock option plan under the fair value method and uses the Black-Scholes Model for calculating the fair value of the options based on the following;

- Risk-free interest rate 5%
- Expected life of options 5 years
- Expected volatility 33.3%

Contributed Surplus

    Jun 30,     Dec 31,  
    2005 $     2004 $  
Balance – beginning   122,500     122,500  
      •    Stock options – granted and vested   -     -  
      •    Stock options – exercised   (5,104 )   -  
    (5,104 )   -  
Balance – ending   117,396     122,500  



SUTCLIFFE RESOURCES LTD. Page 5
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

5. SHARE CAPITAL (continued)

e)      Warrants

There are 6,771,400 warrants outstanding from the non-brokered private placement of 6,771,400 units which were issued March 31, 2004. Each warrant is exercisable to purchase one common share at a price of $0.25 for a period of two years from the date of issuance.

There are 4,600,000 warrants outstanding from the units sold pursuant to the initial public offering and an additional 250,000 warrants outstanding from the Corporate Finance Units which were paid to the agents at the closing of the offering, each warrant is exercisable to purchase one common share at a price of $0.35 until June 21, 2007. There are also 1,104,000 agent’s warrants outstanding which were issued pursuant to the offering, each agent’s warrant is exercisable to purchase one common share at a price of $0.25 until June 21, 2007.

f)      Flow-through Shares

As part of the initial public offering, the Company issued 3,000,000 flow-through shares to finance some of its exploration activities. The Company will renounce the tax deductions arising from these flow-through expenditures to the flow-through subscribers.

6.

INCOME TAXES

 

 

The Company has non-capital income tax losses which may be applied against future taxable income. The potential income tax benefits arising from these losses carry forward and expire between 2005 and 2009 and have not been reflected as future income tax assets on these financial statements.

 

 

7.

RELATED PARTY TRANSACTIONS

 

 

For the year to date ended June 30, 2005, the Company paid $15,000 for management fees to a company controlled by a director.

 

 

8.

FINANCIAL INSTRUMENTS

 

 

The Company’s financial instruments consist of cash, receivables, refundable deposits, accounts payable and accrued liabilities, and loans payable. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximate their carrying value, unless otherwise noted.

 

 

9.

SUBSEQUENT EVENTS

 

 

In July, 2005, the Company granted 3,200,000 share purchase options at an exercise price of $0.25 per share to directors, officers and consultants. In August, 2005, the Company received $41,750 pursuant to the exercise of 167,000 share purchase warrants with a March 31, 2006 expiry date.




SUTCLIFFE RESOURCES LTD. Page 6
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

10. UNITED STATES ACCOUNTING PRINCIPLES
 

 

 

These financial statements have been prepared in accordance with generally accepted accounting principles in Canada (CDN GAAP) which, in these financial statements, conform in all material respects with those in the United States (US GAAP), except as follows:

 

 

 

a)

Exploration Expenditures

 

 

 

Under CDN GAAP, exploration expenditures are capitalized until the property is sold or abandoned. If developed, the deferred expenditures are amortized over the expected benefit period. If there can be no assurance of the commencement of operations, US GAAP requires that exploration expenditures be expensed as incurred until it is determined that commercially viable operations exist and the expenditures then incurred are recoverable.

 

 

 

b)

Flow-through Shares and Future Income Tax Recovery

 

 

 

Under Canadian GAAP flow-through shares are recorded at the value of compensation received less an amount equal to future income tax liability resulting from the related renunciation of qualified exploration expenditures as a reduction in share capital. The Company also recognizes in operations the realization of future income tax benefits of previously unrecorded future income tax assets on the date of renouncement of the expenditures to the flow-through share investors. Under US GAAP flow-through shares have a carrying value equal to that of non flow-through shares and the difference between the fair value of the shares and the value of compensation received is reported as a recovery of deferred tax benefit on the statement of operations. As the value of the compensation received for flow-through shares issued during the year was equal to the fair value of non flow-through shares on the date issued, no recovery of deferred tax benefit is required for US GAAP purposes.

 

 

 

c)

Comprehensive Income

 

 

 

Under US GAAP, SFAS No. 130 requires that companies report comprehensive income as a measure of overall performance. Comprehensive income includes all changes in equity during a year expect those resulting from investments by owners and distribution to owners. There is no similar concept under Canadian GAAP. The Company has determined that it had no comprehensive income other than the loss in any of the years presented.

 

 

 

d)

Interest expense on related party debt

 

 

 

Under US GAAP, in the absence of an established interest rate, the present value of the loan is determined by discounting the loan using an imputed rate of interest. The imputed interest rate used is one that approximates the rate that an independent borrower and lender would have negotiated in a similar transaction. Any difference between the face amount of the loan and its present value is accounted for as a discount or premium and amortized over the term of the loan. The Company had no interest expense on related party debt in any of the years presented.




SUTCLIFFE RESOURCES LTD. Page 7
NOTES TO THE INTERIM FINANCIAL STATEMENTS  
FOR THE SECOND QUARTER ENDED JUNE 30, 2005 and 2004  
(Unaudited – Prepared by Management)  
   

10.

UNITED STATES ACCOUNTING PRINCIPLES (continued)

 

 

 

e)

Escrow Shares

 

 

 

Under CDN GAAP shares issued with escrow restrictions are recorded at their issued price and are not revalued upon release from escrow. Under US GAAP escrow shares which are released upon the Company meeting certain criteria (performance-based) are considered to be contingently issuable. These shares are excluded from the weighted average shares calculation and the difference between the fair market value of the shares at the time of their release from escrow and the shares’ original issue price (being the market price at that time) is accounted for as a compensation expense and share capital at the time shares are released from escrow. The Company’s escrow shares are not performance-based and therefore no adjustments have been made to the calculation of loss per share.

 

 

 

f)

The following summarizes the balance sheet items with material variations under US GAAP:


    June 30     December 31  
    2005 $     2004 $  
Share capital   7,840,117     5,753,710  
Additional paid-in capital   117,396     122,500  
Deficit   (6,553,201 )   (6,213,462 )

  g) The following table summarizes the effect on net loss after considering the US GAAP adjustments:

    Six months ended  
    June 30     June 30  
    2005 $     2004 $  
Net loss under CDN GAAP   (223,640 )   (26,215 )
US GAAP material adjustments:            
     • Resource property expenditures   (18,599 )   (38,048 )
     • Shares for resource property   (67,500 )   -  
     • Cash payments for resource property   (30,000 )   (17,500 )
Net Loss under US GAAP   (339,739 )   (81,763 )
Loss per share under US GAAP   (0.0276 )   (0.0116 )

  h)

The following table summarizes the effect on shareholders’ equity (deficiency) after considering the US GAAP adjustments:


    Share     Additional     Accumulated     Total Shareholders’  
    Capital     paid-in     Deficit     equity (Deficiency)  
    $     Capital $     $     $  
                         
Balance – December 31, 2004   5,753,710     122,500     (6,213,462 )   (337,252 )
                         
Share capital issued under CDN GAAP   2,081,303     -     -     2,081,303  
Reduction in contributed surplus due to                        
exercise of stock options under CDN                        
GAAP   5,104     (5,104 )   -     -  
Net loss under CDN GAAP   -     -     (223,640 )   (223,640 )
US GAAP material adjustments:                        
• Resource property costs expensed   -     -     (116,099 )   (116,099 )
Balance – June 30, 2005   7,840,117     117,396     (6,553,201 )   1,404,312  


EX-99.13 14 exhibit99-13.htm MD&A FOR THE QUARTER ENDED JUNE 30, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.13

SUTCLIFFE RESOURCES LTD.
Management’s Discussion & Analysis
For the second quarter ended June 30, 2005
Form 51-102F1 as at August 22, 2005

DESCRIPTION OF BUSINESS

The Company is engaged in the business of pursuing, acquiring and developing mineral exploration projects. The Company has acquired options to purchase a 50% interest in the Harrison Lake Nickel Copper Project and a 100% interest in the Beale Lake Property, both located in British Columbia. Other exploration properties and projects, both in Canada as well as international, are also being considered. A prospectus offering was recently completed raising a net amount of approximately $2,000,000 which will allow the Company to finance the preliminary work programs on both these properties.

The Beale Lake Project in north western British Columbia, 60 km southeast of Cassiar is a recently identified intrusion-related gold prospect with significant anomalous geochemical values of gold and copper in quartz veins and breccia associated with a Cretaceous intrusive. The target is a multimillion ounce type deposit similar to those in the Tintina Gold belt in the adjacent state of Alaska. The Company has initiated a multi-phase program this summer involving geological mapping and geophysical surveying, to be followed by diamond drilling in the fall.

The Harrison Lake Project located in southwestern British Columbia 130 km east of Vancouver is an advanced exploration stage copper nickel platinum group target with significant geophysical and anomalous geochemical signatures associated with a 60 km long belt. Field work during the past three years has outlined a similar geological environment and identified some similar regional geophysical zones to that found at the B.C. Nickel Mine which is located on the southeast end of this belt. Using data from the airborne geophysical survey completed in 2004, the Company has identified 15 high priority targets associated with both the ultramafic and schist rocks on the property. Detailed geological mapping and geophysical surveying has started, with diamond drilling to follow in the fall of 2005.

OPERATIONS AND EXPENDITURES

During the second quarter ended June 30, 2005, field programs for both the Beale Lake and Harrison Lake projects were initiated. Both programs will involve geological mapping and geophysical surveying to be followed by diamond drilling.

SUMMARY OF QUARTERLY RESULTS

  2005   2004   2003  
  Jun 30 $   Mar 31 $   Dec 31 $   Sep 30 $   Jun 30 $   Mar 31 $   Dec 31 $   Sep 30 $  
                                 
Total revenue nil   nil   nil   nil   nil   nil   nil   nil  
Gen & Adm Exp. 177,188   46,452   16,806   27,610   10,688   15,527   42,159   9,954  
Stock-based Comp nil   nil   nil   nil   nil   nil   122,500   nil  
Loss (177,188 ) (46,452 ) (16,806 ) (27,610 ) (10,688 ) (15,527 ) (164,659    (9,954 )
Net Loss (177,188 ) (46,452 ) (49,018 ) (30,610 ) (10,688 ) (15,527 ) (164,659    (9,954 )
Loss/share (0.0137 ) (0.0040 ) (0.0042 ) (0.0026 ) (0.0009 ) (0.0062 ) (0.0683   (0.0041 )
Def Min Prop Costs 72,588   43,511   140,051   32,496   37,098   18,450   60,560   20,000  
Total Assets 2,302,417   490,281   472,366   316,812   337,192   268,251   263,838   142,381  


Page 2

GENERAL AND ADMINISTRATIVE EXPENSES

    3 months ended     3 months ended  
    Jun 30, 2005     Jun 30, 2004  
             
Professional fees $  31,249   $  -  
Consulting   16,308     -  
Management and administration fees   7,500     7,500  
Financing fees   53,874     -  
Office, rent & supplies   9,717     -  
Investor relations and communications   324     -  
Regulatory and transfer agent fees   29,830     2,557  
Automotive and travel   450     564  
Interest on demand loans   27,647     -  
Bank charges and interest (net)   289     67  
Total general and administrative expenses            
               for the quarter $  177,188   $  10,688  

The administrative expenditures made during the quarter were indicative of the Company’s activities after completion of its public offering. Expenditures in most categories reflected the costs involved in the preparation of materials for and the successful completion of funding. The categories of professional fees, consulting, financing fees, regulatory and transfer fees and interest on demand loans are all much higher compared to the previous fiscal period due to the ancillary costs of the prospectus financing and also a result of the requirement for additional working capital funding due to the delays in completing the prospectus financing.

RELATED PARTY TRANSACTIONS

For the second quarter ended June 30, 2005, management fees charged by a company controlled by a director totaled $7,500.

LIQUIDITY AND SOLVENCY

The Company had working capital for the second quarter ending June 30, 2005 of $1,404,312 compared to a deficiency of $337,252 for the year ended December 31, 2004. The continued operations of the Company are dependent upon its ability to raise adequate financing. To this end the Company will be seeking future funding through private placement offerings as well as the exercise of outstanding share purchase warrants to maintain adequate working capital and to raise funds for exploration expenditures.

    Jun 30, 2005     Jun 30, 2004  
             
Working Capital (Deficiency) $  1,404,312   $  (108,773 )
             
Deficit $  (6,079,422 ) $  (5,776,154 )

There have been no changes in accounting policies and the Company has made no off-balance sheet arrangements and none are contemplated in the future. The Company does not utilize financial or other instruments in its operations.


Page 3

CAPITALIZED EXPLORATION AND DEVELOPMENT COSTS

    Beale Lake $     Harrison $     Total $  
                   
Balance, December 31, 2004   112,673     245,007     357,680  
                   
                   Property Acquisition Costs (cash)   30,000     -     30,000  
                   Property Acquisition Costs (shares)   37,500     30,000     67,500  
                   Assays and Reports   2,023     300     2,323  
                   Equipment Rental and Supplies   -     5,573     5,573  
                   Field Personnel   -     2,520     2,520  
                   Geophysical Survey   -     8,183     8,183  
                   
                   Net Mineral Interest Costs for the Period   69,523     46,576     116,099  
                   
Balance, June 30, 2005   182,196     291,583     473,779  

DISCLOSURE OF OUTSTANDING SHARE DATA as of August 22, 2005

Share Capital Authorized – unlimited common shares

Share Capital Issued – 22,000,900

Shares held in escrow
     - -      3,304,800

Options Outstanding 
     - -     4,350,000 exercisable for 4,350,000 common shares at $0.25 per share

Warrants Outstanding 
     - -     6,771,400 warrants exercisable for 6,771,400 common shares at $0.25 per share 
     - -     4,850,000 warrants exercisable for 4,850,000 common shares at $0.35 per share 
     - -     1,104,000 agent’s warrants exercisable for 1,104,000 common shares at $0.25 per share


EX-99.14 15 exhibit99-14.htm FORM 52-109FT2 - CERTIFICATION OF INTERIM FILINGS DURING TRANSITION PERIOD - CEO Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.14

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS DURING TRANSITION PERIOD

 

I, Laurence Stephenson, Chief Executive Officer, certify that:

1.

I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52- 109 Certification of Disclosure in Issuers’ annual and Interim Filings) of Sutcliffe Resources Ltd. (the Issuer) for the interim period ending June 30, 2005.

 

 

2.

Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings; and

 

 

3.

Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the period presented in the interim filings.

 

 

Date: August 30, 2005  
   
   
   “Laurence Stephenson”  
Signature  
   
Title: Chief Executive Officer  


EX-99.15 16 exhibit99-15.htm FORM 52-109FT2 - CERTIFICATION OF INTERIM FILINGS DURING TRANSITION PERIOD - CFO Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.15

FORM 52-109FT2

CERTIFICATION OF INTERIM FILINGS DURING TRANSITION PERIOD

 

I, Susan Wong, Chief Financial Officer, certify that:

1.

I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52- 109 Certification of Disclosure in Issuers’ annual and Interim Filings) of Sutcliffe Resources Ltd. (the Issuer) for the interim period ending June 30, 2005.

 

 

2.

Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings; and

 

 

3.

Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the period presented in the interim filings.

 

 

Date: August 30, 2005  
   
   
   “Susan Wong”  
Signature  
   
Title: Chief Financial Officer  


EX-99.16 17 exhibit99-16.htm NEWS RELEASE DATED AUGUST 29, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.16

August 29, 2005

HARRISON LAKE UPDATE

(VANCOUVER, BC August 26th, 2005) SUTCLIFFE RESOURCES LTD. (SR TSX-V) reports that it has completed its initial orientation ground geophysical program on its Harrison Lake base and precious metal project near Hope, in southern British Columbia.

University of Toronto Electro-Magnetics (UTEM) ground geophysical surveys were conducted, by SJ Geophysics Ltd., on 4 of the 15 high priority sulphide related Airborne Electro- Magnetic (AEM) targets that were identified in the November – December 2004 survey by Aeroquest of Toronto, Ontario. The ground survey included a 1.2 km portion of a 4.3 km AEM target. The surveys established the dip and depth character of the anomalies and identified drill target sites.

Given the size and response of the 4.3 km target, the company has initiated discussion to acquire adjacent claims thought to contain at least 2 sub parallel belts of similar geology. The earlier airborne survey identified the trend continuing into this prospective adjacent ground.

Permit application for drill testing is in progress and drilling is expected to start in the Fall of 2005 when sufficient water in the high alpine area is available.

Sutcliffe is exploring along the east side of Harrison Lake, a belt of ultramafic, metavolcanic and medasediments which extend in a northerly direction from the former producing BC Nickel Mine located 7km north of Hope, B.C., for over 60 kilometers.

For further information please visit our website www.sutclifferesources.com or contact L. Stephenson at 604-608-0223.

Laurence Stephenson, President
Sutcliffe Resources Ltd.
Vancouver, B.C.

 

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. The statements that are not historical facts are forward-looking statements involving known and unknown risk factors and uncertainties which may cause actual results to vary considerably from these statements.


EX-99.17 18 exhibit99-17.htm NEWS RELEASE DATED JULY 11, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.17

NEWS RELEASE

July 11, 2005

 

Sutcliffe Resources Ltd. is proposing to grant options to acquire a total of 3,200,000 shares at an exercise price of $0.25 per share to directors, officers and consultants. These options will be granted according to the terms of the Stock Option Plan approved by disinterested shareholders at the last general meeting of the Company held on December 17, 2004.

The Company also announces that it has entered into an agreement with Steve Johnston to provide investor relations services for the Company at a monthly remuneration of $4,500 and 150,000 of the share purchase options to be granted at an exercise price of $0.25 per share.

 

On behalf of the Board of Directors

“Glen J. Indra”

Glen J. Indra
Director

 

 

Suite 420 – 625 Howe Street, Vancouver BC V6C 2T6,
(604)608-0223 Voice (604)608-0344 Fax


EX-99.18 19 exhibit99-18.htm NEWS RELEASE DATED JULY 11, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.18

SR #05-01
Sutcliffe Resources Ltd. (SR TSX-V)
Shares outstanding 21,833,900
July 8, 2005 close $0.32

July 11, 2005

NEWS RELEASE

SUTCLIFFE RESOURCES LTD. (SR TSX-V) reports that it has initiated the summer exploration program on its Harrison Lake base and precious metal project in Southern British Columbia and its Beale Lake gold project in Northern British Columbia.

The Harrison Lake Project is a belt of ultramafic and metavolcanics and metasediments which extend from the BC Nickel Mine, 7 kilometres north of Hope B.C. over 60 kilometres along the east side of Harrison Lake. The company has identified 15 high priority sulphide related airborne ElectroMagnetic (AEM) targets in its pre-IPO work. Field crews are now on the property preparing grids for detailed ground geophysical surveying to assist in selecting drill hole locations. Two grids are presently being prepared at the north end of a 4.2 kilometre long AEM target and another highly prospective AEM target to the northeast. A recent property investigation revealed a wide zone of gossanous sulphide material associated with the long AEM target and sulphide bearing boulders on the target immediately to the northeast.

The Beale Lake Project, 75 kilometers northeast of Dease Lake, B.C. is a sheeted stockwork quartz-sulphide-scheelite vein and siliceous replacement mineralization system that has characteristics of both the Alaska Fort Knox and Pogo intrusion related gold deposits. Field crews are currently preparing the Beale project for an Induced Polarization (IP) survey which is designed to follow up on high grade gold samples as reported on by G.E. Nicholson, P.Geo. in his November 2004 report. The IP 3D array survey and subsequent detailed geological mapping and geochemical sampling is intended to define drill target locations.

The company completed its Initial Prospectus Offering (IPO) and was listed on the TSX –Venture Exchange on June 27th 2005. The IPO raised $2.3 million which included $750,000 of flow through monies to be spent on the Harrison and Beale projects.

Laurence Stephenson, President
Sutcliffe Resources Ltd.
Vancouver BC

 

The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein. The statements that are not historical facts are forward-looking statements involving known and unknown risk factors and uncertainties which may cause actual results to vary considerably from these statements. The risks and uncertainties include those described in the company’s quarterly filing with the SEC and other period filings.

Suite 420 – 625 Howe Street, Vancouver BC V6C 2T6,
(604)608-0223 Voice (604)608-0344 Fax


EX-99.19 20 exhibit99-19.htm MATERIAL CHANGE DATED JUNE 22, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.19

MATERIAL CHANGE REPORT

1.

Name and Address of Reporting Issuer:

 

 

Sutcliffe Resources Ltd. ("Sutcliffe")
420, 625 Howe Street
Vancouver, B.C. V6C 2T6

 

 

2.

Date of Material Change:

 

 

June 22, 2005

 

 

3.

News Release

 

 

A press release disclosing the details outlined in this Material Change Report was issued by Sutcliffe on June 22, 2005 and disseminated through the facilities of Canada Newswire Group and would have been received by the securities commissions where Sutcliffe is a "reporting issuer" in the normal course of its dissemination.

 

 

4.

Summary of Material Change:

 

 

On June 22, 2005, Sutcliffe completed the closing of a public offering, raising gross proceeds of $2.3 million.

 

 

5.

Full Description of Material Change:

 

 

On June 22, 2005, Sutcliffe completed the closing of a public offering, raising gross proceeds of $2.3 million. A total of 9,200,000 units (each comprised of one common share and one half of one common share purchase warrant) at $0.25 per unit were sold under the offering. Each warrant is exercisable to acquire an additional common share of Sutcliffe at $0.35 for 24 months. Canaccord Capital Corporation acted as agent for the offering.

 

 

Sutcliffe's Shares have been conditionally approved for listing on the TSX Venture Exchange and are expected to begin trading on or about Monday, June 27, 2005, under the symbol SR.

 

 

6.

Reliance on subsection 7.1(2) or (3) of National Instrument 51-102:

 

 

Not applicable.

 

 

7.

Omitted Information:

 

 

Not applicable.


2

8.

Executive Officer:

 

 

The name and business numbers of the executive officer of Sutcliffe who is knowledgeable of the material change and this report is:

 

 

Laurence Stephenson, President
Telephone: (604) 608-0223
Facsimile: (604) 608-0344

 

 

9.

Date of Report:    June 23, 2005

Copy to: TSX Venture Exchange


EX-99.20 21 exhibit99-20.htm NEWS RELEASE DATED JUNE 22, 2005 Filed by Automated Filing Services Inc. (604) 609-0244 - Sutcliffe Resources Ltd. - Exhibit 99.20

SUTCLIFFE RESOURCES LTD.

NEWS RELEASE

SUTCLIFFE RESOURCES LTD. ANNOUNCES SUCCESSFUL
CLOSING OF PUBLIC OFFERING

Vancouver, British Columbia, Canada – June 22, 2005 - Sutcliffe Resources Ltd. ("Sutcliffe" or the "Company") is pleased to announce that the Company has completed the closing of a public offering, raising gross proceeds of $2.3 million. A total of 9,200,000 units (each comprised of one common share and one half of one common share purchase warrant) at $0.25 per unit were sold under the offering. Each warrant is exercisable to acquire an additional common share of the Company at $0.35 for 24 months. Canaccord Capital Corporation acted as agent for the offering.

Sutcliffe's Shares have been conditionally approved for listing on the TSX Venture Exchange and are expected to begin trading on or about Monday, June 27, 2005, under the symbol SR.

For further information, please contact either:

Laurence Stephenson, President or
Susan Wong, Chief Financial Officer

Sutcliffe Resources Ltd.
420, 625 Howe Street
Vancouver, B.C. V6C 2T6
Canada

Telephone: (604) 608-0223
Facsimile: (604) 608-0344

This news release contains forward-looking statements. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Company's control. The forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to update these statements to reflect subsequent changes in assumptions, the factors underlying them or actual events or experience.

The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release.


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