COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 14—COMMITMENTS AND CONTINGENCIES

The Company leases office space in Atlanta, Georgia under a one-year renewable contract presently at approximately $1,000 per month.

The Company is subject to various claims primarily arising in the normal course of business. Although the outcome of these matters cannot be determined, the Company does not believe it is probable that any such claims will result in material costs and expenses except as noted as follows.

The Company’s condensed consolidated balance sheets as of June 301, 2012 and December 31, 2011, reflected an accrued liability of $162,000 pertaining to amounts that the Company believes will be owed related to professional services performed by a vendor previously. The amount accrued approximates the judgment that was received pertaining to this claim. In addition, the Company has recorded $50,000 in payroll liabilities as of June 30, 2012 and December 31, 2011 related to an existing claim pertaining to personnel services previously performed.

Legal Proceedings

Redwood Management, LLC vs. Dutch Gold Resources, Inc .

On October 20, 2010, Redwood Management LLC (“Redwood”) commenced an action in the 17th Judicial Circuit in and for Broward County Florida alleging that the company failed to deliver payment on certain convertible notes issued to Redwood by the Company. A default judgment was entered against Company. The Company plans to reopen the default judgment and vigorously defend the allegations and such claims.

Hunter vs. Dutch Gold Resources, Inc.

On December 12, 2011, Timothy Hunter, former employee of Dutch Mining, LLC, brought a labor/contract claim against Dutch Mining, LLC and the Company in the United States District Court for the District of Oregon Portland Division. The Plaintiff seeks payments under certain contract between him and Dutch Mining, LLC. The Company has made the appropriate provisions relating to this claim in its financial statements as of June 30, 2012.

James De Smet vs. Dutch Mining, LLC

On February 12, 2011, James DeSmetcommenced an action for a trade payables claim against Dutch Mining LLC in the amount of $17,213.96. On September 23, 2011, a default judgment was entered against Dutch Mining, LLC in the Circuit Court of the State of Oregon for Josephine County. The Company has made the appropriate provisions relating to this claim in its financial statements as of June 30, 2012.

Jassam Al Kassab vs. Dutch Gold, Inc., Et Al.

On July 25, 2011,JassamAlKassab, commenced an action in the Supreme Court of British Columbia and has sued the Company to have a settlement agreement aside and collect additional shares of common stock from the Company. The Company has filed an answer in the action and is defending any further liability in this matter. The Company maintains that the previously agreed settlement should be honored.

Thompson Law LLC vs. Dutch Gold Resources, Inc.

On January 20, 2011, Thompson LawLLC,filed an action against the Company in the Superior Court of the County of Fulton. The Company has entered into a settlement agreement with the Plaintiff and has made the appropriate provisions relating to this settlement in its financial statements as of June 30, 2012.

Lippert/Heilshorn vs. Dutch Gold Resources, Inc.

Lippert/Heilshorncommenced an action to collect consulting fees allegedly owed by the Corporation andShamika2 Gold, Inc. in the alleged, aggregate amount of $51,442.57. The Company intends to vigorously defend the allegations and such claims and believes the appropriate provisions relating to this claim have been made in the Company’s financial statements as of June 30, 2012.