Nevada
|
86-0947048
|
|
(State
of incorporation)
|
(I.R.S.
Employer Identification No.)
|
|
Page
|
||
Glossary of Mining Terms
|
4 | ||
PART
I
|
|||
Item
1
|
Business
|
7 | |
Item
1A
|
Risk
Factors
|
12 | |
Item
1B
|
Unresolved
Staff Comments
|
15 | |
Item
2
|
Properties
|
15 | |
Item
3
|
Legal
Proceedings
|
53 | |
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
53 | |
PART
II
|
|||
Item
5
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
53 | |
Item
6
|
Selected
Financial Data
|
56 | |
Item
7
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
57 | |
Item
7A
|
Quantitative
and Qualitative Disclosures About Market Risk.
|
62 | |
Item
8
|
Financial
Statements and Supplementary Data.
|
62 | |
Item
9
|
Changes
in and Disagreements With Accountants on Accounting and Financial
Disclosure
|
62 | |
Item
9A
|
Controls
and Procedures
|
63 | |
Item
9B
|
Other
Information
|
64 | |
PART
III
|
|||
Item
10
|
Directors,
Executive Officers and Corporate Governance
|
64 | |
Item
11
|
Executive
Compensation
|
66 | |
Item
12
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
69 | |
Item
13
|
Certain
Relationships and Related Transactions, and Director
Independence
|
71 | |
Item
14
|
Principal
Accountant Fees and Services
|
75 | |
PART
IV
|
|||
Item
15
|
Exhibits,
Financial Statement Schedules
|
75 | |
SIGNATURES
|
|
o
|
In
1983, Kennecott Minerals Company drilled fifteen RC
holes (holes left after the process of reverse circulation drilling) on
the property.
|
|
o
|
In
1988-1990, Newmont Exploration Ltd. drilled approximately 10 RC holes;
conducted detailed geologic mapping (producing a plan map of the rock
types, structure and alteration), geochemical surveys (which is sampling
of rocks or soil and determination of the absolute abundances of
elements), air and ground magnetic surveys (recording variations in the
earth’s magnetic field and plotting same), and ground radiometric surveys
(a survey of radioactive materials on the land
surface).
|
|
o
|
In
1990-1995, Miramar Mining Corp. drilled 5 RC holes and conducted BLEG
(bulk leach extractable gold) sampling and air photo interpretation. BLEG
sampling involves a large sample of soil or rock that is leached using
cyanide to determine gold and silver content down to a detection limit of
as little as 1.0 part per billion.
|
·
|
geologic
mapping (producing a plan map of the rock types, structure and
alteration),
|
·
|
rock
chip geochemical sampling (sample of soil, rock, silt, water or vegetation
analyzed to detect the presence of valuable metals or other metals which
may accompany them (e.g., Arsenic may indicate the presence of
gold),
|
·
|
a
ground magnetic survey, and
|
·
|
a
Controlled Source Magneto Telluric (CSMT) survey which recorded variations
in a generated electrical field using sophisticated survey
methods.
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
50,000
|
$
|
-
|
By
March 15, 2009
|
50,000
|
50,000
|
||
By
March 15, 2010
|
50,000
|
150,000
|
||
By
March 15, 2011
|
65,000
|
200,000
|
||
By
March 15, 2012
|
80,000
|
350,000
|
||
By
March 15, 2013
|
100,000
|
200,000
|
||
By
March 15, 2014
|
100,000
|
200,000
|
||
By
March 15, 2015
|
100,000
|
200,000
|
||
By
March 15, 2016
|
100,000
|
200,000
|
||
By
March 15, 2017
|
100,000
|
200,000
|
||
By
March 15, 2018
|
250,000
|
750,000
|
||
$
|
1,045,000
|
$
|
2,500,000
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
20,000
|
$
|
-
|
By
March 15, 2009
|
20,000
|
50,000
|
||
By
March 15, 2010
|
20,000
|
75,000
|
||
By
March 15, 2011
|
35,000
|
100,000
|
||
By
March 15, 2012
|
45,000
|
250,000
|
||
By
March 15, 2013
|
50,000
|
100,000
|
||
By
March 15, 2014
|
50,000
|
100,000
|
||
By
March 15, 2015
|
50,000
|
100,000
|
||
By
March 15, 2016
|
50,000
|
100,000
|
||
By
March 15, 2017
|
50,000
|
100,000
|
||
By
March 15, 2018
|
100,000
|
250,000
|
||
$
|
490,000
|
$
|
1,225,000
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
20,000
|
$
|
-
|
By
March 15, 2009
|
20,000
|
50,000
|
||
By
March 15, 2010
|
20,000
|
75,000
|
||
By
March 15, 2011
|
35,000
|
100,000
|
||
By
March 15, 2012
|
45,000
|
250,000
|
||
By
March 15, 2013
|
50,000
|
100,000
|
||
By
March 15, 2014
|
50,000
|
100,000
|
||
By
March 15, 2015
|
50,000
|
100,000
|
||
By
March 15, 2016
|
50,000
|
100,000
|
||
By
March 15, 2017
|
50,000
|
100,000
|
||
By
March 15, 2018
|
100,000
|
250,000
|
||
$
|
490,000
|
$
|
1,225,000
|
·
|
Grayhill
Exploration 1983-84 Geochemical
sampling
|
·
|
WX
Syndicate
1986-91 4
RC holes for 500 feet (160 m)
|
·
|
Newmont 1988 Geochemical
sampling
|
·
|
Mountain
West 1991-92 Geochemical
Sampling
|
Financial Quarter
|
Bid Price Information*
|
||
Year
|
Quarter
|
High Bid Price
|
Low Bid Price
|
2010
|
Fourth
Quarter
|
$0.40
|
$0.22
|
Third
Quarter
|
$0.40
|
$0.17
|
|
Second
Quarter
|
$0.28
|
$0.14
|
|
First
Quarter
|
$0.31
|
$0.21
|
|
2009
|
Fourth
Quarter
|
$0.31
|
$0.065
|
Third
Quarter
|
$0.11
|
$0.065
|
|
Second
Quarter
|
$0.09
|
$0.065
|
|
First
Quarter
|
$0.09
|
$0.06
|
Equity
compensation plans not approved by stockholders – as of May 31,
2010
|
||||||||
Plan
Category
|
Number
of securities to be
issued
upon exercise of
outstanding
options, warrants and rights
|
Weighted
average exercise
price
of outstanding options,
warrants
and rights
|
Number
of securities
remaining
available for
future
issuance
|
|||||
2003
Stock Option Plan*
|
5,546,000
|
(1)
|
$0.49
|
711,000
|
||||
2005
Stock Option Plan**
|
2,000,000
|
$0.25
|
1,700,000
|
|||||
Share
Purchase Warrants
|
3,456,000
|
$1.48
|
N/A
|
-
|
$75,000
in property exploration expenses and claim payments in order to meet the
requirements of the Company’s property option
agreements;
|
-
|
$100,000
for operating expenses, including working capital and general, legal,
accounting and administrative expenses associated with reporting
requirements under the Securities Exchange Act of
1934.
|
|
·
|
Our
Company’s administration is composed of a small number of administrative
individuals resulting in a situation where limitations on segregation of
duties exist. In order to remedy this situation we would need
to hire additional staff to provide greater segregation of
duties. Currently, it is not feasible to hire additional staff
to obtain optimal segregation of duties. Management will
reassess this matter in the following year to determine whether
improvement in segregation of duty is
feasible.
|
Name
|
Position
Held with the Company
|
Age
|
Date
First Appointed
|
Herb
Duerr
|
Chairman,
President, Chief Executive Officer, Chief Operating Officer,
Secretary Treasurer, and Director
|
56
|
September
12, 2008(1)
|
Robert
Coale
|
Director
|
70
|
June
23, 2003(1)
|
Jared
Beebe
|
Director
|
59
|
September
5, 2008
|
Dennis
Lance
|
Director
|
65
|
February
1, 2010
|
SUMMARY
COMPENSATION TABLE
|
|||||||||
Name
and principal position
(a)
|
Year
(b)
|
Salary
($)
(c)
|
Bonus
($)
(d)
|
Stock
Awards ($)
(e)
|
Option
Awards ($)
(f)
|
Non-Equity
Incentive Plan Compensation ($)
(g)
|
Nonqualified
Deferred Compensation Earnings ($)
(h)
|
All
Other Compensation ($)
(i)
|
Total
($)
(j)
|
Herb
Duerr(1)
|
2010
|
12,550
|
0
|
0
|
0
|
0
|
0
|
0
|
12,550
|
2009
|
32,325
|
0
|
0
|
0
|
0
|
0
|
0
|
32,325
|
|
Robert
Coale(1)
|
2010
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2009
|
2,500
|
0
|
0
|
0
|
0
|
0
|
0
|
2,500
|
OUTSTANDING
EQUITY AWARDS AT FISCAL YEAR-END
|
|||||||||
OPTION
AWARDS
|
STOCK
AWARDS
|
||||||||
Name
(a)
|
Number
of Securities Underlying Unexercised Options
(#)
Exercisable
(b)
|
Number
of Securities Underlying Unexercised Options
(#)
Unexer-
cisable
(c)
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Unearned Options
(#)
(d)
|
Option
Exer-
cise
Price
($)
(e)
|
Option
Expira-
tion
Date
(f)
|
Number
of Shares or Units of Stock That Have Not Vested
(#)
(g)
|
Mark-
et
Value of Shares or Units of Stock That Have Not Vested
($)
(h)
|
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights
That Have Not Vested
(#)
(i)
|
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or
Other Rights That Have Not Vested
(#)
(j)
|
Herb
Duerr
|
40,000
|
0
|
0
|
1.03
|
July
25, 2013
|
0
|
0
|
0
|
0
|
Robert
Coale
|
100,000(2)
|
0
|
0
|
0.05
|
June
23, 2013
|
0
|
0
|
0
|
0
|
200,000(3)
|
0
|
0
|
0.25
|
March
10, 2016
|
0
|
0
|
0
|
0
|
Name
of Beneficial Owner
|
Amount
and Nature of Beneficial Ownership
|
Percentage
of
Class
|
|||
Robert
D. Coale
|
6,300,000
|
(1)
|
24.0%
|
||
Almir
Ramic
|
1,730,000
|
(2)
|
6.6%
|
||
Colin
Bruce Worth
|
1,600,000
|
(3)
|
6.1%
|
||
Peak
Geological Inc.
|
1,400,000
|
5.3%
|
|||
Herb
Duerr
|
40,000
|
(4)
|
*
|
||
Jared
Beebe
|
-
|
*
|
|||
Directors
and Officers as a Group (3 individuals)
|
6,340,000
|
25.9%
|
|
(1)
|
Includes
100,000 options pursuant to the 2003 Stock Option Plan to purchase common
stock at a purchase price of $0.05 per share and 200,000 options pursuant
to the 2005 Stock Option Plan to purchase common stock at a purchase price
of $0.25 per share.
|
|
(2)
|
Includes
1,280,000 shares of our common stock issuable upon the exercise of
warrants held by Mr. Ramic. All such warrants are
currently exercisable.
|
|
(3)
|
Includes
1,280,000 share of our common stock issuable upon the exercise of warrants
held by Mr. Worth. All such warrants are currently
exercisable.
|
|
(4)
|
Includes
40,000 options pursuant to the 2003 Stock Option Plan to purchase common
stock at a purchase price of $1.03 per
share.
|
Fiscal
year ending
May
31, 2010
|
Fiscal
year ending
May
31, 2009
|
|||||||
Audit
Fees
|
$ | 27,300 | $ | 27,000 | ||||
Audit
Related Fees
|
NIL
|
NIL
|
||||||
Tax
Fees
|
NIL
|
NIL
|
||||||
All
Other Fees
|
NIL
|
NIL
|
EXHIBIT
NUMBER
|
DESCRIPTION
|
|
3.1
|
Articles
of Incorporation of Registrant. (1)
|
|
3.2
|
Registrant’s
Restated Articles of Incorporation. (2)
|
|
3.3
|
By-Laws
of Registrant. (1)
|
|
4.1
|
Specimen
common stock certificate. (1)
|
|
4.2
|
Form
of Class A Warrant. (3)
|
|
4.3
|
Form
of Class B Warrant. (3)
|
|
4.4
|
Form
of Class C Warrant. (3)
|
|
4.5
|
Form
of Class D Warrant. (3)
|
|
4.6
|
Warrant
Agreement – July 2003 private placement. (3)
|
|
4.7
|
Form
of Class A-1 Warrant. (6)
|
|
4.8
|
Form
of Class B-1 Warrant. (6)
|
|
4.9
|
Form
of Class C-1 Warrant. (6)
|
|
4.10
|
Form
of Class D-1 Warrant. (6)
|
|
4.11
|
Warrant
Agreement – November 2003 private placement. (8)
|
|
10.1
|
Property
Option Agreement dated as of July 25, 2003 between MinQuest Inc. and
Patriot Gold Corporation. (9)
|
|
10.2
|
2003
Stock Option Plan. (4)
|
|
10.3
|
Agreement
dated as of September 2, 2003 by and between Patriot Gold Corp. and Bruce
Johnstone. (5)
|
|
10.4
|
Shareholders’
Agreement dated as of January 22, 2004, among Patriot Gold Corp., Ron
Blomkamp, Robert Sibthorpe and Robert Coale. (6)
|
|
10.5
|
Agreement
dated January 22, 2004 executed by Bruce Johnstone with respect to
registration rights. (8)
|
|
10.6
|
Letter
of Intent dated November 13, 2003 between Patriot Gold Corp. and
Ms. Barbara Williams. (9)
|
|
10.7
|
Purchase
Contract dated February 19, 2004 between the Company, the parties
identified therein as the Seller and First American Title Insurance
Company of Yavapai County, as escrow agent.
(7)
|
10.8
|
Binding
Letter Agreement, dated March 4, 2004, by and between the Company and
MinQuest, Inc. (8)
|
|
10.9
|
Agreement
with Shareholder.com (10)
|
|
10.10
|
2005
Stock Option Plan (11)
|
|
10.11
|
Buy-Back
Option Agreement, dated March 10, 2006, between the Company and Robert
Coale (12)
|
|
10.12
|
Buy-Back
Option Agreement, dated March 10, 2006, between the Company and Robert
Sibthorpe (12)
|
|
10.13
|
Redemption
Agreement, dated March 10, 2006, between the Company and Ronald C.
Blomkamp (12)
|
|
10.14
|
Letter
Agreement, dated July 24, 2007, between MinQuest Inc. and the Company
(13)
|
|
10.15
|
Assignment
and Assumption Agreement dated January 29, 2008 between the Company and
American Goldrush Corp. (14)
|
|
10.16
|
Whiskey
Flat Property Option Agreement, dated March 15, 2008 between the Company
and MinQuest Inc. (15)
|
|
10.17
|
NK
Property Option Agreement, dated March 15, 2008 between the Company and
MinQuest Inc. (15)
|
|
10.18
|
Weepah
Property Option Agreement, dated March 15, 2008 between the Company and
MinQuest Inc. (15)
|
|
10.19
|
Assignment
and Assumption Agreement dated May 30, 2008 between the Company and
American Goldfields Inc. (16)
|
|
10.20
|
Bruner
Property Option Agreement, dated April 1, 2009 between the Company and
American International Ventures Inc. (17)
|
|
10.21
|
Resource
Report for Moss Mine Gold Project(18)
|
|
31
|
Rule
13a-14(a)/15d14(a) Certifications (attached hereto)
|
|
32
|
Section
1350 Certifications (attached
hereto)
|
Contents
|
Page
|
||
Report
of Independent Registered Public Accountants
|
F -
1
|
||
Balance
Sheets
|
|||
May
31, 2010 and 2009
|
F -
2
|
||
Statements
of Operations for the
|
|||
Years
Ended May 31, 2010 and 2009 and the Cumulative Period
|
|||
June
1, 2000 (Inception of Exploration State) to May 31, 2010
|
F -
3
|
||
Statement
of Stockholders’ Equity
|
|||
Since
November 30, 1998 (Inception) to May 31, 2010
|
F -
4
|
||
Statements
of Cash Flows for the
|
|||
Years
Ended May 31, 2010 and 2009 and the Cumulative Period
|
|||
June
1, 2000 (Inception of Exploration State) to May 31, 2010
|
F –
12
|
||
Notes
to Financial Statements
|
F -
14
|
||
ROBISON, HILL & CO.
|
Certified
Public Accountants
|
|||
A
PROFESSIONAL CORPORATION
|
||||
BRENT
M. DAVIES, CPA
|
||||
DAVID
O. SEAL, CPA
|
||||
W.
DALE WESTENSKOW, CPA
|
||||
BARRY
D. LOVELESS, CPA
|
||||
STEPHEN
M. HALLEY, CPA
|
May
31,
|
May
31,
|
|||||||
2010
|
2009
|
|||||||
ASSETS:
|
||||||||
Current
Assets:
|
||||||||
Cash
|
$
|
606,501
|
$
|
1,195,886
|
||||
Prepaid Expenses
|
5,000
|
-
|
||||||
Total
Current Assets
|
611,501
|
1,195,886
|
||||||
Reclamation
Deposits (note 4)
|
14,155
|
14,155
|
||||||
Office
Equipment, Net
|
-
|
-
|
||||||
|
||||||||
Total
Assets
|
$
|
625,656
|
$
|
1,210,041
|
||||
LIABILITIES
& STOCKHOLDERS’ EQUITY:
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
Payable
|
$
|
31,081
|
$
|
65,989
|
||||
Total
Current Liabilities
|
31,081
|
65,989
|
||||||
Stockholders’
Equity:
|
||||||||
Preferred
Stock, Par Value $.001
|
||||||||
Authorized
20,000,000 shares,
|
||||||||
No
shares issued at May 31, 2010 and 2009
|
—
|
—
|
||||||
Common
Stock, Par Value $.001
|
||||||||
Authorized
100,000,000 shares,
|
||||||||
Issued
26,224,400 shares at
|
||||||||
May
31, 2010 (May 31, 2009 – 26,224,400)
|
26,224
|
26,224
|
||||||
Paid-In
Capital
|
26,381,625
|
26,381,625
|
||||||
Currency
Translation Adjustment
|
(16,361
|
)
|
(16,361
|
)
|
||||
Deficit
Accumulated Since Inception of Exploration State
|
(25,755,831
|
)
|
(25,206,354
|
)
|
||||
Retained
Deficit
|
(41,082
|
)
|
(41,082
|
)
|
||||
|
||||||||
Total
Stockholders’ Equity
|
594,575
|
1,144,052
|
||||||
Total
Liabilities and Stockholders’ Equity
|
$
|
625,656
|
$
|
1,210,041
|
Cumulative
|
||||||||||||
Since
|
||||||||||||
June
1, 2000
|
||||||||||||
For
the Year Ended
|
Inception
of
|
|||||||||||
May
31,
|
Exploration
|
|||||||||||
2010
|
2009
|
State
|
||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Cost
of Revenues
|
—
|
—
|
—
|
|||||||||
Gross
Margin
|
—
|
—
|
—
|
|||||||||
Expenses:
|
||||||||||||
Mining
Costs
|
266,302
|
386,192
|
3,641,545
|
|||||||||
General
and Administrative
|
293,519
|
328,604
|
22,567,802
|
|||||||||
Net
Loss from Operations
|
(559,821)
|
(714,796)
|
(26,209,347
|
)
|
||||||||
Other
Income (Expense)
|
||||||||||||
Interest
|
7,694
|
40,099
|
453,796
|
|||||||||
Currency
Exchange
|
2,650
|
1,529
|
(280)
|
|||||||||
Net
Other Income (Expense)
|
10,344
|
41,628
|
453,516
|
|||||||||
Net
Loss
|
$
|
(549,477)
|
$
|
(673,168)
|
$
|
(25,755,831
|
)
|
|||||
Basic
and Diluted loss per
|
||||||||||||
Share
|
$
|
(0.02
|
)
|
$
|
(0.03)
|
|||||||
Weighted
Average Shares
|
||||||||||||
Outstanding
|
26,224,400
|
26,224,400
|
Deficit
|
||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||
Balance
at November 30, 1998
|
||||||||||||||||||||||||||||||
(inception)
|
—
|
$
|
—
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||
November
30, 1998 Issuance of
|
||||||||||||||||||||||||||||||
Stock
for services and payment
|
||||||||||||||||||||||||||||||
of
accounts payable
|
—
|
—
|
1,000,000
|
1,000
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
April
1, 1999 Issuance of Stock
|
||||||||||||||||||||||||||||||
for
cash pursuant to private
|
||||||||||||||||||||||||||||||
placement
|
—
|
—
|
1,004,000
|
1,004
|
49,196
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(38,305
|
)
|
—
|
||||||||||||||||||||
Currency
Translation Adjustment
|
—
|
—
|
—
|
—
|
—
|
—
|
(15,996
|
)
|
—
|
—
|
||||||||||||||||||||
—
|
||||||||||||||||||||||||||||||
Balance
at May 31, 1999
|
—
|
—
|
2,004,000
|
2,004
|
49,196
|
—
|
(15,996
|
)
|
(38,305
|
)
|
—
|
|||||||||||||||||||
Retroactive
Adjustment for 1:7.6
|
||||||||||||||||||||||||||||||
Stock
Split June 17, 2003
|
—
|
—
|
13,226,400
|
13,226
|
(13,226
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Restated
Balance May 31, 1999
|
—
|
—
|
15,230,400
|
15,230
|
35,970
|
—
|
(15,996
|
)
|
(38,305
|
)
|
—
|
|||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,777
|
)
|
—
|
||||||||||||||||||||
Currency
Translation Adjustment
|
—
|
—
|
—
|
—
|
—
|
—
|
(489
|
)
|
—
|
—
|
||||||||||||||||||||
Balance
at May 31, 2000
|
—
|
—
|
15,230,400
|
15,230
|
35,970
|
—
|
(16,485
|
)
|
(41,082
|
)
|
—
|
Deficit
|
||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||
Balance
at May 31, 2000
|
—
|
—
|
15,230,400
|
15,230
|
35,970
|
—
|
(16,485
|
)
|
(41,082
|
)
|
—
|
|||||||||||||||||||
Contributed
Capital
|
—
|
$
|
—
|
—
|
$
|
—
|
$
|
3,788
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(3,811
|
)
|
||||||||||||||||||||
Currency
Translation Adjustment
|
—
|
—
|
—
|
—
|
—
|
—
|
172
|
—
|
—
|
|||||||||||||||||||||
Balance
at May 31, 2001
|
—
|
—
|
15,230,400
|
15,230
|
39,758
|
—
|
(16,313
|
)
|
(41,082
|
)
|
(3,811
|
)
|
||||||||||||||||||
Contributed
Capital
|
—
|
—
|
—
|
—
|
2,080
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,630
|
)
|
||||||||||||||||||||
Currency
Translation Adjustment
|
—
|
—
|
—
|
—
|
—
|
—
|
(48
|
)
|
—
|
—
|
||||||||||||||||||||
Balance
at May 31, 2002
|
—
|
—
|
15,230,400
|
15,230
|
41,838
|
—
|
(16,361
|
)
|
(41,082
|
)
|
(6,441
|
)
|
||||||||||||||||||
Contributed
Capital
|
—
|
—
|
—
|
—
|
3,972
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(11,215
|
)
|
||||||||||||||||||||
Balance
at May 31, 2003
|
—
|
—
|
15,230,400
|
15,230
|
45,810
|
—
|
(16,361
|
)
|
(41,082
|
)
|
(17,656
|
)
|
||||||||||||||||||
Deficit
|
||||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||||
Balance
at May 31, 2003
|
—
|
—
|
15,230,400
|
15,230
|
45,810
|
—
|
(16,361
|
)
|
(41,082
|
)
|
(17,656
|
)
|
||||||||||||||||||||
June
11, 2003 Issuances of
Preferred
Shares for Services
|
13,500,000
|
13,500
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
Shares
from Former Officer/
|
||||||||||||||||||||||||||||||||
Directors
|
—
|
$
|
—
|
(5,320,000
|
)
|
$
|
(5,320
|
)
|
$
|
5,320
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||
July
25, 2003, Shares and
|
||||||||||||||||||||||||||||||||
Warrants
Issued for Cash
|
—
|
—
|
350,000
|
350
|
367,150
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
July,
2003 Compensation from
|
||||||||||||||||||||||||||||||||
Issuance
of Stock Options
|
||||||||||||||||||||||||||||||||
Below
Fair Market Value
|
—
|
—
|
—
|
—
|
235,354
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
September
2, 2003, Preferred
|
||||||||||||||||||||||||||||||||
Shares
Converted to Common
|
(13,500,000
|
)
|
(13,500
|
)
|
13,500,000
|
13,500
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
September
12, 2003, Stock
|
||||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
200,000
|
200
|
9,800
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
September
17, 2003, Stock
|
||||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
930,000
|
930
|
45,570
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
September
22, 2003, Stock
|
||||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
525,000
|
525
|
25,725
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
September
23, 2003, Stock
|
||||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
105,000
|
105
|
8,895
|
—
|
—
|
—
|
—
|
Deficit
|
||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||
September
26, 2003, Stock
|
||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
$
|
—
|
465,000
|
$
|
465
|
$
|
602,785
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||
September,
2003 Compensation
|
||||||||||||||||||||||||||||||
From
Issuance of Stock
|
||||||||||||||||||||||||||||||
Options
Below Fair Market
|
||||||||||||||||||||||||||||||
Value
|
—
|
—
|
—
|
—
|
1,458,240
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
October
1, 2003, Stock Options
|
||||||||||||||||||||||||||||||
Exercised
|
—
|
—
|
5,000
|
5
|
3,995
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
October
15, 2003, Stock
|
||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
625,000
|
625
|
900,625
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
November
12, 2003, Stock
|
||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
220,000
|
220
|
109,780
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
November
27, 2003, Common
|
||||||||||||||||||||||||||||||
Stock
and Warrants Issued for
|
||||||||||||||||||||||||||||||
Cash
|
—
|
—
|
864,000
|
864
|
1,079,136
|
—
|
—
|
—
|
—
|
Deficit
|
||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||
November
2003, Compensation
|
||||||||||||||||||||||||||||||
From
Issuance of Stock
|
||||||||||||||||||||||||||||||
Options
Below Fair Market
|
||||||||||||||||||||||||||||||
Value
|
—
|
$
|
—
|
—
|
$
|
—
|
$
|
290,818
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||
December
2, 2003 Stock
|
||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
5,000
|
5
|
3,995
|
(4,000
|
)
|
—
|
—
|
—
|
||||||||||||||||||||
December
22, 2003, Stock
|
||||||||||||||||||||||||||||||
Options
Exercised
|
—
|
—
|
20,000
|
20
|
20,580
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
December
2003, Compensation
|
||||||||||||||||||||||||||||||
From
Issuance of Stock
|
||||||||||||||||||||||||||||||
Options
Below Fair Market
|
||||||||||||||||||||||||||||||
Value
|
—
|
—
|
—
|
—
|
346,412
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
January
2, 2004, Stock Options
|
||||||||||||||||||||||||||||||
Exercised
|
—
|
—
|
220,000
|
220
|
164,780
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
January
24, 2004, Capital
|
||||||||||||||||||||||||||||||
Contributed
for Director
|
||||||||||||||||||||||||||||||
Compensation
|
—
|
—
|
—
|
—
|
16,254,000
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
February
2004, Compensation
|
||||||||||||||||||||||||||||||
From
Issuance of Stock
|
||||||||||||||||||||||||||||||
Options
Below Fair Market
|
||||||||||||||||||||||||||||||
Value
|
—
|
—
|
—
|
—
|
1,949,522
|
—
|
—
|
—
|
—
|
Deficit
|
|||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
||||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
|||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
|||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
||||||||||||||||||||||
March
2004, Compensation
|
|||||||||||||||||||||||||||||||
From
Issuance of Stock
|
|||||||||||||||||||||||||||||||
Options
Below Fair Market
|
|||||||||||||||||||||||||||||||
Value
|
—
|
$
|
—
|
—
|
$
|
—
|
$
|
612,030
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||||||||
March
5, 2004, Stock Options
|
|||||||||||||||||||||||||||||||
Exercised
|
—
|
—
|
1,285,000
|
1,285
|
1,761,215
|
(1,597,500
|
)
|
—
|
—
|
—
|
|||||||||||||||||||||
April
2, 2004, Stock Options
|
|||||||||||||||||||||||||||||||
Exercised
|
—
|
—
|
50,000
|
50
|
74,950
|
(75,000
|
)
|
—
|
—
|
—
|
|||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(21,625,478
|
)
|
|||||||||||||||||||||
Balance
May 31, 2004
|
—
|
—
|
29,279,400
|
29,279
|
26,376,487
|
(1,676,500
|
)
|
(16,361
|
)
|
(41,082
|
)
|
(21,643,134
|
)
|
||||||||||||||||||
Cash
from Subscription
|
|||||||||||||||||||||||||||||||
Receivable
|
—
|
—
|
—
|
—
|
—
|
1,597,500
|
—
|
—
|
—
|
||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,093,485
|
)
|
|||||||||||||||||||||
Balance
May 31, 2005
|
—
|
—
|
29,279,400
|
29,279
|
26,376,487
|
(79,000
|
)
|
(16,361
|
)
|
(41,082
|
)
|
(22,736,619
|
)
|
||||||||||||||||||
March
2006, Redemption of
|
|||||||||||||||||||||||||||||||
3,000,000
common shares
|
—
|
—
|
(3,000,000
|
)
|
(3,000
|
)
|
(27,000
|
)
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
March
2006, Compensation
|
|||||||||||||||||||||||||||||||
From
the Issuance of Stock
|
|||||||||||||||||||||||||||||||
Options
at Fair Market Value.
|
—
|
—
|
—
|
—
|
86,483
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(290,042
|
)
|
|||||||||||||||||||||
Balance
May 31, 2006
|
—
|
$
|
—
|
26,279,400
|
$
|
26,279
|
$
|
26,435,970
|
$
|
(79,000
|
)
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(23,026,661
|
)
|
Deficit
|
|||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
||||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
|||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
|||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
||||||||||||||||||||||
Balance
May 31, 2006
|
—
|
$
|
—
|
26,279,400
|
$
|
26,279
|
$
|
26,435,970
|
$
|
(79,000
|
)
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(23,026,661
|
)
|
|||||||||||
January
12, 2007, Cancellation
|
|||||||||||||||||||||||||||||||
Of
55,000 common shares
|
—
|
$
|
—
|
(55,000
|
)
|
$
|
(55
|
)
|
$
|
(78,945
|
)
|
$
|
79,000
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Compensation
From the
|
|||||||||||||||||||||||||||||||
Revaluation
of Stock
|
|||||||||||||||||||||||||||||||
Options
Granted in Prior Years
|
—
|
—
|
—
|
—
|
26,611
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(295,288
|
)
|
|||||||||||||||||||||
Balance
May 31, 2007
|
—
|
$
|
—
|
26,224,400
|
$
|
26,224
|
$
|
26,383,636
|
$
|
—
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(23,321,949
|
)
|
||||||||||||
Compensation
From the
|
|||||||||||||||||||||||||||||||
Revaluation
of Stock
|
|||||||||||||||||||||||||||||||
Options
Granted in Prior Years
|
—
|
—
|
—
|
—
|
(973)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,211,237
|
)
|
|||||||||||||||||||||
Balance
May 31, 2008
|
—
|
$
|
—
|
26,224,400
|
$
|
26,224
|
$
|
26,382,663
|
$
|
—
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(24,533,186
|
)
|
||||||||||||
Compensation
From the
|
|||||||||||||||||||||||||||||||
Revaluation
of Stock
|
|||||||||||||||||||||||||||||||
Options
Granted in Prior Years
|
—
|
—
|
—
|
—
|
(1,038)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(673,168
|
)
|
|||||||||||||||||||||
Balance
May 31, 2009
|
—
|
$
|
—
|
26,224,400
|
$
|
26,224
|
$
|
26,381,625
|
$
|
—
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(25,206,354
|
)
|
Deficit
|
||||||||||||||||||||||||||||||
Cumulative
|
Accumulated
|
|||||||||||||||||||||||||||||
Subscription
|
Currency
|
During
|
||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Stock
|
Translation
|
Retained
|
Exploration
|
||||||||||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Par
Value
|
Capital
|
Receivable
|
Adjustment
|
Deficit
|
State
|
|||||||||||||||||||||
Balance
May 31, 2009
|
—
|
$
|
—
|
26,224,400
|
$
|
26,224
|
$
|
26,381,625
|
$
|
—
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(25,206,354
|
)
|
|||||||||||
Net
Loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(549,477)
|
|||||||||||||||||||||
Balance
May 31, 2010
|
—
|
$
|
—
|
26,224,400
|
$
|
26,224
|
$
|
26,381,625
|
$
|
—
|
$
|
(16,361
|
)
|
$
|
(41,082
|
)
|
$
|
(25,755,831
|
)
|
Cumulative
|
||||||||||||
Since
|
||||||||||||
June
1, 2000
|
||||||||||||
For
the Year Ended
|
Inception
of
|
|||||||||||
May
31,
|
May
31,
|
Exploration
|
||||||||||
2010
|
2009
|
State
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
Loss
|
$
|
(549,477
|
)
|
$
|
(673,168
|
)
|
$
|
(25,755,831
|
)
|
|||
Adjustments
to Reconcile Net Loss to Net
|
||||||||||||
Cash
Used in Operating Activities:
|
||||||||||||
Compensation
Expense of Stock Options
|
—
|
(1,038)
|
5,003,484
|
|||||||||
Stock
Issued for Services
|
—
|
—
|
16,267,500
|
|||||||||
Depreciation
|
—
|
352
|
4,193
|
|||||||||
Change
in Operating Assets and Liabilities:
|
||||||||||||
(Increase)
Decrease in Prepaid Expenses
|
(5,000)
|
—
|
(5,000)
|
|||||||||
Increase
(Decrease) in Accounts Payable
|
(34,908
|
)
|
(262,773)
|
24,838
|
||||||||
Net
Cash Used in Operating Activities
|
(589,385
|
)
|
(936,627)
|
(4,460,816
|
)
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchase
of Office Equipment
|
—
|
—
|
(4,193)
|
|||||||||
Reclamation
Deposits
|
—
|
17,000
|
(14,155)
|
|||||||||
Net
Cash Used in Investing Activities
|
—
|
17,000
|
(18,348)
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from Sale of Common Stock
|
—
|
—
|
5,105,825
|
|||||||||
Redemption
of Common Shares
|
—
|
—
|
(30,000)
|
|||||||||
Proceeds
from Contributed Capital
|
—
|
—
|
9,840
|
|||||||||
Net
Cash Provided by Financing Activities
|
—
|
—
|
5,085,665
|
|||||||||
Net
(Decrease) Increase in
|
||||||||||||
Cash
and Cash Equivalents
|
(589,385)
|
(919,627)
|
606,501
|
|||||||||
Cash
and Cash Equivalents
|
||||||||||||
at
Beginning of Period
|
1,195,886
|
2,115,513
|
—
|
|||||||||
Cash
and Cash Equivalents
|
||||||||||||
at
End of Period
|
$
|
606,501
|
$
|
1,195,886
|
$
|
606,501
|
Cumulative
|
||||||||||||
Since
|
||||||||||||
June
1, 2000
|
||||||||||||
For
the Year Ended
|
Inception
of
|
|||||||||||
May
31,
|
May
31,
|
Exploration
|
||||||||||
20010 | 2009 |
State
|
||||||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid during the year for:
|
||||||||||||
Interest
|
$ | — | $ | — | $ | — | ||||||
Income
taxes
|
$ | — | $ | — | $ | — | ||||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
Settlement
of Subscription Receivable By
the Cancellation of Common Stock
|
$
|
—
|
$
|
—
|
$
|
79,000
|
Equipment
and Furniture consist of the following:
|
May
31,
|
|||||
2010
|
2009
|
|||||
Equipment
|
$
|
645
|
$
|
645
|
||
Furniture
|
3,548
|
3,548
|
||||
4,193
|
4,193
|
|||||
Less
accumulated depreciation
|
(4,193)
|
(4,193)
|
||||
Total
|
$
|
-
|
$
|
-
|
2010
|
2009
|
|||||||
Loss
carry-forwards
|
$ | 3,043,000 | $ | 2,856,000 | ||||
Less: Valuation
allowance
|
(3,043,000 | ) | (2,856,000 | ) | ||||
Deferred
tax asset recognized
|
$ | - | $ | - |
2010
|
2009
|
|||||||
Computed
“expected” tax benefit
|
$ | 187,000 | $ | 229,500 | ||||
Change
in Valuation Allowance
|
(187,000 | ) | (229,500 | ) | ||||
Income
tax provision
|
$ | - | $ | - |
|
NOTE
6 - UNCERTAIN
TAX POSITIONS
|
United
States (a)
|
2006
– Present
|
Risk
Free Rate
|
4.24%
|
Expected
Life of Option
|
10
years
|
Expected
Volatility of Stock (Based on Historical Volatility)
|
80.43%
|
Expected
Dividend yield of Stock
|
0.00
|
Available
for Grant
|
Options
Outstanding
|
Weighted
Average Exercise Price
|
||||||||||
Balance,
May 31, 2008 and 2009
|
506,000 | 385,000 | $ | 0.26 | ||||||||
Options
granted
|
- | - | - | |||||||||
Options
cancelled
|
205,000 | (205,000 | ) | 0.07 | ||||||||
Options
exercised
|
- | - | - | |||||||||
Balance,
May 31, 2010
|
711,000 | 180,000 | $ | 0.49 |
Available
for Grant
|
Options
Outstanding
|
Weighted
Average Exercise Price
|
||||||||||
Balance,
May 31, 2008 and 2009
|
1,000,000 | 1,000,000 | $ | 0.25 | ||||||||
Options
granted
|
- | - | - | |||||||||
Options
cancelled
|
700,000 | (700,000 | ) | 0.25 | ||||||||
Options
exercised
|
- | - | - | |||||||||
Balance,
May 31, 2010
|
1,700,000 | 300,000 | $ | 0.25 |
Exercise
Prices
|
Options
Outstanding
|
Remaining
Contractual Life
(in
years)
|
Weighted
Average
Exercise
Price
|
Number
of Options Currently Exercisable
|
Weighted
Average
Exercise
Price
|
$
0.05
|
100,000
|
3.08
|
$
0.05
|
100,000
|
$
0.05
|
$
0.25
|
300,000
|
5.75
|
$
0.25
|
300,000
|
$
0.25
|
$
1.03
|
80,000
|
3.17
|
$
1.03
|
80,000
|
$
1.03
|
480,000
|
$
0.34
|
480,000
|
$
0.34
|
Warrants
Outstanding
|
||||
Balance,
May 31, 2008
|
3,456,000 | |||
Warrants
granted
|
- | |||
Warrants
expired
|
- | |||
Balance,
May 31, 2010 and 2009
|
3,456,000 |
Number
Outstanding
|
Exercise
Price
|
Weighted
Average Contractual Remaining Life (years) *
|
Number
Currently Exercisable
|
Exercise
Price
|
864,000
|
$
1.40
|
3.50
|
864,000
|
$
1.40
|
864,000
|
$
1.45
|
3.50
|
864,000
|
$
1.45
|
864,000
|
$
1.50
|
3.50
|
864,000
|
$
1.50
|
864,000
|
$
1.55
|
3.50
|
864,000
|
$
1.55
|
3,456,000
|
3,456,000
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
50,000
|
$
|
-
|
By
March 15, 2009
|
50,000
|
50,000
|
||
By
March 15, 2010
|
50,000
|
150,000
|
||
By
March 15, 2011
|
65,000
|
200,000
|
||
By
March 15, 2012
|
80,000
|
350,000
|
||
By
March 15, 2013
|
100,000
|
200,000
|
||
By
March 15, 2014
|
100,000
|
200,000
|
||
By
March 15, 2015
|
100,000
|
200,000
|
||
By
March 15, 2016
|
100,000
|
200,000
|
||
By
March 15, 2017
|
100,000
|
200,000
|
||
By
March 15, 2018
|
250,000
|
750,000
|
||
$
|
1,045,000
|
$
|
2,500,000
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
20,000
|
$
|
-
|
By
March 15, 2009
|
20,000
|
50,000
|
||
By
March 15, 2010
|
20,000
|
75,000
|
||
By
March 15, 2011
|
35,000
|
100,000
|
||
By
March 15, 2012
|
45,000
|
250,000
|
||
By
March 15, 2013
|
50,000
|
100,000
|
||
By
March 15, 2014
|
50,000
|
100,000
|
||
By
March 15, 2015
|
50,000
|
100,000
|
||
By
March 15, 2016
|
50,000
|
100,000
|
||
By
March 15, 2017
|
50,000
|
100,000
|
||
By
March 15, 2018
|
100,000
|
250,000
|
||
$
|
490,000
|
$
|
1,225,000
|
Property
|
Work
|
|||
Payments
|
Expenditures
|
|||
$USD
|
$USD
|
|||
Upon
Execution of the Agreement
|
$
|
20,000
|
$
|
-
|
By
March 15, 2009
|
20,000
|
50,000
|
||
By
March 15, 2010
|
20,000
|
75,000
|
||
By
March 15, 2011
|
35,000
|
100,000
|
||
By
March 15, 2012
|
45,000
|
250,000
|
||
By
March 15, 2013
|
50,000
|
100,000
|
||
By
March 15, 2014
|
50,000
|
100,000
|
||
By
March 15, 2015
|
50,000
|
100,000
|
||
By
March 15, 2016
|
50,000
|
100,000
|
||
By
March 15, 2017
|
50,000
|
100,000
|
||
By
March 15, 2018
|
100,000
|
250,000
|
||
$
|
490,000
|
$
|
1,225,000
|
PATRIOT
GOLD CORP.
|
|
Dated:
August 27, 2010
|
By: /s/ Herb Duerr
|
Name: Herb
Duerr
|
|
Title: President,
Chief Executive and Operating Officer, Secretary and Treasurer, and
Director (Principal Executive, Financial and Accounting
Officer)
|
|
SIGNATURE
|
TITLE
|
DATE
|
|
/s/Herb Duerr
Herb
Duerr
|
Director,
President, Chief Executive and Operating Officer, Secretary, and Treasurer
(Principal Executive, Financial, and Accounting Officer)
|
August
27, 2010
|
|
/s/ Robert Coale
Robert Coale
|
Director
|
August
27, 2010
|
|
/s/ Jared Beebe
Jared Beebe
|
Director
|
August
27, 2010
|
|
/s/ Dennis Lance
Dennis Lance
|
Director
|
August
27, 2010
|