Liquidity and Capital Resources

As of the end of the reporting period, the Company had no material cash or cash equivalents. There was no significant change in working capital during this fiscal year.

Management feels that the Company has inadequate working capital to pursue any gold discoveries which can be commercially extracted from its lease properties. To develop these properties, the Company must utilize additional capital which it must acquire, either itself or with joint venture partners or investors. The Company has not entered into any agreement with a partner but expects to require additional financing for its properties. The Company will have negligible capital requirements prior to the decision to develop these areas. The timing for the development of any commercially feasible properties will be contingent upon the current price of gold rising to more commercially reasonable levels. The Company cannot predict when this will occur.

The Company has no plans to pay dividends to its shareholders.