| December 31 | December 31 | |
| 1996 | 1995 | |
| Operating Activities | ||
| Operating gain/(loss) | $ (948,840) | $ (2,443,480) |
| Items not affecting cash | ||
| Write down of Properties | ||
| Abandoned & Sold | -- | 2,346,196 |
| Amortization | 870 | 290 |
| 947,970 | (96,994) | |
| Changes in non-cash working balances | ||
| Accounts receivable(increase) | -- | -- |
| Accounts payable (decrease) | 63,965 | (51,688) |
| 63,965 | (51,688) | |
| $ (884,005) | $ (148,682) | |
| Financing Activities | ||
| Advances from (to) a shareholder, net | $ (42,821) | $ 216,709 |
| Shares issued in subsidiary companies | 1,241,348 | 6,176 |
| Proceeds from issuance of share and stock
options | 2,261,931 | -- |
| $ 3,460,458 | $ 222,885 | |
| Investing Activities | ||
| Advances to an affiliated company | $ (2,542,955) | $ (54,248) |
| Exploration and development expenses
deferred | -- | (8,043) |
| $ (2,542,955) | $ (62,291) | |
| Increase (decrease) cash | $ 33,498 | $ 11,912 |
| Cash (bank indebtedness) beginning of period | $ 2,430 | $ (5,599) |
| Cash (bank indebtedness) end of period | $ 35,928 | $ 6,313 |
| December 31 | December 31 | |
| 1996 | 1995 | |
| Current Assets | ||
| Cash | $ 35,928 | $ 6,313 |
| Marketable securities | 1,295 | 12,545 |
| 37,223 | 18,858 | |
| Share subscription receivable | 173,000 | |
| Investment in shares | 156,728 | 1,728 |
| Mineral properties, including deferred
exploration and development cost and fixed assets | 5,361,269 |
5,814,652 |
| $ 5,728,220 | $ 5,835,238 | |
| Current Liabilities | ||
| Accounts payable | $ 1,998,737 | $ 1,934,772 |
| Loans payable | -- | 430,546 |
| Payable to shareholders | 491,110 | 884,109 |
| $ 2,489,847 | $ 3,249,427 | |
| Royalty payable | 2,567,813 | 2,567,813 |
| $ 5,057,660 | $ 5,817,240 | |
| Capital Stock: | ||
| Authorized 5,000,000 common shares | ||
| without par value | ||
| Issued (1996 - 4,148,345 shares) | ||
| (1995 - 3,232,498 shares) | $ 25,262,462 | $ 22,829,764 |
| Shares issued in subsidiary companies | 1,241,348 | -- |
| Contributed surplus | 4,919,539 | 4,896,520 |
| Deficit | (30,752,789) | (27,708,286) |
| 670,560 | 17,998 | |
| $ 5,728,220 | $ 5,835,238 |
| December 31 | December 31 | |
| 1996 | 1995 | |
| General and administrative expenses | ||
| Interest and exchange | $ 14,840 | $ (96,968) |
| Other general and administrative expenses | 1,290,530 | 173,589 |
| 1,305,370 | 76,621 | |
| Other Income (Expenses) | ||
| Write down of Mineral Properties | -- | (2,346,196) |
| Revenue | 356,530 | |
| Management fees | -- | (20,663) |
| 356,530 | (2,366,859) | |
| Decrease (increase) in deficit | (948,840) | (2,442,480) |
| Deficit, beginning of period | (29,803,949) | (25,264,806) |
| Deficit, end of period | $ (30,752,789) | $ (27,708,286) |