BOREALIS EXPLORATION LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH
FLOW FOR THE SIX MONTH PERIOD ENDED
SEPTEMBER 30, 1997
(Unaudited)
| September 30 | September 30 | |
| 1997 | 1996 | |
| Operating Activities | ||
| Operating gain (loss) | $ (767,336) | $ (576,659) |
| Items not affecting cash | ||
| Foreign Exchange (gain) loss on royalty | 18,844 | -- |
| Amortization | 987 | 882 |
| (747,505) | (575,777) | |
| Increase (decrease) in accounts payable | (251,600) | 540,072 |
| $ (999,105) | $ (35,705) | |
| Financing Activities | ||
| Proceeds from Issuance of Shares | $ 1,063,748 | $ -- |
| Additions (reductions) to loan payable | 133,795 | -- |
| Advances from (repayment to) a shareholder, net | 45,387 | 167,660 |
| $ 1,242,930 | $ 167,660 | |
| Investing Activities | ||
| Advances to an affiliated company | $ (252,428) | $ (112,802) |
| Exploration & development expenses deferred | (815) | -- |
| $ (253,243) | $ (112,802) | |
| Increase (decrease) cash | $ (9,418) | $ 19,183 |
| Cash (bank indebtedness), beginning of period | 10,261 | (16,753) |
| Cash and equivalents, end of period | $ 843 | $ 2,430 |
BOREALIS EXPLORATION LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1997
(Unaudited)
ASSETS
| September 30 | September 30 | |
| 1997 | 1996 | |
| Current Assets | ||
| Cash | $ 843 | $ 2,430 |
| Marketable securities | 1,295 | 1,295 |
| 2,128 | 3,725 | |
| Investment in shares | 4,664,749 | 1,728 |
| Mineral properties including deferred exploration
and development cost and fixed assets |
730,399 |
5,365,966 |
| $ 5,397,276 | $ 5,371,419 |
LIABILITIES
| Current Liabilities | ||
| Accounts payable and accrued liabilities | $ 1,284,920 | $ 1,911,565 |
| Loans payable | 227,480 | -- |
| Payable to shareholders | 335,810 | 533,931 |
| 1,848,210 | 2,445,496 | |
| Royalty payable | 2,584,690 | 2,547,871 |
| $ 4,432,900 | $ 4,993,367 |
SHAREHOLDERS' EQUITY
| Capital Stock: | ||
| Authorized 5,000,000 common shares | ||
| without par value | ||
| Issued (1997 4,869,878 shares) | ||
| (1996 4,148,345 shares) | $ 28,429,018 | $ 25,262,462 |
| Contributed surplus | 4,786,726 | 4,919,539 |
| Deficit | (32,251,368) | (29,803,949) |
| 964,376 | 378,052 | |
| $ 5,397,276 | $ 5,371,419 |
BOREALIS EXPLORATION LIMITED
INTERIM CONSOLIDATED STATEMENT OF LOSS AND DEFICIT
SEPTEMBER 30, 1997
(Unaudited)
| September 30 | September 30 | |
| 1997 | 1996 | |
| General and administrative expenses | ||
| Interest and exchange | $ 20,053 | $ 39,035 |
| Other general and administrative expenses | 728,499 | 537,624 |
| 748,552 | 576,659 | |
| Other Items | ||
| Foreign Exchange (Loss) on Royalty | (18,844) | -- |
| 767,336 | 576,659 | |
| Decrease (increase) in deficit | $ (767,336) | $ (576,559) |
| Deficit, beginning of period | $ (31,483,972) | $ (29,227,290) |
| Deficit, end of period | $ (32,251,368) | $ (29,802,949) |
BOREALIS EXPLORATION LIMITED
401 BARCLAY SQUARE
1300 EIGHTH STREET SOUTHWEST
CALGARY, ALBERTA T2R 1B2 CANADA
Phone: (403) 245-4306 or (503) 621-3286
Fax: (403) 245-4308 or (503) 621-3425
E-mail: pr@borealis.com
Web Site: www.borealis.com
INTERIM REPORT
SEPTEMBER 30, 1997