Borealis Exploration Limited

Consolidated Balance Sheet

(Unaudited – Prepared by Management)

 

As at June 30

1998

 

1997

       

Assets

     
       

Current

     

Cash

$ 14,041

 

$ 10,261

Marketable securities

-

 

1,295

 

14,041

 

11,556

       

Mineral properties and other assets

5,367,819

 

5,351,286

       

Patents

78,724

 

43,047

       
 

$ 5,460,584

 

$ 5,405,889

       
       

Liabilities and Shareholders' Deficiency

     
       

Current

     

Accounts payable

$ 1,223,042

 

$ 1,840,020

Deposits on share issue

1,741,172

 

1,057,259

Loans payable

25,211

 

57,736

Due to shareholders

1,113,563

 

680,427

 

4,102,988

 

3,635,442

       

Royalty payable

2,746,961

 

2,595,300

 

6,849,949

 

6,230,742

       

Share capital

27,800,756

 

26,175,893

       

Contributed surplus

4,786,726

 

4,786,726

       

Deficit

(33,976,847)

 

(31,787,472)

 

(1,389,365)

 

(824,853)

       
 

$ 5,460,584

 

$ 5,405,889

       

 

 

 

Note: Certain comparitive figures have been restated and others have been reclassified to conform to the current period’s presentation.

 

 

Borealis Exploration Limited

Consolidated Statement of Operations and Deficit

(Unaudited – Prepared by Management)

For the three month period ended June 30

1998

 

1997

       

Expenses

     

Interest and foreign exchange

$ 130,830

 

$ 28,960

Other general and administrative

374,798

 

452,680

Amortization

4,114

 

1,023

 

509,742

 

482,663

       

Other items

     

Gain on settlement of debts

3,707

 

-

Foreign exchange loss on royalty payable

(81,736)

 

(37,395)

 

(78,029)

 

(37,395)

       

Net loss for the period

(587,771)

 

(520,058)

       

Deficit, beginning of period

(33,389,076)

 

(31,267,414)

       

Deficit, end of period

$ (33,976,847)

 

$ (31,787,472)

       

     

Basic loss per share

$

(0.12)

 

$

(0.16)

       

 

 

 

Note: Certain comparitive figures have been restated and others have been reclassified to conform to the current period’s presentation.

 

 

Borealis Exploration Limited

Consolidated Statement of Changes in Financial Position

(Unaudited – Prepared by Management)

 

For the three month period ended June 30

1998

 

1997

       

Cash provided (used) by:

     

     

Operating activities

     

Operations

     

Net loss for the period

$ (587,771)

 

$ (520,058)

Items not involving cash

     

Foreign exchange loss on royalty payable

81,736

 

-

Amortization

4,114

 

1,023

 

(501,921)

 

(519,035)

Changes in non-cash working capital balances

     

Marketable securities

-

 

(1,295)

Accounts payable

(44,407)

 

(812,140)

 

(546,328)

 

(1,332,470)

       

Financing activities

     

Issue of share capital

348,363

 

1,289,178

Deposits on share issue

122,495

 

117,300

Advances (to) from shareholders

87,893

 

(74,649)

Additions to loan payable

750

 

-

 

559,501

 

1,331,829

       

Investing activity

     

Mineral property expenditures and other asset additions

(7,076)

 

(2,730)

       

Increase (decrease) in cash

6,097

 

(3,371)

       

Cash, beginning of period

7,944

 

13,632

       

Cash, end of period

$ 14,041

 

$ 10,261

       
       

 

 

 

Note: Certain comparitive figures have been restated and others have been reclassified to conform to the current period’s presentation.