BOREALIS EXPLORATION LIMITED
INTERIM STATEMENT OF CASH
FLOW FOR THE NINE MONTH PERIOD ENDED
DECEMBER 31st, 1997
(Unaudited)
| December 31 | December 31 | |
| 1997 | 1996 | |
| Operating Activities | ||
| Operating gain (loss) | $ 1,888,856 | $ (948,840) |
| Items not affecting cash | ||
| Assignment of debt | (2,631,790) | |
| Foreign Exchange (gain) loss on Royalty | 27,360 | -- |
| Amortization | 953 | 870 |
| (714,621) | 947,970 | |
| Changes in non-cash working balances | ||
| Accounts payable (decrease) | 660,857 | 63,965 |
| 660,857 | 63,965 | |
| $ (53,764) | $ (884,005) | |
| Financing Activities | ||
| Advances from (to) a shareholder, net | $ 279,763 | $ (42,821) |
| Shares issued in subsidiary companies | -- | 1,241,348 |
| Proceeds from issuance of share and stock
options |
2,352,926 |
2,261,931 |
| $ 2,632,689 | $ 3,460,458 | |
| Investing Activities | ||
| Advances to an affiliated company | $ (378,874) | $ (2,542,955) |
| Investment in shares of affilicted company | (2,186,256) | -- |
| Exploration and development expenses
deferred |
(5,515) |
-- |
| $ (2,570,645) | $ (2,542,955) | |
| Increase (decrease) cash | $ 8,280 | $ 33,498 |
| Cash, beginning of period | $ 843 | $ 2,430 |
| Cash and equivalents, end of period | $ 9,123 | $ 35,928 |
BOREALIS EXPLORATION LIMITED
INTERIM BALANCE SHEET
DECEMBER 31st, 1997
(Unaudited)
ASSETS
| December 31 | December 31 | |
| 1997 | 1996 | |
| Current Assets | ||
| Cash | $ 9,123 | $ 35,928 |
| Marketable securities | 1,295 | 1,295 |
| 10,418 | 37,223 | |
| Share subscription receivable | -- | 173,000 |
| Investment in shares | 7,258,342 | 156,728 |
| Mineral properties, including deferred
exploration and development cost and fixed assets |
735,914 |
5,361,269 |
| $ 8,004,674 | $ 5,728,220 | |
LIABILITIES
| Current Liabilities | ||
| Accounts payable | $ 2,659,594 | $ 1,998,737 |
| Payable to shareholders | 415,573 | 491,110 |
| Royalty payable | -- | 2,567,813 |
| $ 3,075,167 | $ 5,057,660 | |
SHAREHOLDERS' EQUITY
| Capital Stock: | ||
| Authorized 5,000,000 common shares | ||
| without par value | ||
| Issued (1997 - 4,869,878 shares) | ||
| (1996 - 4,148,345 shares) | $ 27,534,575 | $ 25,262,462 |
| Shares issued in subsidiary companies | 1,485,359 | 1,241,348 |
| Contributed surplus | 6,272,085 | 4,919,539 |
| Deficit | (30,362,512) | (30,752,789) |
| Equity | 4,929,507 | 670,560 |
| $ 8,004,674 | $ 5,728,220 |
BOREALIS EXPLORATION LIMITED
INTERIM STATEMENT OF LOSS AND DEFICIT
DECEMBER 31st, 1997
(Unaudited)
| December 31 | December 31 | |
| 1997 | 1996 | |
| General and administrative expenses | ||
| Interest and exchange | $ 27,420 | $ 14,840 |
| Other general and administrative expenses | 1,063,154 | 1,290,530 |
| 1,090,574 | 1,305,370 | |
| Other Income (Expenses) | ||
| Foreign Exchange (loss) on Royalty | (27,360) | -- |
| Revenue | -- | 356,530 |
| Assignment of debt | 2,631,790 | -- |
| Gain on settlement of Debt | 375,000 | -- |
| 2,979,430 | 356,530 | |
| Decrease (increase) in deficit | 1,888,856 | (948,840) |
| Deficit, beginning of period | (32,251,368) | (29,803,949) |
| Deficit, end of period | $ (30,362,512) | $ (30,752,789) |
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: http://www.borealis.com
Interim Report
December 31, 1997