Quarterly Numbers for Quarter Ending September 30, 1998

Borealis Exploration Limited

Consolidated Balance Sheet

(Unaudited — Prepared by Management)

As at September 30

1998

 

1997

       

Assets

     
       

Current

     

Cash

$ 95,240

 

$ 843

Marketable securities

-

 

1,295

 

95,240

 

2,138

       

Mineral properties and other assets

5,369,147

 

5,352,498

       

Patents

84,739

 

42,650

       
 

$ 5,549,126

 

$ 5,397,286

       
       

Liabilities and Shareholders' Deficiency

     
       

Current

     

Accounts payable

$ 1,752,392

 

$ 1,588,370

Deposits on share issue

1,820,472

 

976,625

Loans payable

26,361

 

227,480

Due to shareholders

1,204,230

 

335,810

 

4,803,455

 

3,128,285

       

Royalty payable

2,872,190

 

2,584,690

7,675,645

5,712,975

       

Share capital

27,800,756

 

27,452,393

       

Contributed surplus

4,786,726

 

4,786,726

       

Deficit

(34,714,001)

 

(32,554,808)

 

(2,126,519)

 

(315,689)

       
 

$ 5,549,126

 

$ 5,397,286

       

 

 

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 six month period ended September 30

1998

 

1997

       

Expenses

     

Interest and foreign exchange

$ 347,274

 

$ 49,013

Other general and administrative

769,756

 

1,246,981

Amortization

4,638

 

2,010

 

1,121,668

 

1,298,004

       

Other items

     

Gain on settlement of debts

3,707

 

-

Foreign exchange gain (loss) on royalty payable

(206,964)

 

10,610

 

(203,257)

 

10,610

       

Net loss for the period

(1,324,925)

 

(1,287,394)

       

Deficit, beginning of period

(33,389,076)

 

(31,267,414)

       

Deficit, end of period

$ (34,714,001)

 

$ (32,554,808)

       

     

Basic loss per share

$

(0.27)

 

$

(0.29)

       

 

 

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 six month period ended September 30

1998

 

1997

       

Cash provided (used) by:

     

     

Operating activities

     

Operations

     

Net loss for the period

$ (1,324,925)

 

$ (1,287,394)

Items not involving cash

     

Foreign exchange loss on royalty payable

206,964

 

(10,610)

Amortization

4,638

 

2,010

 

(1,113,323)

 

(1,295,994)

Changes in non-cash working capital balances

     

Marketable securities

-

 

(1,295)

Accounts payable

484,943

 

(1,063,790)

 

(628,380)

 

(2,361,079)

       

Financing activities

     

Issue of share capital

348,363

 

2,565,678

Deposits on share issue

201,795

 

36,666

Advances (to) from shareholders

178,560

 

(419,266)

Additions to loan payable

1,900

 

169,744

 

730,618

 

2,352,822

       

Investing activity

     

Mineral property expenditures and other asset additions

(14,942)

 

(4,532)

       

Increase (decrease) in cash

87,296

 

(12,789)

       

Cash, beginning of period

7,944

 

13,632

       

Cash, end of period

$ 95,240

 

$ 843

       
       

 

 

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