From the company's Management Discussion And Analysis as well as thecompany's Interim Financial Statements for the six-month period endedDecember 31, 2010 both documents were posted on SEDAR on February 24,2011:

"Operating activities, before net changes in non-cash working capital items generated a negative cash flow of ($284,304)for the six-month period ended December 31, 2010, compared to negativecash flow of ($599,319) for the same period in 2009."  (MD&A page 5) 

Ifthis is crudely annualized by assuming what they spent in the first 6months of the fiscal year applies to the last 6 months of the year, thecompany will burning roughly $568k/year.  Looking at thefinancial statements, it shows they spent about $166k of the $284k inthe quarter ending December 31st which is traditionally the mostexpensive due to AGM costs (distribution of materials, venue etc.)

Thoseof us who have spoken with Mark Billings, know that the 2009 periodincluded extra-ordinary payments to Mark Billings for services renderedin 2008 when the company had no cash whatsoever.  When the companyfinally raised money, they paid Mark for working in 2008 for free.Pretty good deal to find a CEO who will work for free for a year to findmoney and then pay him when he's found it.

Administrative Expenses in 2010 appear to be way down as summarized in the table on MD&A page 8, and crudely reproduced here:

General administrative expenses     2009: 212,487     2010:     106,697     Difference     (105,790)
Directors compensation                     2009: 125,000     2010:      -                  Difference      (125,000)
Professional fees                                2009:  169,075     2010:     157,250     Difference      (11,825)
Information to shareholders               2009:  83,917     2010:      35,386       Difference:     (48,531)
Listing and registration fees               2009:  4,200       2010:     3 ,466         Difference:     (734)
Totals:                                                     2009: 594,679     2010:     302,799     Difference:     (291,880)

Thecompany provides 5 reasons for this in the MD&A.  Anyone can readthem on page 8.  Furthermore for those of you bashing away at Mark andJacques, it looks like we got somewhere on the office rent and otherissues, as summarized on MD&A page 13:

"During the six-month period ending December 31, 2010, the Corporation paid equipment rental expenses of
$3,000 (2009, $6,000), professional fees of $60,000 (2009, $60,000), rental of mining equipments of $48,000
(2009, $48,000) and services of secretary, rental of office and equipment of $42,000 (2009, $48,000) to
companiescontrolled by a significant shareholder of Orex Exploration Inc. Duringthe six-month period ended December 31, 2010, the Corporation incurredmanagement fees of $60,000 (2009, $60,000) and rental of office of  (2009, $50,000) to a Corporation controlled by the president, chiefexecutive officer and director. During the six-month period endedDecember 31, 2010, the Corporation incurred professional fees of $13,250(2009, $20,000) and shares issuing fees of (2009, $20,000) withthe corporate secretary... Also during the six-month period endedDecember 31, 2010, the Corporation paid a remuneration of
to its directors (2009, $125,000...)"


Thecompany has therefore gotten started on reducing its expenses withthese related parties.  Kudo's to Mark for reducing his rent charges by$50k.  Too bad Jacques didn't follow his example.

Reviewing theDecember 31st, 2010 Balance sheet, the company had $2.79M in Cash orTerm Deposits available and had accrued liabilities of $112k to be paidout of that amount.  The fact we have a lot of money sitting in a TERMdeposit, and it is not considered "Cash or Equivalents" in the MD&Atells me that the company has invested this money in a financialinstrument with a term greater than 365 days.  I believe otherwise theaccounting rules would require it to be be considered "Equivalent" tocash.

Financially we were very sound at the end of the year andsitting on $2.68M in money that can be used for exploration,contribution towards mill, etc.