Liquidity and Capital Resources

The Corporation had estimated working capital of $1,366,755 and cash of $38,029 as at June 30, 2012. The Corporation funded operations during the three month period ended June 30, 2012 through the net proceeds of its initial public offering, private placement financings, and existing cash.

The Corporation remains in sound financial position to fund its currently planned and anticipated exploration programs, operating expenses and contractual commitments for calendar year 2012, as well as meet currently known contractual commitments beyond the 2012 work program.

The Corporation will need to raise additional funding to finance future exploration programs and development activity. The availability of equity capital, and the price at which additional equity could be issued, is dependent upon the success of the Corporation's exploration activities, and upon the state of the capital markets generally. Additional financing may not be available on terms favourable to the Corporation or at all. If the Corporation does not receive future financing, it may not be possible for the Corporation to advance the exploration and development of the Claims.



Financial Capability and Additional Financing

If the Corporation’s exploration programs are successful, additional funds will be required in order to complete the development of its properties. The only sources of future funds presently available to the Corporation are the sale of additional equity capital or the entering into of joint venture arrangements or other strategic alliances in which the funding sources could become entitled to an interest in the properties or the projects. The Corporation’s capital resources are largely determined by the strength of the junior resource market and by the status of the Corporation’s projects in relation to these markets, and its ability to compete for investor support of its projects.

In order to exercise the Second Option to increase its ownership of the Albany Project to 80%, the Corporation must incur aggregate expenses on the property of not less than $10 million before July 1, 2014, of which approximately $8.4 million has been incurred.

There is no assurance that the Corporation will be successful in raising sufficient funds to meet its obligations or to complete all of the currently proposed exploration programs. If the Corporation does not raise the necessary capital to meet its obligations under current contractual obligations, the Corporation may have to forfeit its interest in properties or prospects earned or assumed under such contracts. In addition, if the Corporation does not raise the funds to complete the currently proposed exploration programs, the viability of the Corporation could be jeopardized.



Liquidity risk

The Corporation's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As of June 30, 2012, the Corporation had a cash balance of $38,029 as well as $2,059,921 in temporary investments to settle current liabilities of $992,420. The Corporation's ability to continue operations and fund its exploration property expenditures is dependent on management's ability to secure additional financing. Management is continuing to pursue various financing initiatives in order to provide sufficient cash flow to finance operations as well as funding its exploration expenditures. All of the Corporation's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.