As of May 31, 2009, the Company is committed to spend approximately $771,504 on qualifying Canadian exploration expenses ("CEE").

Other than for CEE expenditures, the Company does not have any capital resource commitments. The Company has entered into many option agreements which provide for exploration expense to be incurred, however, these are all discretionary option agreements and the Company is not committed to completing these expenditures.

During the period, the Company had a $727,071 shortfall on 2007 CEE obligations, which amounts to a $72,707 increase of the part XII.6 Tax liability and a $444,000 liability for our investors. As at February 28, 2009 the Company accrued $123,973 in Part XII.6 taxes on the renounced but unspent amount, and accrued $444,000 for the estimated investor liability. On February 28, 2009 the Company also reversed tax credits to the amount of $247,200 associated with the unspent amount that was recorded in 2008.