UNITED ~~STATES~~STATESSECURITIES ~~SECURITIES~~ AND EXCHANGE ~~COMMISSIONWashington~~COMMISSION Washington, D.C. 20549

FORM 10-K

(Mark One)

[ x X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended November 30, ~~2009~~2010

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to _____

COMMISSION FILE NUMBER 000-52626

PENGRAM CORPORATION (Exact name of registrant as specified in its charter)

NEVADA	~~68-0643436~~	68-0643436
State or other jurisdiction of incorporation or organization	~~(I.R.S. Employer Identification No.)~~	(I.R.S. Employer Identification No.)
1200 Dupont Street, Suite 2J
Bellingham, WA	~~98225~~	98225
(Address of principal executive offices)	~~(Zip Code)~~	(Zip Code)
Registrant's telephone number, including area code		(360) 255-3436
Securities registered pursuant to Section 12(b) of the Act:		NONE.
Securities registered under Section 12(g) of the Act:		Common Stock, $0.001 Par Value Per Share.

~~Registrant's~~Indicate ~~telephone~~by ~~number~~check mark if the registrant is a well-known seasoned issuer, ~~including~~as ~~area~~defined ~~code~~by ~~(360)~~Rule 405 of the Securities Act. [ ~~255-3436~~] Yes [X] No

~~Securities~~Indicate ~~registered~~by check mark if the registrant is not required to file reports pursuant to Section 1213 or Section 15(bd) of the Act~~: NONE~~.[ ] Yes [X] No

~~Securities~~Indicate ~~registered~~by ~~under~~check mark whether the registrant (1) has filed all reports required to be filed by Section 1213 or 15(gd) of the Securities Exchange Act: of 1934 during the preceding 12 months (or for such shorter period that the ~~Common~~registrant ~~Stock~~was required to file such reports), ~~$0.001~~and ~~Par~~(2) ~~Value~~has ~~Per~~been ~~Share~~subject to such filing requirements for the past 90 days. [X] Yes [ ] No

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. [ ] Yes [ x ] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [ ] Yes [ x ] No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [ x ] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (s. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
[ ] Yes [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (s229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [ x X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). [ ] Yes [ x X] No

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: $73,~~679~~029,~~086~~214, based on a price of $0.3210, being the ~~average~~price ~~bid~~at ~~and~~which ~~ask~~the ~~price~~common ofequity ~~our~~was ~~common~~last ~~stock~~sold as of May 2931, ~~2009~~2010, our most recently completed second fiscal quarter.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. As of March 1510, ~~2010~~2011, the Registrant had 5458,~~247~~264,~~144~~344 shares of common stock outstanding.

PENGRAM CORPORATION ~~ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED NOVEMBER 30, 2009 TABLE OF CONTENTS~~

			PAGE
PART I			4
	ITEM 1.	BUSINESS	4
	ITEM 1A.	RISK FACTORS	25
	ITEM 2.	PROPERTIES	29
	ITEM 3.	LEGAL PROCEEDINGS	29
PART II			30
	ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	30
	ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	31
	ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.	36
	ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	37
	ITEM 9AT.	CONTROLS AND PROCEDURES.	37
	ITEM 9B.	OTHER INFORMATION.	39
PART III			40
	ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.	40
	ITEM 11.	EXECUTIVE COMPENSATION.	42
	ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	42
	ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.	44
	ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES.	44
	ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES.	45
SIGNATURES			47

ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED NOVEMBER 30, 2010

TABLE OF CONTENTS

			PAGE

PART I			4

	ITEM 1.	BUSINESS	4

	ITEM 1A.	RISK FACTORS.	31

	ITEM 2.	PROPERTIES	34

	ITEM 3.	LEGAL PROCEEDINGS	34

PART II			35

	ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.	35

	ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	36

	ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.	41

	ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	42

	ITEM 9AT.	CONTROLS AND PROCEDURES.	42

	ITEM 9B.	OTHER INFORMATION	44

PART III			45

	ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.	45

	ITEM 11.	EXECUTIVE COMPENSATION.	46

	ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.	47

	ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.	49

	ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES.	50

	ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES.	50

SIGNATURES			52

PART I

The information in this discussion contains forward-looking statements. These forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate,” "predict," "potential" or "continue," the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks described below, and, from time to time, in other reports we file with the United States Securities and Exchange Commission (the “SEC”). These factors may cause our actual results to differ materially from any forward-looking statement. We disclaim any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements.

As used in this Annual Report, the terms “we,” “us,” “our,” “Pengram,” and the “Company” mean Pengram Corporation and its subsidiaries, unless otherwise indicated. All dollar amounts in this Annual Report are expressed in U.S. dollars, unless otherwise indicated.

ITEM 1. BUSINESS.

GENERAL

We were incorporated on April 28, 2006 under the laws of the State of Nevada. On April 13, 2009 we amended our Articles of Incorporation by increasing our issued and authorized common stock on a three-for-one basis. Accordingly, our authorized capital of common stock increased from 100,000,000 shares, par value of $0.001 per share, to 300,000,000 shares, par value of $0.001 per share.

Our business plan is to assemble a portfolio of mineral properties with gold potential and to engage in the exploration and development of these properties. We currently ~~own~~have an option to acquire a 100% interest in the ~~our~~“Golden ~~lead~~Snow ~~mineral project~~Project," ~~called~~ the “~~Clisbako~~Fish ~~Property~~Project” and ~~also~~the in“CPG ~~a property that we refer to~~Project" as(collectively, the “~~Texada~~Eureka ~~Gold~~Optioned ~~Property~~Properties)." We also ~~have~~hold ~~options to acquire: (i)~~ a 100% interest in the ~~“Golden~~Clisbako ~~Snow Project~~Property," ~~the~~subject ~~“Fish~~to ~~Project”~~the ~~and~~Clisbako ~~the~~Option ~~“CPG~~Agreement ~~Project;"~~ (iias described below), and an ~~85%~~option ~~interest~~to inacquire the “Manado Gold Property;”, ~~and~~subject ~~(iii)~~to athe ~~100% interest in~~Manado ~~the~~Assignment ~~“June~~Agreement ~~Claims.”~~(as ~~Our mineral properties are~~ described ~~in detail~~ below).

WeIn ~~anticipate~~fiscal ~~that~~2010, we ~~will~~entered beinto ~~focusing~~the ~~our~~following ~~resources~~agreements ~~on the~~to ~~exploration~~option ofand/or ~~the~~assign ~~Clisbako~~a ~~Property,~~majority ~~the Golden Snow Project and the exercising~~ of our ~~option~~interest ofin the ~~Manado~~Clisbako ~~Gold~~ Property ~~due to their potential~~ and ~~current~~the ~~state~~Manado ofGold ~~development.~~Property:

We are actively reviewing other gold potential mineral properties for future acquisition.

1.	Manado Assignment Agreement. On August 24, 2010, we entered into an assignment agreement (the “Manado Assignment Agreement”) with Manado Gold Corp. (“Manado Corp.”) whereby we assigned 75% of our interest in the option agreement dated November 2, 2009, as amended, (the “Manado Agreement”) between us and Agus Abidin on behalf of the owners of the K.P. corporations holding the mineral properties (the “Concession Owners”) located in Northern Sulawesi, Indonesia (the “Manado Gold Property”). Under the terms of the Manado Agreement, we acquired the right to enter into an agreement (the “Acquisition Agreement”) to acquire up to 85% in the Manado Gold Property. See “Manado Gold Property”.

2.	Clisbako Option Agreement. On September 15, 2010, we entered into an option agreement (the “Clisbako Option Agreement”) with Manado Corp. whereby we granted Manado Corp. the sole and exclusive right and option to acquire a 75% undivided interest in the Clisbako Property. Under the terms of the Clisbako Option Agreement, Manado Corp. will exercise its option upon paying Clisbako Inc. an aggregate of USD $150,000, issuing 600,000 shares of Manado Corp.’s common stock (the “Shares”) and incurring CAD $650,000 in exploration expenditures on the Clisbako Property in stages over a three year period. See “Clisbako Property”.

~~RECENT~~Based ~~CORPORATE~~on ~~DEVELOPMENTS~~the potential and current state of development, we have decided to focus our resources on the Eureka Options Properties.

~~Since~~GOLDEN ~~the~~SNOW ~~filing of our Quarterly Report on Form 10-Q for the quarter ended August 31~~PROJECT, ~~2009,~~FISH wePROJECT ~~experienced~~AND ~~the~~CPG ~~following~~PROJECT ~~corporate developments:~~

1.One OnMay ~~January 19~~29, ~~2010~~2009, we ~~entered~~acquired ~~into~~an option to acquire a 100% undivided interest (the ~~Manado~~“Option Agreement.”) ~~See~~in ~~“Manado~~certain ~~Gold~~mineral ~~Property”~~properties ~~below.~~known as 2.the OnGolden ~~January~~Snow 21Project in Eureka County, ~~2010~~Nevada, wethe ~~entered~~Fish ~~into~~Project ain Esmeralda ~~second~~County, ~~extension~~Nevada ~~agreement~~and the CPG Project in Mineral County, Nevada (collectively, the ~~"Second~~“Eureka ~~Extension~~Optioned Properties”). Our acquisition of the option was completed pursuant to the terms and conditions of an assignment agreement (the “Assignment Agreement"”) dated May 29, 2009 with ~~Bako~~Portal Resources ~~Inc~~Ltd. ~~See~~ (“~~Clisbako Property~~PRL”) and ~~below~~Portal Resources US Inc.’s 3(the “Assignor”). OnUnder ~~January~~the ~~21,~~terms ~~2010~~of the Assignment Agreement, wethe ~~announced~~Assignor ~~that~~assigned ~~our~~all ~~directors~~of ~~have~~its ~~approved~~rights ~~proceeding~~and ~~with~~interest in the an ~~exploration~~option ~~program~~agreement ~~including~~ (the ~~drilling~~“Option ofAgreement”) ~~the~~dated ~~main~~August ~~targets~~28, on2008 among the Assignor, ~~Clisbako~~Claremont ~~Property.~~Nevada 4.Mines OnLLC ~~February 5~~(“Claremont”), ~~2010,~~Scoonover weExploration ~~entered~~LLC (“Scoonover”) ~~into~~and ~~the~~JR ~~June~~Exploration ~~Agreement~~LLC (“JR”). ~~See~~In ~~“June~~consideration ~~Claims”~~of ~~below~~the assignment, we issued 150,000 shares of common stock to PRL.

5.In Onorder ~~March~~to ~~15,~~maintain ~~2010,~~and weexercise ~~entered~~the ~~into~~Option ~~a third extension agreement dated for reference February 15~~Agreement, ~~2009~~we ~~with~~will be ~~Bako~~required ~~Resources~~to: ~~Inc. See “Clisbako Property” below.~~

CLISBAKO PROPERTY

(a)	pay to Claremont:

	(i)	$10,000 on August 28, 2009 (which amount has been paid);
	(ii)	$15,000 on August 28, 2010 (which amount has been paid);
	(iii)	$20,000 on August 28, 2011;
	(iv)	$25,000 on August 28, 2012; and
	(v)	$30,000 on August 28, 2013 and each subsequent year of the term of the Option Agreement (the term is for ten years and may be renewed for an additional ten years);

(b)	pay the annual claim maintenance fees for the Eureka Optioned Properties during the term of the Option Agreement. The Eureka Optioned Properties are in good standing until September 1, 2011; and

(c)	pay $1,000 to Claremont in conjunction with the delivery to Claremont of a copy of a mine plan of operations in respect of the Eureka Optioned Properties, or a final feasibility study in respect of the Eureka Optioned Properties.

~~Our~~Upon ~~main~~our ~~mineral~~exercising ~~property~~of is the ~~“Clisbako~~Option ~~Property~~Agreement,” ~~which we~~Claremont, ~~own~~Scoonover aand ~~100%~~JR ~~interest.~~will ~~The~~collectively ~~Clisbako~~reserve ~~Property~~a ~~covers an area of approximately~~ 3~~,388 hectares~~% ~~and~~net issmelter ~~located~~royalty inon the Eureka ~~Interior~~Optioned ~~Plateau~~Properties. ~~Region~~We ofmay ~~north~~purchase ~~central~~up ~~British Columbia.~~to It2% ~~is composed~~ of ~~ten~~the ~~contiguous~~royalty ~~mineral~~for ~~claims~~$500,000 per ~~situated~~1% ~~within~~of the ~~Cariboo~~ ~~Mining Division~~royalty. ~~The claims are situated approximately 80 miles west of Quesnel, British Columbia~~

~~Description~~Of the Golden Snow Project, the Fish Project and the CPG Project we have decided to focus our resources on the exploration of ~~Property~~the Golden Snow Project due to its potential and current state of development.

Our acquisition of the Clisbako Property was completed under the terms of a purchase agreement dated December 16, 2008 with Bako Resources Inc. (“Bako”). Under the terms of the purchase agreement, we issued to Bako 2,000,000 pre-split (6,000,000 post-split) shares and a promissory note in the amount of $56,600 (CDN $70,000 translated to US$65,913 as at November 30, 2009) payable on June 30, 2009. On July 23, 2009, we entered into an extension agreement with Bako to extend the due date of the promissory to December 31, 2009. In consideration of the extension, we issued 60,000 shares of our common stock to Bako. On January 21, 2010, we entered into a second extension agreement with Bako, whereby Bako agreed to extend the due date of a non-interest bearing promissory note in the amount of CDN $70,000 payable to Bako from December 31, 2009 to February 15, 2010. In consideration of the extension, we issued to Bako 10,000 shares of our common stock. On March 15, 2010, we entered into a third extension agreement dated for reference February 15, 2009, with Bako, whereby Bako agreed to extend the due date of a non-interest bearing promissory note in the amount of CDN $65,000 payable to Bako from December 31, 2009 to June 30, 2010. In consideration of the extension, we agreed to pay CDN $5~~,000 of the promissory note and issue to Bako 20,000 shares of our common stock~~

~~The~~Figure ~~Clisbako~~1 ~~Property covers approximately 3,388 hectares. The~~ ~~mineral~~ Location ~~claims making up the Clisbako Property are recorded with the Ministry~~ of ~~Energy,~~ ~~Mines~~Nevada ~~and Petroleum Resources (the “Ministry of Mines”) as follows:~~Properties

Tenure Number	Area in Hectares	Expiry Date
530325	489.55	October 29, 2010
530328	489.74	October 29, 2010
530329	313.10	October 29, 2010
530387	391.81	October 29, 2010
530462	391.81	October 29, 2010
530464	391.66	October 29, 2010
530465	313.21	October 29, 2010
534877	293.62	October 29, 2010
534928	293.62	October 29, 2010
535450	19.58	October 29, 2010

Golden Snow Project

~~The~~Description ~~Province~~ of ~~British Columbia owns the land covered by the Clisbako~~ Property~~. To our knowledge, there are no aboriginal land claims that might affect our title to the Clisbako Property or the Province’s title of the property.~~

InThe ~~order~~Golden toSnow ~~maintain~~Project ~~the~~consists ~~Clisbako Property in good standing, we must complete minimum exploration work on the Clisbako Property and file confirmation~~ of ~~the~~111 ~~completion~~unpatented ~~of the work with the Ministry of Mines. In lieu~~mining ofclaims ~~completing~~covering ~~this~~approximately ~~work, we may pay a fee equal to the minimum exploration work that must be performed with the Ministry of Mines~~3.5 ~~The~~square ~~completion~~miles ofeight ~~mineral exploration~~miles ~~work~~southwest ~~or payment in lieu~~ of ~~exploration work in any year will extend~~Eureka, ~~the existence of our mineral claims for one additional year~~Nevada. The ~~minimum exploration~~titles ~~work~~to ~~that must be performed and/or~~ the ~~fee~~property ~~for keeping our claims current is equal to $8.00 CDN (approximately $7.57 US) per hectare. As our mineral claims are in good standing until October 29, 2010, we~~ will beexpire ~~required to complete minimum exploration work or pay a minimum fee of CDN$27,104 (approximately US$25,632)~~ on orSeptember ~~before October 29~~1, ~~2010~~2011 ~~and~~if ~~each year thereafter in order to keep the Clisbako Property current. If~~ we ~~fail~~do tonot ~~complete~~renew the ~~minimum required amount of exploration work or fail to make a payment in lieu of this exploration work, our mineral~~ claims ~~will lapse and we will lose all interest in our mineral claims~~.

5Location, Access, and Physiography

~~Location,~~The ~~Access~~Golden Snow Project is contiguous to the southern end of Staccato Gold’s Lookout Mountain property, ~~Climate~~which ~~and~~has ~~Physiography~~identified several mineralized areas.

The Clisbako Property is located in the Interior Plateau Region of north central British Columbia. It is composed of ten contiguous mineral claims, situated within the Cariboo Mining Division. The claims are situated approximately 80 miles west of Quesnel, British Columbia.6

~~Access~~Figure to2 ~~the~~Location ~~property is by paved highway west from Quesnel to Nazko, then 30 miles southwest by gravel Forest Service Roads (“FSR”). The 4200 FSR crosses the northern portion~~ of ~~the~~Golden ~~Clisbako~~Snow ~~Property and branch roads and logging tracks provide access to much of the rest of the property.~~Project

The climate of the area is characteristically dry. Average annual temperature is approximately 2° C, with average summer highs in July and August of 14° C and January winter lows averaging -13° C. Average annual precipitation is approximately 440 millimeters, with an estimated 40% falling as snow. The majority of rainfall occurs between June and August.7

~~The~~Property claims cover a wide variety of terrain, from swampy meadows to forested upland slopes. Elevations range from 1,250 meters along the Clisbako River to over 1,500 meters to the west. A significant portion of the property has been logged by clearcut methods. Forest cover is typical of the region, consisting of lodgepole pine, with local stands of black spruce, fir and birch along drainages. Timber harvesting has occurred with numerous cut blocks scattered throughout the claim area. Swampy meadow lands in the eastern and north-eastern portions of the property that form the headwaters of the Clisbako River system are saturated for much of the year but dry out in late summer. These areas are sparsely treed.History

~~Property~~Exploration ~~History~~in the Eureka District commenced in the 1860s. The Company does not have any records of exploration work conducted on the Golden Snow Project prior to 2006.

~~Historical~~In ~~work~~2006, toMinterra ~~date~~Resources onacquired the ~~Clisbako~~Golden ~~Property~~Snow ~~has outlined~~Project. ~~eight~~After ~~main~~its ~~zones~~acquisition, asMinterra ~~currently~~Resources ~~identified,~~commenced ofa ~~epithermal~~gravity ~~mineralization~~survey and ~~alteration~~ ~~referred~~a to95 line askilometer ~~the~~ground ~~North,~~magnetic ~~Central,~~survey ~~South,~~across ~~West~~the ~~Lake,~~Golden ~~Obvious,~~Snow ~~West Lake Boulder, Gore and Bari zones~~Project. ~~Historical records indicate that soil~~The ~~geochemical~~gravity ~~surveys~~data ~~and~~identified ~~geophysical~~two ~~surveys~~up-thrown ~~have~~(horst) ~~been~~blocks ~~conducted~~and ~~over several grids on~~ the ~~property,~~magnetic ~~and~~data indicate a ~~total~~prominent ofcircular 34high ~~diamond~~that ~~drill~~is ~~holes~~approximately ~~have~~2,782 ~~been completed.~~feet ~~The~~in ~~bulk~~diameter and ~~of the work~~ has ~~been concentrated within~~ a 2similar ~~kilometer~~signature byto ~~4 kilometer~~Eocene ~~north~~age ~~trending~~intrusive ~~corridor~~and inextrusive ~~the centre of the project area. Prior to~~rocks ~~1989,~~throughout ~~there is no recorded work on~~ the ~~Clisbako~~Eureka ~~Property~~District.

~~Eighty~~In ~~Eight~~2007, Minterra Resources ~~Ltd.:~~completed ~~1989~~a –932 ~~1991~~sample ~~- In 1989, a~~soil ~~regional~~geochemistry ~~reconnaissance~~program ~~exploration~~designed ~~program~~to ~~was~~further ~~conducted~~refine ~~within~~and evaluate the ~~Nechako~~prominent ~~Basin~~horst-bounding byfaults. ~~Eighty~~Analysis ~~Eight~~of ~~Resources~~the ~~Ltd.~~data ~~Epithermal~~produced ~~quartz~~numerous ~~float~~large, ~~collected on the~~coherent, ~~property~~multipoint ~~returned~~clusters ~~weakly~~of ~~to moderately~~ anomalous gold, ~~silver and~~ arsenic ~~values.~~, ~~Subsequent~~antimony, ~~work~~mercury, ~~traced~~lead, ~~these samples to their source and led to the~~zinc ~~discovery of several extensive areas of epithermal silicification~~ and ~~argillic alteration in 1990~~barite.

A property consisting of 15 contiguous claims (Clisbako 1-15) covering 7,500 hectares was staked by Eighty-Eight Resources Ltd. to cover these areas. Dawson Geological Consultants Ltd. were contracted to complete a compass and flag grid covering the 4 main mineralized zones (North, Boulder, Central and South Zones). Crews collected 1,320 soil samples from grids covering the mineralized areas, and a total of 253 rock samples were collected from areas of epithermal silicification as well as from mineralized float believed to be locally derived. Geological mapping was also completed.Geology

~~Minnova~~Many ~~Inc.:~~of ~~1991-~~the ~~1992~~ sediment-hosted ~~The~~gold ~~property~~deposits ~~was~~in ~~subsequently optioned~~Nevada toappear ~~Minnova Inc., and five more claims (Clisbako 16-20) were added~~ to ~~the~~have ~~property~~developed inat ~~April,~~or ~~1991,~~near ~~following~~platform amargin/basin ~~compilation~~margin ofsites ~~data and~~where ~~reinterpretation~~mineralization ofis ~~the~~found ~~1990 field work. Minnova then proceeded~~ to ~~fly~~be ~~an airborne~~disseminated ~~magnetic~~along ~~and electromagnetic survey over~~ the ~~entire property. Grid line spacing over the pre~~“low-~~existing~~stands” ~~grid~~or ~~was tightened to 100 meters line spacing and~~karsted ~~grid~~zone ~~lines~~separated ~~were~~different ~~extended~~stratigraphic ~~1 kilometer to the west~~units. The ~~entire~~Golden ~~gridded~~Snow ~~area~~Project ~~was~~is ~~geologically~~positioned ~~mapped~~along ~~and~~this ~~sampled,~~major ~~the~~platform ~~results~~margin ofthat ~~which~~extends ~~delineated~~northwards ~~the~~to ~~Gore and~~Cortez ~~Pond epithermal alteration zones. A total of 18 trenches were excavated covering 5 mineralized zones (North~~Hills, ~~South,~~Pipeline ~~Central, Discovery~~ and ~~Trail~~beyond. ~~Zones),~~Future ~~all~~study of ~~which~~ ~~were mapped in detail and sampled. Based on~~ the ~~results~~location of these ~~programs~~platform amargins 19may ~~hole~~result ~~NQ drill program was completed totaling 3,024 meters. This included 11 holes~~ in the ~~North~~discovery ~~Zone,~~of 7additional ~~holes~~world-class ingold ~~the~~deposits ~~South Zone and 1 diamond drill hole~~ in ~~the Central~~ ~~Zone~~Nevada. ~~The program confirmed the presence of widespread anomalous gold concentrations but failed to delineate any zones of economic significance.~~

6Gold mineralization has come up along the host margin where Devonian age rocks are in contract with the Cambrian age rocks. The mineralization is not only found within the feeder fault, but it is also disseminated out along these “low-stand zones” which are commonly the break between different rock formations. Another example of the same host margin mineralization can be seen in a cross section of the mineralization at Lone Tree. Mineralization has also been discovered along the Wayne Zone Fault, which forms the western edge of the horst, and spreads out along favorable host rocks. Both styles of mineralization appear to potentially exist at the Golden Snow Project.

InThe ~~June,~~geology ~~1992, a total~~ of ~~seventeen 2-post claims were added on~~ the ~~claim~~Golden ~~group,~~Snow ~~presumably~~Project tohas ~~ensure~~been ~~that~~interpreted ~~there were no internal fractions~~to ~~between~~consist ~~the~~of ~~Clisbako~~Devonian 4age &rocks ~~13,~~striking 7north/south ~~& 14, 5 & 10~~ and 8trending &southward 10under pediment ~~claims~~cover. ~~Minnova~~ ~~conducted~~It ahas ~~gradient~~also ~~array~~been IPinterpreted ~~geophysical~~that ~~survey over 17 partial grid lines covering those zones identified to date in~~ the ~~central~~Cambrian ~~portion~~section ~~of the~~is ~~property.~~possibly ~~An additional 7 trenches were completed~~ in ~~the~~fault ~~West~~contact ~~Lake,~~with ~~Gore, West Pit and Central Zones. An 11 hole, 1,358 meter NQ drill program was conducted to evaluate~~ the ~~results~~Devonian ~~of the gradient array IP survey and extensions to zones identified in 1991~~section. ~~Although~~Both ~~the~~rock ~~drilling~~types ~~intersected extensive widths of strong~~are ~~epithermal~~favorable ~~alteration~~host inrocks ~~each~~for ~~target~~Carlin-style ~~area,~~mineralization nothroughout ~~significant precious metal values were detected. Nonetheless~~Nevada, ~~indicator elements such as mercury, arsenic and tin~~ ~~were~~especially ~~strongly~~in ~~anomalous throughout, indicating that~~ the ~~system~~Eureka ~~as a whole has a classic epithermal signature~~Area.

~~Phelps~~The ~~Dodge:~~following ~~1994~~sets ~~– 1996 - After the expiration of Minnova’s option, Phelps Dodge examined the property and subsequently optioned it in the fall of 1994. Phelps Dodge, through Fox Geological Services Inc., carried~~ out ~~a 22 line kilometer soil geochemical sampling program in 1994. Thick glacial till cover in~~ the ~~project~~geological ~~area effectively~~units ~~masks~~exposed ~~any~~on ~~bedrock leaching and~~ the ~~soil survey failed to define~~ ~~zones~~Golden ofSnow ~~epithermal~~Project: ~~alteration.~~

~~Fox~~Bay ~~Geological~~State ~~was~~Dolomite ~~retained~~– ~~again~~The toBay ~~conduct~~State aDolomite ~~combined~~is ~~rock~~a massive ~~and~~dark ~~soil~~grey ~~geochemistry~~to ~~program,~~black IPto ~~geophysical~~purplish ~~survey,~~dolomite ~~geological~~which ~~mapping~~is ~~and~~reported ~~a diamond~~to ~~drilling~~be ~~program~~600-850 ~~during~~feet thick in the ~~1995~~Eureka ~~field season~~Area. The ~~1995~~lower ~~program~~portion ~~focused on~~of ~~developing~~this ~~new~~unit ~~targets~~is inmade ~~relatively~~up ~~under~~of ~~explored~~irregular bedded ~~parts~~light-grey, ofdolomite ~~the~~sandstone. ~~property~~The ~~and further~~upper ~~evaluating~~portion ~~known~~is ~~zones~~in ofgradational contact ~~mineralization~~ with ~~limited~~the ~~historical work~~overlying Devils Gate Limestone.

~~Fox~~Sentinel ~~Geological~~Mountain ~~Services~~Dolomite ~~completed~~– 36The ~~miles~~Sentinel ~~of gridding west of~~Mountain ~~Camp~~Dolomite ~~Lake~~gradationally tooverlies ~~the~~Oxyoke ~~western claim boundary~~Canyon. ~~Mapping~~It ~~and~~is ~~prospecting~~composed onof ~~the grid~~alternating, ~~generated~~thick-bedded, ~~339~~coarse-grained, ~~rock~~light-gray ~~samples~~dolomite ~~of bedrock~~ and ~~float~~motted, ~~returning~~finely ~~values from trace to~~laminated, ~~9760~~chocolate ~~ppb~~brown ~~gold.~~dolomites ~~This~~with ~~sample was collected from~~ a ~~cluster~~strong ofpetroliferous ~~weakly~~odor ~~quartz~~when ~~veined~~broken. It ~~feldspar~~ranges ~~phyric rhyolite float boulders within a discrete dispersion train~~ in ~~till.~~ ~~The~~thickness ~~bedrock~~from ~~source~~410 offeet ~~these~~to ~~boulders~~600 ~~has not been discovered~~feet.

~~Soil~~Oxyoke ~~geochemical~~Canyon ~~surveys~~– ~~totaling~~The 22Oxyoke ~~line~~is ~~kilometers~~predominantly ~~covered the~~light ~~western and central portions of the claim group along one kilometer spaced~~gray ~~lines~~to ~~with~~brown ~~detailed coverage in the Gore and Bari zones resulting in 677 soil samples. Anomalous gold results were usually isolated~~weathering, ~~one~~fine ~~sample~~to ~~occurrences~~medium-grained, ~~but~~ ~~anomalous~~quartz ~~arsenic~~sandstone ~~values~~with ~~outlined~~ a ~~prominent 2000 meter by 800 meter north~~dolomatic ~~trending~~matrix. ~~zone~~It ~~which~~ranges ~~coincided~~in ~~with~~thickness ~~several new zones~~ of ~~quartz~~less ~~veining~~than ~~outlined by~~20 ~~prospecting.~~feet ~~Additional follow-~~up ~~was~~to ~~recommended~~400 infeet thick throughout the ~~Bari~~Eureka ~~1 and 2 zones~~Area.

Sadler Ranch – The IPSadler ~~survey~~Ranch ~~consisted~~locally ofhas abeen ~~total~~divided up ofinto ~~17.8~~an ~~line~~upper ~~kilometers~~and lower dolomite and a middle crinoidal dolomite. ~~Two~~The lower ~~different~~dolomite ~~arrays~~is ~~were~~a ~~utilized:~~medium ato ~~reconnaissance~~thick-bedded, ~~style~~very ~~survey~~finely ~~with~~grained, ~~electrodes spaced~~light 75gray ~~meters~~to yellowish-gray ~~apart~~dolomite. ~~along~~The ~~road~~middle ~~lines~~crinoidal ~~and~~dolomite is a ~~detailed~~light ~~survey~~to medium-gray, ~~with~~poorly ~~150~~bedded, ~~meter~~laminated to cross-laminated, crinoidal packstone ~~electrode~~with ~~spacing~~thin ~~over~~lenses ~~two~~of ~~established~~mudstone ~~grid~~and ~~lines~~packstone. The ~~wider~~upper ~~separations~~dolomite ~~failed~~ is a medium to ~~detect~~thick-bedded, ~~any~~very ~~anomalous~~fine-grained, ~~readings~~light-gray ~~that~~laminated dolomite. ~~were~~The ~~not~~thickness ~~detected~~of ~~using~~this ~~shorter separations~~unit varies from 90 feet to 450 feet.

A total of 700.9 meters of NQ2 diamond drilling in 4 drill holes was conducted on the West Lake boulder train and the Obvious Zone. Drilling failed to encounter economic concentrations of gold with results similar to those obtained from the North and South Zones.8

~~Phelps~~McColley ~~Dodge~~Canyon/Bartine ~~noticed~~Member in– ~~1995~~The ~~that~~McColley ~~several~~Canyon ~~extensive intervals~~is ofdominantly ~~Minnova’s~~a ~~drill~~medium ~~core~~to ~~had~~thick ~~not~~bedded ~~been~~gray ~~sampled,~~limestone ~~and~~with ~~undertook~~interbedded tolight brown-gray ~~split,~~fossiliferous ~~sample~~ and ~~assay~~ ~~these~~organic-rich ~~intervals~~dolomite. AThe ~~total~~Bartine is composed of thin ~~708.5~~to ~~meters~~medium-bedded, ofmedium-gray, ~~diamond~~fine ~~drill~~grained ~~core~~limestone ~~from~~and ~~the~~yellowish ~~Minnova~~argillaceous ~~program~~limestone ~~was~~with ~~sampled~~abundant inbrachiopods. ~~the~~Some ~~fall~~people ofcombine ~~1995,~~these units ~~returning~~whereas ~~elevated~~others ~~sub-economic results~~map ~~for~~them ~~gold,~~as ~~arsenic~~separate ~~and~~units. ~~tin~~These inrocks ~~sections~~vary from ~~holes~~330 ~~91-04~~feet to ~~and~~650 ~~92-22~~feet thick.

ABeacon ~~short~~Peak 4Dolomite ~~day~~– ~~field~~This ~~program~~unit ~~was~~is ~~completed~~a inmassive, ~~1996 consisting of~~light ~~geological~~gray ~~mapping~~to ~~and~~brown, ~~sampling~~finely inlaminated ~~the~~dolomite, ~~Bari~~with ~~Zone~~local ~~area.~~thin Abeds ~~total~~ of ~~24 rock~~finely ~~samples~~laminated ~~were~~dolomite ~~submitted~~and ~~for~~thin ~~analysis~~lenses ~~with~~of ~~the~~well ~~best~~rounded, ~~results~~quartz-rich ~~reporting~~sandstones ~~294 ppb~~with ~~gold.~~a ~~Most~~dolomitic ~~samples over 50 ppb gold were from boulder float~~matrix. ~~Elevated~~The ~~arsenic amounts~~average upthickness tois ~~5194~~328 ~~ppm were returned~~feet. ~~As with the high gold results, the majority of the elevated arsenic results are from boulder float samples.~~

~~Although a large gold bearing epithermal system had been outlined in the central claim area covering approximately 20 square kilometers, gold tenors are generally very low, rarely exceeding 500 ppb.~~Mineralization

7Two major target zones exist on the Golden Snow Project. These primary targets would be eastern and western boundary of the horst block. Both the eastern and western edge extends for over 15,000 feet as shown by gravity geophysics. Only drill hole ELP-8 drilled close enough to the eastern edge of the gravity high to test for possible mineralization. The remaining holes were either far to east and out into the abyss, or too far west of the eastern horst fault and on top of the gravity high.

~~Goodall (Global Geological): 1996 – 2003 - The Bako 1 to 16 claims were subsequently staked by Geoff Goodall, P. Geo. in 1996 to cover previously identified zones of alteration and mineralization.~~ A ~~prospecting program~~magnetic ~~was~~survey ~~conducted~~run onover the ~~Bako~~eastern 1portion toof ~~5 mineral claims in~~ the ~~spring of 2002.~~claim ~~These~~block ~~claims~~shows ~~cover~~a ~~eight~~magnetic ~~zones~~high ~~of hydrothermal alteration typified by pronounced bleaching of the host felsic volcanics~~ and ~~are~~has ~~characterized~~been byinterpreted ~~intense argillic alteration accompanied by multi-stage intense quartz veining, weak~~ to ~~strong silicification,~~be ~~and/or~~an ~~hydrothermal~~intrusive ~~brecciation. The work program consisted of~~as ~~prospecting~~opposed ~~traverses and rock geochemical sampling of areas adjacent~~ to ~~and within previously discovered zones of alteration~~volcanics. AThis ~~total~~area ofis ~~fifty-two~~also ~~rock samples~~a ~~were~~potential ~~collected.~~favorable Atarget ~~strong~~area ~~correlation was shown to exist between~~for ~~anomalous~~ gold ~~values~~ and ~~anomalous~~base-metal ~~silver values~~mineralization. ~~Samples with anomalous concentrations of antimony also had anomalous levels of arsenic, and mercury was weakly anomalous.~~

~~Bard~~Numerous ~~Ventures:~~anomalous ~~2003~~zones -with ~~2004~~large, -coherent ~~The~~clusters of ~~property~~anomalous ~~was~~gold, ~~optioned~~arsenic, toantimony, ~~Bard~~mercury, ~~Ventures~~lead inand ~~late~~barite ~~2003~~have ~~and~~been ~~Global Geological~~identified ~~Services~~on ~~established~~the ~~two~~Golden ~~geophysical~~Snow ~~grids~~Project. ~~over~~The majority of the ~~Discovery~~anomalies appear to be located in the northeastern and ~~Brooks~~eastern ~~Zones~~and eastern portion of the claim block because ~~totaling~~of 24surface or near surface bedrock.5 ~~line~~These ~~kilometers~~values are probably related to mineralization associated with the buried intrusive. ~~Previous~~Anomalous ~~mapping~~arsenic, antimony and ~~sampling~~mercury ~~programs~~are ~~within these~~present ~~areas~~in ~~uncovered~~the ~~concentrations~~area of ~~quartz~~the ~~rich~~Ratto ~~boulder~~Fault. ~~float~~Since ~~with~~these ~~grab~~minerals are ~~samples~~usually ~~indicated~~formed ~~anomalous~~distal to gold ~~values~~in Carlin-style systems the geochemistry may indicate gold mineralization at depth.

~~Regional~~Current ~~Geology~~Exploration Activities

~~The~~Subject ~~Clisbako~~to ~~property~~obtaining issufficient ~~located in the northern part of the Chilcotin Plateau. Specifically~~financing, ~~it is situated~~ in the ~~south~~summer ~~central part~~ of ~~the~~ ~~Anahim Volcanic Belt along an east-west trend defined by three peralkaline shield volcano complexes (Rainbow Range~~2011, ~~Ilgachuz~~we ~~Range,~~plan ~~Itcha Range) that comprise the western part of the belt. The oldest rocks exposed in the Chilcotin Plateau area are Pennsylvanian~~ to ~~Permian~~retain ~~age~~a ~~Cache~~consulting ~~Creek~~geologist ~~Group sedimentary rocks. These are overlain by upper Triassic~~ to ~~lower~~conduct ~~Jurassic~~a ~~Takla~~review ~~Group andesite-basalt flows, tuffs and breccias and associated clastic rocks. Predominant in the northern portion~~ of the ~~Chilcotin Plateau are andesite flows~~Golden ~~and~~Snow ~~breccias,~~Project ~~and~~in ~~sedimentary~~order ~~rocks~~to ofrecommend ~~the~~an ~~mid-Jurassic~~exploration ~~Hazelton Group~~program. ~~This sequence~~Once isour ~~unconformably~~consulting geologist ~~overlain~~has byprovided ~~the~~us ~~upper~~with ~~Cretaceous,~~their ~~Paleocene~~findings, ~~Eocene and~~we ~~possibly~~will ~~Oligocene~~determine ~~rocks~~whether ~~of the Ootsa Lake Group. This latter Group is~~to ~~comprised~~proceed ~~of rhyolitic to dacitic tuffs, flows and breccias~~ with ~~minor~~an ~~amounts of~~exploration ~~andesite,~~program ~~basalt,~~on ~~conglomerate~~these ~~and tuffaceous shale~~properties.

AFish ~~sequence~~Project of Eocene to Miocene andesite, dacite and rhyolite volcanics of the Endako Group and Pliocene to Pleistocene Chilcotin Group vesicular andesite and basalt flows, breccias and cinder cones conformably overlie the Ootsa Lake Group. Pleistocene to recent till, gravel and sand infill drainages basins and locally form eskers and moraines up to 100 meters thick. Phelps Dodge compiled a detailed regional geology synopsis of the area as part of the work they conducted.

~~The~~Description ~~Clisbako property is dominantly underlain by felsic volcanics and volcaniclastics~~ of Eocene age that are referred to informally as the Clisbako Volcanics. The Clisbako Volcanics underlie a large, regionally circular area within which a wide variety of assemblages of the Clisbako Volcanics occur. This area appears to be a distinct basin of volcanic deposition and is referred to as the Clisbako Caldera Complex. The age of the complex is Early to Middle Eocene, based on Potassium-Argon age dates and palynology. Chemically similar volcanics, also of Eocene age, to the north in the Nechako River map area are referred to as the Ootsa Lake Group (for the felsic members) and the Endako Group (for the basic and intermediate members).Property

~~Volcanic,~~The ~~subvolcanic~~Fish ~~and~~Project ~~volcaniclastic~~consists ~~rocks within the Clisbako Caldera Complex range in composition from basalt to rhyolite and include a wide variety~~ of ~~textural~~57 ~~types~~unpatented ~~and~~lode ~~facies~~mining ~~assemblages. Dacites,~~claims ~~rhyodacites~~ and rhyolites are the most common compositional types, with andesites and basalts subordinate. Passive eruptive sequences of flows and domes are the most abundant volcanic assemblages with explosive pyroclastics more common towards its west central parts. Associated with both the passive and explosive assemblages is a492 ~~highly~~hectares ~~variable~~or ~~assemblage of lahars, fanglomerates, coarse and fine-grained fluvial assemblages and locally, chemically deposited siliceous sinters that have been interpreted as parts of a moat facies~~1.9 ~~Chemical analysis~~square ~~of these volcanics shows them to be potassium-rich and may be classified as belonging to the high-potash calcalkaline magma series~~miles.

~~Passive eruptive sequences of flows and domes are the most abundant volcanic assemblages. Explosive pyroclastics occur throughout the Caldera Complex~~Location, ~~but are most common towards its west-central parts. Intimate with both the passive and explosive volcanic assemblages is a highly variable assemblage of lahars and fanglomerates~~Access, ~~coarse~~ and fine-grained fluvial assemblages and locally, chemically deposited siliceous sinters that comprise volcaniclastic sediments that are here interpreted as parts of a "moat" facies. Rock units of the moat facies from recessive assemblages and are very poorly exposed. The distribution of these three facies assemblages within the caldera suggests the presence of a number of separate basins within the larger caldera structure.Physiography

8The Fish Project is located on the northeaster flank of Lone Mountain in the Lone Mountain District, Esmeralda County, Nevada about 12 airline miles west of the historic mining town of Tonopah, Nevada.

In the north and northeastern parts of the complex, aphyric and biotite phyric rhyolite and rhyodacite flows and flow domes are common. In the north part of the area a lahar-moat facies containing boulder breccia, conglomerate, sandstones and lacustrine siltstone with opaline sinters is associated with mainly flow and flowdome units of andesite and dacite composition. The south eastern part of the caldera complex is underlain by platy fractured, generally aphyric to weakly augite phyric dacite and andesite, with local areas of basalt and minor suggestions of the presence of a lacustrine moat facies. The southwestern part of the caldera is underlain mainly by dacitic, andesite and subordinate biotite phyric flow units, with local areas to the north of biotitequartz phyric rhyolite flow and pyroclastics. Here, the lahar-lacustrine-siliceous sinter moat assemblage occupies a large area in the central part of this southwestern sector.9

~~The~~Figure ~~central~~3 ~~and~~Location ~~northwestern parts~~ of ~~the~~Fish ~~Clisbako~~Project Caldera complex, underlying the Clisbako, Baez and Bako claim blocks, are underlain by a bimodal suite of volcanics. Here, the dominant facies is an assemblage of aphyric to weakly to moderately augite and feldspar phyric dacite flows with local intercalations of polylithic volcaniclastics, volcanogenic breccia and fluvial clastics. The subordinate volcanic assemblage in this central and western sector comprises varieties of variably quartz, biotite, hornblende, plagioclase and sanidine phyric felsic volcanics that includes explosive ash flow tuffs, subvolcanic intrusions and breccias. Moat facies assemblages, including siliceous sinters have been noted in this area proximal to the felsic volcanic assemblages to the immediate northeast of this west-central facies, and the presence of boulders in float train suggests its presence within the area.

~~Property~~Road ~~Geology~~access is 14 miles west of Tonopah via U.S. Highway 95 to old Millers Mill Site and then 4.5 miles south along gravel and dirt roads. A network of unimproved dirt roads of the property offers access for four-wheel drive vehicles.

The ~~Clisbako~~Fish ~~Property~~Project ~~area~~ is ~~one~~located ofwithin ~~very~~the ~~low~~Basin ~~relief~~and ~~that~~Range ~~has~~province ~~been~~of ~~extensively~~Nevada, ~~glaciated.~~characterized ~~Glaciation~~by ~~advanced~~rugged ~~from~~ranges ~~the~~and ~~south~~self-~~southwest, covering~~contained ~~the~~drainage ~~area~~basis floored ~~with~~by adry ~~variable~~playa ~~thickness of till~~lakes. ~~Outcrop~~The property is ~~very~~located ~~limited within~~on the ~~project~~east ~~area~~ and ~~bedrock~~northeast facing ~~exposure~~slopes isof ~~likely~~Lone ~~under 1%~~Mountain. ~~The~~Elevations ~~best exposures~~range ~~are~~from ~~found~~5700 onfeet ~~rounded,~~in ~~hummocky~~the relatively ~~ridge~~low ~~crests~~relief ~~and~~area ~~are~~in ~~dominated~~the byeastern ~~platy to~~part ~~massive~~of ~~dacites~~the ~~and~~claim ~~rhyodacites.~~block ~~Outcrop~~to is6546 ~~also~~feet along ~~exposed~~a ridge in ~~incised~~the ~~outwash channels~~western ~~and~~part inof ~~logging~~the ~~slashes~~claims. The ~~more~~eastern ~~recessive~~half ~~and~~of ~~easily~~the ~~weathered rock~~claims ~~assemblages~~have ~~such~~moderately assteep ~~the~~to ~~moat~~rolling ~~facies~~slopes ~~and~~while ~~clay-argillic~~the ~~alteration~~western ~~assemblages~~half ~~are~~of the property ~~poorly~~have ~~represented~~steep inslopes ~~natural~~cut ~~exposures,~~by ~~although~~occasional ~~their~~cliffs. ~~distribution~~The ~~has~~summit ~~been~~of Lone Mountain is about ~~somewhat~~3 ~~enhanced~~miles bysouthwest ~~logging~~of ~~slashes~~the ~~and~~property ~~road~~at ~~cuts~~an elevation of 9108 feet.

~~Contacts~~Property ~~were~~History not observed between major units and very rarely seen between beds. All age relationships between stratigraphic elements are deductive. In addition, no zone of definitive faulting could be documented by the presence of natural and man-made exposures, with the exception of trenching in the North Zone. There, the zone is very strongly faulted, marked by clay gouge, kaolinized zones and shattered rock and serves to suggest that faulting is an important, if mostly hidden, structural element.

~~Dacitic~~The ~~flow~~Lone ~~units~~Mountain ~~underlie~~area ~~much~~was offirst ~~the~~prospected ~~terrain~~ in the ~~central~~1860s by ~~and~~Mexican ~~western~~miners ~~parts~~but ofmining ~~the~~property ~~Clisbako~~did ~~claim~~not ~~area.~~begin ~~Rhyolite~~until ~~assemblage~~about ~~fragmental units~~1900. ~~underlie~~Most of the mining ~~low~~and ~~lying~~exploration ~~slopes~~activity toin the ~~north~~Lone ~~and~~Mountain ~~east.~~District ~~These~~during ~~rocks~~1902 ~~are~~to ~~in turn~~1918 ~~overlain~~period bywas ~~Miocene~~directed ~~basalts~~towards ~~along~~ the ~~Clisbako~~Alpine ~~River~~Mine ~~valley. Most units~~and ~~strike~~associated ~~northerly~~prospects ~~and~~on ~~dip~~the ~~gently~~western ~~east~~side ~~although~~of ~~dip~~the ~~reversals are common~~range.

Exploration work to date has focused on an area roughly two kilometers by four kilometers in size. Rocks in this area consist of rhyolitic flows, tuffs and breccias interbedded with dacite and amydgaloidal andesite flows and associated pyroclastic rocks. These are tilted and block-faulted and fill a north-trending, shallow, graben and local depositional basins.10

~~The~~In ~~stratigraphic and subvolcanic lithologies that underlie~~ the ~~Clisbako~~ ~~claims~~early ~~can be subdivided into three separate assemblages consisting of~~1980s, in ~~probable~~Atlas ~~chronological~~minerals ~~order,~~previously ~~a dacitic facies, a rhyolite facies and a~~conducted ~~basalt-andesite~~drilling ~~assemblage.~~on ~~These~~quartz ~~east-dipping~~veining ~~strata~~in ~~are disrupted by north-trending faults near Mount Dent and at Camp Lake on~~ the ~~Clisbako~~northern ~~claims. Fluvial~~portion ~~and lacustrine (moat facies) volcaniclastic sediments form portions~~ of ~~all~~ ~~three~~the ~~assemblages~~property. ~~The most extensive and probably oldest volcanic facies is~~However, ~~represented~~their bydrilling aprogram ~~suite~~did ofnot ~~dacitic~~detect ~~flows~~any ~~that~~significant ~~are typically aphanitic to sparsely porphyritic with fine-grained augite phenocrysts~~mineralization. Locally interbedded with the volcanics of the Dacite Assemblage are variable thicknesses of clastic rocks that range from sharpstone conglomerate-fanglomerate to laminated fluvial fine-grained sandstone composed of detritus derived directly from the dacite flows.

9Geology

~~Rhyolites~~The ofFish ~~the~~Project ~~felsic~~lies ~~facies~~within ~~assemblage lie in a north-south trending band through~~ the ~~central~~Walker ~~part~~Lane ofstructural ~~the~~belt ~~claim block. This assemblage has~~of ~~been~~western ~~interpreted~~Nevada, asan ~~one~~area ofwith ~~the~~multiple ~~centers~~episodes of ~~felsic~~structural ~~volcanism~~deformation ~~within the Clisbako~~and ~~Caldera~~igneous ~~Complex~~activity. ~~Volcanic~~The ~~and~~dominant ~~subvolcanic~~fault ~~members~~direction ofis ~~this~~a ~~facies~~right ~~include~~lateral ~~ash flow~~strike ~~tuffs~~slip, ~~flows, breccias, dykes and domes (plugs) and are composed of~~ ~~variations~~sub ofparallel ~~plagioclase,~~to ~~biotite, quartz, hornblende~~ and ~~sanidine~~likely ~~phenocrysts. It~~related isto ~~distinguished~~crustal ~~from~~scale ~~the~~motion ~~dacite~~along ~~assemblage by~~ the ~~presence~~San ~~of common hydrous~~Andreas ~~minerals~~Fault ~~biotite~~system ~~and~~to ~~hornblende. Associated spatially and compositionally with rhyolites of~~ the ~~felsic~~west. ~~assemblage~~The ~~are~~topographic ~~volcaniclastics~~disruption ofis essentially a ~~moat facies,~~regional ~~including~~scale ~~ash~~drag ~~tuffs,~~faulting ~~siltstone,~~system ~~sandstone,~~between ~~conglomerate~~two ~~and~~regional ~~siliceous sinters~~tectonic blocks.

Overlying the Clisbako Formation is a 30 to 50 meter thick basalt-andesite facies, the youngest unit. This is comprised of olivine basalt flows and locally abundant pyroclastic rocks and has been correlated with the Miocene Endako Group. It appears in the extreme northeast portion of the claim block.Mineralization

~~North~~Mineralization toon ~~north-northeast~~the ~~striking~~Fish ~~faults~~Project ~~are~~is ~~the~~enigmatic ~~most~~due ~~prominent structures~~to ona ~~the~~lack of ~~property.~~information ~~They~~about ~~dip~~the ~~moderately~~historic toworkings. ~~steeply~~However, ~~east~~field ~~and~~observations, ~~west (40° to~~mapped ~~80°)~~geology and ~~are~~geochemical ~~responsible~~samples ~~for~~suggest ~~extensive~~a ~~block~~carbonate ~~faulting~~replacement ofor ~~the~~quartz ~~Clisbako Formation.~~vein ~~Measured~~base ~~offsets~~metal ~~range~~– ~~from~~silver asystem. ~~few~~Historical ~~meters~~reports toof ~~about~~mineralization ~~200 meters. Epithermal~~indicate ~~alteration~~anomalous isvalues ~~hosted~~of byzinc, ~~several~~lead, ofcopper ~~these~~and ~~faults~~silver.

~~Faulting~~Current ~~has~~Exploration caused considerable rotation of the volcanic sequence, resulting in highly variable dips. For example, on the west part of the grid, units of the Dacite member dip steeply to vertically while at the North Zone bedding is nearly flat lying.Activities

AThe ~~shallow~~Fish ~~graben~~Project iscurrently ~~defined~~represents byan ~~the~~early ~~north trending faults in the~~stage ~~grid~~exploration ~~area~~property. ~~Epithermal~~Due ~~style~~to ~~alteration~~the atpotential of the ~~North,~~Golden ~~Central,~~Snow ~~South~~Project, ~~Gore~~we ~~and~~have ~~West~~deprioritized ~~Lake zones occur along these structures. The easternmost fault,~~ the ~~East Boundary~~implementation ~~Fault, hosts epithermal alteration intermittently over a length~~ of ~~2 kilometers.~~an ~~The~~exploration ~~South,~~program ~~Trail~~on ~~and Central Zones occur along~~ this ~~structure~~property.

~~Other~~CPG ~~structures~~Project ~~include northwest and northeast trending linears which form conspicuous drainage patterns in the northeast claim area. They have no measurable offset and their significance is uncertain.~~

~~Several~~Description ~~occurrences~~ of ~~epithermal-style alteration are known in the east part of the property. They are all similar in style.~~Property

The ~~zones~~CPG ~~are~~Project ~~characterized~~consists ~~by wide haloes~~ of ~~pervasive argillic~~44 ~~alteration~~unpatented ~~occurring~~mining ~~in the hanging wall of the graben faults.~~claims ~~Extensive~~covering ~~stockworks~~approximately ~~of quartz, pyrite (+ marcasite) veinlets occur throughout the argillic zones~~1.3 ~~Overall~~square ~~sulphide~~miles ~~content~~within ~~averages~~Mineral ~~about~~County, 0Nevada.~~5% .~~

~~Stockworks~~Location, ~~grade~~Access, ~~into areas of pervasive silicification close to the faults. These commonly contain irregular shaped bodies of hydrothermal breccia~~ and ~~banded veins.~~Physiography

~~Argillic~~The ~~alteration~~CPG ~~occurs~~Project upis tolocated ~~100~~approximately ~~meters~~29 ~~into~~miles ~~the~~east ~~hanging~~of ~~wall~~Schurz, ofNevada ~~the~~in ~~source~~Mineral ~~structures. In zones where several parallel structures occur close together~~County, ~~such~~Nevada as at the ~~North~~north ~~Zone,~~end ~~the~~of ~~argillic~~Bovard ~~zones coalesce.~~Mining ~~Silicification is more restricted, occurring as 1 to 25 meter wide zones along fault planes~~District. ~~Narrow subparallel silicified zones also occur in the footwall of the host structures.~~

Footwall alteration is less intense than the hanging wall alteration. Argillic alteration is typical, however at some locations weak propylitization consisting mostly of chlorite and calcite veinlets is developed.11

~~Alteration~~Figure is4 ~~well~~Location ~~developed in a variety~~ of ~~host~~CPG ~~rocks.~~Project ~~At the North, West Lake and Central zones alteration occurs in rhyolites and crystal tuffs. At the South Zone, the strongest alteration is hosted by amygdaloidal andesite.~~

~~Mineralization~~The CPG Project can be accessed from Hawthorne, Nevada via a 29 mile country gravel road and then turning west on an unimproved dirt road for about 4 miles. The CPG Project can also be reached from Fallon, Nevada by traveling east on U.S. Highway 50 for about 35 miles, then south on State Route 839 about 19 miles to the end of the pavement and then south along the gravel county road 11 miles to turn to the dirt access road. The nearest commercial airport is at Reno, approximately 110 miles from the CPG Project.

Mineralization at Clisbako consists of epithermal silica stockworks and breccias developed on north-striking faults. Previous operators have outlined eight zones of hydrothermal alteration on the property. These zones are associated with rocks of the felsic assemblage, grading outward into rocks of the dacite assemblage. The ~~zones~~climate ~~are~~is ~~referred to as the Bari, Brooks, Gore, Discovery, Obvious, West Lake, South and North zones. The alteration zones are typified by pronounced bleaching of the host felsic volcanics and are~~ characterized by ~~intense~~winters ~~argillic~~with ~~alteration accompanied by~~temperatures ~~multi-stage~~between ~~intense~~0 ~~quartz~~and ~~veining,~~40 ~~weak~~degrees toFahrenheit ~~strong silicification,~~ and~~/or hydrothermal~~ ~~brecciation.~~summer ~~Locally,~~temperatures ~~early~~between ~~argillic~~35 ~~alteration is almost completely overprinted~~ and ~~masked by later successive stages of~~85 ~~silicification~~degrees Fahrenheit.

10The CPG Project lies on the eastern flank of the Gabbs Valley Range, part of the Great Basin physiographic province is situated in a region of moderate to steep relief in northwestern Nevada. The Gabbs Valley Range is the central part of the S-shaped mountain block that includes the Gillis Range and the Pilot Mountains. The range is about 35 miles long, the summit occurring at 8360 feet with maximum relief of more than 3000 feet. Elevations on the property range from 4500 feet in the east to 5452 feet at the peak of Copper Mountain. North south trending mountain ranges and intermontane basins characterize the area.

ItProperty ~~has~~History been suggested that the hydrothermal alteration and mineralization were developed along complex steeply dipping north to north-east trending fault structures which were formed during the development of the Clisbako Caldera. However, within the claim area the alteration zones appear to be controlled by a series of closely spaced subparallel small-scale faults, rather than a single major structure. The rocks between the individual small-scale faults are highly fractured, intensely hydrothermally altered and flooded with a pervasive stockwork of quartz veinlets.

The ~~various~~Company ~~mineralized~~is ~~zones~~unaware ~~and prospects, along with boulders in glacial dispersion trains, are composed~~ of ~~quartz~~any ~~veined~~exploration ~~volcanic rocks.~~work ~~Vein~~conducted ~~textures~~on include massive fine to medium grained quartz, banded chalcedony, stockworks of comb-textured quartz and drusy vugs. Calcite occurs in very small amounts and as fracture coatings and as replacement of alkali feldspars in propylitically altered rock. Quartz veins are varied and have been described as; stockwork, druzy, massive, sugary, stringers, blue/black, chalcedonic, banded, comb quartz in open space fillings, crustiform, or brecciated. Some of the ~~veins show quartz pseudomorphs after coarse bladed~~ ~~calcite,~~CPG ~~evidence of boiling~~Project.

~~The~~Geology argillic zones contain an average of less than 0.5% sulfide mineralization, but in the silicified zones the sulfide content may reach 5% over narrow widths. Low sulphide concentrations are typical of an acid-sulphate epithermal system.

~~Pyrite~~The isCPG ~~the~~Project ~~dominant sulphide and typically~~ is ~~very~~centered ~~fine grained.~~on Ina ~~this~~plug ~~form~~of itJurassic ~~most commonly occurs as disseminations in dark gray to~~granite ~~blue-black~~intruding ~~chalcedonic~~limestone ~~quartz,~~of ~~is disseminated in~~ the ~~matrices~~Triassic ofLuning ~~siliceous hydrothermal breccias, or fills quartz lined cavities~~Formation. ~~Coarse-grained~~These ~~pyrite~~rocks ~~is locally~~then ~~associated~~formed ~~with marcasite and arsenopyrite. Pyragerite has been~~an ~~identified~~apparent ~~south~~topographic ofhigh ~~Clisbako~~that ~~Lake,~~was ~~within~~buried ~~the~~under ~~North~~Miocene ~~Zone, and may be the main silver bearing mineral~~tuff. ~~Barite has been observed at several localities.~~

~~Alteration~~The ~~fringing~~contact between the ~~siliceous~~Luning ~~lodes~~Formation limestone and ~~breccias is~~the ~~dominantly~~Jurassic ~~argillic,~~granite ~~generally~~body ~~widespread~~shows ~~and~~a ~~locally~~highly ~~intense.~~compressed Itmetasomatic ~~consists~~alteration ofpattern ~~illite~~associated ~~and~~with ~~montmorillonite~~mineralized ~~replacement~~porphyries. ofOn ~~plagioclase feldspar phenocrysts and~~ the ~~ground mass~~surface, ~~with~~the ~~minor~~alteration ~~sericitization of hornblende and biotite~~patter ~~phenocrysts.~~extends ~~Mineralized~~only ~~zones generally comprise an inner zone of silicious breccia and quartz stockworks lying on or within controlling fault structures and~~ a ~~wide~~few ~~distal~~feet ~~zone~~into ofthe ~~argillic~~limestone. ~~alteration~~At ~~that~~depth, ~~may~~the ~~extend~~historic ~~up to 150 meters~~reports orsuggest ~~more out from~~ the ~~silica core~~ zone. ~~Propylitic alteration~~ is ~~pervasive~~somewhat ~~and comprises~~wider. ~~fine~~Mineralization ~~disseminated~~at ~~and~~the ~~fracture~~surface ~~controlled~~is ~~chlorite~~found ~~which~~near ~~imparts a~~the ~~pale~~contact ~~green~~zone ~~color~~with to the ~~rocks.~~intrusive Itand ~~is accompanied by variable amounts of calcite~~ along ~~fractures~~nearby ~~and~~fault ~~as replacement of alkali feldspar~~zones. ~~Potassic alteration as measured by alkali feldspar staining of rocks is variable.~~ In ~~only~~both ~~one~~cases, the ~~occurrence~~broken ~~has~~zones ~~potassium~~have ~~feldspar~~ been ~~observed~~intruded ~~within~~by alater ~~vein.~~bimodal ~~Gold~~felsic ~~grades~~and ~~are~~mafic-appearing ~~elevated close to the inner silicified zone while the argillic envelope is usually barren~~dikes. ~~The various zones explored are described in detail below.~~

The North zone lies in a down-faulted block of feldspar (+/- quartz) phyric rhyolite flows and tuffs and dacite flows and pyroclastic breccias south of Camp Lake. It is exposed in a gully in which trench excavations have exposed argillic-altered rocks over 300 meters. It has a well defined east boundary marked by a fault. The west boundary is poorly constrained and is probably continuous with the West Lake Zone.12

~~Alteration~~To ~~associated~~the ~~with~~west ~~north-striking faults consists~~ of ~~extensive~~ ~~silicification~~Copper Mountain, ~~quartz~~the ~~and~~Miocene ~~pyrite~~volcanic ~~stockworks,~~rocks ~~banded epithermal veins~~can ~~and~~be ~~siliceous~~seen ~~breccia.~~overlying ~~These~~the ~~zones~~Luning ~~contain~~Formation ~~elevated precious metal~~ and ~~pathfinder~~ ~~element~~Jurassic ~~values~~granite. ~~Argillic~~The ~~alteration~~contact is marked ~~most~~by ~~pronounced~~a ~~distal~~red ~~from the~~stained ~~siliceous~~zone ~~zones.~~that ~~Barren~~is ~~quartz~~likely ~~stockworks~~the ~~are~~pre-eruptice ~~common~~paleosurface inor ~~the argillic~~may ~~zone~~be a detachment fault.

The Central zone is a stockwork lying along the same fault structure that hosts the South zone. Quartz-clay alteration is similar to that at the North zone, with extensive quartz stockworks and pervasive argillic alteration occurring in a flow-banded dacite. The zone is narrow and probably connects with the North Zone to the north.Mineralization

11A Jurassic age quartz monazite has intruded limestones and caused skarnification and deposition of principally copper mineralization. The skarn mineralization is pod-like and occurs adjacent to hornblende quartz feldspar porphyry dikes trending approximately east-west.

~~Four~~Currently ~~trenches~~Exploration have been excavated on the Discovery zone across two narrow, hydrothermal breccias. The best gold grades (133 to 421 ppb gold) were obtained from a two meter wide zone of quartz stockworks, white, vuggy quartz veins and hydrothermal breccia. The matrix consists of a bluish-grey clay gouge. The wallrock, which consists of flow banded dacite, is moderately silicified up to four meters away from the breccia. The highest gold tenor (421 ppb) was obtained from the most intensely altered material. A second less altered breccia, consists of black, sulphidic quartz fragments in a moderate to strongly argillized dacite host. This interval was only weakly mineralized (102 ppb gold), however a sulphide-rich interval was enriched in arsenic (2,930 ppb).Activities

The ~~South~~CPG ~~Zone~~Project is ~~typified~~an byearly astage ~~large~~exploration ~~area~~property. ofDue ~~silicification~~to ~~and~~the ~~hydrothermal~~potential ~~breccia.~~of ~~The~~the ~~main~~Golden ~~outcrop~~Snow ~~area~~Project, inwe ahave ~~small~~deprioritized ~~creek at~~ the ~~south~~ ~~end~~implementation of ~~the property, consists of a zone of hydrothermal breccia, veins and stockworks over~~ an ~~outcrop~~exploration ~~area~~program ofon ~~150~~this ~~meters and has been traced by drilling for some 300 meters~~property.

~~The~~CLISBAKO zone shows evidence of multiple stages of silicification indicated by cross cutting relationships and clast types within hydrothermal breccia veins. The hanging wall is strongly bleached and variably silicified in which a strongly developed stockwork of pyritic veinlets are cut by irregular veins of dark grey, banded chalcedony. One such vein was traced continuously for 22 meters. It was from these veins that the best assays were obtained by Minnova. The highest tenor was 3,300 ppb gold over a two-meter sample.PROPERTY

~~Despite~~We ~~the~~own ~~intense~~a ~~alteration,~~100% ~~silicification and breccia development~~interest, ~~precious~~subject ~~metal~~to ~~and~~the ~~pathfinder~~Clisbako ~~element~~Option Agreement, ~~concentrations~~in ~~are~~the ~~low~~Clisbako Property. The ~~highest~~ ~~gold~~Clisbako ~~concentrations~~Property ~~occur~~covers inan ~~sulphide-rich~~area ~~hydrothermal breccias and~~of ~~zones~~approximately of3,388 ~~banded~~hectares ~~grey~~and ~~chalcedony.~~is ~~Minnova~~located ~~drilled ten holes~~ in the ~~South~~Interior ~~zone area~~Plateau inRegion ~~1991~~of north ~~and~~central ~~1992~~British Columbia. ~~Most~~It ~~holes~~is ~~returned~~composed ~~low~~of ~~grade~~ten tocontiguous ~~barren~~mineral ~~zones of~~claims, ~~siliceous~~situated ~~breccia~~within the Cariboo Mining Division. The ~~best~~claims ~~hole,~~are ~~DOH~~situated approximately ~~92-30~~80 ~~returned~~miles ~~2.0~~west ~~meters~~ of ~~228~~Quesnel, ~~ppb gold~~British Columbia.

~~Two~~Our ~~zones~~acquisition ~~were~~of ~~identified~~the byClisbako IPProperty ~~surveys~~was ~~southwest~~completed under the terms of ~~Camp~~a ~~Lake~~purchase agreement dated December 16, ~~the~~ ~~West~~2008 ~~Lake~~with ~~and~~Bako ~~West~~Resources ~~Pit~~Inc. ~~Zones~~(“Bako”). Under ~~The~~the ~~West~~terms ~~Pit~~of isthe apurchase ~~200-metre~~agreement, ~~long~~we ~~chargeability high~~issued ~~centered~~to onBako ~~line~~2,000,000 ~~416N~~pre-split at(6,000,000 ~~285+00E.~~post-split) Itshares ~~has~~and ~~been~~a ~~traced~~promissory ~~intermittently~~note asin ~~far south~~the asamount ~~line~~of ~~400N.~~$70,000 ~~Trenching~~CDN in($56,600 ~~1992~~USD) ~~failed~~payable toon ~~reach~~June ~~bedrock~~30, 2009 . On ~~Subcrop~~July ~~and overburden~~23, ~~contains~~2009, ~~abundant~~we ~~bright~~entered ~~yellow~~into ~~clay~~an ~~along~~extension agreement with ~~fragments~~Bako to extend the deadline of ~~silicified~~ ~~rock~~the ~~and~~CDN$70,000 ~~vein~~mineral ~~quartz.~~property ~~The~~payment ~~West~~(“Property ~~Lake~~Payment”)to ~~zone~~December 31, ~~immediately~~2009. In ~~west~~consideration of ~~the North~~this ~~zone~~extension, ~~consists~~we issued 60,000 shares of aour ~~coincident~~common ~~chargeability~~stock ~~and~~to ~~resistivity~~Bako. On ~~high~~January ~~with~~21, 2010, we entered into a ~~strike~~ ~~length~~second extension agreement with Bako, whereby Bako agreed to extend the due date of ~~about~~the ~~300~~Property ~~meters~~Payment to February 15, 2010. In ~~Trenching~~consideration onof the ~~West~~extension, ~~Lake~~we ~~zone~~issued ~~exposed~~to ~~a quartz~~Bako ~~stockwork~~10,000 ~~zone~~shares ~~containing~~of ~~three-meter~~our ~~wide~~common ~~banded~~stock. On ~~and~~March ~~bladed~~15, ~~pyritic~~2010, ~~quartz-chalcedony~~ ~~veins.~~we ~~The~~entered ~~best~~into ~~chip~~a ~~samples~~third ~~across~~extension ~~the~~agreement ~~altered~~dated ~~zone~~for ~~returned 8.5~~reference ~~g/t~~February ~~gold~~15, ~~over~~2010, ~~one~~with ~~meter~~Bako, ~~from~~whereby ~~one~~Bako agreed to extend the due date of the ~~veins~~Property Payment from February 15, 2010 to June 30, 2010.

~~Minnova~~Clisbako ~~drilled~~Option ~~six holes in the West Lake-West Pit area in 1992 to follow-up trenching and induced polarization surveys. The best hole, 92-27, returned 135 ppb gold over an interval of 2.0 meters.~~Agreement

~~The~~On ~~Obvious~~September ~~Zone~~15, is2010, ~~located~~Clisbako ~~along~~Minerals ~~the~~Inc. ~~4200~~(“Clisbako ~~Forest Service Road~~Inc”), ~~approximately~~our 2wholly-owned ~~kilometers~~subsidiary, ~~north~~entered ofinto ~~the~~an ~~North~~option ~~Zone at Camp Lake~~agreement, ~~and~~as ~~was~~amended on ~~discovered~~November by15, ~~prospecting~~2010, (the ~~excavated~~"Clisbako ~~ditches~~Option ~~adjacent~~Agreement") towith ~~the~~Manado ~~road.~~Gold ~~Float~~Corp. ~~boulders~~(“Manado ofCorp.”) ~~quartz~~whereby ~~veins~~we ~~and~~granted ~~silicified~~Manado ~~feldspar~~Corp. ~~phyric~~an ~~rhyolite~~option ~~tuffs~~to ~~are present~~acquire ~~within~~a ~~till~~75% undivided ~~and~~interest ~~subcrop.~~in ~~The~~the ~~best~~Clisbako ~~grab~~Property. ~~sample~~In ~~returned~~order ~~156~~for ~~ppb~~Manado ~~gold~~Corp. ~~with~~to ~~elevated~~exercise ~~arsenic.~~its ~~The~~option, ~~Obvious~~it ~~Zone~~will ~~was~~be ~~drill~~required ~~tested~~to: ~~by hole 236-34.~~

The West Lake Boulder Train is located along a reclaimed logging access road along the west shore of Camp Lake. The boulder dispersion train comprises angular float blocks up to 50 cm in size in till along a tightly confined, north trending dispersion train over 600 meters in length. Float blocks include massive fine grained quartz, silica breccias and quartz stockworks. The best grab sample returned 1528 ppb gold. This zone was drill tested by 3 drill holes, 236-31, 236-32, and 236-33.

1.	pay Clisbako Inc. an aggregate of USD $150,000 as follows:

	(a)	USD $50,000 on execution of the agreement (USD $48,650 has been paid);

	(b)	a further USD $50,000 on or before February 28, 2011 (CDN $39,000 has been paid subsequent to November 30, 2010); and

	(c)	a further USD $50,000 on or before April 30, 2011.

2.	issue an aggregate of 600,000 Shares to Clisbako Inc as follows:

The Gore Zone is located approximately 1.5 kilometers southwest of the North Zone on the eastern slope of the ridge rising to the west of Camp Lake. The Zone comprises north trending massive silica breccias and quartz vein stockworks within dacite flows and rhyolite tuffs and is exposed over an area of 500 meters by 50 meters. Bedrock and float boulder sampling returned low gold values ranging from trace to 315 ppb.13

The Bari Zone comprises two separate silica breccia bodies and several float and subcrop occurrences centered about 2.5 kilometers due west of the North Zone. Local lithologies include propylitically altered dacite flows and a 50 meter thick pyroclastic breccia unit with variably silicified angular clasts. Two separate zones, the Bari 1 and Bari 2 zones are partially exposed through a thin cover of till and comprise north-trending zones of hydrothermal breccia up to five meters thick. Accessory minerals include arsenopyrite and barite and possible sulphosalts indicated by an unusual grass green colored weathering. The peak gold value is 239 ppb from the Bari 1 and 466 ppb gold from the Bari 2. Both zones are within a large arsenic soil anomaly which extends for 2 kilometers from L 406N to L 426N.

	(a)	100,000 Shares on or before September 15, 2011;

	(b)	a further 200,000 Shares on or before September 15, 2012; and

	(c)	a further 300,000 Shares on or before September 15, 2013.

3.	incur exploration expenditures of $650,000 CDN on the Clisbako Property as follows:

	(a)	$100,000 CDN on or before September 15, 2011;

	(b)	a further $300,000 CDN on or before September 15, 2012; and

	(c)	a further $250,000 CDN on or before September 15, 2013.

12In addition, Manado Corp. will also be responsible to make all government payments required to keep the claims in good standing.

~~Detailed~~The ~~sampling~~agreement inis ~~1996~~an ~~failed~~option toonly ~~enhance~~and ~~the~~Manado ~~prospect~~Corp. ~~with~~may determine ~~best~~at ~~results~~any ~~from~~time ~~outcrop~~not ~~reporting~~to aproceed ~~high~~in ofwhich 68case ~~ppb~~it ~~Gold.~~would ~~High~~not ~~arsenic~~be ~~values~~liable to pay any funds ofor upincur toany ~~5194~~exploration ~~ppm~~expenditures ~~were~~beyond ~~returned~~the ~~from~~amounts ~~float~~due ~~boulders~~at the time it provides notice that it is not proceeding. There is no assurance that Manado Corp. will exercise the Option.

~~Prospecting~~Description ~~and rock geochemical sampling on the Bari Zone in 2002 has confirmed the existence~~ of epithermal style gold and silver mineralization within an argillically altered and quartz veined felsic volcanic assemblage. More than 80% of the 52 rock samples returned anomalous values for gold, silver, arsenic, tin, mercury, molybdenum or barium. The highest values were 770 ppb gold, 56.6 ppm silver, 8330 ppm arsenic, 346 ppm tin and 7 ppm mercury. These results were returned from dark gray or blue-black colored veins with or without banding, or from silicified zones that displayed several stages of brecciation. Local development of intense brecciation suggests repeated sealing and fracturing permitting hydrothermal fluids to repeatedly permeate the system.Property

~~Current~~The ~~Exploration~~Clisbako ~~Activités~~Property covers approximately 3,388 hectares. The mineral claims making up the Clisbako Property are recorded with the Ministry of Energy, Mines and Petroleum Resources (the “Ministry of Mines”) as follows:

James Chapman, P. Geo. and P. Eng., and Willie Kushner, B.Sc. Geo., our consulting geologists, concluded that a strong potential for mineralization on the property lies within structurally controlled features at depth.

Tenure Number	Area in Hectares	Expiry Date
530325	489.55	November 30, 2014
530328	489.74	November 30, 2014
530329	313.10	November 30, 2014
530387	391.81	November 30, 2014
530462	391.81	November 30, 2014
530464	391.66	November 30, 2014
530465	313.21	November 30, 2014
534877	293.62	November 30, 2014
534928	293.62	November 30, 2014
535450	19.58	November 30, 2014

~~Our~~The ~~consulting~~Province ~~geologists~~of ~~recommend~~British aColumbia ~~three-phase~~owns ~~continuing~~the land covered by the ~~exploration~~Clisbako ~~program~~Property. beTo ~~undertaken~~our onknowledge, ~~the~~there ~~property~~are tono ~~determine~~aboriginal ~~the~~land ~~prime~~claims that ~~localities~~might ofaffect ~~mineralization~~our ontitle ~~which~~ to ~~focus~~the ~~concentrated~~Clisbako ~~exploration~~Property or the Province’s title of the property.

In order to maintain the Clisbako Property in good standing, we must complete minimum exploration work on the Clisbako Property and file confirmation of the completion of the work with the Ministry of Mines. In lieu of completing this work, we may pay a fee equal to the minimum exploration work that must be performed with the Ministry of Mines. The ~~three-phase~~completion ~~program~~of mineral exploration work or payment in lieu of exploration work in any year will extend the existence of our mineral claims for one additional year. The minimum exploration work that must be performed and/or ~~its~~the ~~approximate~~fee ~~estimated~~for ~~costs~~keeping our claims ~~consist~~current is equal to $8.00 CDN per hectare. Our mineral claims are in good standing until November 30, 2014. After November 30, 2014, we will be required to complete minimum exploration work or pay a minimum fee of CDN$27,104 on or before November 30, 2014 and each year thereafter in order to keep the ~~following:~~Clisbako Property current. If we fail to complete the minimum required amount of exploration work or fail to make a payment in lieu of this exploration work, our mineral claims will lapse and we will lose all interest in our mineral claims.

Phase	Recommended Exploration Program	Approximate Estimated Cost	Status
Phase I	Soil geochemical surveys, prospecting, mapping and geophysics in order to better define the Bari 1 and Bari 2 zones.	CDN $122,000 ($115,375)	Plan to implement in Third Quarter 2010.
Phase II	Trenching and IP geological surveys.	CDN $152,000 ($143,746)	To be determined based on the results of Phase I.
Phase III	Diamond drilling on selected targets.	CDN $523,000 ($494,601)	To be determined based on the results of Phase I.
	Total Estimated Cost	CDN $797,000 ($753,723)

~~Subject to obtaining sufficient financing~~Location, ~~Phase I of our exploration program is intended to be commenced in the summer of 2010. If we are able to obtain financing~~Access, ~~Phase~~Climate ~~I of our exploration program on the Clisbako Property will involve soil geochemical surveys, prospecting, mapping~~ and ~~geophysics~~ inPhysiography ~~order to define the Bari 1 and Bari 2 zones.~~

~~MANADO~~The ~~GOLD~~Clisbako ~~PROPERTY~~Property is located in the Interior Plateau Region of north central British Columbia. It is composed of ten contiguous mineral claims, situated within the Cariboo Mining Division. The claims are situated approximately 80 miles west of Quesnel, British Columbia.

On January 19, 2010, we entered into an agreement with Agus Abidin dated for reference November 2, 2009 (the “Manado Agreement”) to acquire an option to earn up to an 85% interest in the Manado Gold Property. Under the terms of the Manado Agreement, we have agreed to pay $35,000 to the owners of the Manado Gold Property (the “Owners”) for the exclusive right for 90 days to formalize an agreement (the “Acquisition Agreement”) to earn up to an 85% undivided interest in the Manado Gold Property. After the 90 day period, we may elect to exercise our option to enter into the Acquisition Agreement and will have 30 days to finalize the terms of the formal Acquisition Agreement. On January 21, 2010, we entered into an extension agreement with Agus Abidin whereby the parties agreed to extend the due diligence period to March 31, 2010.15

13Figure 5 Location of Clisbako Property

Under the terms of the proposed Acquisition Agreement, we will be able to earn an interest in the Manado Gold Property by making cash payments, issuing shares and completing work programs at various stages. We will be able to acquire:16

~~(a)~~Access anto ~~initial 10% interest in~~ the ~~Manado~~property ~~Gold~~is ~~Property~~ by ~~paying~~paved ~~$90,000~~highway ~~and~~west ~~issuing~~from ~~150,000~~Quesnel ~~shares of our common stock~~ to ~~the Owners on execution of the Acquisition Agreement~~ Nazko, ~~and~~then ~~completing~~30 amiles ~~mineral~~southwest ~~exploration~~by ~~program~~gravel atForest aService ~~cost~~Roads ~~of not less than $250,000 prior to the first anniversary of the Acquisition Agreement;~~ (b“FSR”). anThe ~~additional~~4200 FSR ~~15%~~crosses ~~interest in~~ the ~~Manado~~northern ~~Gold~~portion ~~Property by paying $100,000 and issuing 300,000 shares~~ of ~~our common stock to~~ the ~~Owners~~Clisbako onProperty ~~the first anniversary of the Acquisition Agreement,~~ and ~~completing~~branch aroads mineral exploration program at a cost of not less than $500,000 prior to the second anniversary of the Acquisition Agreement; (c) an additional 26% interest in the Manado Gold Property by paying $200,000 and logging ~~issuing~~tracks ~~500,000~~provide ~~shares~~access ~~of our common stock~~ to ~~the~~much ~~Owner on the second anniversary~~ of the ~~Acquisition~~rest ~~Agreement, and completing a mineral exploration program at a cost~~ of ~~not less than $1,000,000 prior to~~ the ~~third anniversary of the Acquisition Agreement; and (d) an additional 34% interest in the Manado Gold Property by completing a scoping study~~property.

IfThe weclimate ~~acquire~~of anthe ~~85%~~area ~~interest~~is incharacteristically ~~the~~dry. ~~Manado~~Average annual ~~Gold~~temperature ~~Property~~is ~~under the~~approximately ~~proposed~~2° ~~Acquisition Agreement~~C, wewith ~~will~~average besummer ~~responsible~~highs ~~for~~in ~~the~~July ~~costs~~and August of ~~any feasibility~~14° ~~studies~~C and, ifJanuary ~~warranted,~~winter ~~placing~~lows ~~the~~averaging ~~Manado~~-13° ~~Gold~~C. ~~Property~~Average ~~into~~annual ~~commercial~~precipitation ~~production.~~is Inapproximately ~~addition~~440 millimeters, wewith ~~will have~~ an ~~option~~estimated to40% ~~acquire~~falling ~~the~~as ~~remaining~~snow. ~~15%~~The ~~interest~~majority inof ~~the~~rainfall ~~Manado~~occurs ~~Gold~~between ~~Property~~June byand ~~paying the Owners $5,000,000~~August.

~~Additional~~The ~~terms~~claims ofcover ~~the~~a ~~proposed~~wide ~~Acquisition~~variety ~~Agreement~~of ~~include~~terrain, from swampy meadows ~~among~~to ~~other~~forested ~~things~~upland slopes. Elevations range from 1,250 ~~that~~meters wealong ~~will~~the beClisbako River ~~responsible~~to ~~for~~over ~~all~~1,500 ~~costs~~meters into ~~maintaining~~the west. A significant portion of the property ~~Manado~~has ~~Gold~~been ~~Property~~logged inby ~~good~~clearcut ~~standing,~~methods. ~~and~~Forest wecover ~~will~~is ~~have~~typical of the ~~right~~region, consisting toof ~~terminate the~~lodgepole ~~Acquisition~~pine, ~~Agreement~~with onlocal 60stands ~~days~~of ~~notice.~~black Ifspruce, ~~the~~fir ~~proposed~~and ~~Acquisition~~birch ~~Agreement~~along isdrainages. ~~terminated,~~Timber weharvesting ~~will~~has beoccurred ~~entitled~~with tonumerous ~~retain~~cut blocks scattered throughout the ~~interest~~claim area. Swampy meadow lands in the eastern and north-eastern portions of the property wethat ~~earned~~form asthe headwaters of the ~~termination~~Clisbako River ~~date~~system are saturated for much of the year but dry out in late summer. These areas are sparsely treed.

~~During the Due Diligence Period, the Owner of the Manado Gold~~ Property ~~is prohibited from negotiating with or entering into an agreement with any third party in connection with the disposition or any other encumbrance of it its interest in the Manado Gold Property.~~History

~~There~~Historical iswork noto ~~assurance~~date ~~that~~on wethe ~~will~~Clisbako ~~exercise~~Property ~~our~~has ~~option~~outlined eight tomain ~~enter~~zones, as currently identified, of epithermal mineralization and ~~into~~alteration referred to as the ~~formal~~North, ~~Acquisition~~Central, ~~Agreement~~South, orWest Lake, Obvious, West Lake Boulder, Gore and Bari zones. Historical records indicate that wesoil geochemical ~~will~~surveys beand ~~able~~geophysical tosurveys ~~earn~~have ~~any~~been conducted over several ~~interest~~grids on the property, and a total of 34 diamond drill holes have been completed. The bulk of the work has been concentrated within a 2 kilometer by 4 kilometer north trending corridor in the ~~Manado~~centre ~~Gold~~of the project area. Prior to 1989, there is no recorded work on the Clisbako Property.

~~Description~~Eighty ofEight Resources Ltd.: 1989 – 1991 - In 1989, a regional reconnaissance exploration program was conducted within the ~~Property~~Nechako Basin by Eighty Eight Resources Ltd. Epithermal quartz float collected on the property returned weakly to moderately anomalous gold, silver and arsenic values. Subsequent work traced these samples to their source and led to the discovery of several extensive areas of epithermal silicification and argillic alteration in 1990.

~~The~~A ~~Manado~~property ~~Gold~~consisting ~~Property~~of is15 ~~comprised~~contiguous ofclaims ~~four~~(Clisbako ~~contiguous~~1-15) covering ~~mining~~7,500 hectares was staked by Eighty-Eight Resources Ltd. to cover these ~~tenements~~areas. ~~called~~Dawson ~~“Bagkit~~Geological ~~Limpoga~~Consultants ~~Jaya”,~~Ltd. ~~“Hakian~~were ~~Wellem~~contracted ~~Rumansi”~~to complete a compass and flag grid covering the 4 main mineralized zones (North, ~~“Ratak~~Boulder, ~~Mining”~~Central and South Zones). Crews collected 1,320 soil samples from grids covering the mineralized areas, and ~~“Manembo~~a ~~Mineral”~~total ~~which~~of ~~cover~~253 anrock ~~area~~samples were collected from areas of epithermal ~~approximately~~silicification ~~300~~as ~~hectares~~well as from mineralized float believed to be locally derived. Geological mapping was also completed.

~~Location~~Minnova Inc.: 1991- 1992 - The property was subsequently optioned to Minnova Inc., ~~Access~~and five more claims (Clisbako 16-20) were added to the property in April, 1991, following a compilation of data and reinterpretation ~~Physiography~~of the 1990 field work. Minnova then proceeded to fly an airborne magnetic and electromagnetic survey over the entire property. Grid line spacing over the pre-existing grid was tightened to 100 meters line spacing and grid lines were extended 1 kilometer to the west. The entire gridded area was geologically mapped and sampled, the results of which delineated the Gore and Pond epithermal alteration zones. A total of 18 trenches were excavated covering 5 mineralized zones (North, South, Central, Discovery and Trail Zones), all of which were mapped in detail and sampled. Based on the results of these programs a 19 hole NQ drill program was completed totaling 3,024 meters. This included 11 holes in the North Zone, 7 holes in the South Zone and 1 diamond drill hole in the Central Zone. The program confirmed the presence of widespread anomalous gold concentrations but failed to delineate any zones of economic significance.

~~The~~In ~~Manado~~June, ~~Gold~~1992, ~~Property~~a istotal ~~located~~of 50seventeen ~~miles~~2-post ~~south~~claims ofwere ~~Manado~~added inon ~~northern~~the ~~Sulawesi~~claim group, ~~Indonesia.~~presumably Itto isensure ~~accessible~~that bythere 3were ~~miles~~no ofinternal ~~partly paved~~fractions ~~all-weather~~between ~~road~~the ~~from~~Clisbako ~~Ratatotok~~4 & 13, 7 & 14, 5 & 10 and 8 & 10 claims. Minnova conducted a ~~village~~gradient ~~along~~array IP geophysical survey over 17 partial grid lines covering those zones identified to date in the ~~coastal~~central ~~national~~portion ~~highway,~~of the ~~which~~property. An additional 7 trenches were completed in ~~turn~~the isWest ~~accessible~~Lake, byGore, 60West Pit ~~miles~~and Central Zones. An 11 hole, 1,358 meter NQ drill program was conducted to evaluate the results of ~~paved~~the ~~road~~gradient ~~from~~array ~~Manado~~IP survey and extensions to zones identified in 1991. ~~The~~Although ~~city~~the drilling intersected extensive widths of strong epithermal alteration in each target ~~Manado~~area, isno asignificant ~~major~~precious ~~commercial~~metal ~~center~~values ~~served~~were bydetected. ~~local~~Nonetheless, indicator elements such as mercury, arsenic and ~~international~~tin ~~flights~~were asstrongly anomalous throughout, ~~well~~indicating that the system as ~~ocean-going~~a ~~vessels~~whole has a classic epithermal signature.

~~Property History~~17

InPhelps ~~1981,~~Dodge: PT1994 ~~Newmont~~–1996 ~~Minahasa~~- ~~Raya,~~After anthe expiration ~~Indonesian subsidiary~~ of ~~Newmont~~ ~~Gold~~Minnova’s ~~Company~~option, ofPhelps ~~Denver,~~Dodge ~~commenced~~examined the ~~exploration~~property ~~of their contract of~~and ~~work~~ subsequently ~~(“COW”)~~optioned ~~concession.~~it ~~The~~in ~~exploration program led to~~ the ~~discovery~~fall of ~~several small gold deposits~~1994. ~~The~~Phelps ~~largest~~Dodge, ofthrough ~~the~~Fox ~~deposits~~Geological Services ~~known~~Inc., ascarried ~~the~~out ~~Mesel~~a ~~together with~~22 ~~other~~line ~~smaller~~kilometer ~~satellite~~soil ~~deposits~~geochemical ~~was~~sampling ~~placed into production~~ program in ~~1996~~1994. ~~Due~~Thick ~~to deteriorating~~glacial ~~relations~~till ~~with~~cover in the ~~local~~project ~~people~~area ~~and~~effectively ~~government,~~masks ~~Newmont was forced~~any tobedrock ~~cease~~leaching ~~mining~~and ~~operations~~the insoil ~~2002~~survey ~~but~~failed ~~continued milling ore stockpile up~~ to ~~2004.~~ PTdefine ~~Newmont~~zones ~~produced a total 2 million grams~~ of ~~gold~~epithermal ~~mainly from the Mesel open pit~~alteration.

14Fox Geological was retained again to conduct a combined rock and soil geochemistry program, IP geophysical survey, geological mapping and a diamond drilling program during the 1995 field season. The 1995 program focused on developing new targets in relatively under explored parts of the property and further evaluating known zones of mineralization with limited historical work.

~~Newmont~~Fox ~~also~~Geological ~~identified~~Services ~~three~~completed ~~zones~~36 ~~that~~miles myof ~~contain~~gridding ~~gold~~west of ~~mineralization,~~Camp ~~which~~Lake ~~are~~to ~~called~~the ~~Limpoga,~~western ~~Pasolo~~claim ~~and~~boundary. ~~Nona~~Mapping ~~Hoa.~~and ~~These~~prospecting ~~zones~~on ~~were~~the grid ~~defined~~generated by339 ~~the~~rock ~~drilling~~samples of ~~some~~bedrock ~~273~~and ~~boreholes~~float. ~~Although~~This ~~detailed~~sample ~~engineering~~was ~~and~~collected from ~~economic~~a ~~studies~~cluster ~~were~~of ~~completed,~~weakly noquartz ~~mining~~veined infeldspar ~~any~~phyric ~~one~~rhyolite offloat ~~the~~boulders ~~three~~within a ~~zones~~discrete ~~was actually~~dispersion ~~carried~~train ~~out~~in till. ~~After~~The ~~the~~bedrock ~~departure~~source of ~~Newmont,~~these ~~all~~boulders ~~three zones were~~has ~~subsequently~~not ~~included~~been ~~in tenements acquired by local companies in Manado~~discovered.

~~Newmont~~Soil ~~drilled~~geochemical asurveys ~~total~~totaling of22 ~~6,457~~line ~~meters~~kilometers at covered the ~~Limpoga~~western ~~zone between~~and ~~1989~~central toportions ~~1999.~~of Inthe ~~particular,~~claim 92group ~~closely-spaced~~along ~~(40~~one ~~meters)~~kilometer ~~diamond drill~~spaced ~~holes~~lines ~~were~~with ~~drilled~~detailed ~~between~~coverage ~~1989~~in tothe ~~1993.~~Gore Inand ~~late~~Bari ~~1998,~~zones ~~Newmont~~resulting ~~completed~~in an677 soil ~~additional~~samples. ~~1,695~~Anomalous ~~meters~~gold ofresults ~~closed~~were ~~spaced~~usually ~~(20 meters) diamond drill holes. In 1999~~isolated, ~~Newmont~~one ~~also~~sample ~~drilled 19 Reverse Circular (“RC”) holes for a total of 1~~occurrences,~~064~~ ~~meters~~but atanomalous ~~the~~arsenic ~~Limpoga~~values ~~zone.~~outlined ~~This~~a ~~large~~prominent ~~amount~~2000 ofmeter ~~high~~by ~~density~~800 ~~drilling~~meter ~~provided~~north ~~the~~trending ~~data~~zone ~~points for detailed engineering,~~ which ~~included~~coincided ~~geotechnical,~~with ~~bulk density,~~several ~~permeability~~new ~~and~~zones ~~metallurgical~~of ~~tests.~~quartz ~~The~~veining ~~historical drilling of~~outlined ~~Newmont~~by ~~indicated~~prospecting. ~~196,000~~Additional ~~tons~~follow-up ofwas ~~mineralized~~recommended ~~material~~in atthe anBari ~~estimated~~1 ~~grade~~and ~~of 7.99~~2 ~~g/t at the Limpoga zone~~zones.

~~Regional~~The ~~Geology~~IP survey consisted of a total of 17.8 line kilometers. Two different arrays were utilized: a reconnaissance style survey with electrodes spaced 75 meters apart along road lines and a detailed survey with 150 meter electrode spacing over two established grid lines. The wider separations failed to detect any anomalous readings that were not detected using shorter separations.

~~Recent~~A ~~exploration~~total ~~has~~of ~~highlighted~~700.9 ~~North~~meters ~~Sulawesi~~of asNQ2 ~~a significant~~diamond ~~gold~~drilling ~~province~~in ~~located~~4 ~~within a series of spatially overlapping~~drill ~~Tertiary~~holes ~~volcanic~~was ~~arcs.~~conducted Inon the ~~western~~West ~~ensialic~~Lake ~~portion,~~boulder ~~rhyodacitic~~train ~~volcanics overlie~~and ~~quartzo-feldspathic metamorphic basement. In contrast,~~ the ~~central~~Obvious ~~and~~Zone. ~~eastern~~Drilling ~~ensimatic~~failed ~~areas~~to ~~comprise~~encounter ~~marine~~economic ~~basaltic~~concentrations ~~basement~~of ~~overlain~~gold bywith ~~andesitic~~results ~~volcanic,~~similar ~~the~~to ~~centres~~those ofobtained ~~which have migrated progressively eastwards~~ from the ~~Early~~ ~~Miocene~~North ~~until~~and ~~the~~South ~~present day~~Zones.

~~Property~~A ~~Geology~~short 4 day field program was completed in 1996 consisting of geological mapping and sampling in the Bari Zone area. A total of 24 rock samples were submitted for analysis with most samples containing anomalous values of gold and arsenic from boulder float.

~~Located~~Although ~~on the Manado Gold Property is~~ a ~~massive~~large ~~karsted~~gold ~~basal limestone~~bearing ~~unit~~epithermal ~~overlain~~system byhad ~~a volcanogenic sediment which is a reworked tuff.~~been ~~This~~outlined ~~sediment~~in ~~is commonly calcareous at is base and shows slump and bedding textures. The bedding dips from 15-60o to~~ the ~~north.~~central ~~Intruding~~claim ~~this sequence~~area iscovering ~~the~~approximately ~~Limpgoa~~20 ~~andesite.~~square The andesite is porphyritic and invariably altered to an assemblage of chlorite+ carbonate. Porphyroblasts of hornblende and feldspar occur in a fine grained matrix. Petrographic studies indicate this rock to be a tonalite. A sequence of andesite tuffskilometers, ~~flowing overlying the~~ ~~reworked~~gold ~~tuff~~tenors toare ~~the~~generally ~~east~~very ~~is most likely volcanic equivalents of the Limpoga andesite. Unconformably overlying all the previous units is a series of volcaniclastic rocks. This unit comprises of volcanic conglomerate~~low, ~~breccia~~rarely ~~and, in~~exceeding ~~places flows~~0.5 ~~The rocks are mostly of andesitic composition with minor porphyritic hornblende dacite~~ppm.

~~Eluvial~~Goodall ~~deposits~~(Global Geological): 1996 – 2003 - The Bako 1 to 16 claims were subsequently staked by Geoff Goodall, P. Geo. in 1996 to cover previously identified zones of ~~quartz~~alteration and ~~clay~~mineralization. ~~sit~~A prospecting program was conducted on the ~~karsted limestone~~Bako ~~surface~~1 to 5 mineral claims in the spring of 2002. These ~~There~~claims ~~deposits~~cover eight zones of hydrothermal alteration typified by pronounced bleaching of the host felsic volcanics and are ~~interpreted~~characterized by intense argillic alteration accompanied by multi-stage intense quartz veining, weak to bestrong silicification, ~~erosional~~and/or ~~remnants~~hydrothermal brecciation. The work program consisted of ~~silicificied~~prospecting ~~cavefill~~traverses ~~sediments~~and ~~mostly~~rock ingeochemical ~~the~~sampling ~~footwall~~of areas adjacent to and within previously discovered zones of ~~the~~alteration. LPA ~~fault~~total ~~zone~~of fifty-two rock samples were collected. A strong correlation was shown to exist between anomalous gold values and anomalous silver values. Samples with anomalous concentrations of antimony also had anomalous levels of arsenic, and mercury was weakly anomalous.

~~The~~Bard ~~east~~Ventures: ~~northeast~~2003 –2004 ~~west~~- ~~southwest trending Limpoga Lambak~~The ~~fault~~property iswas ~~the~~optioned ~~main~~to ~~structural~~Bard ~~feature~~Ventures ofin ~~the~~late ~~Limpogo~~2003 ~~zone.~~and ~~This~~Global ~~fault dips 60° to~~Geological ~~the~~Services ~~north~~established ~~and~~two ~~exploits~~geophysical ~~the~~grids ~~unconformity~~over ~~separating volcanistic rock to~~ the ~~north from~~Discovery ~~the andesite, limestone~~ and ~~reworked~~Brooks ~~tuff~~Zones totaling ~~to the south~~24.5 ~~The~~line ~~LP fault is a splay off the Limpoga-Lambak fault~~kilometers. ~~This~~Previous ~~fault~~mapping ~~dips~~and ~~from~~sampling ~~45-60°~~programs ~~to the north and~~within isthese ~~the~~areas ~~main~~uncovered ~~control~~concentrations of ~~gold~~quartz ~~mineralization.~~rich ~~The~~boulder ~~fault is manifested as a fault breccia~~float. ~~Clasts of subangular to angular silicified, argillised tuff and limestone.~~

Elsewhere in the immediate area, low sulphidation gold veins occur such as those in the Nona Hoa and Pasolo zones. Both styles of mineralization are hosted in Miocene carbonate rocks occurring in a northeasterly graben. Visible gold is characteristic of the three zones.18

~~Mineralization~~Regional Geology

The ~~rock~~Clisbako ~~types~~property ~~that~~is ~~host~~located ~~gold~~in ~~are~~the ~~quartz~~northern ~~boulder~~part ~~and~~of ~~clay~~the ~~sediments~~Chilcotin ~~which~~Plateau. ~~comprise~~Specifically, ~~30%~~it is situated in the south central part of the Anahim ~~Limpoga~~Volcanic ~~deposit,~~Belt ~~brecciated~~along ~~fault~~an ~~zone~~east-west trend defined by three peralkaline ~~material~~shield volcano complexes (Rainbow Range, ~~limestone~~Ilgachuz ~~and~~Range, ~~reworked~~Itcha ~~tuff~~Range) that comprise the western part of the belt. The ~~formations~~oldest atrocks ~~Mesel~~exposed in the Chilcotin Plateau area are ~~hosted~~Pennsylvanian into Permian age Cache Creek Group sedimentary ~~silicified~~rocks. These are overlain by upper Triassic to lower Jurassic Takla Group andesite-basalt flows, ~~decalcified~~tuffs and ~~dolomitized~~breccias ~~carbonates~~and ~~developed~~associated atclastic ~~intersecting~~rocks. ~~east-west~~Predominant in the northern portion of the Chilcotin Plateau are andesite flows and ~~north~~breccias, and sedimentary rocks of the mid-~~west~~Jurassic ~~faults~~Hazelton Group. This sequence is unconformably overlain by the upper Cretaceous, Paleocene, Eocene and possibly Oligocene rocks of the Ootsa Lake Group. This latter Group is comprised of rhyolitic to dacitic tuffs, flows and breccias with minor amounts of andesite, basalt, conglomerate and tuffaceous shale.

~~The~~A ~~mineralized~~sequence ~~areas~~of Eocene to Miocene andesite, dacite and rhyolite volcanics of the ~~Mesel~~Endako Group and ~~Libongan~~Pliocene ~~zones~~to ~~are hosted~~Pleistocene inChilcotin ~~Miocene~~Group vesicular ~~volcaniclastics~~andesite and ~~sediments~~basalt ~~occurring~~flows, ~~either~~breccias asand cinder cones conformably ~~disseminations~~overlie orthe asOotsa ~~veins~~Lake Group. ~~The~~Pleistocene ~~extensively~~to ~~occurring~~recent ~~limestone~~till, ~~which~~gravel ~~may~~and sand infill ~~contain~~drainages ~~anomalous~~basins ~~gold~~and ~~mineralization,~~locally ~~presents~~form aneskers ~~excellent~~and ~~potential~~moraines ~~for~~up ~~the~~to 100 meters thick. ~~development~~Phelps ofDodge compiled a ~~large~~detailed ~~bulk~~regional ~~mineable~~geology ~~gold~~synopsis ~~deposit~~of the area as part of the work they conducted.

15The Clisbako Property is dominantly underlain by felsic volcanics and volcaniclastics of Eocene age that are referred to informally as the Clisbako Volcanics. The Clisbako Volcanics underlie a large, regionally circular area within which a wide variety of assemblages of the Clisbako Volcanics occur. This area appears to be a distinct basin of volcanic deposition and is referred to as the Clisbako Caldera Complex. The age of the complex is Early to Middle Eocene, based on Potassium-Argon age dates and palynology. Chemically similar volcanics, also of Eocene age, to the north in the Nechako River map area are referred to as the Ootsa Lake Group (for the felsic members) and the Endako Group (for the basic and intermediate members).

InVolcanic, ~~this~~subvolcanic ~~region~~and volcaniclastic rocks within the Clisbako Caldera Complex range in composition from basalt to rhyolite and include a wide variety of textural types and facies assemblages. Dacites, rhyodacites and rhyolites are the ~~following~~most ~~gold~~common ~~mineralization~~compositional ~~categories~~types, with andesites and basalts subordinate. Passive eruptive sequences of flows and domes are ~~recognized:~~the ~~gold~~most ~~copper~~abundant ~~porphyries;~~volcanic ~~gold~~assemblages with explosive pyroclastics more common towards its west central parts. Associated with both the passive and explosive ~~metal~~assemblages ~~breccias;~~is a highly variable assemblage of lahars, fanglomerates, coarse and ~~high~~fine-grained fluvial assemblages and locally, chemically deposited ~~low~~siliceous ~~sulphidation~~sinters ~~ephithermal~~that ~~systems~~have been interpreted as parts of a moat facies. Chemical analysis of these volcanics shows them to be potassium-rich and may be classified as belonging to the high-potash calcalkaline magma series.

~~Current~~Passive ~~Exploration~~eruptive ~~Activities~~sequences of flows and domes are the most abundant volcanic assemblages. Explosive pyroclastics occur throughout the Caldera Complex, but are most common towards its west-central parts. Intimate with both the passive and explosive volcanic assemblages is a highly variable assemblage of lahars and fanglomerates, coarse and fine-grained fluvial assemblages and locally, chemically deposited siliceous sinters that comprise volcaniclastic sediments that are here interpreted as parts of a "moat" facies. Rock units of the moat facies from recessive assemblages and are very poorly exposed. The distribution of these three facies assemblages within the caldera suggests the presence of a number of separate basins within the larger caldera structure.

WeIn ~~plan~~the tonorth ~~conduct~~and ~~due~~northeastern ~~diligence~~parts asof ~~soon~~the ascomplex, ~~practicable~~aphyric and ~~pursuant~~biotite tophyric ~~the~~rhyolite ~~Manado~~and ~~Agreement.~~rhyodacite ~~Our~~flows ~~due~~and ~~diligence~~flow ~~period~~domes ~~does~~are ~~not~~common. ~~expire~~In ~~until~~the ~~March~~north 31part of the area a lahar-moat facies containing boulder breccia, conglomerate, ~~2010.~~sandstones ~~Upon~~and ~~satisfactory~~lacustrine ~~due~~siltstone ~~diligence~~with opaline sinters is associated with mainly flow and ~~subject~~flowdome tounits ~~entering~~of ~~into~~andesite aand dacite ~~formal~~composition. ~~option~~The ~~agreement~~south eastern part of the caldera complex is underlain by platy fractured, wegenerally ~~plan~~aphyric to ~~commence~~weakly anaugite ~~initial~~phyric ~~exploration~~dacite ~~program~~and andesite, with local areas of basalt and minor suggestions of the presence of a lacustrine moat ~~approximately~~facies. ~~$250~~The southwestern part of the caldera is underlain mainly by dacitic,~~000~~ andesite inand ~~order~~subordinate tobiotite ~~confirm~~phyric ~~results~~flow ofunits, with local areas to the north ~~previous~~of ~~exploration~~biotitequartz phyric rhyolite flow and pyroclastics. Here, the ~~work~~lahar-lacustrine-siliceous onsinter moat assemblage occupies a large area in the central ~~mineralized~~part ~~zones~~of this southwestern sector.

~~GOLDEN~~The ~~SNOW~~central ~~PROJECT~~and northwestern parts of the Clisbako Caldera complex, ~~FISH~~underlying ~~PROJECT~~the ~~AND~~Clisbako, ~~CPG~~Baez ~~PROJECT~~and Bako claim blocks, are underlain by a bimodal suite of volcanics. Here, the dominant facies is an assemblage of aphyric to weakly to moderately augite and feldspar phyric dacite flows with local intercalations of polylithic volcaniclastics, volcanogenic breccia and fluvial clastics. The subordinate volcanic assemblage in this central and western sector comprises varieties of variably quartz, biotite, hornblende, plagioclase and sanidine phyric felsic volcanics that includes explosive ash flow tuffs, subvolcanic intrusions and breccias. Moat facies assemblages, including siliceous sinters have been noted in this area proximal to the felsic volcanic assemblages to the immediate northeast of this west-central facies, and the presence of boulders in float train suggests its presence within the area.

One May 29, 2009 we acquired an option for a 100% undivided interest (the “Nevada Option Agreement”) in certain mineral properties known as the Golden Snow Project in Eureka County, Nevada, the Fish Project in Esmeralda County, Nevada and the CPG Project in Mineral County, Nevada (collectively, the “Eureka Optioned Properties”). Our acquisition of the option was completed pursuant to the terms and conditions of an assignment agreement (the “Assignment Agreement”) dated May 29, 2009 with Portal Resources Ltd. (“PRL”) and Portal Resources US Inc.’s (the “Assignor”). Under the terms of the Assignment Agreement, the Assignor assigned all of its rights and interest in the an option agreement (the “Option Agreement”) dated August 28, 2008 among the Assignor, Claremont Nevada Mines LLC (“Claremont”), Scoonover Exploration LLC (“Scoonover”) and JR Exploration LLC (“JR”). In consideration of the assignment, we issued 150,000 shares of common stock to PRL.19

InProperty ~~order to maintain and exercise the Nevada Option Agreement, we will be required to:~~Geology

(a)	pay to Claremont:
	(i)	$10,000 on August 28, 2009 (which amount has been paid);
	(ii)	$15,000 on August 28, 2010;
	(iii)	$20,000 on August 28, 2011;
	(iv)	$25,000 on August 28, 2012; and
	(v)	$30,000 on August 28, 2013 and each subsequent year of the term of the Nevada Option Agreement (the term is for ten years and may be renewed for an additional ten years);
(b)	pay the annual claim maintenance fees for the Optioned Properties during the term of the Nevada Option Agreement. The Eureka Optioned Properties are in good standing until September 1, 2010; and
(c)	pay $1,000 to Claremont in conjunction with the delivery to Claremont of a copy of a mine plan of operations in respect of the Eureka Optioned Properties, or a final feasibility study in respect of the Optioned Properties.

The Clisbako Property area is one of very low relief that has been extensively glaciated. Glaciation advanced from the south-southwest, covering the area with a variable thickness of till. Outcrop is very limited within the project area and bedrock exposure is likely under 1%. The best exposures are found on rounded, hummocky ridge crests and are dominated by platy to massive dacites and rhyodacites. Outcrop is also exposed in incised outwash channels and in logging slashes. The more recessive and easily weathered rock assemblages such as the moat facies and clay-argillic alteration assemblages are poorly represented in natural exposures, although their distribution has been somewhat enhanced by logging slashes and road cuts.

~~Upon~~Contacts ~~our~~were ~~exercising~~not ofobserved ~~the~~between ~~Nevada~~major ~~Option~~units ~~Agreement,~~and ~~Claremont,~~very rarely ~~Scoonover~~seen ~~and~~between JRbeds. ~~will~~All ~~collectively~~age ~~reserve~~relationships abetween 3%stratigraphic ~~net~~elements ~~smelter~~are deductive. ~~royalty~~In onaddition, ~~the~~no zone of definitive faulting could be documented by ~~Eureka~~the ~~Optioned~~presence ~~Properties.~~of Wenatural ~~may~~and ~~purchase~~man-made upexposures, towith 2%the exception of trenching in the ~~royalty~~North ~~for~~Zone. ~~$500~~There,~~000~~ the zone is very strongly faulted, marked by clay ~~per~~gouge, 1%kaolinized ofzones ~~the~~and ~~royalty~~shattered rock and serves to suggest that faulting is an important, if mostly hidden, structural element.

OfDacitic ~~the~~flow ~~Golden~~units ~~Snow~~underlie ~~Project,~~much of the ~~Fish~~terrain ~~Project~~in the central and western parts of the ~~CPG~~Clisbako claim area. Rhyolite assemblage fragmental ~~Project~~units weunderlie ~~have~~the ~~decided~~low lying slopes to ~~focus~~the ~~our~~north ~~resources~~and oneast. ~~the~~These ~~exploration~~rocks ofare in turn overlain by Miocene basalts along the ~~Golden Snow~~Clisbako ~~Project~~River ~~due~~valley. toMost ~~its~~units strike ~~potential~~northerly and ~~current~~dip ~~state~~gently ofeast ~~development~~although dip reversals are common.

~~Golden~~Exploration ~~Snow~~work ~~Project~~to date has focused on an area roughly two kilometers by four kilometers in size. Rocks in this area consist of rhyolitic flows, tuffs and breccias interbedded with dacite and amydgaloidal andesite flows and associated pyroclastic rocks. These are tilted and block-faulted and fill a north-trending, shallow, graben and local depositional basins.

~~Description~~The stratigraphic and subvolcanic lithologies that underlie the Clisbako claims can be subdivided into three separate assemblages consisting of, in ~~Property~~probable chronological order, a dacitic facies, a rhyolite facies and a basalt-andesite assemblage. These east-dipping strata are disrupted by north-trending faults near Mount Dent and at Camp Lake on the Clisbako claims. Fluvial and lacustrine (moat facies) volcaniclastic sediments form portions of all three assemblages. The most extensive and probably oldest volcanic facies is represented by a suite of dacitic flows that are typically aphanitic to sparsely porphyritic with fine-grained augite phenocrysts. Locally interbedded with the volcanics of the Dacite Assemblage are variable thicknesses of clastic rocks that range from sharpstone conglomerate-fanglomerate to laminated fluvial fine-grained sandstone composed of detritus derived directly from the dacite flows.

~~The~~Rhyolites ~~Golden~~of ~~Snow~~the ~~Project~~felsic ~~consists~~facies assemblage lie in a north-south trending band through the central part of ~~114~~the ~~unpatented~~claim ~~mining~~block. This assemblage has ~~claims~~been ~~covering~~interpreted ~~approximately~~as 3one of the centers of felsic volcanism within the Clisbako Caldera Complex.5 ~~square~~Volcanic ~~miles~~and ~~eight~~subvolcanic ~~miles~~members ~~southwest~~of this facies include ash flow tuffs, flows, breccias, dykes and domes (plugs) and are composed of variations ~~Eureka~~of plagioclase, biotite, quartz, hornblende and sanidine phenocrysts. ~~Nevada~~It is distinguished from the dacite assemblage by the presence of common hydrous minerals biotite and hornblende. ~~The~~Associated ~~titles~~spatially toand compositionally with rhyolites of the ~~property~~felsic ~~will~~assemblage ~~expire~~are onvolcaniclastics ~~September~~of 1a moat facies, including ~~2010~~ash iftuffs, wesiltstone, dosandstone, ~~not renew~~conglomerate ~~our~~and ~~claim.~~siliceous sinters.

16Overlying the Clisbako Formation is a 30 to 50 meter thick basalt-andesite facies, the youngest unit. This is comprised of olivine basalt flows and locally abundant pyroclastic rocks and has been correlated with the Miocene Endako Group. It appears in the extreme northeast portion of the claim block.

~~Location,~~North ~~Access,~~to north-northeast striking faults are the most prominent structures on the property. They dip moderately to steeply east and ~~Physiography~~west (40° to 80°) and are responsible for extensive block faulting of the Clisbako Formation. Measured offsets range from a few meters to about 200 meters. Epithermal alteration is hosted by several of these faults.

The Golden Snow Project is contiguous to the southern end of Staccato Gold’s Lookout Mountain property, which has identified several mineralized areas. The property is located in Eureka County, Nevada and is situated near several existing gold mines. Eight miles north of the Golden Snow Project is the East Archimedes Gold Mine where Barrick Gold Corporation is currently mining a Carlin-type sediment hosted gold deposit. The Golden Snow Project is also contiguous to the southern end of Staccato Gold's South Eureka property, where Staccato has identified several mineralized areas.20

~~Property~~Faulting ~~History~~has caused considerable rotation of the volcanic sequence, resulting in highly variable dips. For example, on the west part of the grid, units of the Dacite member dip steeply to vertically while at the North Zone bedding is nearly flat lying.

~~Early~~A ~~exploration~~shallow ingraben ~~the~~is ~~Eureka~~defined ~~Mining~~by ~~District~~the ~~commenced~~north trending faults in the grid ~~1860’s~~area. ~~with~~Epithermal style alteration at the ~~development~~North, ofCentral, ~~small~~South, ~~mines~~Gore ~~throughout~~and West ~~the~~Lake ~~district~~zones occur along these structures. ~~Prior~~The ~~to the~~easternmost ~~1950’s~~fault, the ~~Eureka~~East Boundary ~~Mining~~Fault, ~~District~~hosts isepithermal ~~believed~~alteration tointermittently ~~have~~over ~~produced~~a anlength ~~estimated $122 million~~ of ~~gold,~~2 kilometers. ~~silver,~~The ~~copper~~South, ~~lead~~Trail and ~~zinc~~Central Zones occur along this structure.

~~Since~~Other ~~the~~structures ~~1960s~~include ~~disseminated~~northwest ~~gold~~and ~~deposits~~northeast ~~have been explored~~trending ~~for~~linears inwhich ~~the~~form ~~Eureka~~conspicuous ~~Mining~~drainage ~~District.~~patterns ~~Located~~in ~~north of~~ the ~~Golden~~northeast ~~Snow~~claim ~~Property are~~area. ~~historical~~They ~~producing~~have ~~mines~~no ~~including~~measurable ~~112,000~~offset ~~ounces of gold at the Windfall Mine~~ and ~~17,700~~their ~~ounces~~significance ofis ~~gold at the Lookout Mountain Mine~~uncertain.

InSeveral ~~1992,~~occurrences ~~Homestake~~of ~~Mining~~epithermal-style ~~conducted~~alteration anare ~~exploration~~known ~~program that resulted~~ in the ~~discovery~~east part of the ~~West Archimedes gold deposit~~property. ByThey ~~2002,~~are aall ~~total of~~similar ~~670,000 ounces of gold were produced from this deposit. In 2003, additional exploration work was conducted on the West Archimedes deposit which allowed for an increase~~ in ~~the mineralized zone~~style.

~~Geology~~The zones are characterized by wide haloes of pervasive argillic alteration occurring in the hanging wall of the graben faults. Extensive stockworks of quartz, pyrite (+ marcasite) veinlets occur throughout the argillic zones. Overall sulphide content averages about 0.5% .

~~Many~~Stockworks ofgrade ~~the~~into ~~sediment-hosted~~areas ~~gold~~of ~~deposits~~pervasive insilicification ~~Nevada appear to~~close ~~have developed at or near platform margin/basin margin sites where mineralization is found~~ to ~~be disseminated along~~ the ~~“low-stands” or karsted zone separated different stratigraphic units~~faults. ~~The~~These ~~Golden~~commonly ~~Snow~~contain ~~Project~~irregular ~~is positioned~~shaped ~~along~~bodies ~~this~~of ~~major platform margin that extends northwards to Cortez~~hydrothermal ~~Hills,~~breccia ~~Pipeline~~ and ~~beyond.~~banded ~~Future study of the location of these platform margins may result in the discovery of additional world-class gold deposits in Nevada~~veins.

~~Based~~Argillic onalteration aoccurs ~~cross~~up ~~section~~to ~~showing~~100 ~~the~~meters ~~location~~into ofthe ~~mineralization~~hanging atwall ~~Lookout~~of ~~Mountain,~~the ~~gold~~source ~~mineralization~~structures. ~~has~~In ~~come~~zones upwhere ~~along~~several ~~the~~parallel ~~host~~structures ~~margin where~~occur ~~Devonian~~close ~~age~~together, ~~rocks~~such ~~are~~as inat ~~contract~~the ~~with~~North Zone, the ~~Cambrian~~argillic ~~age~~zones ~~rocks~~coalesce. ~~The~~ ~~mineralization~~Silicification is ~~not~~more ~~only found within the feeder fault~~restricted, ~~but~~occurring itas is1 ~~also disseminated~~to ~~out~~25 ~~along~~meter ~~these~~wide ~~“low-stand~~ zones” ~~which are commonly the break~~along ~~between~~fault ~~different rock formations~~planes. ~~Another~~Narrow ~~example~~subparallel ofsilicified ~~the~~zones ~~same~~also ~~host~~occur ~~margin mineralization can be seen~~ in ~~a cross section of~~ the ~~mineralization~~footwall ~~at Lone Tree. This mineralization is similar to Lookout mountain section except that it lies on the western edge~~ of ~~a of a horst block. Mineralization has also been~~ ~~discovered along~~ the ~~Wayne Zone Fault, which forms the western edge of the horst, and spreads out along favorable~~ host ~~rocks~~structures. ~~Both styles of mineralization appear to potentially exist at the Golden Snow Project.~~

~~The~~Footwall ~~feeder~~alteration ~~fault~~is ~~for~~less ~~mineralization~~intense atthan ~~Lookout~~the ~~Mountain~~hanging ~~is the~~wall ~~Ratto~~alteration. ~~Ridge~~Argillic ~~Fault~~alteration ~~which~~is ~~has~~typical, ~~been~~however ~~interpreted~~at tosome ~~lie~~locations onweak propylitization ~~the~~consisting ~~west~~mostly ~~side~~ of ~~the major~~chlorite ~~horst~~and ~~block~~calcite veinlets is developed.

~~The~~Alteration ~~geology~~is ofwell ~~the~~developed ~~Golden~~in ~~Snow~~a ~~Project~~variety ~~has been interpreted to consist~~ of ~~Devonian~~host ~~age~~ rocks ~~striking north/south and trending southward under pediment cover~~. ItAt ~~has also been interpreted that~~ the ~~Cambrian section is~~ ~~possibly~~North, inWest ~~fault~~Lake ~~contact~~and ~~with~~Central ~~the~~zones ~~Devonian~~alteration ~~section.~~occurs ~~Both~~in ~~rock~~rhyolites ~~types~~and ~~are~~crystal ~~favorable~~tuffs. ~~host~~At ~~rocks~~the ~~for~~South ~~Carlin-style~~Zone, ~~mineralization~~the ~~throughout~~strongest ~~Nevada, especially~~alteration inis ~~the~~hosted ~~Eureka~~by ~~Area~~amygdaloidal andesite.

~~The following sets out the geological units exposed on the Golden Snow Project:~~Mineralization

~~Bay~~Mineralization ~~State~~at ~~Dolomite~~Clisbako –consists ~~The~~of ~~Bay~~epithermal ~~State~~silica stockworks ~~Dolomite~~and isbreccias adeveloped ~~massive~~on north-striking faults. Previous operators ~~dark~~have ~~grey~~outlined toeight ~~black~~zones toof ~~purplish~~hydrothermal ~~dolomite~~alteration ~~which~~on isthe ~~reported~~property. toThese zones beare ~~600-850~~associated ~~feet~~with rocks of the felsic assemblage, grading outward into ~~thick~~rocks inof the ~~Eureka~~dacite ~~Area~~assemblage. The ~~lower~~zones ~~portion~~are ofreferred ~~this~~to ~~unit~~as isthe ~~made~~Bari, upBrooks, Gore, Discovery, Obvious, West Lake, South and North zones. The alteration zones are typified by pronounced bleaching of ~~irregular~~the host felsic volcanics and are ~~bedded~~characterized ~~light~~by intense argillic alteration accompanied by multi-~~grey~~stage intense quartz veining, ~~dolomite~~weak ~~sandstone~~to strong silicification, and/or hydrothermal brecciation. Locally, ~~The~~early ~~upper~~argillic ~~portion~~alteration is inalmost ~~gradational contact~~completely ~~with~~overprinted ~~the~~and ~~overlying~~masked by ~~Devils~~later ~~Gate~~successive ~~Limestone~~stages of silicification.

17It has been suggested that the hydrothermal alteration and mineralization were developed along complex steeply dipping north to north-east trending fault structures which were formed during the development of the Clisbako Caldera. However, within the claim area the alteration zones appear to be controlled by a series of closely spaced subparallel small-scale faults, rather than a single major structure. The rocks between the individual small-scale faults are highly fractured, intensely hydrothermally altered and flooded with a pervasive stockwork of quartz veinlets.

~~Sentinel~~The ~~Mountain~~various ~~Dolomite~~mineralized –zones ~~The~~and ~~Sentinel~~prospects, ~~Mountain~~along with ~~Dolomite~~boulders ~~gradationally~~in ~~overlies~~glacial ~~Oxyoke~~dispersion ~~Canyon~~trains, are composed of quartz veined volcanic rocks. ItVein istextures ~~composed~~include ofmassive ~~alternating~~fine to medium grained quartz, banded ~~thick-bedded~~chalcedony, ~~coarse-grained,~~stockworks ~~light~~of comb-~~gray~~textured ~~dolomite~~quartz and ~~motted,~~drusy ~~finely~~vugs. ~~laminated,~~Calcite occurs in ~~chocolate~~very ~~brown~~small ~~dolomites~~amounts ~~with~~and aas ~~strong~~fracture ~~petroliferous~~coatings ~~odor~~and ~~when~~as ~~broken~~replacement of alkali feldspars in propylitically altered rock. ItQuartz veins are varied and have been described as; stockwork, druzy, massive, ~~ranges~~sugary, stringers, blue/black, chalcedonic, banded, comb quartz in ~~thickness~~open ~~from~~space fillings, ~~410~~crustiform, ~~feet~~or tobrecciated. ~~600~~Some ~~feet~~of the veins show quartz pseudomorphs after coarse bladed calcite, evidence of boiling.

Oxyoke Canyon – The Oxyoke is predominantly light gray to brown weathering, fine to medium-grained, quartz sandstone with a dolomatic matrix. It ranges in thickness of less than 20 feet up to 400 feet thick throughout the Eureka Area.21

~~Sadler Ranch –~~ The ~~Sadler~~argillic ~~Ranch~~zones ~~locally~~contain ~~has been divided up into~~ an ~~upper~~average ~~and~~of ~~lower~~less ~~dolomite~~than ~~and a middle crinoidal dolomite~~0.5% ~~The lower~~sulfide ~~dolomite is a medium to thick-bedded~~mineralization, ~~very~~but ~~finely~~in ~~grained,~~the ~~light~~silicified ~~gray~~zones ~~to yellowish-gray~~the ~~dolomite.~~sulfide ~~The~~content ~~middle~~may ~~crinoidal~~reach ~~dolomite is a light to~~5% ~~medium-gray,~~over ~~poorly~~narrow ~~bedded,~~widths. ~~laminated~~Low tosulphide ~~cross-laminated,~~concentrations ~~crinoidal~~are ~~packstone with~~typical ~~thin lenses~~ of ~~mudstone~~an ~~and packstone. The upper dolomite is a medium to thick~~acid-~~bedded, very fine-grained, light-gray laminated dolomite. The thickness of~~sulphate ~~this~~epithermal ~~unit varies from 90 feet to 450 feet~~system.

~~McColley~~Pyrite ~~Canyon/Bartine~~is ~~Member~~the –dominant ~~The~~sulphide ~~McColley~~and ~~Canyon~~typically is very fine ~~dominantly~~grained. aIn ~~medium~~this toform ~~thick~~it ~~bedded~~most ~~gray~~commonly ~~limestone~~occurs ~~with~~as ~~interbedded~~disseminations ~~light brown-gray~~in ~~fossiliferous~~dark ~~and~~gray ~~organic~~to blue-~~rich~~black ~~dolomite.~~chalcedonic ~~The~~quartz, ~~Bartine~~ is ~~composed~~disseminated in the matrices of siliceous ~~thin~~hydrothermal ~~to medium-bedded~~breccias, ~~medium-gray,~~or ~~fine~~fills ~~grained~~quartz ~~limestone~~lined ~~and~~cavities. ~~yellowish~~Coarse-grained pyrite is ~~argillaceous~~locally ~~limestone~~associated with ~~abundant~~marcasite ~~brachiopods~~and arsenopyrite. ~~Some~~Pyragerite ~~people~~has ~~combine these~~been ~~units~~identified ~~whereas~~south ~~others~~of ~~map~~Clisbako ~~them~~Lake, aswithin ~~separate~~the ~~units.~~North ~~These~~Zone, ~~rocks~~and ~~vary~~may ~~from~~be ~~330~~the ~~feet~~main tosilver ~~650~~bearing ~~feet~~mineral. ~~thick~~Barite has been observed at several localities.

~~Beacon~~Alteration ~~Peak~~fringing ~~Dolomite~~the –siliceous ~~This~~lodes ~~unit~~and breccias is dominantly ~~a massive~~argillic, ~~light~~generally widespread and locally intense. It consists of ~~gray~~illite toand ~~brown,~~montmorillonite ~~finely~~replacement ~~laminated~~of ~~dolomite~~plagioclase feldspar phenocrysts and the ground mass, with ~~local~~minor ~~thin~~sericitization ~~beds~~of hornblende and biotite phenocrysts. Mineralized zones generally comprise an inner zone of ~~finely~~silicious ~~laminated~~breccia ~~dolomite~~and quartz stockworks lying on or within controlling fault structures and ~~thin~~a ~~lenses~~wide distal zone of ~~well~~argillic ~~rounded,~~alteration ~~quartz-rich~~that ~~sandstones~~may ~~with~~extend up to 150 meters or more out from the silica core zone. Propylitic alteration is pervasive and comprises fine disseminated and fracture controlled chlorite which imparts a pale ~~dolomitic~~green ~~matrix~~color to the rocks. ~~The~~It ~~average~~is ~~thickness~~accompanied by variable amounts of calcite along fractures and as replacement of alkali feldspar. Potassic alteration as measured by alkali feldspar staining of rocks is ~~328~~variable. ~~feet~~In only one occurrence has potassium feldspar been observed within a vein. Gold grades are elevated close to the inner silicified zone while the argillic envelope is usually barren. The various zones explored are described in detail below.

~~Mineralization~~The North zone lies in a down-faulted block of feldspar (+/- quartz) phyric rhyolite flows and tuffs and dacite flows and pyroclastic breccias south of Camp Lake. It is exposed in a gully in which trench excavations have exposed argillic-altered rocks over 300 meters. It has a well defined east boundary marked by a fault. The west boundary is poorly constrained and is probably continuous with the West Lake Zone.

~~Two~~Alteration ~~major~~associated ~~target~~with ~~zones~~north-striking ~~exist~~faults onconsists ~~the Golden Snow Project. These~~of ~~primary~~extensive ~~targets~~silicification, ~~would~~quartz ~~be eastern~~ and ~~western~~pyrite ~~boundary~~stockworks, ofbanded ~~the~~epithermal ~~horst block. Both~~veins ~~the eastern~~ and ~~western~~siliceous ~~edge~~breccia. ~~extends~~These ~~for~~zones ~~over~~contain ~~15,000~~elevated ~~feet~~precious asmetal ~~shown~~and pathfinder byelement ~~gravity geophysics~~values. ~~Only~~Argillic ~~drill~~alteration ~~hole~~is ~~ELP-8~~most ~~drilled~~pronounced ~~close~~distal ~~enough to the eastern edge of~~from the ~~gravity~~siliceous ~~high to test for possible mineralization~~zones. ~~The~~Barren ~~remaining~~quartz ~~holes~~stockworks ~~were either~~are ~~far~~common toin ~~east and out into~~ the ~~abyss,~~argillic ~~or too far west of the eastern horst fault and on top of the gravity high~~zone.

AThe ~~magnetic~~Central ~~survey~~zone ~~run~~is ~~over~~a ~~the~~stockwork ~~eastern~~lying ~~portion~~along of the ~~claim~~same fault ~~block~~structure ~~shows~~that ahosts ~~magnetic~~the ~~high~~South ~~and~~zone. ~~has~~Quartz-clay ~~been~~alteration ~~interpreted~~is similar to bethat at anthe ~~intrusive~~North aszone, with extensive quartz stockworks and pervasive argillic ~~opposed~~alteration tooccurring ~~volcanics~~in a flow-banded dacite. ~~This~~The ~~area~~zone is ~~also~~narrow aand ~~potential~~probably connects ~~favorable~~with ~~target~~the ~~area~~North ~~for gold~~Zone ~~and~~to ~~base-metal~~the ~~mineralization~~north.

~~Numerous~~Four ~~anomalous~~trenches ~~zones~~have ~~with~~been ~~large,~~excavated ~~coherent~~on ~~clusters~~the ~~of anomalous~~Discovery ~~gold,~~zone ~~arsenic,~~across two ~~antimony~~narrow, ~~mercury,~~hydrothermal ~~lead~~breccias. ~~and~~The ~~barite~~matrix ~~have~~consists ~~been~~of ~~identified on~~a ~~the~~bluish-grey ~~Golden Snow Project~~clay gouge. The ~~majority~~wallrock, ofwhich ~~the~~consists ~~anomalies~~of ~~appear~~flow tobanded bedacite, ~~located~~is moderately insilicified ~~the~~up ~~northeastern~~to ~~and~~four ~~eastern~~meters ~~and~~away ~~eastern~~from ~~portion of~~ the ~~claim block because of surface or near surface bedrock~~breccia. ~~These~~A ~~values~~second ~~are~~less ~~probably related to~~altered ~~mineralization~~breccia, ~~associated~~consists ~~with~~of ~~the buried intrusive. Anomalous arsenic~~black, ~~antimony and~~sulphidic ~~mercury~~quartz ~~are~~fragments ~~present~~ in ~~the~~a ~~area~~moderate ofto ~~the~~strongly argillized ~~Ratto~~dacite ~~Fault~~host. ~~Since~~This ~~these~~interval ~~minerals~~was ~~are usually~~only ~~formed~~weakly ~~distal~~mineralized, tohowever ~~gold in Carlin~~a sulphide-~~style~~rich ~~systems~~interval ~~the~~was ~~geochemistry~~enriched ~~may indicate~~in ~~gold mineralization at depth~~arsenic.

~~Current~~The ~~Exploration~~South ~~Activities~~Zone is typified by a large area of silicification and hydrothermal breccia. The main outcrop area, in a small creek at the south end of the property, consists of a zone of hydrothermal breccia, veins and stockworks over an outcrop area of 150 meters and has been traced by drilling for some 300 meters.

~~Subject~~The tozone ~~obtaining~~shows ~~sufficient~~evidence ~~financing,~~of inmultiple ~~the~~stages ~~summer~~ of silicification ~~2010,~~indicated weby ~~plan~~cross tocutting ~~retain~~relationships aand ~~consulting~~clast ~~geologist~~types towithin ~~conduct~~hydrothermal breccia aveins. ~~review~~The ofhanging ~~the~~wall ~~Golden Snow~~is ~~Project~~strongly bleached and variably silicified in which ~~order~~a tostrongly ~~recommend~~developed anstockwork ~~exploration~~of ~~program.~~pyritic ~~Once~~veinlets ~~our~~are ~~consulting~~cut by irregular ~~geologist~~veins ~~has~~of ~~provided~~dark usgrey, ~~with~~banded ~~their~~chalcedony. ~~findings,~~One wesuch ~~will~~vein ~~determine~~was ~~whether~~traced tocontinuously for ~~proceed~~22 ~~with~~meters. anIt ~~exploration~~was ~~program~~from on these ~~properties~~veins that the best assays were obtained by Minnova.

~~Fish~~Despite ~~Project~~the intense alteration, silicification and breccia development, precious metal and pathfinder element concentrations are low. The highest gold concentrations occur in sulphide-rich hydrothermal breccias and zones of banded grey chalcedony. Minnova drilled ten holes in the South zone area in 1991 and 1992. Most holes returned low grade to barren zones of siliceous breccia.

The Fish Project is situated within the Walker Lane Mineral Belt, Lone Mountain District, Esmeralda County, Nevada and is located approximately 12 miles west of the historic mining town of Tonopah, Nevada. The Fish Project consists of 58 unpatented lode mining claims and is 492 hectares or 1.9 square miles.22

18Two zones were identified by IP surveys southwest of Camp Lake, the West Lake and West Pit Zones. The West Pit is a 200-metre long chargeability high centered on line 416N at 285+00E. It has been traced intermittently as far south as line 400N. Trenching in 1992 failed to reach bedrock. Subcrop and overburden contains abundant bright yellow clay along with fragments of silicified rock and vein quartz. The West Lake zone, immediately west of the North zone, consists of a coincident chargeability and resistivity high with a strike length of about 300 meters. Trenching on the West Lake zone exposed a quartz stockwork zone containing three-meter wide banded and bladed, pyritic, quartz-chalcedony veins.

~~The~~Minnova ~~Fish~~drilled ~~Project~~six isholes ain ~~skarn~~the West Lake-~~manto~~West ~~gold,~~Pit ~~silver~~area in 1992 to follow-up trenching and ~~base~~induced ~~metal prospect~~polarization surveys.

~~Previous~~The ~~rock~~Obvious ~~chip~~Zone ~~sampling~~is onlocated along the ~~Fish~~4200 ~~Project~~Forest ~~returned~~Service ~~the~~Road ~~following~~approximately ~~results:~~2 ~~gold~~kilometers ~~values~~north ~~ranging~~of ~~from~~the ~~less~~North ~~than~~Zone ~~0.002~~at ~~ounces~~Camp ~~per ton~~Lake, toand was ~~0.307~~discovered ~~ounces~~by ~~per~~prospecting ~~ton;~~the ~~silver~~excavated ~~values~~ditches ~~ranging~~adjacent ~~from~~to ~~less~~the ~~than 0~~road.01 ~~ounces per ton,~~Float toboulders 32of ~~ounces~~quartz ~~per~~veins ~~ton;~~and ~~zinc~~silicified ~~values~~feldspar ~~ranging~~phyric ~~from~~rhyolite ~~0.01%~~tuffs toare present ~~32.8%;~~within till and ~~lead~~subcrop. ~~values ranging~~The ~~from~~Obvious ~~less~~Zone ~~than~~was ~~0.01%~~drill totested 16by hole 236-34.4%

~~Atlas~~The ~~minerals~~West ~~previously~~Lake ~~conducted~~Boulder ~~drilling~~Train onis ~~quartz~~located ~~veining~~along a reclaimed inlogging access road along the ~~northern~~west ~~portion~~shore of ~~the~~Camp ~~property~~Lake. ~~However~~The boulder dispersion train comprises angular float blocks up to 50 cm in size in till along a tightly confined, ~~their~~north ~~drilling~~trending ~~program~~dispersion ~~did~~train ~~not~~over 600 meters in length. Float ~~detect~~blocks ~~any~~include ~~significant~~massive ~~mineralization~~fine grained quartz, silica breccias and quartz stockworks. This zone was drill tested by 3 drill holes, 236-31, 236-32, and 236-33.

~~Previous~~The ~~drilling~~Gore byZone ~~Atlas~~is ~~Minerals~~located ~~has~~approximately ~~focused~~1.5 onkilometers southwest of the ~~quartz veining~~North inZone on the ~~northern~~eastern ~~portion~~slope of the ~~property~~ridge rising to the west of Camp Lake. NoThe ~~significant~~Zone ~~mineralization~~comprises north trending massive silica breccias and quartz vein ~~was~~stockworks ~~encountered~~within dacite flows and rhyolite tuffs and is exposed over an area of 500 meters by 50 meters.

~~Three~~The ~~targets~~Bari ~~have~~Zone ~~been~~comprises ~~identified~~two onseparate ~~the~~silica ~~Fish~~breccia ~~Project~~bodies and several float and subcrop occurrences centered about 2.5 ~~The~~kilometers due west of ~~first~~the ~~target~~North ~~contains~~Zone. Local lithologies include propylitically altered dacite flows and a ~~small~~50 ~~iron~~meter ~~skarn~~thick ~~gossan~~pyroclastic ~~within~~breccia ~~white~~unit ~~crystalline~~with variably silicified angular ~~limestone~~clasts. ~~adjacent~~Two toseparate zones, the Bari 1 and Bari 2 zones are partially exposed through a ~~felsic~~thin ~~dyke~~cover ~~trending~~of ~~130º~~till and ~~dipping~~comprise ~~vertical~~north-trending zones of hydrothermal breccia up to five meters thick. ~~The~~Accessory minerals include arsenopyrite and ~~mineralization~~barite ~~zone~~and ~~may~~possible ~~have~~sulphosalts ~~originated~~indicated ~~from~~by aan ~~hidden~~unusual ~~porphyry~~grass ~~copper~~green ~~intrusion.~~colored ~~There~~weathering. isBoth ~~the~~zones ~~potential~~are ~~for~~within ~~hidden~~a ~~skarns~~large ~~associated~~arsenic ~~with~~soil ~~lobes~~anomaly ofwhich extends for ~~granodiorite~~2 kilometers from L 406N to L 426N.

~~The~~Detailed ~~second~~sampling ~~target~~in ~~consists~~1996 offailed ~~numerous shafts trending 300º. The minor dykes and vuggy quartz veining occurs within bluish limestones trending 305/85W~~ to ~~345/80W.~~enhance ~~Small skarn pods occur within~~ the ~~limestone and adjacent to dykes~~prospect.

~~The~~Prospecting ~~third~~and ~~target~~rock ~~consists~~geochemical ofsampling ~~white~~on ~~fine~~the ~~grained~~Bari ~~silicified~~Zone in ~~limestone~~2002 ~~with~~has ~~dark~~confirmed ~~gray-blue~~the ~~bands~~existence ~~(siltstones?)~~of ~~containing~~epithermal ~~minor~~style ~~pyrite~~gold and silver ~~galena.~~mineralization ~~Previous~~within ~~exploration~~an onargillically ~~the~~altered ~~third~~and ~~target~~quartz ~~has~~veined ~~returned~~felsic ~~values up to 0.293~~volcanic ~~opt gold, 4~~assemblage.58 ~~opt~~More ~~silver~~than ~~and 6.6~~80% ~~zinc. Directly to the east~~ of the ~~pit containing~~52 ~~the~~rock ~~auriferous~~samples ~~shear~~returned isanomalous avalues ~~west dipping thrust. The area underlying~~for ~~this~~gold, ~~thrust~~silver, ~~has~~arsenic, ~~not~~tin, ~~been~~mercury, ~~tested~~molybdenum ~~and~~or ~~may represent a good target since the thrust and associated shear structures could be a good conduit for mineralizing fluids~~barium.

~~The~~Current ~~Fish~~Exploration ~~Project currently represents an early stage exploration property. Due to the potential of the Golden Snow Project, we have deprioritized the implementation of an exploration program on this property.~~Activities

~~CPG~~We ~~Project~~will not be conducting any exploration work on the Clisbako Property during the term of the Clisbako Option Agreement. Under the terms of the Clisbako Option Agreement, Manado Corp. is required to incur aggregate exploration expenditures of $650,000 CDN on the Clisbako Property during the term of the option.

~~The~~MANADO ~~CPG~~GOLD Project consists of 44 unpatented mining claims covering approximately 1.3 square miles within Mineral County, Nevada. The CPG Project is located in Eureka County, Nevada and is situated near several existing gold mines. Approximately 10 miles north of the CPG Project Kennecott's now closed Denton-Rawhide Mine produced 1.4 million ounces of gold and 10 million ounces of silver between 1990 and 2004.PROPERTY

~~The~~On ~~area~~January of19, ~~interest~~2010, iswe ~~contained~~entered ~~along~~into an agreement with Agus Abidin dated for reference November 2, 2009 (the ~~southern~~“Manado ~~and~~Agreement”) to acquire ~~western~~an ~~boundary~~option ofto earn up to an 85% interest in the ~~Copper~~Manado ~~Mountain~~Gold Property. AUnder ~~Jurassic~~the terms ~~age~~of ~~quartz~~the ~~monazite~~Manado ~~has intruded~~Agreement, ~~limestones~~we ~~and~~paid ~~caused~~$35,000 ~~skarnification~~to ~~and~~the ~~deposition~~owners of ~~principally~~the Manado Gold ~~copper~~Property ~~mineralization.~~(the ~~The~~“Owners”) ~~skarn~~for ~~mineralization~~the isexclusive ~~pod-like~~right ~~and~~to ~~occurs~~formalize ~~adjacent~~an agreement (the “Acquisition Agreement”) to ~~hornblende~~earn ~~quartz~~up ~~feldspar~~to ~~porphyry~~an ~~dikes~~85% ~~trending~~undivided ~~approximately~~interest in the Manado ~~east-west~~Gold Property.

The CPG Project hosts an early stage porphyry and skarn type copper-gold-molybdenum prospect. Previous rock sampling on the property returned the following results: gold values ranging from less than 0.001 ounces per ton, to 0.036 ounces per ton; silver values ranging from less than 0.0031 ounces per ton, to 0.75 ounces per ton; copper values ranging from 0.005% to 13.65%; and molybdenum values ranging from less than 0.005% to 0.012% .23

~~The~~Under ~~CPG~~the ~~Project~~terms isof anthe ~~early~~proposed ~~stage~~Acquisition ~~exploration~~Agreement, ~~property.~~we ~~Due~~will be able to ~~the~~ ~~potential~~earn ofan interest in the ~~Golden~~Manado ~~Snow~~Gold ~~Project,~~Property weby ~~have~~making ~~deprioritized~~cash ~~the~~payments, ~~implementation~~issuing ofshares anand ~~exploration~~completing ~~program~~work onprograms ~~this~~at ~~property~~various stages. We will be able to acquire:

~~JUNE~~(a) ~~CLAIMS~~an initial 10% interest in the Manado Gold Property by paying $90,000 (of which $15,000 has been paid) and issuing 150,000 shares of our common stock to the Owners on execution of the Acquisition Agreement, and completing a mineral exploration program at a cost of not less than $250,000 prior to the first anniversary of the Acquisition Agreement; (b) an additional 15% interest in the Manado Gold Property by paying $100,000 and issuing 300,000 shares of our common stock to the Owners on the first anniversary of the Acquisition Agreement, and completing a mineral exploration program at a cost of not less than $500,000 prior to the second anniversary of the Acquisition Agreement; (c) an additional 26% interest in the Manado Gold Property by paying $200,000 and issuing 500,000 shares of our common stock to the Owner on the second anniversary of the Acquisition Agreement, and completing a mineral exploration program at a cost of not less than $1,000,000 prior to the third anniversary of the Acquisition Agreement; and (d) an additional 34% interest in the Manado Gold Property by completing a scoping study.

OnIf ~~February~~we 5,acquire ~~2010~~an 85% interest in the Manado Gold Property under the proposed Acquisition Agreement, we ~~entered~~will ~~into~~be anresponsible ~~option~~for ~~agreement~~the tocosts of any ~~acquire~~feasibility ~~the~~studies ~~June~~and, ~~Mineral~~if ~~Claims~~warranted, (placing the ~~"June~~Manado ~~Claims")~~Gold inProperty ~~the~~into commercial ~~Alberni~~production. ~~Mining~~In addition, we will have an option to acquire the ~~Division~~remaining of15% interest in the ~~Province~~Manado ofGold ~~British~~Property ~~Columbia~~by paying the Owners $5,000,000.

19Additional terms of the proposed Acquisition Agreement include, among other things, that we will be responsible for all costs in maintaining the Manado Gold Property in good standing, and we will have the right to terminate the Acquisition Agreement on 60 days notice. If the proposed Acquisition Agreement is terminated, we will be entitled to retain the interest in the property we earned as of the termination date.

~~Under~~On ~~the~~April ~~terms~~30, of2010, ~~the~~we notified Mr. Abidin that we had elected to exercise our option ~~agreement~~to (enter into the ~~“June~~Acquisition ~~Option~~ Agreement~~”),~~ weto ~~can~~ acquire aup ~~100~~to an 85% undivided interest in the ~~property,~~Manado ~~subject~~ Gold Property pursuant to athe ~~royalty~~terms of the 2%Manado Agreement. The entry into the Acquisition Agreement has been delayed as the Owners of ~~net~~the ~~smelter~~Manado ~~returns~~Gold Property are currently completing changes under Indonesian law in order to update the companies holding the properties to compliance under the new Indonesian corporate laws, to convert the tenure under which the properties are held under the new Indonesian mining laws and to permit investment by ~~paying~~foreign entities in the companies holding the mineral properties. We have advanced $4315,000 ~~and~~of ~~issuing~~the ~~300~~$90,000 due on execution the Acquisition ~~common~~Agreement ~~shares~~to assist the Owner in ~~stages~~making ~~over~~the anecessary ~~three~~changes. ~~year~~There ~~period~~is asno assurance ~~follows:~~that the Owners will be able to complete these changes required under in order for us to enter into the Acquisition Agreement or earn any interest in the Manado Gold Property.

~~(a)~~Manado ~~paying~~Assignment ~~the Optionor US $3,000 on execution of the June Option~~ Agreement, which payment has been made; (b) paying the Optionor US $10,000 on or before May 6, 2010; (c) paying the Optionor US $10,000 and issuing 100,000 shares of the Optionee’s common stock on or before February 5, 2011; (d) paying the Optionor US $10,000 and issuing 100,000 shares of the Optionee’s common stock on or before the February 5, 2012; and (e) paying the Optionor US $10,000 and issuing 100,000 shares of the Optionee’s common stock on or before February 5, 2013.

~~The~~On ~~agreement~~August is24, an2010, ~~option~~we ~~only~~entered ~~and~~into wean ~~may~~agreement ~~determine~~(the ~~at any~~“Manado ~~time~~Assignment ~~not~~Agreement”) to ~~proceed~~assign ~~in which case we would not be liable~~ to ~~issue~~Manado ~~any~~Corp. ~~shares~~a ~~or pay~~75% ~~any~~undivided ~~funds~~interest ~~beyond~~in the ~~amounts due at the time we provide notice that we are~~ ~~not~~Manado ~~proceeding~~Agreement. ~~There~~In isconsideration noof ~~assurance~~the ~~that~~assignment, weManado ~~will exercise this option~~Corp. agreed to:

The June Claims cover an area of approximately 250 acres located 5.5 miles southeast of Gold River, British Columbia. The elevation of the claim varies from seal level on the west side of Matchlee Bay, rising to about 2,000 feet to the west. Elevation of the main showing is about 500 feet. The topography in general is very rough.

(a)	reimburse the $80,000 in expenditures we incurred in connection with the Manado Agreement payable as follows:

	(i)	$40,000 on execution of this Agreement (received);
	(ii)	$40,000 on or before September 15, 2010 (of which $28,427 received as at November 30, 2010).

(b)	incur expenditures to complete exploration on or place into production the Manado Gold Property as follows:

	(i)	$250,000 within one year of execution of the Acquisition Agreement;

~~Location, Access, and Physiography~~24

The property is about 5.5 miles by deep water southeast of the dock and pulp mill at Gold River, B.C. on the west coast of Vancouver Island. Gold River is a town with full facilities. It is connected by 57 miles of paved road to B.C. Highway 19 at Campbell River. It is an additional 8 miles of paved road to the dock and pulp mill at Muchalat Inlet. A boat is necessary for travel from Gold River to the property, unless flying in with amphibious aircraft.

	(ii)	$500,000 prior to the second anniversary of the execution of the Acquisition Agreement; and
	(iii)	$1,000,000 prior to the third anniversary of the execution of the Acquisition Agreement.

(c)	following completion of the expenditures set out in (b) above, complete a scoping study on the Manado Gold Property.

(d)	issue 950,000 common shares to Clisbako Inc. as follows:

	(i)	150,000 shares on execution of the Acquisition Agreement;
	(ii)	300,000 shares prior to the first anniversary of the execution of the Acquisition Agreement; and
	(iii)	500,000 shares prior to the second anniversary of the execution of the Acquisition Agreement.

(e)	paying to the Concession Owners as follows:

	(i)	$75,000 on execution of the Acquisition Agreement;
	(ii)	$100,000 on the first anniversary of the execution of the Acquisition Agreement; and
	(iii)	$200,000 on the second anniversary of the execution of the Acquisition Agreement.

~~Timber~~Upon incompleting the ~~area~~payments ofexpenditures ~~the~~and ~~main~~share ~~showing~~issuances as ~~was~~set ~~logged~~out ~~off~~above, ~~several years~~Manado ~~ago~~Corp. ~~and~~will ~~the~~earn ~~steep~~up ~~access road~~ to ~~the~~75% ~~showings~~of isour ~~growing~~interest in ~~with brush and trees. An additional logging road has bisected~~ the ~~property since the former~~Manado ~~exploration~~Gold ~~work~~Property ~~was~~as ~~conducted~~follows: ~~and it opens up a relatively large area for exploration. It would accommodate trail bikes, four-wheel drive vehicles, or dune buggies.~~

~~Water~~(a) isan ~~available~~initial ~~from~~7.5% ~~creeks~~undivided interest upon completion of the items set out in (a), (b)(i), (d)(i) and (e)(i) above; (b) an additional 11.25% undivided interest upon completion of the items set out in paragraphs (b)(ii), (d)(ii) and (e)(ii) above; (c) an additional 19.5% undivided interest upon completion of the items set out in paragraphs (b)(iii), (d)(iii) and (e)(iii) above; and (d) an additional 25.5% undivided interest on completing the ~~property~~scoping study described in paragraph (c) above.

If Manado Corp. exercises its rights under the Agreement, we will be carried through the first $1,750,000 of expenditures and through completion of a scoping study. Thereafter, we will be responsible for our proportionate share of any additional expenditures necessary to place the Manado Gold Property ~~History~~into production. We will remain responsible to issue up to 950,000 of our common shares to the Concession Holders under the Acquisition Agreement.

~~The~~In ~~history of~~ the ~~property~~event ~~goes~~that ~~back~~we atelect ~~least~~ to ~~1939~~exercise ~~when~~our ~~the property~~option ~~was~~to ~~staked by~~ purchase the ~~June~~Concession ~~Group.~~Owners’ It15% ~~consisted~~carried ofinterest 8and ~~claims~~subject ~~and~~to 3Manado ~~fractions~~Corp. It ~~was~~being ~~transferred~~in good ~~the~~standing ~~same~~under ~~year~~this byManado ~~bill~~Assignment ofAgreement, ~~sale~~Manado toCorp. ~~William~~will ~~Sloan~~have ~~of Zeballos,~~the ~~who~~right ~~was~~to ~~the~~participate ~~trustee~~as ~~for~~to ~~the~~75% ~~Burman~~in ~~River~~the ~~Gold~~exercise ~~Mines~~of ~~Syndicate,~~that ~~Vancouver~~option.

InThe ~~1946,~~Agreement ais ~~geologist~~an ~~with~~option ~~the~~only BCand ~~Department~~Manado ofCorp. ~~Mines~~may ~~took 31~~determine ~~samples~~at ~~from~~any ~~the~~time ~~property~~not ~~for~~to ~~assay.~~proceed ~~The samples assayed~~ in awhich ~~range~~case ~~from~~it ~~trace to~~would 16not ~~oz.~~be ~~per~~liable ~~ton~~to ofpay ~~gold~~any funds, ~~and~~incur 22any ~~oz.~~exploration ~~per~~expenditures ~~ton~~or ~~silver,~~issue ~~with~~any ~~the~~shares ~~average~~beyond of the 31amounts ~~samples~~due ~~being~~at ~~over~~the ~~one~~time ~~ounce~~it ~~gold~~provides ~~per~~notice ~~ton~~that ~~and~~it ~~five~~is ~~ounces~~not ~~silver~~proceeding. ~~per~~There ~~ton.~~is Ano ~~number~~assurance ofthat ~~the~~Manado ~~assays~~Corp. ~~also~~will ~~contained~~exercise ~~copper,~~the ~~lead and zinc~~Option.

AAssuming ~~small~~that ~~sampling~~Manado ~~program~~Corp. byexercises anall ~~independent~~its ~~geologist~~options inunder ~~1977~~the ~~confirmed~~Agreement, ~~the~~Manado ~~existence~~Corp. ofwill have acquired a 63.75% undivided interest in the Manado ~~same~~Gold ~~suite~~Property ofand ~~mineralization~~we onwill retain an 11.25% interest in the ~~property~~Manado Gold Property. In the event the option to acquire the Concession Holders’ carried ~~1977~~interest is exercised, ~~two~~Manado ~~samples~~Corp. ~~taken~~will ~~across~~hold a ~~vein~~75% ~~exposed~~undivided ininterest ~~workings~~and onwe will ~~the~~hold ~~property returned~~a ~~the~~25% ~~following~~undivided ~~values:~~interest.

2025

Sample No.	Au oz/t	Ag oz/t	Cu %	Pb %	Zn %
16211	0.672	6.73	4.68	0.70	0.33
16212	0.226	8.62	5.91	0.65	0.19

Description of the Property

~~Geology~~The Manado Gold Property is comprised of four contiguous mining tenements called “Bagkit Limpoga Jaya”, “Hakian Wellem Rumansi”, “Ratak Mining”, and “Manembo Mineral” which cover an area of approximately 300 hectares.

~~The geology of the property consists of altered andesitic volcanics~~Location, inAccess ~~close proximity to the limestone, granodiorite, basalt,~~ and ~~feldspar~~ ~~porphyry. The contact with the granodiorite is about 700 feet south of the main showing and, where observed, running in a west-northwest direction.~~Physiography

OnThe ~~the~~Manado ~~property~~Gold Property is alocated ~~well-defined~~50 ~~shear-zone,~~miles ~~from~~south aof ~~few~~Manado ~~inches~~in tonorthern ~~6 feet wide~~Sulawesi, ~~that~~Indonesia. ~~has~~It ~~been exposed in open-cuts and in the adit for a distance of 120 feet and~~ is ~~reported~~accessible toby ~~have~~3 ~~been~~miles ~~found in a small pit about 220 feet farther east~~ of ~~the~~partly ~~adit and may be the eastward continuation of the main~~paved ~~vein~~all-~~shear.~~weather Atroad ~~the~~from ~~western~~Ratatotok, ~~end~~a ofvillage ~~the~~along ~~exposure~~ the ~~shear~~coastal isnational ~~strongly silicified~~highway, ~~over~~which ~~width’s~~in ~~ranging~~turn ~~from~~is 1accessible ~~foot~~by to60 6miles ~~feet and consists~~ of ~~finely-grained dark-grey~~paved ~~quartz~~road ~~mineralized~~from ~~with pyrrhotite, chalcopyrite, and small amounts of galena and magnetite~~Manado. AThe ~~few~~city ~~narrow stringers~~ of ~~white, later quartz cut the~~ ~~silicified~~Manado ~~shear. In the eastern end, mainly in the adit, although the silicified width~~ is ~~less,~~a ~~being~~major ~~from~~commercial 3center toserved 14by ~~inches,~~local ~~the~~and ~~silicification~~international isflights ~~more~~as ~~intense~~well ~~and~~as ~~results in a well~~ocean-~~defined~~going ~~lens of quartz that contains a few whisps of unreplaced andesite and, around and extending from them, streaks of massive sulphide~~vessels.

~~Mineralization~~Figure 6 Location of Manado Gold Property

The metallic minerals seen in polished sections under the microscopic area in order of abundance: Chalcopyrite, magnetite, and chalcopyrite with smaller amounts of arsenopyrite, pyrrhotite, pyrite, sphalerite, galena, and, closely associated with the galena, a sliver-bismuth, sulphide, tentatively identified by polarization, etch reactions, and compositions as matildite. Magnetite is abundant in some sections, and a few grains of sphalerite were seen in the chalcopyrite. The magnetite, arsenopyrite, pyrrhotite, and pyrite are all strongly fractured and replaced by chalcopyrite and galena. The matildite occurs in small blades in the galena. No free gold was seen in any sections studied but those sections containing abundant magnetite, arsenopyrite, and chalcopyrite assayed highest in gold.26

AProperty quartz vein, strike north 48 degrees west and dip vertical, and referred to as No. 4 vein, is found about 500 feet east of the adit. This vein consists of 5 to 6 inches of quartz and follows a strong shear, 6 inches wide, in andesite. It has intermittently stripped for 50 feet.History

AIn ~~strong shear~~1981, ~~strike~~PT ~~north~~Newmont ~~85°~~Minahasa ~~west~~Raya, ~~and~~an ~~dip~~Indonesian ~~75°~~subsidiary ~~south, has~~of ~~been~~Newmont ~~opened~~Gold byCompany anof ~~open-cut at the beach~~Denver, oncommenced the ~~north~~exploration ~~side~~ of ~~the~~their ~~mouth~~contract of ~~June~~ ~~Creek.~~work ~~This~~(“COW”) ~~cut,~~concession. 12The ~~feet~~exploration ~~wide~~program atled to the ~~mouth,~~discovery ~~has~~of ~~been~~several small ~~driven~~gold ~~westerly~~deposits. onThe ~~the shear,~~largest ~~horizontally~~of ~~for~~the 8deposits ~~feet~~known ~~and~~as the ~~upward~~Mesel ontogether with aother ~~slope~~smaller ofsatellite ~~55°~~deposits ~~for~~was 12placed ~~feet.~~into ~~The shear~~production ~~has~~in an1996. ~~over-all~~Due ~~width~~to deteriorating ofrelations 4with ~~feet,~~the ~~but~~local ~~the~~people ~~strongest~~and ~~shearing~~government, isNewmont ~~confined~~was toforced ato ~~4-inch~~cease ~~width~~mining ~~close~~operations toin ~~the~~2002 ~~hanging~~but ~~wall.~~continued ~~Short~~milling ~~gashes~~ore ofstockpile ~~solid pyrite~~ up to ½ ~~inch~~2004. ~~thick~~PT ~~and~~Newmont ofproduced ~~sphalerite~~a uptotal to2 1million ~~foot~~grams ~~long~~of bygold 3mainly ~~inches~~from ~~thick~~the ~~are found in~~Mesel ~~the~~open ~~shear~~pit. ~~Quartz is restricted to a few hair-like stringers.~~

~~The~~Newmont ~~road~~also ~~building~~identified ~~for~~three ~~the~~zones ~~logging~~that ~~operation~~my ~~opened~~contain ~~up and~~gold ~~exposed~~mineralization, awhich ~~strip~~are ~~diagonally~~called ~~across~~Limpoga, ~~much~~Pasolo ofand ~~the~~Nona ~~claim group~~Hoa. ~~The~~These ~~rock~~zones ~~exposed is~~were ~~dense,~~defined ~~aphanitic~~by tothe ~~fine~~drilling ~~grained~~of ~~dark~~some ~~green-black~~273 ~~and~~boreholes. ~~tentatively~~Although ~~classified~~detailed asengineering and ~~basalt.~~economic Itstudies iswere ~~cut~~completed, byno amining ~~lighter~~in ~~grey-green~~any ~~aphanitic~~one ~~rock~~of ~~with~~the ~~poorly~~three ~~developed~~zones was ~~light~~actually ~~grey~~carried ~~feldspar phenocrysts~~out. ItAfter isthe ~~referred~~departure toof asNewmont, ~~felsite~~all ~~porphyry.~~three ~~The~~zones were ~~felsite~~subsequently ~~porphyry~~included ~~gives~~in ~~slightly~~tenements ~~lower~~acquired ~~magnetometer~~by ~~readings~~local ~~than~~companies ~~the~~in ~~surrounding basalt~~Manado.

~~The~~Newmont ~~rock~~drilled ina total of 6,457 meters at the ~~tunnel~~Limpoga ~~area~~zone between is1989 ~~slightly~~to ~~lighter~~1999. inIn ~~color~~particular, ~~and~~92 closely-spaced (40 meters) diamond drill ~~has~~holes ~~been~~were ~~classified~~drilled asbetween ~~andesite~~1989 to 1993. ~~Limestone~~In ~~and~~late ~~granodiorite~~1998, ~~have~~Newmont ~~been~~completed ~~found~~an additional to1,695 meters of closed spaced (20 meters) diamond drill holes. In ~~the~~1999, ~~west~~Newmont ~~and~~also ~~southwest~~drilled ~~and~~19 ~~have~~Reverse ~~given~~Circular ~~high~~(“RC”) ~~readings~~holes onfor ~~the~~a total ~~heavy~~of ~~metals~~1,064 ~~geochemical~~meters ~~field~~at ~~test.~~the ALimpoga ~~pyrite~~ zone. ~~with~~This ~~some~~large ~~zinc~~amount ~~value~~of ~~was~~high ~~discovered~~density bydrilling provided the data points for detailed engineering, which included geotechnical, bulk ~~prospectors~~density, onpermeability ~~the~~and ~~north~~metallurgical ~~bank~~tests. The historical drilling of Newmont ~~June~~indicated ~~Creek~~196,000 ~~between~~tons ~~stations~~of 64mineralized ~~and~~material 65at an estimated grade of 7.99 g/t at the Limpoga zone.

~~The~~Regional southwest station 65 at the south edge of the creed was a large to light green skarn zone containing a black, platy, magnetic mineral, probably pyrrhotite. Further west along the creek to the falls is massive limestone. Many parts of the creek are in a canyon and can only be fully explored at periods of low water.Geology

21Recent exploration has highlighted North Sulawesi as a significant gold province located within a series of spatially overlapping Tertiary volcanic arcs. In the western ensialic portion, rhyodacitic volcanics overlie quartzo-feldspathic metamorphic basement. In contrast, the central and eastern ensimatic areas comprise marine basaltic basement overlain by andesitic volcanic, the centres of which have migrated progressively eastwards from the Early Miocene until the present day.

~~TEXADA~~Property ~~GOLD PROPERTY~~Geology

WeLocated ~~have~~on ~~also~~the ~~staked~~Manado ~~and~~Gold ~~acquired~~Property is a ~~100%~~massive ~~interest~~karsted inbasal limestone unit overlain by a ~~property~~volcanogenic sediment which is a reworked tuff. ~~called~~This ~~the~~sediment ~~“Texada~~is ~~Gold~~commonly ~~Property~~calcareous at is base and shows slump and bedding textures." The ~~property~~bedding isdips ~~less~~from ~~than~~15-60o ~~one~~to ~~mile~~the north. ofIntruding this ~~the~~sequence ~~Town~~is ofthe ~~GIllies~~Limpgoa ~~Bay~~andesite. The ~~Texada~~andesite ~~Gold~~is ~~Property~~porphyritic isand ~~comprised~~invariably altered to an assemblage of ~~five~~chlorite+ ~~mineral claims~~carbonate. Porphyroblasts of hornblende and isfeldspar ~~located~~occur onin ~~Texada~~a ~~Island,~~fine ~~British~~grained ~~Columbia~~matrix. ~~The~~Petrographic ~~largest~~studies ~~island~~indicate inthis ~~the~~rock ~~Strait~~to ofbe ~~Georgia~~a ~~lies~~tonalite. 68A ~~miles~~sequence ~~west-northwest~~ of ~~Vancouver~~andesite ~~and~~tuffs, isflowing overlying the ~~accessible~~reworked bytuff ~~car~~to ~~and~~the ~~ferry~~east ~~either~~is ~~directly~~most bylikely ~~Powell~~volcanic ~~River~~equivalents onof the ~~mainland or~~Limpoga ~~circuitously~~andesite. ~~through~~Unconformably overlying all the ~~Town~~previous ofunits ~~Comox~~is ona ~~Vancouver~~series ~~Island~~of volcaniclastic rocks. ~~Air~~This ~~service~~unit ~~upon~~comprises of volcanic conglomerate, breccia and, ~~request~~in isplaces ~~available~~flows. onThe ~~certain~~rocks ~~scheduled~~are ~~flights~~mostly ~~from~~of ~~Vancouver~~andesitic tocomposition ~~Powell~~with minor ~~River~~porphyritic hornblende dacite.

~~The~~Eluvial ~~property~~deposits isof ~~centered~~quartz ~~at 49° 42’ 30” north latitude (UTM 5507050 N)~~ and ~~124°~~clay ~~29’~~sit ~~30” west longitude (UTM392500 E)~~ on ~~N.T.S.~~the ~~mapsheets~~karsted ~~092F/09W~~limestone ~~and 092F/10E~~surface. ~~Road~~There ~~access~~deposits toare ~~and~~interpreted ~~within~~to ~~the~~be ~~property~~erosional isremnants ~~good. The~~of ~~gravel~~silicificied ~~Central~~cavefill ~~Road~~sediments ~~and~~mostly in the ~~paved~~footwall ~~GIllies~~of ~~Bay – Vananda highway cross~~ the ~~northeastern~~ ~~and~~LP ~~southwestern~~fault ~~boundaries respectively~~zone. ~~Old logging roads traversable by 4-wheel drive vehicles and other trails suitable for foot access only provide access to most of the property.~~

The ~~mineral~~east ~~claims~~northeast ~~making~~– upwest southwest trending Limpoga Lambak fault is the ~~Texada~~main ~~Gold~~structural ~~Property~~feature ~~are~~of the Limpogo zone. This fault dips 60° to ~~recorded~~the ~~with~~north and exploits the ~~Ministry~~unconformity separating volcanistic rock to the north from the andesite, limestone and reworked tuff to the south. The LP fault is a splay off the Limpoga-Lambak fault. This fault dips from 45-60° to the north and is the main control of ~~Mines~~gold mineralization. The fault is manifested as ~~follows:~~a fault breccia. Clasts of subangular to angular silicified, argillised tuff and limestone.

Tenure No.	Claim Name	Area (Ha)	Expiry
600319	TEXADA GOLD	188.04	June 10, 2010
600411	TEXADA GOLD 2	83.60	June 10, 2010
600412	TEXADA GOLD 3	20.89	June 10, 2010
600413	TEXADA GOLD 4	250.80	June 10, 2010
600414	TEXADA GOLD 5	167.15	June 10, 2010

The topographic relief on the property ranges from 50 meters above sea level on the southwest to approximately 220 meters on the east boundary which is on the southwest flank of Mount Pocahontas. The property is characterized by northwesterly trending rocky ridges that are typically 50 meters above intervening gullies which commonly contain small streams or swamps. The forest cover is mostly second or third growth Douglas-fir, arbutus and jackpine on the fairly sparse ridges and cedar, spruce, hemlock, balsam, and poplar in the lower elevations. Thick underbrush together with abundant deadfall and logging remnants characterize the valleys.27

The island is within the “Sunshine Coast” area of British Columbia and features mild winters and moderate, dry summers. Consequently, all aspects of surface exploration may be carried out year round. Drinking water for the two towns on the island is provided by two dammed lakes. One of them, Cranby lake is less than one mile from west of the property. Water for diamond drilling as available from the many creeks and swamps on the property.Mineralization

~~Subject~~The torock ~~obtaining~~types ~~sufficient~~that ~~financing,~~host ingold ~~the~~are ~~summer~~quartz ~~of 2010,~~boulder weand ~~plan~~clay sediments towhich ~~get~~comprise a30% ~~consulting~~of ~~geologist~~the toLimpoga ~~conduct~~deposit, abrecciated ~~review~~fault ~~of this property~~zone inmaterial, ~~order~~limestone toand ~~recommend~~reworked antuff. ~~exploration~~The ~~program.~~formations ~~Once~~at ~~our~~Mesel ~~consulting~~are ~~geologist~~hosted ~~has~~in ~~provided~~silicified, usdecalcified ~~with~~and ~~their~~dolomitized ~~findings~~carbonates wedeveloped ~~will~~at ~~determine whether to proceed with an~~intersecting ~~exploration~~east-west ~~program~~and onnorth-west ~~this property~~faults.

~~COMPLIANCE~~The ~~WITH~~mineralized ~~GOVERNMENT~~areas ~~REGULATION~~of the Mesel and Libongan zones are hosted in Miocene volcaniclastics and sediments occurring either as disseminations or as veins. The extensively occurring limestone, which may contain anomalous gold mineralization, presents an excellent potential for the development of a large bulk mineable gold deposit.

~~British~~In ~~Columbia~~this ~~Regulations~~region, the following gold mineralization categories are recognized: gold copper porphyries; gold and metal breccias; and high and low sulphidation ephithermal systems.

WeCurrent ~~will~~Exploration be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the exploration of minerals in the Province of British Columbia. The main agency that governs the exploration of minerals in the Province of British Columbia, Canada, is the Ministry of Mines. The Ministry of Mines manages the development of British Columbia’s mineral resources, and implements policies and programs respecting their development while protecting the environment. In addition, the Ministry of Mines regulates and inspects the exploration and mineral production industries in British Columbia to protect workers, the public and the environment.Activities

22We will not be conducting any exploration work on the Manado Gold Property during the term of the Manado Assignment Agreement. Under the terms of the Manado Assignment Agreement, Manado Corp. is required to incur aggregate exploration expenditures of $1,750,000 on the Manado Gold Property during the term of the Manado Assignment Agreement.

~~The~~COMPLIANCE ~~material~~WITH ~~legislation~~GOVERNMENT applicable to us is the Mineral Tenure Act, administered by the Mineral Titles Branch of the Ministry of Mines, and the Mines Act, as well as the Health, Safety and Reclamation Code and the Mineral Exploration Code. The Mineral Tenure Act and its regulations govern the procedures involved in the location, recording and maintenance of mineral titles in British Columbia. The Mineral Tenure Act also governs the issuance of leases which are long term entitlements to minerals.REGULATION

~~All mineral exploration activities carried out on a mineral claim or mining lease in~~ British Columbia ~~must~~Regulations be in compliance with the Mines Act. The Mines Act applies to all mines during exploration, development, construction, production, closure, reclamation and abandonment. It outlines the powers of the Chief Inspector of Mines, to inspect mines, the procedures for obtaining permits to commence work in, on or about a mine and other procedures to be observed at a mine. Additionally, the provisions of the Health, Safety and Reclamation Code for mines in British Columbia contain standards for employment, occupational health and safety, accident investigation, work place conditions, protective equipment, training programs, and site supervision. Also, the Mineral Exploration Code contains standards for exploration activities including construction and maintenance, site preparation, drilling, trenching and work in and about a water body.

~~Additional~~We ~~approvals~~will ~~and authorizations may~~ be required ~~from other~~to ~~government~~comply ~~agencies,~~with ~~depending~~all ~~upon~~regulations, ~~the~~rules ~~nature~~ and directives ~~scope~~ of ~~the~~governmental ~~proposed exploration~~authorities ~~program.~~and Ifagencies ~~the~~applicable to the exploration ~~activities~~of ~~require~~minerals in the ~~falling~~Province of ~~timber,~~ ~~then~~British ~~either~~Columbia. aThe ~~free~~main ~~use~~agency that ~~permit~~governs orthe aexploration ~~license~~of tominerals ~~cut~~in ~~must~~the beProvince ~~issued~~of byBritish ~~the~~Columbia, Canada, is the Ministry of ~~Forests~~Mines. ~~Items~~The ~~such~~Ministry asof ~~waste~~Mines ~~approvals~~manages ~~may~~the bedevelopment of ~~required~~British ~~from~~Columbia’s ~~the Ministry~~mineral ~~of Environment~~resources, ~~Lands~~ and ~~Parks~~implements ifpolicies ~~the~~and ~~proposed exploration activities~~programs ~~are~~respecting ~~significantly~~their ~~large~~development ~~enough~~while toprotecting ~~warrant~~the ~~them~~environment. ~~Waste~~In ~~approvals~~addition, ~~refer to~~ the ~~disposal~~Ministry of ~~rock~~Mines ~~materials~~regulates ~~removed~~and ~~from~~inspects the ~~earth~~exploration ~~which~~and ~~must~~mineral beproduction industries ~~reclaimed.~~in ~~An environmental~~British ~~impact~~Columbia ~~statement~~to ~~may~~protect beworkers, ~~required~~the public and the environment.

InThe ~~order~~material tolegislation ~~maintain~~applicable ~~our~~to ~~mineral~~us ~~claims~~is ~~in good standing, we must complete exploration work on~~ the ~~mineral~~Mineral ~~claims and file confirmation of~~Tenure ~~the~~Act, ~~completion~~administered ofby ~~work on~~ the ~~mineral~~Mineral ~~claims~~Titles ~~with~~Branch ~~the applicable mining recording office~~ of the Ministry of Mines., Inand the Mines ~~Province of British Columbia~~Act, ~~the~~ ~~recorded~~as ~~holder~~well ofas athe ~~mineral~~Health, ~~claim~~Safety isand ~~required~~Reclamation toCode ~~perform~~and ~~a minimum amount of exploration work on a claim or make payment in~~ the ~~equivalent sum in lieu of~~Mineral ~~work~~Exploration Code. The ~~fee~~Mineral isTenure ~~CDN~~Act ~~$4.00~~and ~~(approximately~~its ~~US$3.78)~~regulations ingovern the ~~first three years and~~ ~~CDN$8.00~~procedures ~~(approximately~~involved ~~US$7.67)~~ in ~~subsequent~~the ~~years.~~location, ~~There~~recording ~~is a risk that new regulations could increase our costs of doing business~~ and ~~prevent~~maintenance ~~us from carrying out our exploration program. The completion~~ of mineral ~~exploration work~~titles ~~or payment~~ in ~~lieu~~British ofColumbia. ~~exploration~~The ~~work~~Mineral inTenure ~~any~~Act ~~year~~also ~~will~~governs ~~extend~~ the ~~existence~~issuance of ~~our~~ ~~mineral claims for one additional year. If we fail to complete the minimum~~leases ~~required~~which ~~amount~~are oflong ~~exploration~~term ~~work~~entitlements ~~or fail~~ to ~~make a payment in lieu of this exploration work, then our mineral claims will lapse, and we will lose all interest that we have in our mineral claims~~minerals.

~~Nevada~~All ~~Regulations~~mineral exploration activities carried out on a mineral claim or mining lease in British Columbia must be in compliance with the Mines Act. The Mines Act applies to all mines during exploration, development, construction, production, closure, reclamation and abandonment. It outlines the powers of the Chief Inspector of Mines, to inspect mines, the procedures for obtaining permits to commence work in, on or about a mine and other procedures to be observed at a mine. Additionally, the provisions of the Health, Safety and Reclamation Code for mines in British Columbia contain standards for employment, occupational health and safety, accident investigation, work place conditions, protective equipment, training programs, and site supervision. Also, the Mineral Exploration Code contains standards for exploration activities including construction and maintenance, site preparation, drilling, trenching and work in and about a water body.

~~Exploration~~Additional approvals and ~~development~~authorizations ~~activities~~may ~~are~~be ~~all~~required ~~subject to~~from ~~stringent~~other ~~national~~government agencies, ~~state~~depending ~~and~~upon ~~local~~the ~~regulations.~~nature ~~All~~and ~~permits~~scope ~~for~~of ~~exploration~~the ~~and~~proposed ~~testing~~exploration ~~must~~program. beIf ~~obtained~~the ~~through~~exploration ~~the~~activities ~~local~~require ~~Bureau~~the falling of timber, ~~Land~~then ~~Management~~either ~~(“BLM”) offices~~a offree ~~the~~use ~~Department~~permit ofor ~~Interior~~a inlicense ~~the~~to ~~State~~cut ofmust ~~Nevada.~~be ~~The~~issued ~~granting~~by ofthe ~~permits~~Ministry ~~requires~~of ~~detailed~~Forests. ~~applications~~Items ~~and~~such ~~filing~~as ofwaste aapprovals ~~bond~~may tobe ~~cover~~required from the ~~reclamation~~Ministry of ~~areas~~Environment, ofLands ~~exploration.~~and ~~From~~Parks ~~time~~if tothe ~~time,~~proposed anexploration ~~archaeological~~activities ~~clearance~~are ~~may~~significantly ~~need~~large enough to bewarrant ~~obtained~~them. ~~prior~~Waste approvals refer to ~~proceeding~~the disposal ~~with~~of ~~any~~rock ~~exploration programs.We~~materials ~~plan~~removed tofrom ~~secure~~the ~~all~~earth ~~necessary~~which ~~permits~~must ~~for~~be ~~any~~reclaimed. ~~future~~An environmental ~~exploration~~impact statement may be required.

WeIn ~~have~~order to ~~apply~~maintain ~~for~~our ~~and~~mineral ~~receive~~claims ~~permits~~in ~~from~~good standing, we must complete exploration work on the ~~BLM~~mineral toclaims and file confirmation of ~~conduct~~the ~~drilling~~completion ~~activities~~of work on ~~BLM~~the ~~administered~~mineral ~~lands~~claims with the applicable mining recording office of the Ministry of Mines. ~~Mining~~In ~~operations~~the ~~are~~Province of ~~regulated~~British byColumbia, the ~~Mine~~recorded ~~and~~holder ~~Safety~~of ~~Health~~a ~~Administration~~mineral ~~(“MSHA”).~~claim ~~MSHA~~is ~~inspectors~~required to perform ~~periodically~~a ~~visit~~minimum ~~projects~~amount toof ~~monitor~~exploration ~~health~~work ~~and~~on ~~safety~~a ~~for~~claim ~~the~~or ~~workers,~~make ~~and~~payment toin the ~~inspect~~equivalent ~~equipment~~sum ~~and~~in ~~installations~~lieu ~~for~~of ~~code~~work. ~~requirements~~The fee is CDN $4.00 ~~Workers~~(approximately ~~must~~US$3.78) ~~have~~in ~~completed~~the ~~MSHA~~first ~~safety~~three ~~training~~years and ~~must~~CDN$8.00 ~~take~~(approximately ~~refresher~~US$7.67) ~~courses~~in ~~annually~~subsequent ~~when~~years. ~~working~~There onis a ~~project~~risk that new regulations could increase our costs of doing business and prevent us from carrying out our exploration program. AThe ~~safety~~completion ~~officer~~of mineral ~~for~~exploration work or payment in lieu of exploration work in any year will extend the ~~project~~existence ~~should~~of ~~also~~our onmineral ~~site~~claims for one additional year. ~~Other~~ ~~regulatory~~If ~~requirements~~we ~~monitor~~fail to complete the ~~following:~~minimum required amount of exploration work or fail to make a payment in lieu of this exploration work, then our mineral claims will lapse, and we will lose all interest that we have in our mineral claims.

~~(i) Explosives and explosives handling. (ii) Use and occupancy of site structures associated with mining. (iii) Hazardous materials and waste disposal.~~28

23Nevada Regulations

~~(iv)~~Exploration ~~State~~and ~~Historic~~development ~~site~~activities ~~preservation~~are all subject to stringent national, state and local regulations. All permits for exploration and testing must be obtained through the local Bureau of Land Management (v“BLM”) offices ~~Archaeological~~of the Department of Interior in the State of Nevada. The granting of permits requires detailed applications and ~~paleontological~~filing ~~finds~~of ~~associated~~a bond to cover the reclamation of areas of exploration. From time to time, an archaeological clearance may need to be obtained prior to proceeding with ~~mining~~any exploration programs.We plan to secure all necessary permits for any future exploration.

We ~~believe~~have ~~that~~to weapply ~~are~~for inand ~~compliance~~receive ~~with~~permits ~~all~~from ~~laws~~the ~~and~~BLM ~~plan~~ to ~~continue~~conduct todrilling ~~comply~~activities ~~with~~on ~~the~~BLM ~~laws~~administered inlands. Mining operations are regulated by the ~~future.~~Mine Weand ~~believe~~Safety ~~that~~Health ~~compliance~~Administration ~~with~~(“MSHA”). MSHA inspectors periodically visit projects to monitor health and safety for the ~~laws~~workers, ~~will~~and ~~not~~to inspect ~~adversely~~equipment ~~affect~~and ~~its~~installations ~~business~~for ~~operations~~code requirements. ~~There~~Workers ismust ~~however~~have completed noMSHA safety training and must take refresher courses annually when ~~assurance~~working ~~that~~on ~~any~~a ~~change~~project. inA ~~government~~safety ~~regulation~~officer infor the ~~future~~project ~~will~~should ~~not~~also on site. ~~adversely~~Other ~~affect~~regulatory ~~our~~requirements ~~business~~monitor ~~operations.~~the following:

~~Each~~(i) ~~year~~Explosives ~~we must pay a maintenance fee of $140 per claim to the Nevada State Office of the Bureau of Land Management~~ and onexplosives ~~September~~handling. 1(ii) ~~of each~~Use ~~year we must file an affidavit~~ and ~~Notice~~occupancy of ~~Intent~~site tostructures ~~Hold~~associated ~~the~~with ~~claims in Mineral County~~mining. ~~With~~(iii) ~~respect~~Hazardous tomaterials ~~the Golden Snow Project, Fish Project~~ and ~~CPG Project,~~waste wedisposal. ~~have~~(iv) ~~paid~~State ~~the~~Historic ~~required~~site ~~maintenance~~preservation. ~~fees~~(v) Archaeological and ~~filed~~paleontological ~~the~~finds ~~affidavits required~~associated inwith ~~order to extend the claims to August 31, 2010~~mining.

~~Indonesia~~We ~~Regulations~~believe that we are in compliance with all laws and plan to continue to comply with the laws in the future. We believe that compliance with the laws will not adversely affect its business operations. There is however no assurance that any change in government regulation in the future will not adversely affect our business operations.

~~Exploration~~Each ~~and~~year ~~development~~we ~~activities~~must ~~are~~pay ~~subject~~a tomaintenance ~~the~~fee ~~rules and regulation~~ of ~~the~~$140 ~~Indonesian~~per ~~ministry~~claim ofto the ~~Energy~~Nevada ~~and~~State ~~Mineral~~Office ~~Resources.~~of ~~Under current~~the ~~Indonesian~~Bureau ~~law,~~of aLand ~~domestic~~Management ~~entity~~and ~~may~~on ~~acquire~~September a1 ~~license~~of each ~~through~~year awe ~~Kuasa Pertanbangan~~must ~~(“KP”).~~file ~~The~~an KPaffidavit ~~grants~~and ~~exclusive~~Notice ~~mineral~~of ~~rights~~Intent to Hold the ~~holder~~claims ~~for~~in ~~specified~~Mineral ~~minerals~~County. ~~and~~With ~~defined~~respect ~~mineral~~to ~~activities.~~the ~~There~~Golden ~~are~~Snow ~~several~~Project, ~~types~~Fish ofProject KPand CPG ~~including~~Project, ~~but~~we ~~not~~have ~~limited~~paid ~~to,~~the ~~general~~required ~~survey~~maintenance ~~KP,~~fees ~~exploration~~and ~~KP,~~filed ~~exploitation~~the affidavits ~~KP,~~required ~~process~~in ~~and~~order ~~refining~~to KPextend ~~and~~the ~~transportation~~claims ~~and~~to ~~marketing~~August KP31, 2010.

~~In order for a foreign entity to carry out mineral activities in~~ Indonesia it must acquire a contract of work (“CoW”) the CoW sets out in detail the rights and obligations of the foreign entity with respect to the exploration, development, and operation of the mineral property.Regulations

Exploration and development activities are subject to the rules and regulation of the Indonesian ~~regulations~~ministry ~~also~~of ~~set~~Energy ~~for~~and ~~requirements~~Mineral ~~with~~Resources. ~~respect~~Under tocurrent ~~land~~Indonesian ~~remediation~~law, ~~water~~a ~~use~~domestic entity may acquire a license through a Kuasa Pertanbangan (“KP”). The KP grants exclusive mineral rights to the holder for specified minerals and ~~discharge,~~defined ~~exploration~~mineral activities. There are several types of ~~the~~KP including, ~~mined~~but ~~material~~not limited to, general survey KP, exploration KP, exploitation ~~mine~~KP, ~~safety~~process and ~~use~~refining ofKP ~~explosives~~and transportation and marketing KP.

~~COMPLIANCE~~In ~~WITH~~order ~~ENVIRONMENTAL~~for ~~REGULATIONS~~a foreign entity to carry out mineral activities in Indonesia it must acquire a contract of work (“CoW”) the CoW sets out in detail the rights and obligations of the foreign entity with respect to the exploration, development, and operation of the mineral property.

We will have to sustain the cost of reclamation and environmental remediation for all exploration work undertaken. Both reclamation and environmental remediation refer to putting disturbed ground back as close to its original state as possible. Other potential pollution or damage must be cleaned up and renewed along standard guidelines outlined in the usual permits. Reclamation is the process of bringing the land back to its natural state after completion of exploration activities. Environmental remediation refers to the physical activity of taking steps to remediate, or remedy, any environmental damage caused. The amount of these costs is not known at this time as we do not know the extent of the exploration program that will be undertaken beyond completion of the recommended work program. Because there is presently no information on the size, tenor, or quality of any resource or reserve at this time, it is impossible to assess the impact of any capital expenditures on earnings, our competitive position or us in the event that a potentially economic deposit is discovered.29

~~Prior~~Indonesian toregulations ~~undertaking~~also ~~mineral~~set ~~exploration~~for ~~activities,~~requirements wewith ~~must~~respect ~~make~~to ~~application~~land ~~for a permit~~remediation, ifwater weuse ~~anticipate disturbing land. A permit is issued after review of a complete~~ and ~~satisfactory application. We do not anticipate any difficulties in obtaining a permit~~discharge, ifexploration ~~needed.~~of ~~If we enter~~ the ~~production~~ ~~phase,~~mined ~~the cost of complying with permit and regulatory environment~~material, ~~laws~~mine ~~will~~safety ~~be greater because the impact on the project area is greater. Permits~~ and ~~regulations~~use ~~will control all aspects~~ of ~~the production program if the project continues to that stage~~explosives. ~~Examples of regulatory requirements include:~~

~~(i)~~COMPLIANCE ~~Water~~WITH ~~discharge~~ENVIRONMENTAL ~~will~~REGULATIONS have to meet drinking water standards; (ii) Dust generation will have to be minimal or otherwise re-mediated; (iii) Dumping of material on the surface will have to be re-contoured and re-vegetated with natural vegetation; (iv) An assessment of all material to be left on the surface will need to be environmentally benign; (v) Ground water will have to be monitored for any potential contaminants;

24We will have to sustain the cost of reclamation and environmental remediation for all exploration work undertaken. Both reclamation and environmental remediation refer to putting disturbed ground back as close to its original state as possible. Other potential pollution or damage must be cleaned up and renewed along standard guidelines outlined in the usual permits. Reclamation is the process of bringing the land back to its natural state after completion of exploration activities. Environmental remediation refers to the physical activity of taking steps to remediate, or remedy, any environmental damage caused. The amount of these costs is not known at this time as we do not know the extent of the exploration program that will be undertaken beyond completion of the recommended work program. Because there is presently no information on the size, tenor, or quality of any resource or reserve at this time, it is impossible to assess the impact of any capital expenditures on earnings, our competitive position or us in the event that a potentially economic deposit is discovered.

~~(vi)~~Prior ~~The~~to ~~socio-economic~~undertaking ~~impact~~mineral ofexploration ~~the~~activities, ~~project~~we ~~will~~must make ~~have~~application tofor bea ~~evaluated~~permit, ~~and~~ if ~~deemed~~we ~~negative,~~anticipate ~~will~~disturbing ~~have~~land. toA bepermit ~~re-mediated;~~is issued after review of a complete and ~~(vii)~~satisfactory ~~There~~application. ~~will~~We ~~have~~do tonot anticipate beany andifficulties ~~impact~~in ~~report~~obtaining a permit, if needed. If we enter the production phase, the cost of complying with permit and regulatory environment laws will be greater because the ~~work~~impact on the ~~local~~project ~~fauna~~area is greater. Permits and ~~flora~~regulations ~~including~~will acontrol ~~study~~all aspects of ~~potentially~~the ~~endangered~~production ~~species~~program if the project continues to that stage. Examples of regulatory requirements include:

~~COMPETITION~~(i) Water discharge will have to meet drinking water standards; (ii) Dust generation will have to be minimal or otherwise re-mediated; (iii) Dumping of material on the surface will have to be re-contoured and re-vegetated with natural vegetation; (iv) An assessment of all material to be left on the surface will need to be environmentally benign; (v) Ground water will have to be monitored for any potential contaminants; (vi) The socio-economic impact of the project will have to be evaluated and if deemed negative, will have to be re-mediated; and (vii) There will have to be an impact report of the work on the local fauna and flora including a study of potentially endangered species.

We are an exploration stage company. We compete with other mineral resource exploration and development companies for financing and for the acquisition of new mineral properties. Many of the mineral resource exploration and development companies with whom we compete have greater financial and technical resources than we do. Accordingly, these competitors may be able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties. In addition, they may be able to afford greater geological expertise in the targeting and exploration of mineral properties. This competition could result in competitors having mineral properties of greater quality and interest to prospective investors who may finance additional exploration and development. This competition could adversely impact our ability to finance further exploration and to achieve the financing necessary for us to develop our mineral properties.COMPETITION

~~RESEARCH~~We ~~AND~~are ~~DEVELOPMENT~~an ~~EXPENDITURES~~exploration stage company. We compete with other mineral resource exploration and development companies for financing and for the acquisition of new mineral properties. Many of the mineral resource exploration and development companies with whom we compete have greater financial and technical resources than we do. Accordingly, these competitors may be able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties. In addition, they may be able to afford greater geological expertise in the targeting and exploration of mineral properties. This competition could result in competitors having mineral properties of greater quality and interest to prospective investors who may finance additional exploration and development. This competition could adversely impact our ability to finance further exploration and to achieve the financing necessary for us to develop our mineral properties.

WeRESEARCH ~~have~~AND ~~not~~DEVELOPMENT ~~incurred any research expenditures since our incorporation.~~EXPENDITURES

~~EMPLOYEES~~We have not incurred any research expenditures since our incorporation.

~~We have no employees other than our sole executive officer and directors. We conduct our business largely through consultants.~~30

~~ITEM~~EMPLOYEES ~~1A. RISK FACTORS.~~

~~The~~We ~~following~~have ~~are~~no ~~some~~employees ofother ~~the~~than ~~important factors that could affect~~ our ~~financial~~sole ~~performance~~executive orofficer ~~could cause actual results to differ~~and ~~materially from estimates contained in our forward-looking statements~~directors. We ~~may encounter~~conduct ~~risks in addition to those described below. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, may also impair or adversely affect~~ our business, ~~financial condition~~largely orthrough ~~results of operation~~consultants.

IfITEM we1A. doRISK ~~not obtain additional financing, our business will fail~~FACTORS.

AsThe offollowing ~~November~~are ~~30,~~some ~~2009,~~of wethe ~~had~~important ~~$3,711~~factors ~~cash~~that ~~on hand and a~~could ~~working~~affect ~~capital~~our ~~deficit~~financial ofperformance ~~$360,987.~~or ~~Our~~could ~~plan~~cause ofactual ~~operation~~results ~~calls~~to ~~for significant~~differ ~~expenses~~materially infrom ~~connection~~estimates ~~with~~contained ~~the~~in ~~exploration and development of~~ our ~~mineral properties,~~forward-looking ~~particularly~~statements. ~~the~~We ~~Clisbako Property, and to meet our obligations~~may ~~under~~encounter ~~our~~risks ~~option~~in ~~agreements~~addition to ~~acquire:~~those ~~(i)~~described ~~the~~below. ~~Golden~~Additional ~~Snow~~risks ~~Project, Fish~~and ~~Project~~uncertainties ~~and~~not ~~CPG~~currently ~~Project;~~known ~~(ii)~~to ~~the~~us, ~~Manado~~or ~~Gold Property; and (iii) the June Claims. There is no guarantee~~ that we ~~will~~currently deem to ~~exercise these options or that in~~be ~~the~~immaterial, ~~event~~may wealso doimpair ~~exercise~~or ~~any~~adversely ofaffect ~~these~~our ~~options~~business, ~~that~~financial condition ~~the~~or ~~acquisition(s)~~results ~~will~~of ~~in fact occur~~operation.

OnIf ~~May~~we 1,do ~~2009,~~not ~~our~~obtain ~~Board~~additional ~~of Directors approved a private placement offering of up to 3~~financing,~~000,000~~ ~~units (the “Units”) at a price of $0.20 per Unit for gross proceeds of up to $600,000. Each Unit is comprised of one share of~~ our ~~common~~business stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a period of one year following the date of issuance at an exercise price equal to $0.30 per share. This offering of Units will ~~be made to investors who are not~~ “Ufail.S. Persons” as defined in Regulation S. As of November 30, 2009, we had received proceeds of $18,860 under this offering, but have not issued any securities. There are no assurances that any units will be sold under this offering.

~~Obtaining~~As ~~financing would be subject to a number~~ of ~~factors outside~~November of30, ~~our control~~2010, ~~including~~we ~~market~~had ~~conditions~~$353 ~~and~~cash ~~additional~~on ~~costs~~hand and ~~expenses~~ ~~that~~a ~~might~~working capital ~~exceed~~deficit ~~current~~of ~~estimates~~$536,611. ~~These~~Our ~~factors~~plan ~~may make the timing, amount, terms or conditions~~ of ~~financing~~operation ~~unavailable~~calls tofor ussignificant expenses in ~~which~~ ~~case~~order ~~we will be unable~~ to ~~complete~~meet our ~~plan~~obligations ofunder ~~operation~~the onEureka ~~our~~Properties ~~mineral~~Option ~~properties~~Agreement. ~~and~~There tois ~~meet~~no ~~our~~guarantee ~~obligations~~that ~~under~~we will exercise our option ~~agreements~~.

25Our Board of Directors have approved a private placement offering of up to 3,000,000 units (the “Units”) at a price of $0.05 per Unit for gross proceeds of up to $150,000. Each Unit is comprised of one share of our common stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a period of one year following the date of issuance at an exercise price equal to $0.10 per share. This offering of Units will be made to investors who are not “U.S. Persons” as defined in Regulation S. To date, we have issued 527,200 units for proceeds of $26,360 under this offering. There are no assurances that any additional units will be sold under this offering.

WeObtaining ~~have~~financing ~~yet~~would be subject to ~~earn~~a ~~revenue~~number ~~and~~of factors outside of our ~~ability~~control, toincluding ~~sustain~~market ~~our operations~~conditions isand ~~dependent~~additional oncosts ~~our~~and expenses ~~ability~~that tomight ~~raise~~exceed ~~financing~~current estimates. AsThese afactors ~~result~~may make the timing, amount, ~~our~~terms or conditions of financing unavailable to us in which case we will ~~accountants~~be ~~believe~~unable ~~there~~to iscomplete ~~substantial~~our ~~doubt~~plan ~~about~~of operation on our ~~ability~~mineral toproperties ~~continue~~and asto ameet ~~going~~our ~~concern~~obligations under our option agreements.

We have ayet ~~cumulative net loss of $643,115 for the period from our inception on April 28, 2006~~ to ~~November~~earn ~~30,~~revenue ~~2009,~~ and ~~have no revenues to date. Our future is dependent upon~~ our ability to ~~obtain~~sustain ~~financing. Our auditors~~our ~~have~~operations ~~expressed~~is ~~substantial~~dependent ~~doubt~~on ~~about~~ our ability to ~~continue as a going concern given our accumulated losses. This opinion could materially limit our ability to~~ raise ~~additional funds by issuing new debt or equity securities or otherwise~~financing. ~~If we fail to raise sufficient capital, we will not be able to complete our business plan.~~ As a result, ~~we may have to liquidate~~ our ~~business~~ ~~and~~accountants ~~investors~~believe ~~may~~there ~~lose~~is ~~their~~substantial ~~investment.~~doubt ~~Investors~~about ~~should consider~~ our ~~former auditor's~~ability ~~comments~~to ~~when~~continue ~~determining~~as a ifgoing ~~an investment in us is suitable~~concern.

~~Because~~We have a cumulative net loss of $1,070,068 for the ~~unique~~period ~~difficulties~~from our inception on April 28, 2006 to November 30, 2010, and ~~uncertainties~~have no revenues to ~~inherent~~date. inOur ~~mineral~~future ~~exploration~~is ~~ventures~~dependent upon our ability to obtain financing. Our auditors have expressed substantial doubt about our ability to continue as a going concern given our accumulated losses. This opinion could materially limit our ability to raise additional funds by issuing new debt or equity securities or otherwise. If we fail to raise sufficient capital, we ~~face~~will not be able to complete our business plan. As a ~~high~~result, ~~risk~~we ofmay have to liquidate our business ~~failure~~and investors may lose their investment. Investors should consider our former auditor's comments when determining if an investment in us is suitable.

~~Investors~~Because ~~should be aware~~ of the unique difficulties ~~normally encountered by new mineral exploration companies~~ and ~~the high rate of failure of~~uncertainties ~~such~~inherent ~~enterprises. The likelihood of success must be considered~~ in ~~light~~mineral ofexploration ~~the problems~~ventures, ~~expenses,~~we ~~difficulties,~~face ~~complications~~a ~~and~~high ~~delays~~risk ~~encountered in connection with the exploration~~ of ~~the mineral properties that we plan to~~business ~~undertake~~failure. ~~These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates.~~

WeInvestors ~~have~~should nobe ~~known~~aware of the difficulties normally encountered by new mineral ~~reserves~~exploration companies and ifthe wehigh ~~cannot~~rate ~~find~~of ~~any~~failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we ~~will~~plan ~~have~~to undertake. These potential problems include, but are not limited to, unanticipated ~~cease~~problems ~~operations~~relating to exploration, and additional costs and expenses that may exceed current estimates.

We have no known mineral reserves. Ifand ~~we do not find a mineral reserve containing gold or~~ if we cannot ~~explore~~find ~~the mineral reserve~~any, ~~either~~ ~~because~~ we ~~do not have the money to do it or because it~~ will ~~not be economically feasible to do it, we will~~ have to cease operations ~~and you will lose your investment~~. Mineral exploration, particularly for gold, is highly speculative. It involves many risks and is often non-productive. Even if we are able to find mineral reserves on our properties, our production capability is subject to further risks including:

~~Costs~~We ofhave ~~bringing~~no ~~the~~mineral ~~property~~reserves. ~~into~~If ~~production~~we ~~including~~do ~~exploration~~not ~~work~~find a mineral reserve containing gold or if we cannot explore the mineral reserve, either because we do not have the money to do ~~preparation~~it ofor ~~production~~because ~~feasibility~~it ~~studies~~will not be economically feasible to do it, we will have to cease operations and ~~construction~~you ofwill ~~production~~lose your investment. Mineral exploration, ~~facilities~~particularly for gold, ~~all~~is ofhighly ~~which~~speculative. It involves many risks and is often non-productive. Even if we ~~have~~are ~~not~~able ~~budgeted~~to ~~for;~~find mineral reserves on our properties, our production capability is subject to further risks including:

~~Availability and costs of financing;~~ 31

- Costs of bringing the property into production including exploration work, preparation of production feasibility studies, and construction of production facilities, all of which we have not budgeted for; - Availability and costs of financing; - Ongoing costs of production; and - Environmental compliance regulations and restraints.

~~Environmental~~The ~~compliance~~marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond our control and which cannot be accurately predicted, such as market fluctuations, the lack of milling facilities and processing equipment near our mineral properties, and such other factors as government regulations, including regulations relating to allowable production, importing and ~~restraints.~~exporting of minerals, and environmental protection.

~~The~~Given ~~marketability~~the ofabove ~~any~~noted ~~minerals acquired or discovered may be affected by numerous factors which are beyond our control and which cannot be accurately predicted~~risks, ~~such as market fluctuations,~~ the ~~lack~~chances of ~~milling facilities~~finding ~~and~~reserves ~~processing equipment near~~ on our mineral properties, ~~and~~are ~~such~~remote ~~other factors~~and asfunds ~~government~~expended ~~regulations,~~on ~~including~~exploration ~~regulations~~will ~~relating to allowable~~likely ~~production,~~be ~~importing and exporting of minerals, and environmental protection~~lost.

~~Given~~Even ~~the~~if ~~above~~we ~~noted~~discover ~~risks,~~proven ~~the~~reserves ~~chances~~ of ~~finding~~precious ~~reserves~~metals on our mineral properties, ~~are~~we ~~remote~~may ~~and~~not ~~funds~~be ~~expended~~able onto ~~exploration~~successfully ~~will~~commence ~~likely~~commercial ~~be lost~~production.

~~Even~~Our ifmineral properties do not contain any known bodies of ore. If our exploration programs are successful in discovering proven reserves on our mineral properties, we ~~discover~~will require additional funds in order to place the mineral properties into commercial production. The expenditures to be made by us in the exploration of mineral properties in all probability will be lost as it is an extremely remote possibility that the mineral claims will contain proven reserves. If our exploration programs are successful in discovering proven reserves, we will require additional funds in order to place the mineral properties into commercial production. The funds required for commercial mineral production can range from several millions to hundreds of ~~precious~~millions. ~~metals~~We oncurrently do not have sufficient funds to place our mineral ~~properties~~claims into commercial production. Obtaining additional financing would be subject to a number of factors, weincluding the market price for gold and the costs of exploring for or mining these materials. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us. Because we will need additional financing to fund our exploration activities there is substantial doubt about our ability to continue as a going concern. At this time, there is a risk that we will not be able to ~~successfully~~obtain ~~commence~~such ~~commercial production~~financing as and when needed.

~~Our~~We ~~mineral~~face ~~properties~~significant docompetition ~~not contain any known bodies of ore. If our exploration programs are successful~~ in ~~discovering proven reserves on our mineral properties, we will require additional funds in order to place~~ the ~~mineral~~ ~~properties into commercial production. The expenditures to be made by us in the exploration of~~ mineral ~~properties in all probability will be lost as it is an extremely remote possibility that the mineral claims will contain proven reserves. If our~~ exploration ~~programs are successful in discovering proven~~ ~~reserves, we will require additional funds in order to place the mineral properties into commercial production~~industry. The funds required for commercial mineral production can range from several millions to hundreds of millions. We currently do not have sufficient funds to place our mineral claims into commercial production.

26We compete with other mining and exploration companies possessing greater financial resources and technical facilities than we do in connection with the acquisition of mineral exploration claims and leases on precious metal prospects and in connection with the recruitment and retention of qualified personnel. There is significant competition for precious metals and, as a result, we may be unable to acquire an interest in attractive mineral exploration properties on terms we consider acceptable on a continuing basis.

~~Obtaining~~There ~~additional~~is ~~financing~~no ~~would~~assurance bethat subject to a number of factors, including the market price for gold and the costs of exploring for or mining these materials. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us. Because we will ~~need~~be ~~additional financing~~able to ~~fund~~exercise our ~~exploration activities there is substantial doubt about~~ ~~our~~options ~~ability~~ to ~~continue~~acquire asthe aEureka ~~going~~Optioned ~~concern.~~Properties Atand ~~this~~the ~~time,~~Manado ~~there~~Gold ~~is a risk that we will not be able to obtain such financing as and when needed~~Property.

WeIn ~~face~~order ~~significant~~to ~~competition~~exercise inour options to acquire the ~~mineral~~Eureka ~~exploration~~Optioned ~~industry~~Properties and the Manado Gold Property, we are required to make a series of cash payments and meet the annual claim maintenance fees. In order to meet these payments we will need to obtain substantial financing. If we are unable to meet these payments, we will lose our options to acquire these properties.

We compete with other mining and exploration companies possessing greater financial resources and technical facilities than we do in connection with the acquisition of mineral exploration claims and leases on precious metal prospects and in connection with the recruitment and retention of qualified personnel. There is significant competition for precious metals and, as a result, we may be unable to acquire an interest in attractive mineral exploration properties on terms we consider acceptable on a continuing basis.32

~~There~~We ismay ~~no assurance that we will~~ be ~~able~~unable to ~~exercise~~conduct ~~our options~~exploration toactivities ~~acquire~~due ~~the Manado Gold Property, the Eureka Optioned Properties and the June~~to ~~Claims~~foreign regulations.

InWe ~~order~~may tohave ~~exercise~~trouble ~~our~~obtaining ~~options~~any tonecessary ~~acquire the Manado Gold Property~~permits, ~~Eureka Optioned Properties~~ and complying ~~June~~with ~~Claims,~~foreign wemining ~~are~~law ~~required~~due to ~~make~~our ainexperience. ~~series~~We ~~of cash~~may ~~payments~~be ~~and~~prohibited by ~~meet~~mining ~~the~~laws ~~annual~~in ~~claim~~Indonesia ~~maintenance~~from ~~fees.~~conducting Indue ~~order~~diligence toor ~~meet~~any ~~these~~other activity ~~payments~~on wethe ~~will~~Manado ~~need~~Gold toProperty. ~~obtain~~We ~~substantial~~have ~~financing.~~not Ifconducted weany ~~are~~research ~~unable~~into ~~to meet~~the ~~these~~property, ~~payments~~mining, weor ~~will~~other ~~lose~~applicable ~~our~~laws ~~options~~regarding tothe ~~acquire~~Manado ~~these~~Gold ~~properties~~Property.

WeBecause ~~may~~our besole ~~unable~~executive officer does not have formal training specific to ~~conduct~~the technicalities of mineral exploration, ~~activities~~there ~~due~~is toa ~~foreign~~higher ~~regulations~~risk that our business will fail.

WeRichard ~~may~~W. ~~have~~Donaldson, ~~trouble~~our ~~obtaining~~sole executive officer, does not have any ~~necessary~~formal ~~permits,~~training ~~and~~as a geologist or in the technical aspects of managing a ~~complying~~mineral ~~with~~exploration ~~foreign~~company. ~~mining~~With ~~law~~the toexception doof ~~our~~Bryan ~~inexperience~~H. WeWilson, a director, our management may not be ~~prohibited by~~fully ~~mining~~aware ~~laws~~of inthe ~~Indonesia~~specific ~~from~~requirements ~~conducting~~related ~~due~~to working ~~diligence~~within orthis ~~any~~industry. ~~other~~As ~~activity on~~such, the ~~Manado~~loss ~~Gold~~of ~~Property~~Mr. WeWilson’s ~~have~~services ~~not~~could cause ~~conducted~~irreparable ~~any~~harm ~~research~~to ~~into~~our ~~the property~~operations, ~~mining~~earnings, orand ~~other~~ultimate ~~applicable~~financial success ~~laws~~could ~~regarding~~suffer ~~the~~irreparable ~~Manado~~harm ~~Gold~~due to management's lack of experience in ~~Property~~this industry.

Because ~~our~~the ~~sole~~prices ~~executive~~of ~~officer~~metals ~~does~~fluctuate, ~~not~~if ~~have~~the ~~formal~~price of ~~training~~metals ~~specific~~for towhich ~~the~~we ~~technicalities~~are ofexploring ~~mineral~~decreases ~~exploration~~below a specified level, ~~there~~it ismay ano ~~higher~~longer ~~risk~~be ~~that~~profitable ~~our~~to ~~business~~explore for those metals and we will ~~fail~~cease operations.

~~Richard~~Prices W.of ~~Donaldson~~metals are determined by such factors as expectations for inflation, ~~our~~the ~~sole~~strength ~~executive~~of ~~officer~~the United States dollar, ~~does~~global ~~not~~and ~~have~~regional ~~any~~supply ~~formal~~and ~~training~~demand, asand apolitical ~~geologist~~and oreconomic conditions and production costs in metals producing regions of the ~~technical~~world. ~~aspects~~The aggregate effect of ~~managing~~these afactors on ~~mineral~~metal ~~exploration~~prices ~~company~~is impossible for us to predict. ~~With~~In addition, the ~~exception~~prices of precious ~~Bryan~~metals H.are ~~Wilson,~~sometimes asubject ~~director,~~to rapid short-term and/or prolonged ~~our~~changes ~~management~~because ~~may~~of ~~not~~speculative beactivities. ~~fully~~The ~~aware~~current demand for and supply of these metals affect the ~~specific~~metal ~~requirements~~prices, ~~related~~but ~~to working~~not ~~within~~necessarily ~~this~~in ~~industry.~~the Assame ~~such,~~manner as current supply and demand affect the ~~loss~~prices of Mrother commodities. ~~Wilson’s~~The ~~services~~supply ~~could~~of ~~cause~~these ~~irreparable~~metals ~~harm~~primarily toconsists ~~our~~of ~~operations,~~new ~~earnings,~~production ~~and~~from ~~ultimate~~mining. ~~financial~~If the prices of ~~success~~the ~~could~~metals ~~suffer~~are, ~~irreparable~~for ~~harm~~a ~~due~~substantial toperiod, ~~management's~~below ~~lack~~our offoreseeable ~~experience~~cost inof ~~this~~production, ~~industry~~we could cease operations and investors could lose their entire investment.

~~Because~~We ~~the~~may ~~prices~~conduct offurther ~~metals~~offerings ~~fluctuate,~~in if the ~~price~~future ~~of metals~~in ~~for~~ which ~~we are exploring decreases below a specified level, it may no~~case ~~longer~~investors’ beshareholdings ~~profitable to explore for those metals and we~~ will ~~cease operations~~be diluted.

~~Prices~~We ~~of metals~~ are ~~determined~~currently byoffering ~~such~~units ~~factors~~(common asstock ~~expectations~~and share ~~for~~purchase ~~inflation,~~warrant) ~~the~~for ~~strength~~gross proceeds of ~~the~~up ~~United~~to ~~States dollar~~$150,000. ~~global~~Since ~~and~~our ~~regional supply and demand~~inception, ~~and~~we have ~~political~~relied ~~and~~on ~~economic~~such ~~conditions~~equity ~~and~~sales ~~production~~of ~~costs~~our ~~in metals~~common ~~producing~~stock ~~regions~~to offund ~~the~~our ~~world~~operations. ~~The~~We may ~~aggregate~~conduct ~~effect~~further ofequity ~~these~~offerings ~~factors~~in ~~on metal~~the ~~prices~~future ~~is impossible for us~~ to ~~predict.~~finance Inour ~~addition, the prices of~~current ~~precious~~projects ~~metals~~or ~~are sometimes subject~~ to ~~rapid~~finance ~~short-term~~subsequent ~~and/or~~projects ~~prolonged changes~~that ~~because~~we ofdecide ~~speculative~~to ~~activities~~undertake. ~~The~~If common ~~current~~stock ~~demand~~is ~~for~~issued ~~and~~in ~~supply~~return ~~of these~~for ~~metals~~additional ~~affect the metal prices~~funds, ~~but not necessarily in~~ the ~~same~~price ~~manner~~per asshare could ~~current~~be ~~supply~~lower ~~and~~than ~~demand~~that ~~affect~~paid ~~the~~by ~~prices~~our ofcurrent ~~other commodities~~stockholders. ~~The~~We ~~supply~~anticipate ofcontinuing to ~~these~~rely ~~metals~~on ~~primarily~~equity ~~consists~~sales of ~~new~~our ~~production~~common ~~from~~stock ~~mining.~~in Iforder ~~the~~to ~~prices~~fund ofour business ~~the~~operations. ~~metals~~If ~~are,~~we ~~for~~issue aadditional ~~substantial period~~stock, ~~below~~the ~~our~~interests ~~foreseeable~~of ~~cost~~existing ofshareholders ~~production,~~will webe ~~could cease operations and investors could lose their entire investment~~diluted.

WeThe ~~may~~quotation ~~conduct~~price ~~further~~of ~~offerings~~our incommon stock may be volatile, with the ~~future~~result inthat ~~which~~an ~~case investors’~~investor ~~shareholdings~~may ~~will~~not be ~~diluted~~able to sell any shares acquired at a price equal to or greater than the price paid by the investor.

WeOur common shares are ~~currently~~quoted ~~offering~~on ~~units~~the ~~(common~~OTCQB ~~stock~~under ~~and~~the ~~share~~symbol ~~purchase~~"PNGM”. ~~warrant)~~Companies ~~for~~quoted ~~gross~~on ~~proceeds~~the ofOTCQB uphave totraditionally ~~$600,000.~~experienced ~~Since our inception, we~~extreme ~~have~~price ~~relied~~and onvolume ~~such~~fluctuations. ~~equity~~In ~~sales~~addition, of our ~~common~~ stock toprice ~~fund~~may ~~our~~be ~~operations. We~~adversely ~~may~~affected ~~conduct~~by ~~further~~factors ~~equity~~that ~~offerings~~are inunrelated ~~the~~or ~~future~~disproportionate to ~~finance~~ our ~~current~~operating ~~projects~~performance. orMarket tofluctuations, ~~finance~~as ~~subsequent~~well ~~projects~~as ~~that~~general weeconomic, ~~decide~~political ~~to undertake. If~~and ~~common~~market ~~stock~~conditions issuch ~~issued~~as inrecessions, ~~return~~interest ~~for~~rates ~~additional~~or ~~funds,~~international ~~the~~currency fluctuations ~~price~~may ~~per~~adversely ~~share~~affect ~~could~~the bemarket ~~lower~~price ~~than~~of ~~that~~our ~~paid~~common bystock. ~~our~~As ~~current~~a ~~stockholders.~~result Weof ~~anticipate~~this ~~continuing~~potential tovolatility ~~rely~~and onpotential ~~equity~~lack ~~sales~~ of ~~our~~a ~~common~~trading market, an ~~stock~~investor inmay ~~order~~not be able to ~~fund~~sell any of our ~~business~~common ~~operations.~~stock Ifthat wethey ~~issue~~acquire ~~additional~~at ~~stock,~~a ~~the~~price ~~interests~~equal ofor ~~existing~~greater ~~shareholders~~than ~~will~~the beprice ~~diluted~~paid by the investor.

27Because our stock is a penny stock, shareholders will be more limited in their ability to sell their stock.

The ~~quotation~~SEC ~~price~~has ofadopted ~~our~~rules ~~common~~that ~~stock~~regulate ~~may~~broker-dealer ~~be volatile,~~practices in connection with ~~the~~transactions ~~result~~in ~~that~~penny anstocks. ~~investor~~Penny ~~may~~stocks ~~not~~are begenerally equity ~~able~~securities towith ~~sell~~a ~~any~~price ~~shares~~of ~~acquired~~less atthan $5.00, other than securities aregistered ~~price~~on ~~equal~~certain tonational securities exchanges or ~~greater~~quoted ~~than~~on the Nasdaq system, provided that current price ~~paid~~and volume information with respect to transactions in such securities is provided by the ~~investor~~exchange or quotation system.

Our common shares are quoted on the OTC Bulletin Board under the symbol "PNGM.” Companies quoted on the OTC Bulletin Board have traditionally experienced extreme price and volume fluctuations. In addition, our stock price may be adversely affected by factors that are unrelated or disproportionate to our operating performance. Market fluctuations, as well as general economic, political and market conditions such as recessions, interest rates or international currency fluctuations may adversely affect the market price of our common stock. As a result of this potential volatility and potential lack of a trading market, an investor may not be able to sell any of our common stock that they acquire at a price equal or greater than the price paid by the investor.33

Because our securities constitute “penny stocks” within the meaning of the rules, the rules apply to us and to our securities. The rules may further affect the ability of owners of shares to sell our securities in any market that might develop for them. As long as the trading price of our common stock is aless ~~penny~~than ~~stock~~$5.00 per share, ~~shareholders~~the common stock will be ~~more~~subject ~~limited~~to inRule ~~their~~15g-9 ~~ability~~under the Exchange Act. The penny stock rules require a broker-dealer, prior to ~~sell~~a ~~their~~transaction in a penny stock., to deliver a standardized risk disclosure document prepared by the SEC, that:

~~The~~1. ~~SEC~~contains ~~has~~a ~~adopted~~description ~~rules~~of ~~that~~the ~~regulate~~nature ~~broker-dealer~~and ~~practices in~~level ~~connection~~of ~~with~~risk ~~transactions~~ in ~~penny~~the ~~stocks.~~market ~~Penny~~for penny stocks ~~are~~in ~~generally equity~~both ~~securities~~public ~~with~~offerings aand ~~price~~secondary oftrading; ~~less than $5~~2.~~00,~~ ~~other~~contains ~~than~~a ~~securities registered~~description onof ~~certain~~the ~~national~~broker’s ~~securities exchanges~~ or ~~quoted~~dealer’s onduties to the ~~Nasdaq system,~~customer ~~provided~~and ~~that~~of ~~current~~the ~~price~~rights and ~~volume~~remedies ~~information~~available to the customer with respect to ~~transactions~~ ina ~~such~~violation ~~securities~~to issuch ~~provided~~duties ~~by the exchange~~ or ~~quotation~~other ~~system. Because~~requirements ~~our~~of securities ~~constitute~~laws; ~~“penny~~3. ~~stocks”~~contains ~~within~~a ~~the~~brief, ~~meaning~~clear, ofnarrative ~~the rules,~~description ~~the~~of ~~rules~~a ~~apply~~dealer tomarket, usincluding bid and toask ~~our~~prices ~~securities.~~for ~~The~~penny ~~rules~~stocks ~~may~~and ~~further affect~~ the ~~ability~~significance of ~~owners~~the ofspread ~~shares~~between tothe ~~sell~~bid ~~our~~and ~~securities~~ask inprice; ~~any~~4. ~~market~~contains ~~that~~a ~~might develop~~toll-free ~~for~~telephone ~~them.~~number Asfor ~~long~~inquiries ason ~~the~~disciplinary ~~trading~~actions; ~~price~~5. ofdefines ~~our~~significant ~~common~~terms ~~stock~~in isthe ~~less~~disclosure ~~than $5.00~~document ~~per~~or ~~share,~~in the ~~common~~conduct ~~stock~~of ~~will~~trading bein ~~subject~~penny tostocks; ~~Rule~~and ~~15g-9~~6. ~~under~~contains ~~the Exchange~~such ~~Act.~~other ~~The~~information ~~penny~~and ~~stock~~is ~~rules~~in ~~require~~such ~~a broker-dealer~~form, ~~prior~~including tolanguage, ~~a transaction~~type, insize aand ~~penny stock~~format, toas ~~deliver~~the aSEC ~~standardized~~shall ~~risk~~require ~~disclosure document prepared~~ by ~~the~~rule ~~SEC,~~or ~~that:~~regulation.

1.The ~~contains~~broker-dealer aalso ~~description~~must ofprovide, ~~the~~prior ~~nature~~to ~~and~~effecting ~~level~~any transaction ofin ~~risk~~a inpenny stock, the ~~market~~customer ~~for~~with: ~~penny~~(a) ~~stocks~~bid inand ~~both~~offer ~~public~~quotations for ~~offerings~~the ~~and~~penny ~~secondary trading~~stock; 2.(b) ~~contains~~the acompensation ~~description~~ of the broker~~’s or~~ -dealer’s ~~duties~~and toits salesperson in the ~~customer~~transaction; ~~and~~(c) the number of ~~the~~shares ~~rights~~to ~~and~~which ~~remedies~~such ~~available~~bid toand ask ~~the~~prices ~~customer~~apply, ~~with~~or ~~respect~~other tocomparable ainformation ~~violation~~relating to ~~such~~the ~~duties~~depth orand liquidity ~~other~~of ~~requirements~~the ofmarket ~~securities~~for ~~laws~~such stock; 3.and ~~contains~~(d) a ~~brief,~~monthly ~~clear,~~account ~~narrative~~statements showing ~~description~~the market value of aeach ~~dealer~~penny ~~market,~~stock ~~including~~held ~~bid~~in ~~and~~the ~~ask~~customer’s ~~prices~~account. ~~for~~In addition, the penny ~~stocks~~stock ~~and~~rules ~~the~~require ~~significance~~that ofprior ~~the~~to ~~spread~~a ~~between~~transaction ~~the~~in ~~bid~~a ~~and~~penny stock ~~ask~~not ~~price~~otherwise exempt from those rules; 4.the ~~contains~~broker-dealer must make a special ~~toll-free~~written ~~telephone~~determination ~~number~~that ~~for~~the ~~inquiries~~penny onstock ~~disciplinary~~is ~~actions;~~a 5.suitable ~~defines~~investment ~~significant~~for the ~~terms~~purchaser inand receive the ~~disclosure~~purchaser’s ~~document~~written oracknowledgment inof the ~~conduct~~ receipt of ~~trading~~a inrisk disclosure statement, a written agreement to transactions involving penny stocks;, and 6.a ~~contains~~signed ~~such~~and ~~other~~dated ~~information~~copy ~~and~~of isa inwritten ~~such~~suitably ~~form,~~statement. ~~including~~These disclosure ~~language,~~requirements ~~type,~~may ~~size~~have ~~and~~the ~~format,~~effect asof reducing the ~~SEC~~trading ~~shall~~activity ~~require~~in the bysecondary ~~rule~~market orfor ~~regulation~~our stock.

~~The~~ITEM broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer’s account2. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitably statementPROPERTIES. ~~These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock.~~

28We rent office space at 1200 Dupont Street, Suite 2J, Bellingham, WA 98225, consisting of approximately 144 square feet, at a cost of $270 per month. This rental is on a month-to-month basis without a formal contract.

~~ITEM~~Our 2mineral properties are discussed in detail above under the heading “Item 1. ~~PROPERTIES~~Business”.

WeITEM ~~rent office space at 1200 Dupont Street, Suite 2J, Bellingham, WA 98225, consisting of approximately 144 square feet, at a cost of $337 per month~~3. ~~This~~LEGAL ~~rental is on a month-to-month basis without a formal contract~~PROCEEDINGS.

~~Our~~We ~~mineral~~are ~~properties~~not ~~are~~a ~~discussed~~party into ~~detail~~any ~~above~~other ~~under~~legal ~~the~~proceedings and, to our ~~heading~~knowledge; ~~“Item~~no 1.other ~~Business”~~legal proceedings are pending, threatened or contemplated.

~~ITEM 3. LEGAL PROCEEDINGS.~~34

WePART ~~are~~II ~~not a party to any other legal proceedings and, to our knowledge; no other legal proceedings are pending, threatened or contemplated.~~

29ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

~~PART~~Market IIInformation

~~ITEM~~Our 5.shares ~~MARKET~~of ~~FOR~~common ~~REGISTRANT’S~~stock ~~COMMON~~are ~~EQUITY,~~quoted ~~RELATED~~on ~~STOCKHOLDER~~the ~~MATTERS~~OTCQB ~~AND~~under ~~ISSUER~~the symbol ~~PURCHASES OF EQUITY SECURITIES~~“PNGM”.

~~Market~~The ~~Information~~high and low bid information for our common stock for the years ended November 30, 2010 and 2009 were:

Our shares of common stock originally commenced trading on the OTC Bulletin Board under the symbol “PGRM” on July 11, 2007. Our symbol was changed to "PNGM" upon completion of a 3-for-1 stock split of our authorized and issued common stock effective April 13, 2009.

QUARTER	HIGH ($)	LOW ($)
February 28, 2009	$0.25	$0.10
May 31, 2009	$0.30	$0.10
August 31, 2009	$0.325	$0.16
November 30, 2009	$0.40	$0.15
February 28, 2010	$0.42	$0.135
May 31, 2010	$0.14	$0.07
August 31, 2010	$0.12	$0.05
November 30, 2010	$0.09	$0.05

The ~~high~~above ~~and~~quotations ~~low~~have ~~bid~~been ~~information~~adjusted ~~for~~to ~~our~~reflect ~~common~~the ~~stock~~ 3-for ~~the~~-1 ~~years~~stock ~~ended~~split ~~November~~effected 30April 13, 2009. ~~and~~Quotations ~~2008~~provided ~~as reported~~ by the ~~OTC~~OTCQB ~~Bulletin~~reflect inter-dealer ~~Board~~prices, without retail mark-up, markdown or commission and may not ~~were:~~represent actual transactions.

QUARTER	HIGH ($)	LOW ($)
February 28, 2008	$0.067	$0.00
May 31, 2008	$0.117	$0.02
August 31, 2008	$0.15	$0.067
November 30, 2008	$0.133	$0.083
February 28, 2009	$0.25	$0.10
May 31, 2009	$0.30	$0.10
August 31, 2009	$0.325	$0.16
November 30, 2009	$0.40	$0.15

Holders of Our Common Stock

~~The~~As ~~above~~of ~~quotations~~March ~~have~~10, ~~been~~2011, ~~adjusted~~there toare ~~reflect~~58,264,344 ~~the~~shares ~~3-for-1~~of our common stock ~~split~~issued ~~effected~~and ~~April~~outstanding ~~13,~~held ~~2009.~~of ~~Quotations~~record ~~provided~~ by ~~the~~28 ~~OTCBB~~registered ~~reflect~~stockholders. We ~~inter-dealer~~believe ~~prices,~~that ~~without~~a ~~retail~~number ~~mark-up,~~of ~~markdown~~stockholders orhold ~~commission~~stock ~~and~~on ~~may~~deposit ~~not~~with their brokers ~~represent~~or ~~actual~~investment ~~transactions~~bankers registered in the name of stock depositories.

~~Holders of Our Common Stock~~Dividends

AsWe ofhave ~~March~~not ~~15,~~declared ~~2010~~any dividends on our common stock since our inception on April 28, ~~there~~2006. There are ~~54,247,144~~no ~~shares~~dividend ofrestrictions that limit our ability to pay dividends on our common stock ~~issued~~in ~~and~~our ~~outstanding~~Articles ~~held~~ of Incorporation ~~record~~or byBylaws. 24Our ~~registered~~governing ~~stockholders.~~statute, WeChapter 78 of the Nevada Revised ~~believe~~Statutes ~~that~~(the a“NRS”), ~~number~~does provide limitations on our ability to declare dividends. Section 78.288 of ~~stockholders~~Chapter ~~hold~~78 ~~stock~~of onthe ~~deposit~~NRS ~~with~~prohibits ~~their~~us ~~brokers~~from declaring ordividends ~~investment~~where, ~~bankers~~after ~~registered~~giving ineffect to the ~~name~~distribution of ~~stock~~the ~~depositories.~~dividend:

~~Dividends~~(a) we would not be able to pay our debts as they become due in the usual course of business; or (b) our total assets would be less than the sum of our total liabilities plus the amount that would be needed, if we were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders who may have preferential rights and whose preferential rights are superior to those receiving the distribution (except as otherwise specifically allowed by our Articles of Incorporation).

WeRecent ~~have~~Sales ~~not declared any dividends on our common stock since our inception on April 28, 2006. There are no dividend restrictions that limit our ability to pay dividends on our common stock in our Articles~~ of ~~Incorporation~~ orUnregistered Bylaws. Our governing statute, Chapter 78 of the Nevada Revised Statutes (the “NRS”), does provide limitations on our ability to declare dividends. Section 78.288 of Chapter 78 of the NRS prohibits us from declaring dividends where, after giving effect to the distribution of the dividend:Securities

~~(a)~~All weunregistered ~~would~~sales ~~not be able to pay our debts as they become due in the usual course~~ of ~~business; or (b)~~ our ~~total~~equity ~~assets~~securities ~~would~~made beduring ~~less than~~ the fiscal ~~sum~~year ofended ~~our~~November ~~total liabilities plus the amount that would be needed~~30, if2010 wehave ~~were~~been topreviously bereported ~~dissolved~~in atour Quarterly ~~the~~Reports ~~time~~on ofForm ~~distribution,~~10-Q ~~to satisfy the preferential rights upon dissolution of stockholders who may have preferential rights~~ and ~~whose~~our ~~preferential~~Current ~~rights~~Reports ~~are~~on ~~superior~~Form ~~to those receiving the distribution (except as otherwise specifically allowed by our Articles of Incorporation)~~8-K.

~~Recent Sales of Unregistered Securities~~35

~~All~~ITEM ~~unregistered~~7. ~~sales~~MANAGEMENT'S ofDISCUSSION ~~our~~AND ~~equity~~ANALYSIS ~~securities~~OF ~~made~~FINANCIAL ~~during the~~CONDITION ~~fiscal~~AND ~~year~~RESULTS ~~ended~~OF ~~November 30, 2009 have been previously reported in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K~~OPERATIONS.

30PLAN OF OPERATION

~~ITEM~~Over 7.the ~~MANAGEMENT'S~~next ~~DISCUSSION~~twelve ~~AND~~months, ~~ANALYSIS~~our OFplan ~~FINANCIAL~~of ~~CONDITION~~operation ~~AND~~is ~~RESULTS~~to OFfocus our ~~OPERATIONS.~~resources on the exploration of the Eureka Optioned Properties

~~PLAN~~Subject OFto ~~OPERATION~~obtaining sufficient financing, we plan to retain a consulting geologist to conduct a review of these properties in order to recommend an exploration program to be conducted in summer 2011. Once our consulting geologist has provided us with their findings, we will determine whether to proceed with an exploration program on these properties.

~~Over~~During the next twelve months, ~~our~~we ~~plan~~will be required to make a number of ~~operation~~payments isin order to maintain our options to acquire the Golden Snow ~~conduct~~Project, ~~exploration~~Fish ~~work~~Project onand ~~each~~CPG Project. Under the terms of our ~~mineral~~options ~~properties~~to acquire the Golden Snow Project, ~~subject~~Fish Project and CPG Project, in order to ~~obtaining~~keep them in ~~financing~~good standing, we are required to pay to Claremont: (i) an option payment of $20,000 by August 28, 2011; and (ii) the Bureau of Land Management maintenance and claim fees of approximately $32,583 by September 1, 2011. If we are unable to make the payments to Claremont, the Bureau of Land Management or pay the annual maintenance claim fees, we will lose our interest in the Golden Snow Project, Fish Project and CPG Project.

~~Clisbako~~As ~~Property~~the agreement is an option, we may decide at any time not to proceed in which case we would not be liable to pay any funds beyond the amounts due at the time we provide notice that we are not proceeding. There is no assurance that we will exercise the option.

~~Our~~As ~~plan~~at ofNovember ~~operation~~30, ~~for~~2010, ~~the~~we ~~Clisbako~~had ~~Property~~$353 iscash toon ~~implement~~hand. Accordingly, ~~Phase~~we Ihave ofinsufficient cash on hand to proceed with our exploration ~~program~~ on the ~~Clisbako~~Golden Snow ~~Property~~Project, inFish ~~order~~Project toand ~~assess~~CPG Project, and meet our ongoing operating ~~whether~~costs. itAs ~~possesses~~such, ~~mineral~~we ~~reserves~~will ~~capable~~require ofsubstantial ~~commercial~~financing ~~extraction.~~in Weorder ~~have~~to meet our ~~not,~~obligations. ~~nor~~There ~~has~~is ~~any~~no ~~predecessor,~~assurance ~~identified~~that ~~any~~we ~~commercially~~will ~~exploitable~~be ~~reserves~~able to acquire such financing on ~~the~~terms ~~Clisbako~~that ~~Property~~are acceptable to us, or at all.

~~Subject~~RESULTS toOF obtaining sufficient financing, Phase I of our exploration program is intended to be commenced in the summer of 2010. If we are able to obtain financing, Phase I of our exploration program on the Clisbako Property will involve soil geochemical surveys, prospecting, mapping and geophysics in order to define the Bari 1 and Bari 2 zones. We anticipate that Phase I will cost approximately CDN $122,000 ($117,851). There is no assurance that we will be able to acquire such financing.OPERATIONS

~~Manado~~Summary ~~Gold~~of ~~Property~~Year End Results

We plan to conduct due diligence as soon as practicable pursuant to the Manado Agreement. Our due diligence period does not expire until March 31, 2010. Upon satisfactory due diligence and subject to entering into a formal option agreement, we plan to commence an initial exploration program of approximately $250,000 in order to confirm results of the previous exploration work on the mineralized zones.

		Year Ended			Year Ended		Percentage
		November 30, 2010			November 30, 2009		Increase / (Decrease)
Revenue	$	-		$	-		n/a
Expenses		(426,953	)		(375,580	)	13.7%
Net Loss	$	(426,953	)	$	(375,580	)	13.7%

~~Golden~~Revenue ~~Snow Project, Fish Project, CPG Project, June Claims and Texada Gold Property~~

~~Subject~~We tohave ~~obtaining~~not ~~sufficient~~earned ~~financing,~~any inrevenues ~~the~~to ~~summer~~date. ~~of 2010,~~We wedo ~~plan~~not toanticipate earning ~~retain~~revenues auntil ~~consulting~~such ~~geologist~~time toas ~~conduct~~we aenter ~~review~~into commercial production of ~~these~~our mineral properties. inWe ~~order~~are topresently ~~recommend~~in anthe exploration ~~program~~stage toof beour ~~conducted~~business and inwe ~~fall~~can provide no assurance that we will discover commercially exploitable ~~2010~~levels orof ~~early~~mineral ~~2011.~~resources ~~Once~~on our ~~consulting~~properties, ~~geologist~~or ~~has~~if ~~provided~~such usdeposits ~~with their~~are ~~findings~~discovered, that we will ~~determine~~enter ~~whether~~into tofurther ~~proceed~~substantial ~~with an~~ exploration ~~program on~~ ~~these properties~~programs.

During the next twelve months, we will be required to make a number of payments in order to maintain our options to acquire the Golden Snow Project, Fish Project, CPG Project. Under the terms of our options to acquire the Golden Snow Project, Fish Project, CPG Project and June Claims, in order to keep them in good standing, we are required to pay to Claremont: (i) an option payment of $15,000 by August 28, 2010; and (ii) the Bureau of Land Management maintenance and claim fees of approximately $32,088 by September 1, 2010. If we are unable to make the payments to Claremont, the Bureau of Land Management or pay the annual maintenance claim fees, we will lose our interest in the Golden Snow Project, Fish Project and CPG Project. Under the terms of the option agreement to acquire the June Claims, we are required to pay US $10,000 on or before May 6, 2011.36

These agreements are options only and we may determine at any time not to proceed in which case we would not be liable to issue any shares or pay any funds beyond the amounts due at the time we provide notice that we are not proceeding. There is no assurance that we will exercise this option.Expenses

AsThe atmajor ~~November~~components ~~30,~~of ~~2009, we had $3,711 cash on hand. Accordingly, we have insufficient cash on hand to proceed with~~ our ~~exploration on~~expenses ~~the~~for ~~Clisbako Property, conduct due diligence of~~ the ~~Manado~~years ~~Gold Property,~~ended ~~satisfy~~November ~~the option payments to acquire the Golden Snow Project~~30, ~~Fish~~2010 ~~Project~~ and ~~CPG~~ ~~Project,~~2009 ~~and meet our ongoing operating costs. There is no assurance that we will be able to acquire such financing on terms that~~ are ~~acceptable~~outlined ~~to us, or at all. As such we will require substantial financing~~ in ~~order~~the totable ~~meet~~below: ~~our obligations.~~

		Year Ended			Year Ended	Percentage
		November 30, 2010			November 30, 2009	Increase / (Decrease)
Bank Charges and Interest	$	22,543		$	15,418	46.2%
Consulting Fees		29,126			-	100%
Depreciation Expense		253			505	(49.9)%
Filing and Regulatory		3,232			5,609	(42.4)%
Finance charges		83,881			53,619	56.4%
Incorporation Costs		-			1,262	(100)%
Investor Relations		6,000			9,800	(38.8)%
Management Fees		36,000			36,000	0.0%
Mineral Property Exploration Costs		38,317			51,930	(26.2)%
Office and Administrative		23,099			19,181	20.4%
Professional Fees		193,075			168,675	14.5%
Recovery on Mineral Property.		(18,377	)		-	(100)%
Travel		2,760			13,581	(79.7)%
Website Design		4,044			-	100%
Write-off of Mineral Property Costs		3,000			-	100%
Total Expenses	$	426,953		$	375,580	13.7%

~~RESULTS~~Our OFoperating ~~OPERATIONS~~expenses increased from $375,580, during the year ended November 30, 2009, to $426,953, during the year ended November 30, 2010. The increase in our operating expenses was primarily a result of increased bank charges and interest, consulting fees, finance charges, office and administrative expenses, professional fees, website design expenses and write off of mineral property costs. This increase was partially offset by decreases in filing and regulatory fees, incorporation costs, investor relations fees, mineral property exploration costs and travel expenses.

Summary of Year End Results
		Year Ended			Year Ended		Percentage
		November 30, 2009			November 30, 2008		Increase / (Decrease)
Revenue	$	-		$	-		n/a
Expenses		(375,580	)		(139,039	)	170.1%
Net Loss	$	(375,580	)	$	(139,039	)	170.1%

Management fees relate to fees paid or accrued to the directors of Magellan Acquisition Corp., our wholly owned Nevada subsidiary.

~~Revenue~~Mineral property exploration costs primarily relate to fees incurred in connection with maintaining our option on the Golden Snow Project, the Fish Project, CPG Project and Manado Gold Property, and maintaining our Clisbako Property in good standing.

WeProfessional ~~have~~fees ~~not~~primarily ~~earned~~relate ~~any revenues~~ to ~~date.~~costs Weincurred ~~do not anticipate~~in ~~earning~~connection ~~revenues~~with ~~until~~our ~~such~~entry ~~time as we enter~~ into ~~commercial~~option ~~production~~agreements ofon our ~~mineral~~ properties., ~~We are presently in the exploration stage of our business~~ and ~~we can provide no assurance that we will discover commercially exploitable~~meeting ~~levels of mineral resources on~~ our ~~properties,~~ongoing orreporting ifrequirements ~~such~~under ~~deposits~~the ~~are discovered,~~Exchange ~~that we will enter into further substantial exploration programs~~Act.

~~Expenses~~Finance fees during the year ended November 30, 2010 primarily relate to amortization of the discount resulting from the allocation of proceeds to the warrants and the intrinsic value beneficial conversion feature.

~~The~~We ~~major~~anticipate ~~components of~~ our operating expenses ~~for~~will ~~the~~increase ~~years~~if ~~ended~~we ~~November~~implement ~~30,~~our ~~2009~~exploration ~~and~~program ~~2008~~on ~~are~~our ~~outlined~~mineral ~~in the table below:~~properties.

		Year Ended		Year Ended	Percentage
		November 30, 2009		November 30, 2008	Increase / (Decrease)
Bank charges and interest	$	15,418	$	-	100%
Consulting Fees		-		400	(100)%
Depreciation Expense		505		505	0.0%
Filing and Regulatory		5,609		4,185	34%
Finance charges		53,619		-	100%
Incorporation Costs		1,262		800	57.8%
Investor Relations		9,800		-	100%
Management Fees		36,000		11,800	205.1%
Mineral Property Exploration Costs		51,930		-	100%
Office and Administrative		19,181		11,215	71.0%
Professional Fees		168,675		104,134	62.0%
Travel		13,581		-	100%
Write-off of Mineral Property Costs		-		6,000	(100)%
Total Expenses	$	375,580	$	139,039	170.1%

~~Our~~LIQUIDITY ~~operating~~AND ~~expenses~~CAPITAL ~~during~~RESOURCES the year ended November 30, 2009 totaled $375,580 compared with $139,039 during the year ended November 30, 2008. The increase in our operating expenses was primarily a result of increased bank charges and interest, finance charges, management fees, mineral property exploration costs and professional fees.

Management fees relate to fees paid or accrued to the directors of Magellan Acquisition Corp., our wholly owned Nevada subsidiary.

Working Capital
		At			At		Percentage
		November 30, 2010			November 30, 2009		Increase / (Decrease)
Current Assets	$	353		$	3,711		(90.5)%
Current Liabilities		(535,964	)		(375,065	)	42.9%
Working Capital Deficit	$	(535,611	)	$	(371,354	)	44.2%

Mineral property exploration costs primarily relate to fees incurred in connection with maintaining our option on the Golden Snow Project, the Fish Project, CPG Project, Manado Gold Property and June Claims, and maintaining our Clisbako Property and Texada Property in good standing.

Cash Flows
		Year Ended			Year Ended
		November 30, 2010			November 30, 2009
Cash Flows used in Operating Activities	$	(161,425	)	$	(203,885	)
Cash Flows from (used in) Investing Activities		49,002			90,000
Cash Flows from Financing Activities		109,065			87,670
Net Increase (Decrease) in Cash During Period	$	(3,358	)	$	(26,215	)

The ~~additional~~increase ~~professional~~in ~~fees~~our ~~during~~working ~~the~~capital deficit at November 30, 2010 from our year ended November 30, 2009 ~~primarily~~is ~~relate~~a toresult ~~costs~~of ~~incurred~~the infact ~~connection~~that: ~~with~~(i) accounts payable increased due to our ~~acquisition~~ lack of ~~our~~capital ~~optioned~~to ~~properties,~~meet ongoing expenditures; and ~~meeting~~(ii) ~~our~~we ~~ongoing~~received ~~reporting~~a ~~requirements~~loan ~~under~~of $75,000 from a third party. The ~~the~~loan ~~Exchange~~bears ~~Act~~interest at a rate of 10% per annum and is due on demand.

32During the year ended November 30, 2010, we received $70,000 from the issuance of our securities as follows:

~~Finance~~(a) ~~fees~~on ~~during~~February ~~the~~18, ~~year~~2010, ~~ended~~the ~~November~~issuance 30of 120,000 ~~2009~~shares ~~primarily relate~~upon tothe ~~amortization~~exercise of ~~the~~warrants ~~discount~~for ~~resulting~~proceeds ~~from~~of $10,000; (b) on July 20, 2010, the ~~allocation~~issuance of 500,000 Units for proceeds to ~~the~~of ~~warrants~~$50,000; and (c) on August 4, 2010, the ~~intrinsic~~issuance ~~value~~of ~~beneficial~~100,000 ~~conversion~~Units ~~feature~~for proceeds of $10,000.

WeFinancing ~~anticipate~~Requirements ~~our operating expenses will increase if we implement our exploration program on our mineral properties.~~

~~LIQUIDITY~~As ~~AND~~at ~~CAPITAL~~November ~~RESOURCES~~30, 2010, we had $353 cash on hand. Currently, we do not have sufficient financial resources to complete our plan of operation for the next twelve months. We have not earned any revenues to date and we do not anticipate earning revenues in the near future. As such, our ability to complete our plan of operation is dependent upon our ability to obtain substantial financing in the near term. Any future financing that we obtain is expected to be in the form of sales of our equity securities. If we are successful in completing any equity financings, of which there is no assurance, our existing shareholders will experience a dilution of their interest in our company. There is a substantial doubt that we will be able to obtain financing in an amount that is sufficient to enable us to complete our proposed plan of operation. If we are not successful in raising sufficient financing, we will not be able to complete our plan of operation. We do not have any specific alternatives to our current plan of operation and have not planned for any such contingency. If we are not successful in raising sufficient financing, our business may fail and our shareholders may lose all or part of their investment.

Working Capital
		At			At		Percentage
		November 30, 2009			November 30, 2008		Increase / (Decrease)
Current Assets	$	14,078		$	29,926		(53.0)%
Current Liabilities		(375,065	)		(199,605	)	87.9%
Working Capital Deficit	$	(360,987	)	$	(169,679	)	112.7%

OFF-BALANCE SHEET ARRANGEMENTS

Cash Flows
		Year Ended			Year Ended
		November 30, 2009			November 30, 2008
Cash Flows used in Operating Activities	$	(203,885	)	$	(41,973	)
Cash Flows from (used in) Investing Activities		90,000			(110,367	)
Cash Flows from Financing Activities		87,670			178,500
Net Increase (Decrease) in Cash During Period	$	(26,215	)	$	26,160

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

The increase in our working capital deficit at November 30, 2009 from our year ended November 30, 2008 is a result of the fact that: (i) accounts payable increased due to our lack of capital to meet ongoing expenditures; (ii) we recorded a payable of $65,913 (CDN $70,000) in connection with our acquisition of the Clisbako Property; and (iii) we recorded $18,860 as unit subscriptions received as we have not issued these securities as at November 30, 2009.38

~~During~~CRITICAL ~~the~~ACCOUNTING year ended November 30, 2009, we issued 55 units for total proceeds of $137,500. Each unit is comprised of a $2,500, 10% convertible note and 10,000 share purchase warrants. Upon issuance of the 55 units, we terminated the offering. We received proceeds of $67,500 during the year ended November 30, 2008 and the remaining $70,000 during the year ended November 30, 2009. During the year ended November 30, 2009, no amounts of principal or accrued interest were converted into shares of the Company’s common stock.POLICIES

OnThe ~~August~~preparation 6,of ~~2008,~~financial westatements ~~entered~~in ~~into~~conformity ~~a letter of intent~~ with ~~Magellan~~generally ~~Copper~~accepted ~~and~~accounting ~~Gold~~principles ~~plc~~requires ~~(“Magellan”)~~our ~~pursuant~~management to ~~which we intended to~~make ~~acquire~~estimates ~~Magellan Resources Pte Ltd.~~ and ~~St.~~assumptions ~~Anthony~~that ~~Resources~~affect ~~Pte Ltd. (collectively,~~ the ~~“Magellan~~reported ~~Singapore~~amount ~~Subsidiaries”). In connection with the Letter~~ of ~~Intent,~~assets ~~we advanced an aggregate of $110,367 to Magellan (the~~and ~~“Advances”).~~liabilities ~~However,~~and ondisclosure ~~December 17, 2008, we relinquished any rights that we may have had to acquire the Magellan Singapore Subsidiaries pursuant to the terms~~ of acontingent ~~purchase~~assets ~~agreement dated for reference as of December 15, 2008 with Solfotara, Magellan~~ and ~~Magellan~~liabilities ~~Acquisition~~at ~~Corp. (“MAC”), our wholly owned subsidiary. Under~~ the ~~terms~~date of ~~this purchase agreement, Solfotara issued 250,000~~ ~~of its shares (~~the ~~“Shares”)~~financial tostatements ~~MAC~~ and ~~agreed to repay~~ the ~~Advances~~reported toamounts ~~MAC as follows: (i) $20,000 within three days~~ of ~~signing~~revenues ~~the agreement (which amount has been paid); (ii) $30,000 on April 15, 2009 (which amount has been paid);~~ and ~~(iii)~~ ~~$50,000 on June 15, 2009 (which amount has been paid). In consideration of~~expenses ~~the~~during ~~Shares and~~ the ~~above~~reporting ~~payments,~~period. weActual ~~relinquished~~results ~~any~~could ~~rights~~differ ~~that~~from wethose ~~may have~~estimates. ~~had~~Our tomanagement ~~acquire~~routinely ~~Magellan~~makes ~~Singapore~~judgments ~~Subsidiaries~~ and ~~assigned~~estimates toabout ~~Solfotara our right to be repaid~~ the ~~Advances.~~effects ~~The total value attributed to the common stock~~of ~~received~~matters ~~from~~that ~~Solfotara~~are ~~was~~inherently ~~$10,367, or approximately $0~~uncertain.04 ~~per share.~~

33We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are disclosed in the notes to our audited financial statements included under Item 8 of this Annual Report.

~~Financing~~Use ~~Requirements~~of Estimates

AsThe atpreparation ~~November~~of ~~30, 2009, we had $3,711 cash on hand. Currently, we do not have sufficient~~ financial ~~resources to complete our plan of operation for the next twelve months. We have not earned any revenues to date and we do not anticipate earning revenues in the near future. As such~~statements, ~~our ability to complete our plan of operation is dependent upon our ability to obtain substantial financing~~ in ~~the~~conformity ~~near term. Any future financing that we obtain is~~with ~~expected~~generally toaccepted beaccounting ~~in the form of sales of our equity securities. If we are successful in completing any equity financings~~principles, ofrequires ~~which~~management ~~there is no assurance, our existing shareholders will experience a dilution of their interest in our company. There is a substantial doubt that we will be able~~ to ~~obtain~~make ~~financing~~estimates inand anassumptions ~~amount~~ that isaffect ~~sufficient~~the toamounts ~~enable~~reported ~~us to complete our proposed plan of operation. If we are not successful~~ in ~~raising~~the ~~sufficient~~financial ~~financing,~~statements ~~we will not~~and beaccompanying ~~able to complete our plan of operation~~disclosures. WeActual doresults ~~not have any specific alternatives to our current plan of operation and have not planned for any such contingency. If we are not successful in raising sufficient financing, our business~~ may ~~fail~~differ ~~and~~from ~~our~~the ~~shareholders may lose all or part of their investment~~estimates.

OnExploration ~~May~~Stage 1, 2009, our Board of Directors approved a private placement offering of up to 3,000,000 units (the “Private Placement Units”) at a price of $0.20 per Private Placement Unit for gross proceeds of up to $600,000. Each Private Placement Unit is comprised of one share of our common stock and one share purchase warrant, with each warrant entitling the subscriber to purchase an additional share of our common stock for a period of one year following the date of issuance at an exercise price equal to $0.30 per share. This offering of Private Placement Units will be made to investors who are not “U.S. Persons” as defined in Regulation S of the Securities Act. As of November 30, 2009, we had received proceeds of $18,860 under this offering, but have not issued any securities. There are no assurances that any Private Placement Units will be sold under this offering.Enterprise

~~OFF-BALANCE~~Our ~~SHEET~~financial ~~ARRANGEMENTS~~statements are prepared using the accrual method of accounting. Until such properties are acquired and developed, we will continue to prepare our financial statements and related disclosures in accordance with entities in the exploration stage.

WeMineral ~~have~~Property no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.Interests

~~CRITICAL~~We ~~ACCOUNTING~~are ~~POLICIES~~an exploration stage mining company and have not yet realized any revenue from our operations. We are primarily engaged in the acquisition, exploration and development of mining properties. Exploration costs are expensed as incurred regardless of the stage of development or existence of reserves. Costs of acquisition are capitalized subject to impairment testing, when facts and circumstances indicate impairment may exist.

~~The~~We ~~preparation~~regularly perform evaluations of ~~financial~~any ~~statements~~investment in ~~conformity with~~mineral ~~generally~~properties ~~accepted accounting principles requires our management~~ to ~~make estimates~~assess ~~and assumptions that affect~~ the ~~reported~~recoverability ~~amount of assets~~ and ~~liabilities~~/or ~~and disclosure of contingent assets and liabilities at~~ the ~~date~~residual ~~of the~~value ~~financial statements and the reported amounts~~ of ~~revenues and expenses~~our ~~during~~investments ~~the~~in ~~reporting~~these ~~period~~assets. ~~Actual~~All ~~results~~long-lived ~~could~~assets ~~differ~~are ~~from~~reviewed ~~those~~for ~~estimates.~~impairment ~~Our~~whenever ~~management~~events ~~routinely~~or ~~makes~~circumstances ~~judgments~~change ~~and~~which ~~estimates~~indicate ~~about~~ the ~~effects~~carrying amount of an ~~matters~~asset ~~that~~may ~~are~~not ~~inherently~~be ~~uncertain~~recoverable.

WeManagement ~~have~~periodically ~~identified~~reviews ~~certain~~the ~~accounting~~carrying ~~policies,~~value ~~described~~of our ~~below,~~investments ~~that~~in ~~are~~mineral ~~most~~leases ~~important~~and claims with internal and external mining related professionals. A decision to ~~the~~abandon, ~~portrayal~~reduce or expand a specific project is based upon many factors including general and specific assessments of mineral ~~our~~deposits, ~~current~~anticipated ~~financial~~future mineral prices, anticipated future costs of ~~condition~~exploring, developing and ~~results~~operating a production mine, the expiration term and ongoing expenses of ~~operations~~maintaining mineral properties and the general likelihood that we will continue exploration on such project. ~~Our~~We ~~significant~~do ~~accounting~~not ~~policies~~set ~~are~~a ~~disclosed~~pre-determined inholding period for properties with unproven deposits; however, properties which have not demonstrated suitable metal concentrations at the conclusion ~~notes~~of each phase of an exploration program are re-evaluated to ~~our~~determine if ~~audited~~future ~~financial~~exploration ~~statements~~is ~~included~~warranted, ~~under~~whether ~~Item~~there 8has been any impairment in ofvalue ~~this~~and ~~Annual~~that ~~Report~~their carrying values are appropriate.

~~Use~~If an area of ~~Estimates~~interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the year of abandonment or determination of value. The amounts recorded as mineral leases and claims represent costs to date and do not necessarily reflect present or future values.

~~The~~Our ~~preparation~~exploration ofactivities ~~financial~~are ~~statements,~~subject into ~~conformity~~various ~~with~~laws and ~~generally~~regulations ~~accepted~~governing ~~accounting~~the ~~principles,~~protection ~~requires~~of ~~management~~the toenvironment. ~~make~~These ~~estimates~~laws are ~~and~~continually ~~assumptions~~changing, ~~that~~generally ~~affect~~becoming ~~the~~more ~~amounts~~restrictive. ~~reported~~We inhave ~~the~~made, ~~financial statements~~ and ~~accompanying~~expect ~~disclosures.~~to ~~Actual~~make ~~results~~in ~~may~~the ~~differ~~future, ~~from~~expenditures ~~the~~to ~~estimates~~comply with such laws and regulations.

~~Exploration Stage Enterprise~~39

~~Our~~The ~~financial~~accumulated ~~statements~~costs ~~are prepared using the accrual method~~ of ~~accounting. Until such~~ properties that are ~~acquired and~~ developed, weon ~~will~~the ~~continue~~stage toof ~~prepare~~commercial ~~our~~production ~~financial~~will ~~statements~~be ~~and~~amortized ~~related~~to ~~disclosures~~operations inthrough ~~accordance~~unit-of-production ~~with entities in the exploration stage~~depletion.

3440

~~Mineral~~ITEM ~~Property~~8. ~~Interests~~FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

WeIndex are an exploration stage mining company and have not yet realized any revenue from our operations. We are primarily engaged in the acquisition, exploration and development of mining properties. Exploration costs are expensed as incurred regardless of the stage of development or existence of reserves. Costs of acquisition are capitalized subject to ~~impairment~~Consolidated ~~testing, when~~Financial ~~facts~~Statements: ~~and circumstances indicate impairment may exist.~~

WeAudited ~~regularly~~consolidated ~~perform~~financial ~~evaluations~~statements ofas ~~any investment in mineral properties to assess the recoverability and/or the residual value~~ of ~~our investments~~November ~~in these assets. All long-lived assets are reviewed for impairment~~30, ~~whenever~~2010, ~~events or circumstances change which indicate the carrying amount of an asset may not be recoverable.~~including:

~~Management~~1. ~~periodically~~Report ~~reviews the carrying value~~ of ~~our investments~~Independent inRegistered ~~mineral~~Public ~~leases~~Accounting ~~and~~Firm ~~claims~~(Davidson ~~with internal~~ and ~~external~~Company, ~~mining related professionals~~L. ~~A decision to abandon~~L.P., ~~reduce~~Chartered orAccountants); ~~expand~~2. aConsolidated ~~specific project~~Balance isSheets ~~based~~as ~~upon~~of ~~many~~November ~~factors~~30, ~~including~~2010 ~~general~~ and ~~specific~~2009; ~~assessments~~3. ~~of mineral~~Consolidated ~~deposits,~~Statements ~~anticipated~~of ~~future~~Operations ~~mineral~~for ~~prices,~~the ~~anticipated~~years ~~future~~ended ~~costs~~November ~~of exploring~~30, ~~developing~~2010 and ~~operating~~2009 aand ~~production~~for ~~mine,~~ the ~~expiration~~cumulative ~~term~~period ~~and ongoing~~from ~~expenses~~inception ofon ~~maintaining~~April ~~mineral~~28, ~~properties~~2006 ~~and~~to ~~the~~November ~~general~~30, ~~likelihood that~~2010; we4. ~~will~~Consolidated ~~continue~~Statements ~~exploration~~of onCash ~~such~~Flows ~~project.~~for Wethe doyears ~~not~~ended ~~set~~November ~~a pre-determined~~30, ~~holding~~2010 ~~period~~and ~~for~~2009 ~~properties~~and ~~with~~for ~~unproven~~the ~~deposits;~~cumulative ~~however, properties~~period ~~which~~from ~~have~~inception ~~not~~on ~~demonstrated~~April ~~suitable~~28, ~~metal~~2006 ~~concentrations~~to atNovember ~~the conclusion~~30, of2010; ~~each~~5. ~~phase~~Statement of anStockholders’ ~~exploration~~Equity ~~program~~(Deficiency) ~~are~~for ~~re-evaluated~~the toperiod ~~determine if~~from ~~future~~inception ~~exploration~~on isApril ~~warranted~~28, ~~whether~~2006 ~~there~~through ~~has~~November ~~been~~30, ~~any~~2010; ~~impairment in value~~ and ~~that~~6. ~~their~~Notes ~~carrying~~to ~~values~~the ~~are~~Consolidated ~~appropriate~~Financial Statements.

If an area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the year of abandonment or determination of value. The amounts recorded as mineral leases and claims represent costs to date and do not necessarily reflect present or future values.41

~~Our~~PENGRAM ~~exploration~~CORPORATION ~~activities are subject to various laws and~~ ~~regulations governing the protection of the environment. These laws are~~ (An ~~continually~~ Exploration ~~changing,~~Stage ~~generally~~Company) ~~becoming more restrictive. We have made, and expect to make in the future, expenditures to comply with such laws and regulations.~~

~~The accumulated costs of properties that are developed on the~~ ~~stage~~ CONSOLIDATED ofFINANCIAL ~~commercial~~STATEMENTS ~~production will be amortized to operations through unit-of-production depletion.~~

35 YEARS ENDED NOVEMBER 30, 2010 AND 2009 (Stated in U.S. Dollars)

~~ITEM~~DAVIDSON 8.& ~~FINANCIAL~~COMPANY ~~STATEMENTS~~LLP ~~AND~~A ~~SUPPLEMENTARY~~Partnership ~~DATA.~~of Incorporated Professionals Chartered Accountants

~~Index~~REPORT toOF ~~Consolidated~~INDEPENDENT ~~Financial~~REGISTERED ~~Statements:~~PUBLIC ACCOUNTING FIRM

~~Audited~~To ~~consolidated~~the ~~financial~~Board ~~statements~~of asDirectors ofand ~~November~~Stockholders ~~30, 2009,~~of ~~including:~~ Pengram Corporation

1.We ~~Report~~have ofaudited ~~Independent~~the ~~Registered~~accompanying consolidated ~~Public~~balance ~~Accounting~~sheets ~~Firm (Davidson and Company, L.L.P., Chartered Accountants); 2. Report~~ of ~~Independent~~Pengram ~~Registered~~Corporation ~~Public Accounting Firm~~ (~~BehlerMick,~~the ~~P.S., Certified Public Accountants~~“Company”)~~(Formerly~~ ~~Williams & Webster, P.S.); 3. Consolidated Balance Sheets~~ as of November 30, ~~2009~~2010 and ~~2008; 4. Consolidated Statements of Operations for the years ended November 30~~2009, ~~2009~~ and ~~2008 and for~~ the ~~cumulative~~related ~~period~~consolidated ~~from~~statements ~~inception on April 28~~of operations, ~~2006~~cash toflows ~~November~~and ~~30,~~stockholders' ~~2009;~~equity 5.(deficiency) ~~Consolidated Statements of Cash Flows~~ for the years ended November 30, ~~2009~~2010 and ~~2008~~2009 and for the ~~cumulative~~ period from inception on April 28, 2006 to November 30, ~~2009; 6~~2010. ~~Consolidated~~The ~~Statement of Stockholders~~Company’s ~~Equity~~management ~~(Deficiency)~~is responsible for ~~the~~these consolidated ~~period~~financial ~~from~~statements. ~~inception~~Our onresponsibility ~~April~~is ~~28,~~to ~~2006~~express ~~through~~an ~~November~~opinion on ~~30,~~these ~~2009;~~consolidated ~~and~~financial 7.statements ~~Notes~~based toon ~~the~~our ~~Consolidated Financial Statements~~audits.

36We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

~~PENGRAM~~In ~~CORPORATION~~our opinion, the consolidated financial ~~(An~~ statements ~~Exploration~~referred ~~Stage~~to above present fairly, in all material respects, the financial position of the Company) as of November 30, 2010 and 2009, and the results of its operations and its cash flows for the years ended November 30, 2010 and 2009 and for the period from inception on April 28, 2006 to November 30, 2010 in conformity with accounting principles generally accepted in the United States of America.

~~CONSOLIDATED~~The ~~FINANCIAL~~accompanying ~~STATEMENTS~~consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has experienced recurring losses from operations since inception, has a working capital deficit, and has a deficit accumulated during the exploration stage. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are also discussed in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

	“DAVIDSON & COMPANY LLP”
Vancouver, Canada
	Chartered Accountants
March 15, 2011

~~DAVIDSON~~PENGRAM &CORPORATION ~~COMPANY~~ (An ~~LLP~~Exploration AStage ~~Partnership~~Company) of CONSOLIDATED ~~Incorporated~~BALANCE ~~Professionals~~SHEETS ~~Chartered~~ (Stated ~~Accountants~~in U.S. Dollars)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

		NOVEMBER 30
		2010			2009

ASSETS

Current
Cash	$	353		$	3,711
Total Current assets		353			3,711

Long-term Investment (Note 3)		10,367			10,367
Computer Equipment (Note 4)		-			253
Mineral Property Acquisition Costs (Note 5)		412,875			440,100

Total Assets	$	423,595		$	454,431

LIABILITIES

Current
Accounts payable and accrued liabilities	$	340,915		$	180,376
Amounts due to related parties		49,000			24,000
Amount due to shareholder		1,920			1,920
Promissory notes payable (Notes 5 and 6)		96,248			65,913
Promissory note payable to related party (Note 7)		25,901			23,901
Loan payable (Note 8)		7,015			6,476
Convertible notes (Note 9)		-			53,619
Unit subscriptions received (Note 10)		14,965			18,860
Total Current Liabilities		535,964			375,065

STOCKHOLDERS’ (DEFICIENCY) EQUITY

Capital Stock (Note 11)
Authorized: 100,000,000 preferred stock with a par value of $0.001 per share 300,000,000 common voting stock with a par value of $0.001 per share

Issued: 57,737,144 common shares as at November 30, 2010 and 54,207,144 at November 30, 2009		57,737			54,207
Unit and Share Subscriptions Received In Advance (Note 10)		26,360			2,500
Additional Paid-In Capital		851,852			582,595
Share Purchase Warrants (Note 11)		21,750			83,179
Deficit Accumulated During The Exploration Stage		(1,070,068	)		(643,115	)
Total Stockholders’ (Deficiency) Equity		(112,369	)		79,366

Total Liabilities And Stockholders’ Equity (Deficiency)	$	423,595		$	454,431

ToThe ~~the~~accompanying ~~Board~~notes ofare ~~Directors~~an ~~and~~integral ~~Stockholders~~part of these ~~Pengram Corporation~~consolidated financial statements.

WePENGRAM ~~have~~CORPORATION ~~audited the accompanying consolidated balance sheet of~~ ~~Pengram~~ (An ~~Corporation~~Exploration ~~(the~~Stage “Company”) ~~as of November 30, 2009, and the related~~ ~~consolidated~~ CONSOLIDATED ~~statements~~STATEMENTS ofOF ~~operations,~~OPERATIONS ~~cash flows and stockholders equity~~ (~~deficiency)~~Stated ~~for~~in ~~the year ended November 30, 2009 and for the period from inception on April 28, 2006 to November 30, 2009~~U. ~~The Company’s management is responsible for these consolidated financial statements~~S. ~~Our~~Dollars) ~~responsibility is to express an opinion on these consolidated financial statements based on our audit.~~

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

								CUMULATIVE
								PERIOD FROM
								INCEPTION
		YEARS						APRIL 28
		ENDED						2006 TO
		NOVEMBER 30						NOVEMBER 30
		2010			2009			2010

Expenses
Bank charges and interest	$	22,543		$	15,418		$	41,057
Consulting fees		29,126			-			31,476
Depreciation		253			505			1,516
Filing and regulatory		3,232			5,609			18,480
Finance charges		83,881			53,619			137,500
Incorporation costs		-			1,262			3,382
Investor relations		6,000			9,800			15,800
Management fees		36,000			36,000			128,600
Mineral property exploration costs		38,317			51,930			99,747
Office and administrative		23,099			19,181			66,313
Professional fees		193,075			168,675			515,189
Recovery on mineral property		(18,377	)		-			(18,377	)
Travel		2,760			13,581			16,341
Website design		4,044			-			4,044
Write-off of mineral property costs		3,000			-			9,000

Net Loss For The Period	$	(426,953	)	$	(375,580	)	$	(1,070,068	)

Basic And Diluted Loss Per Share	$	(0.01	)	$	(0.01	)


Weighted Average Number Of Common Shares Outstanding		54,794,432			53,614,295

InThe ~~our~~accompanying ~~opinion,~~notes ~~the~~are ~~consolidated~~an ~~financial~~integral ~~statements~~part ~~referred to above present fairly, in all material respects, the financial position~~ of ~~the~~these ~~Company~~consolidated asfinancial of November 30, 2009, and the results of its operations and its cash flows for the year ended November 30, 2009 and for the period from inception on April 28, 2006 to November 30, 2009 in conformity with accounting principles generally accepted in the United States of Americastatements.

~~The~~PENGRAM ~~accompanying~~CORPORATION ~~consolidated financial statements have been~~ ~~prepared~~ (An ~~assuming~~Exploration ~~the~~Stage Company) ~~will continue as a going concern. As discussed in~~ ~~Note~~ CONSOLIDATED 1STATEMENTS toOF ~~the~~CASH ~~consolidated~~FLOWS ~~financial statements, the Company has experienced~~ ~~recurring~~ (Stated losses from operations since inception, has a working capital deficit, and has a deficit accumulated during the exploration stage. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are also discussed in ~~Note 1~~U. ~~The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty~~S. Dollars)

“DAVIDSON & COMPANY LLP”

								CUMULATIVE
								PERIOD FROM
								INCEPTION
		YEARS						APRIL 28
		ENDED						2006 TO
		NOVEMBER 30						NOVEMBER 30
		2010			2009			2010

Cash Provided By (Used In) Operating Activities
Net loss for the period	$	(426,953	)	$	(375,580	)	$	(1,070,068	)
Adjustment for items not affecting cash:
Depreciation		253			505			1,516
Finance charges on convertible notes		83,881			53,619			137,500
Foreign exchange		2,056			9,313			11,369
Recovery of mineral property		(18,377	)		-			(18,377	)
Accrued interest expense		21,539			14,681			38,285
Write-off of mineral property costs		3,000			-			9,000
Changes in non-cash operating working capital items:
Accounts payable and accrued liabilities		148,176			75,577			316,793
Amounts due to related parties		25,000			18,000			49,000
		(161,425	)		(203,885	)		(524,982	)
Cash Provided By (Used In) Investing Activities
Advances		-			100,000			(10,367	)
Mineral property acquisition costs		(68,075	)		(10,000	)		(84,075	)
Recovery of mineral property costs		117,077			-			117,077
Purchase of computer equipment		-			-			(1,516	)
		49,002			90,000			21,119
Cash Provided By (Used In) Financing Activities
Issuance of convertible notes		-			70,000			137,500
Issuance of common stock		70,000			-			278,981
Finder’s fees		(5,042	)		-			(5,042	)
Unit and share subscriptions received in advance		22,465			21,360			43,825
Advance on promissory note payable		75,000			-			75,000
Repayment of promissory note		(53,358	)		-			(53,358	)
Promissory note payable to related party		-			7,000			27,000
Repayment of promissory note payable to related party		-			(7,000	)		(7,000	)
Advance on loan payable		-			(4,610	)		5,390
Advance on amount due to shareholder		-			920			1,920
		109,065			87,670			504,216

(Decrease) Increase In Cash		(3,358	)		(26,215	)		353
Cash, Beginning Of Period		3,711			29,926			-

Cash, End Of Period	$	353		$	3,711		$	353

Supplemental Disclosure Of Cash Flow Information
Cash paid during the period for:
Interest	$	-		$	400		$	400
Income taxes	$	-		$	-		$	-

Non-Cash Financing And Investing Activities
Shares received from Solfotara Minerals Corp. (Note 3)	$	-		$	10,367		$	10,367
Shares issued for mineral property acquisition costs (Note 5)	$	6,400		$	373,500		$	379,900
Promissory note payable for mineral property acquisition costs (Note 5)	$	-		$	56,600		$	56,600
Shares issued on conversion of convertible note (Note 11)	$	137,500		$	-		$	137,500

~~Vancouver,~~The ~~Canada~~accompanying ~~Chartered~~notes ~~Accountants~~are ~~March~~an ~~15,~~integral ~~2010~~part of these consolidated financial statements.

~~1200~~PENGRAM -CORPORATION ~~609~~ (An ~~Granville~~Exploration ~~Street~~Stage ~~P.O.~~Company) ~~Box~~ STATEMENT ~~10372,~~OF ~~Pacific~~STOCKHOLDERS’ ~~Centre,~~EQUITY ~~Vancouver,~~(DEFICIENCY) ~~B.C.~~ PERIOD FROM INCEPTION APRIL 28, ~~Canada~~2006 ~~V7Y~~TO ~~1G6 Telephone~~NOVEMBER 30, 2010 (~~604)~~Stated ~~687-0947~~in ~~Fax~~U.S. ~~(604~~Dollars) ~~687-6172~~

To the Board of Directors and Stockholders of Pengram Corporation

														DEFICIT
														ACCUMULATED
					SHARE									DURING
					SUBSCRIPTIONS			ADDITIONAL			SHARE			THE
	COMMON STOCK				RECEIVED			PAID-IN			PURCHASE			EXPLORATION
	SHARES		AMOUNT		IN ADVANCE			CAPITAL			WARRANTS			STAGE			TOTAL


June 19, 2006 – stock issued for cash at $0.001	27,000,000	$	27,000	$	-		$	(18,000	)	$	-		$	-		$	9,000
Stock issued for cash $0.01 in private placement	17,997,144		17,997		-			101,984			-			-			119,981
Net loss for the period	-		-		-			-			-			(20,112	)		(20,112	)
Balance, November 30, 2006	44,997,144		44,997		-			83,984			-			(20,112	)		108,869

Net loss for the year	-		-		-			-			-			(108,384	)		(108,384	)
Balance, November 30, 2007	44,997,144		44,997		-			83,984			-			(128,496	)		485

September 4, 2008 – units issued for cash at $0.03	3,000,000		3,000		-			41,300			35,700			-			80,000
Net loss for the year	-		-		-			-			-			(139,039	)		(139,039	)
Balance, November 30, 2008	47,997,144		47,997		-			125,284			35,700			(267,535	)		(58,554	)

Stock issued for mineral property	6,000,000		6,000		-			294,000			-			-			300,000
Relative fair value allocation of convertible notes	-		-		-			90,021			47,479			-			137,500
Stock issued under assignment agreement	150,000		150		-			37,350			-			-			37,500
Stock issued pursuant to extension agreement	60,000		60		-			35,940			-			-			36,000
Share subscriptions received in advance	-		-		2,500			-			-			-			2,500
Net loss for the year	-		-		-			-			-			(375,580	)		(375,580	)
Balance, November 30, 2009	54,207,144		54,207		2,500			582,595			83,179			(643,115	)		79,366

Units issued for cash at $0.10	600,000		600		-			37,650			21,750			-			60,000
Finder’s fees	-		-		-			(5,042	)		-			-			(5,042	)
Exercise of warrants	150,000		150		(2,500	)		12,350			-			-			10,000
Expiry of warrants	-		-		-			83,179			(83,179	)		-			-
Conversion of convertible notes	2,750,000		2,750		-			134,750			-			-			137,500
Stock issued under assignment agreement	30,000		30		-			6,370			-			-			6,400
Share subscriptions received in advance	-		-		26,360			-			-			-			26,360
Net loss for the year	-		-		-			-			-			(426,953	)		(426,953	)

Balance, November 30, 2010	57,737,144	$	57,737	$	26,360		$	851,852		$	21,750		$	(1,070,068	)	$	(112,369	)

~~REPORT~~The OFaccompanying ~~INDEPENDENT~~notes ~~REGISTERED~~are ~~PUBLIC~~an ~~ACCOUNTING~~integral part of these ~~FIRM~~consolidated financial statements.

WePENGRAM ~~have~~CORPORATION ~~audited~~ (An ~~the~~Exploration ~~accompanying~~Stage ~~balance~~Company) ~~sheet~~ NOTES ofTO ~~Pengram Corporation~~CONSOLIDATED asFINANCIAL ofSTATEMENTS ~~November~~ NOVEMBER 30, ~~2008,~~2010 ~~and~~AND ~~the~~2009 ~~related statements of operations,~~ ~~stockholders’~~ (Stated ~~equity~~in ~~and cash flows for the year then ended~~U. ~~These financial statements are the responsibility of the Company’s management~~S. ~~Our responsibility~~Dollars) ~~is to express an opinion on these financial statements based on our audit.~~

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1.	BASIS OF PRESENTATION AND NATURE OF OPERATIONS

	Consolidated Financial Statements

	These consolidated financial statements include the accounts of Pengram Corporation (“the Company”) and its wholly owned subsidiaries, Magellan Acquisition Corp. (Nevada) (“MAC”) and Clisbako Minerals Inc. (British Columbia) (“CMI”). All intercompany balances have been eliminated.

	Organization

	The Company was incorporated in the State of Nevada, U.S.A., on April 28, 2006. The Company’s principal executive offices are in Bellingham, Washington, U.S.A. The Company’s year end is November 30.

	Exploration Stage Activities

	The Company has been in the exploration stage since its formation and has not yet realized any revenues from its planned operations. The Company was formed for the purpose of acquiring exploration and development stage natural resource properties. The Company has not commenced business operations. The Company is an exploration stage company as defined in the Securities and Exchange Commission (“S.E.C.”) Industry Guide No. 7.

	Forward Stock Split

	During the year ended November 30, 2009, the Company completed a three-for-one forward stock split of its common stock. The Company’s authorized common stock was increased from 100,000,000 shares with a par value of $0.001 per share to 300,000,000 shares with a par value of $0.001. Share and per share amounts (except par value) for the periods presented have been adjusted to reflect the effects of this stock split.

	Going Concern

	The accompanying financial statements have been prepared assuming the Company will continue as a going concern.

InPENGRAM ~~our~~CORPORATION (An ~~opinion,~~Exploration ~~the~~Stage ~~financial~~Company) ~~statements referred to above~~ ~~present~~ NOTES ~~fairly,~~TO inCONSOLIDATED ~~all~~FINANCIAL ~~material~~STATEMENTS ~~respects, the financial position of Pengram~~ ~~Corporation~~ NOVEMBER ~~as of November~~ 30, ~~2008~~2010 ~~and~~AND ~~the~~2009 ~~results of its operations,~~ ~~stockholders~~ (Stated ~~equity and its cash flows for the year then ended~~ in ~~conformity with~~U.S. ~~accounting~~Dollars) ~~principles generally accepted in the United States of America.~~

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has no revenues, limited resources and a large accumulated deficit. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

1.	BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Continued)

	Going Concern (Continued)

	As shown in the accompanying financial statements, the Company has incurred a net loss of $1,070,068 for the period from April 28, 2006 (inception) to November 30, 2010, and has no revenues. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its natural resource properties. Management has plans to seek additional capital through a private placement and public offering of its common stock. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

2.	SIGNIFICANT ACCOUNTING POLICIES

	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgement.

	The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:

	a)	Organization and Start-up Costs

		Costs of start up activities, including organizational and incorporation costs, are expensed as incurred.

	b)	Exploration Stage Enterprise

		The Company’s financial statements are prepared using the accrual method of accounting. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage.

~~/s/~~PENGRAM ~~BehlerMick~~CORPORATION PS ~~BehlerMick~~ (An PSExploration Stage Company) ~~Spokane,~~ NOTES ~~Washington~~TO CONSOLIDATED FINANCIAL STATEMENTS ~~March~~ NOVEMBER 1130, 2010 AND 2009 (Stated in U.S. Dollars)

PENGRAM CORPORATION (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS (Stated in U.S. Dollars)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	c)	Mineral Property Interests

		The Company is an exploration stage mining company and has not yet realized any revenue from its operations. It is primarily engaged in the acquisition, exploration and development of mining properties. Exploration costs are expensed as incurred regardless of the stage of development or existence of reserves. Costs of acquisition are capitalized subject to impairment testing when facts and circumstances indicate impairment may exist. Proceeds received from the sale of any interest in a property will first be credited against the carrying value of the property, with any excess included in operations for the period.

		The Company regularly performs evaluations of any investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable.

		Management periodically reviews the carrying value of its investments in mineral leases and claims with internal and external mining related professionals. A decision to abandon, reduce or expand a specific project is based upon many factors including general and specific assessments of mineral deposits, anticipated future mineral prices, anticipated future costs of exploring, developing and operating a producing mine, the expiration term and ongoing expenses of maintaining mineral properties and the general likelihood that the Company will continue exploration on such project. The Company does not set a pre-determined holding period for properties with unproven deposits, however, properties which have not demonstrated suitable metal concentrations at the conclusion of each phase of an exploration program are re-evaluated to determine if future exploration is warranted, whether there has been any impairment in value and that their carrying values are appropriate.

		If an area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the year of abandonment or determination of value. The amounts recorded as mineral leases and claims represent costs to date and do not necessarily reflect present or future values.

		The Company’s exploration activities are subject to various laws and regulations governing the protection of the environment. These laws are continually changing, generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.

		NOVEMBER 30
		2009			2008
ASSETS
Current
Cash	$	3,711		$	29,926
Marketable securities (Note 11)		10,367			-
Total Current Assets		14,078			29,926
Computer Equipment (Note 3)		253			758
Mineral Property Acquisition Costs (Note 4)		440,100			-
Advances (Note 11)		-			110,367
Total Assets	$	454,431		$	141,051
LIABILITIES
Current
Accounts payable and accrued liabilities	$	172,333		$	93,040
Amounts due to related parties		24,000			6,000
Amount due to shareholder		1,920			1,000
Promissory note payable (Note 4)		65,913			-
Promissory notes payable to related parties (Note 5)		23,901			21,901
Loan payable (Note 6)		6,476			10,164
Convertible notes (Note 8)		61,662			-
Convertible notes subscriptions received		-			67,500
Unit subscriptions received (Note 9)		18,860			-
Total Current Liabilities		375,065			199,605
STOCKHOLDERS’ EQUITY (DEFICIENCY)
Capital Stock (Note 7)
Authorized: 100,000,000 preferred stock with a par value of $0.001 per share
300,000,000 common voting stock with a par value of $0.001 per share
Issued: 54,207,144 common shares as at November 30, 2009 and 47,997,144 as at November 30, 2008		54,207			47,997
Share Subscriptions Received In Advance (Note 9)		2,500			-
Additional Paid-In Capital		582,595			125,284
Share Purchase Warrants (Note 7)		83,179			35,700
Accumulated Deficit During The Exploration Stage		(643,115	)		(267,535	)
Total Stockholders’ Equity (Deficiency)		79,366			(58,554	)
Total Liabilities And Stockholders’ Equity (Deficiency)	$	454,431		$	141,051

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 AND 2009
(Stated in U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	c)	Mineral Property Interests (Continued)

		The accumulated costs of properties that are developed on the stage of commercial production will be amortized to operations through unit-of-production depletion.

	d)	Cash

		Cash consists primarily of cash on deposit.

	e)	Long Term Investment

		Investments in securities of private companies that do not have a quoted market price on a recognized securities exchange are recorded at cost. Investments are written-down when, in the opinion of management, there has been an impairment in their value which is other than temporary and such impairment is recorded in the statement of operations.

	f)	Computer Equipment

		Computer equipment is recorded at cost and is depreciated over an estimated useful life of three years on a straight-line basis.

	g)	Financial Instruments

		The Company’s financial instruments include cash, accounts payable and accrued liabilities, amounts due to related parties, amount due to shareholder, promissory notes payable, promissory note payable to related party, loan payable and convertible notes. All such instruments are carried at cost, which, due to the short maturity of these financial instruments, approximate fair value at November 30, 2010.

	h)	Foreign Currency Translation

		The Company’s functional currency is the US dollar. Transactions in a foreign currency are translated into U.S. dollars as follows:

~~PENGRAM~~i) ~~CORPORATION~~monetary ~~(An~~items ~~Exploration~~are ~~Stage~~translated ~~Company~~at the exchange rate prevailing at the balance sheet date; ii) ~~CONSOLIDATED~~non-monetary ~~STATEMENTS~~items OFare ~~OPERATIONS~~translated ~~(Stated~~at inthe ~~U.S.~~historical ~~Dollars~~exchange rate; iii) revenue and expense items are translated at the average rate in effect during the applicable accounting period.

								CUMULATIVE
								PERIOD FROM
								INCEPTION
		YEARS						APRIL 28
		ENDED						2006 TO
		NOVEMBER 30						NOVEMBER 30
		2009			2008			2009
Expenses
Bank charges and interest	$	15,418		$	-		$	18,514
Consulting fees		-			400			2,350
Depreciation expense		505			505			1,263
Filing and regulatory		5,609			4,185			15,248
Finance charges		53,619			-			53,619
Incorporation costs		1,262			800			3,382
Investor relations		9,800			-			9,800
Management fees		36,000			11,800			92,600
Mineral property exploration costs		51,930			-			61,430
Office and administrative		19,181			11,215			43,214
Professional fees		168,675			104,134			322,114
Travel		13,581			-			13,581
Write-off of mineral property costs		-			6,000			6,000
Net Loss For The Period	$	(375,580	)	$	(139,039	)	$	(643,115	)
Basic And Diluted Loss Per Share	$	(0.01	)	$	(0.01	)
Weighted Average Number Of CommonShares Outstanding		53,614,295			45,712,212

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 AND 2009
(Stated in U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	i)	Use of Estimates

		The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results may differ from the estimates.

	j)	Basic and Diluted Loss Per Share

		Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

		The following outstanding convertible notes and share purchase warrants were excluded from the diluted EPS computation as their effect would have been anti-dilutive:

PENGRAM CORPORATION (An Exploration Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in U.S. Dollars)

	2010	2009

Convertible notes	-	2,910,856
Share purchase warrants	600,000	4,650,000

								CUMULATIVE
								PERIOD FROM
								INCEPTION
		YEARS						APRIL 28
		ENDED						2006 TO
		NOVEMBER 30						NOVEMBER 30
		2009			2008			2009
Cash (Used In) Operating Activities
Net loss for the period	$	(375,580	)	$	(139,039	)	$	(643,115	)
Adjustment for items not affecting cash:
Depreciation		505			505			1,263
Finance charges on convertible notes		53,619			-			53,619
Foreign exchange on promissory note payable		9,313			-			9,313
Accrued interest payable		14,681			2,065			16,746
Write-off of mineral property costs		-			6,000			6,000
Changes in non-cash operating working capital items:
Deposits		-			375			-
Accounts payable and accrued liabilities		75,577			88,121			168,617
Amounts due to related parties		18,000			-			24,000
		(203,885	)		(41,973	)		(363,557	)
Cash Provided By (Used In) Investing Activities
Advances		100,000			(110,367	)		(10,367	)
Mineral property acquisition costs		(10,000	)		-			(16,000	)
Computer equipment		-			-			(1,516	)
		90,000			(110,367	)		(27,883	)
Cash Provided By Financing Activities
Convertible notes subscriptions received		-			67,500			-
Issuance of convertible notes		70,000			-			137,500
Issuance of common stock		-			80,000			208,981
Unit subscriptions received		18,860			-			18,860
Share subscriptions received in advance		2,500			-			2,500
Promissory notes payable to related parties		7,000			20,000			27,000
Repayment of promissory notes payable to related parties		(7,000	)		-			(7,000	)
Loan payable		(4,610	)		10,000			5,390
Amount due to shareholder		920			1,000			1,920
		87,670			178,500			395,151
Increase (Decrease) In Cash		(26,215	)		26,160			3,711
Cash, Beginning Of Period		29,926			3,766			-
Cash, End Of Period	$	3,711		$	29,926		$	3,711
Supplemental Disclosure Of Cash Flow Information
Cash paid during the period for:
Interest	$	400		$	-		$	400
Income taxes	$	-		$	-		$	-
Non-Cash Financing And Investing Activities
Shares received from Solfotara Minerals Corp. (Note 11)	$	10,367		$	-		$	10,367
Shares issued for mineral property acquisition costs (Note 4)	$	373,500		$	-		$	373,500
Promissory note payable for mineral property acquisition costs (Note 4)	$	56,600		$	-		$	56,600

	k)	Income Taxes

		The Company uses an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

	l)	Impairment of Long-Lived Assets

		The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. In such cases, the amount of the impairment is determined based on the relative fair values of the impaired assets. The Company tests the recoverability of the assets whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.

~~The~~PENGRAM ~~accompanying~~CORPORATION ~~notes~~ (An ~~are~~Exploration anStage ~~integral~~Company) ~~part~~ NOTES ofTO ~~these~~CONSOLIDATED FINANCIAL STATEMENTS ~~consolidated~~ NOVEMBER ~~financial~~30, ~~statements~~2010 AND 2009 (Stated in U.S. Dollars)

PENGRAM CORPORATION (An Exploration Stage Company) STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIENCY) PERIOD FROM INCEPTION APRIL 28, 2006 TO NOVEMBER 30, 2009 (Stated in U.S. Dollars)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	m)	Asset Retirement Obligations

		An asset retirement obligation (“ARO”) is a legal obligation associated with the retirement of a tangible long-lived asset and is recognized as a liability in the period which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset.

		The cost of the tangible asset, including the initially recognized ARO, is depleted, such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO is measured using expected future cash flows, discounted at the Company’s credit-adjusted risk-free interest rate. To date, no significant asset retirement obligation exists due to the early stage of exploration. Accordingly, no liability has been recorded.

	n)	Share-based Compensation

		The Company accounts for stock-based compensation under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, Stock Compensation, which requires the recognition of the fair value of stock-based compensation. Under the fair value recognition provisions for ASC 718, stock-based compensation cost is estimated at the grant date based on the fair value of the awards expected to vest and recognized as expense ratably over the requisite service period of the award. The Company has used the Black-Scholes valuation model to estimate fair value of its stock-based awards which requires various judgmental assumptions including estimating stock price volatility and expected life. The Company’s computation of expected volatility is based on a combination of historical and market- based volatility. In addition, the Company considers many factors when estimating expected life, including types of awards and historical experience. If any of the assumptions used in the Black-Scholes valuation model change significantly, stock- based compensation expense may differ materially in the future from that recorded in the current period.

												DEFICIT
												ACCUMULATED
					SHARE							DURING
					SUBSCRIPTIONS		ADDITIONAL			SHARE		THE
	COMMON STOCK				RECEIVED		PAID-IN			PURCHASE		EXPLORATION
	SHARES		AMOUNT		IN ADVANCE		CAPITAL			WARRANTS		STAGE			TOTAL
June 19, 2006 – stock issued for cash at $0.001	27,000,000	$	27,000	$	-	$	(18,000	)	$	-	$	-		$	9,000
Stock issued for cash $0.01 in private placement	17,997,144		17,997		-		101,984			-		-			119,981
Net loss for the period	-		-		-		-			-		(20,112	)		(20,112	)
Balance, November 30, 2006	44,997,144		44,997		-		83,984			-		(20,112	)		108,869
Net loss for the year	-		-		-		-			-		(108,384	)		(108,384	)
Balance, November 30, 2007	44,997,144		44,997		-		83,984			-		(128,496	)		485
September 4, 2008 – units issued for cash at $0.03	3,000,000		3,000		-		41,300			35,700		-			80,000
Net loss for the year	-		-		-		-			-		(139,039	)		(139,039	)
Balance, November 30, 2008	47,997,144		47,997		-		125,284			35,700		(267,535	)		(58,554	)
Stock issued for mineral property	6,000,000		6,000		-		294,000			-		-			300,000
Relative fair value allocation of convertible notes	-		-		-		90,021			47,479		-			137,500
Stock issued under assignment agreement	150,000		150		-		37,350			-		-			37,500
Stock issued pursuant to extension agreement	60,000		60		-		35,940			-		-			36,000
Share subscriptions received in advance	-		-		2,500		-			-		-			2,500
Net loss for the year	-		-		-		-			-		(375,580	)		(375,580	)
Balance, November 30, 2009	54,207,144	$	54,207	$	2,500	$	582,595		$	83,179	$	(643,115	)	$	79,366

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 AND 2009
(Stated in U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	n)	Share-based Compensation (Continued)

		The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718 and the conclusions reached by ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505-50.

	o)	Environmental Protection and Reclamation Costs

		The operations of the Company have been, and may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company may vary from region to region and are not predictable.

		Environmental expenditures that relate to ongoing environmental and reclamation programs are charged to the statements of operations as incurred or capitalized and amortized depending upon their future economic benefits. The Company does not currently anticipate any material capital expenditures for environmental control facilities because its property holdings are at an early stage of exploration.

	p)	Fair Value of Financial Instruments

		Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market.

		The Company uses a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

	Level 1:	Observable inputs such as quoted prices in active markets;

	Level 2:	Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

	Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

1.PENGRAM ~~BASIS~~CORPORATION OF (An ~~PRESENTATION~~Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2010 AND ~~NATURE~~2009 OF (Stated ~~OPERATIONS~~in U.S. Dollars)

Consolidated Financial Statements

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

	p)	Fair Value of Financial Instruments (Continued)

		The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the year ended November 30, 2010.

		The following table presents information about the Company’s financial instruments that have been measured at fair value as of November 30, 2010, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair values:

These consolidated financial statements include the accounts of Pengram Corporation (“the Company”) and its wholly owned subsidiaries, Magellan Acquisition Corp. (Nevada) (“MAC”) and Clisbako Minerals Inc. (British Columbia) (“CMI”). All intercompany balances have been eliminated.

				QUOTED		SIGNIFICANT
		FAIR VALUE		PRICES		OTHER
		AT		IN ACTIVE		OBSERVABLE		UNOBSERVABLE
		NOVEMBER 30		MARKETS		INPUTS		INPUTS
DESCRIPTION		2010		(LEVEL 1)		(LEVEL 2)		(LEVEL 3)

Assets:
Cash	$	353	$	353	$	-	$	-
Assets measured at fair value at November 30, 2010	$	353	$	353	$	-	$	-

Organization

	q)	Comparative Figures

		Certain comparative figures have been reclassified to conform with the current year’s presentation.

	r)	Recent Accounting Pronouncements

		In April 2010, the FASB issued ASU No. 2010-17 (Topic 605), Revenue Recognition— Milestone Method. This standard provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research and development transactions. The amendments in this update provide guidance on the criteria that should be met for determining whether the milestone method of revenue recognition is appropriate. A vendor can recognize consideration that is contingent upon achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone meets all applicable criteria. The amendments in this update are effective for the Company on a prospective basis for milestones achieved after December 31, 2010. The implementation of this standard is not expected to have a significant impact on the Company’s financial position or results of operations.

~~The~~PENGRAM ~~Company~~CORPORATION ~~was~~ (An ~~incorporated~~Exploration inStage ~~the~~Company) ~~State~~ NOTES ofTO ~~Nevada,~~CONSOLIDATED ~~U.S.A.,~~FINANCIAL onSTATEMENTS ~~April~~ NOVEMBER 2830, ~~2006.~~2010 ~~The~~AND ~~Company’s~~2009 ~~principal executive~~ ~~offices~~ (Stated ~~are~~ in ~~Bellingham, Washington,~~ U.S.A. ~~The~~Dollars) ~~Company’s year end is November 30.~~

~~Exploration~~2. ~~Stage~~SIGNIFICANT ~~Activities~~ACCOUNTING POLICIES (Continued)

~~The~~r) ~~Company~~Recent ~~has~~Accounting ~~been~~Pronouncements in the exploration stage since its formation and has not yet realized any revenues from its planned operations. The Company was formed for the purpose of acquiring exploration and development stage natural resource properties. The Company has not commenced business operations. The Company is an exploration stage company as defined in the Securities and Exchange Commission (~~“S.E.C.”~~Continued) ~~Industry Guide No. 7.~~

~~Forward~~In April 2010, the FASB provided an update to address the classification of an employee share-based payment award with an exercise price denominated in the currency of a market in which the underlying equity security trades. FASB Accounting Standards Codification Topic 718, Compensation—Stock ~~Split~~Compensation, provides guidance on the classification of a share-based payment award as either equity or a liability. A share-based payment award that contains a condition that is not a market, performance, or service condition is required to be classified as a liability. This standard is effective for years beginning after December 15, 2010, and for subsequent interim and annual reporting periods thereafter. The Company does not expect the adoption of this standard to have a significant effect on the Company's results of operations or financial position.

~~During~~In January 2010, the ~~year~~FASB ~~ended~~issued Accounting ~~November~~Standards 30Codification (“ASC”) Update 2010-02, —Consolidation (Topic ~~2009,~~810): ~~the~~Accounting ~~Company~~and ~~completed~~Reporting for Decreases in Ownership of a ~~three-for-one~~Subsidiary. ~~forward~~This amendment ~~stock~~to ~~split~~Topic 810 clarifies, but does not change, the scope of ~~its~~current ~~common~~US ~~stock~~GAAP. ~~The~~It ~~Company’s~~clarifies ~~authorized~~the ~~common~~decrease ~~stock~~in ~~was~~ownership ~~increased~~provisions ~~from~~of ~~100,000,000~~Subtopic 810-10 and ~~shares~~removes ~~with~~the apotential ~~par~~conflict ~~value~~between ofguidance $0in that Subtopic and asset derecognition and gain or loss recognition guidance that may exist in other US GAAP.~~001~~ ~~per~~An ~~share~~entity will be required to ~~300~~follow the amended guidance beginning in the period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities that have already adopted FAS 160,~~000,000~~ ~~shares~~the ~~with~~amendments aare ~~par~~effective at the ~~value~~beginning of ~~$0.001.~~the ~~Share~~first ~~and~~interim ~~per~~or ~~share~~annual ~~dates~~reporting ~~(except~~period ~~par~~ending ~~value)~~on ~~for~~or after December 15, 2009. The amendments should be applied retrospectively to the ~~periods~~first ~~presented~~period ~~have~~that ~~been~~an ~~adjusted~~entity adopted FAS 160. The Company does not expect the provisions of ASCU 2010-02 to ~~reflect~~have a material effect on the ~~effects~~financial position, results of ~~this~~operations ~~stock~~or ~~split.~~cash flows of the Company.

~~Going~~In ~~Concern~~October 2009, the FASB issued ASU 2009-13, Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements amending ASC 605. ASU 2009-13 requires entities to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy. ASU 2009-13 eliminates the residual method of revenue allocation and requires revenue to be allocated using the relative selling price method. ASU 2009-13 is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. The adoption is not expected to have a material impact on the Company’s financial position or results of operations.

~~The~~Management ~~accompanying~~does ~~financial~~not ~~statements~~believe any other ~~have~~recently ~~been~~issued ~~prepared~~but ~~assuming~~not ~~the~~yet ~~Company~~effective ~~will~~accounting ~~continue~~pronouncements, asif aadopted, would ~~going~~have ~~concern~~an effect on the accompanying financial statements.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

1.	BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Continued)
3.	LONG-TERM INVESTMENT
	Going Concern (Continued)
	The Company received 250,000 common shares in Solfotara Minerals Corp. (“Solfotara”), a private Canadian company as consideration for transferring its interest in an option agreement to Solfotara in the year ended November 30, 2009. The total value attributed to the common stock received from Solfotara was $10,367.
	As shown in the accompanying financial statements, the Company has incurred a net loss of $643,115 for the period from April 28, 2006 (inception) to November 30, 2009, and has no revenues. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its natural resource properties. Management has plans to seek additional capital through a private placement and public offering of its common stock. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
4.	COMPUTER EQUIPMENT
2.	SIGNIFICANT ACCOUNTING POLICIES
	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgement.
	The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:
	a)	Organization and Start-up Costs
		Costs of start up activities, including organizational and incorporation costs, are expensed as incurred.
	b)	Exploration Stage Enterprise
		The Company’s financial statements are prepared using the accrual method of accounting. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

NOVEMBER 30

NOVEMBER 30

2010

2009

ACCUMULATED

NET BOOK

NET BOOK

COST

AMORTIZATION

VALUE

VALUE

Computer Equipment

1,516

253

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
	c)	Mineral Property Interests
		The Company is an exploration stage mining company and has not yet realized any revenue from its operations. It is primarily engaged in the acquisition, exploration and development of mining properties. Exploration costs are expensed as incurred regardless of the stage of development or existence of reserves. Costs of acquisition are capitalized subject to impairment testing when facts and circumstances indicate impairment may exist.
		The Company regularly performs evaluations of any investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable.
		Management periodically reviews the carrying value of its investments in mineral leases and claims with internal and external mining related professionals. A decision to abandon, reduce or expand a specific project is based upon many factors including general and specific assessments of mineral deposits, anticipated future mineral prices, anticipated future costs of exploring, developing and operating a producing mine, the expiration term and ongoing expenses of maintaining mineral properties and the general likelihood that the Company will continue exploration on such project. The Company does not set a pre-determined holding period for properties with unproven deposits, however, properties which have not demonstrated suitable metal concentrations at the conclusion of each phase of an exploration program are re-evaluated to determine if future exploration is warranted, whether there has been any impairment in value and that their carrying values are appropriate.
		If an area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the year of abandonment or determination of value. The amounts recorded as mineral leases and claims represent costs to date and do not necessarily reflect present or future values.
		The Company’s exploration activities are subject to various laws and regulations governing the protection of the environment. These laws are continually changing, generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.

5.	MINERAL PROPERTY ACQUISITION COSTS

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

												RECOVERY
		NOVEMBER				ABANDONED,						RECOGNIZED		NOVEMBER
		30, 2009		ADDITIONS		IMPAIRED			RECOVERY			AS INCOME		30, 2010
Mineral Property

Clisbako claims (a)	$	392,600	$	6,400	$	-		$	(48,650	)	$	-	$	350,350
Eureka claims (b)		47,500		15,025		-			-			-		62,525
Manado Gold claims (c)		-		50,050		-			(68,427	)		18,377		-
June claims (d)		-		3,000		(3,000	)		-			-		-

	$	440,100	$	74,475	$	(3,000	)	$	(117,077	)	$	18,377	$	412,875

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
			NOVEMBER 30				ABANDONED,		NOVEMBER 30
	c)	Mineral Property Interests (Continued)
			2008		ADDITIONS		IMPAIRED		2009
		The accumulated costs of properties that are developed on the stage of commercial production will be amortized to operations through unit-of-production depletion.
	Mineral Property
	d)	Cash
	Clisbako claims (a)	$	-	$	392,600	$	-	$	392,600
		Cash consists primarily of cash on deposit.
	Eureka claims (b)		-		47,500		-		47,500
	e)	Marketable Securities
		$	-	$	440,100	$	-	$	440,100
		The Company has designated its marketable securities, comprised of common shares not yet listed on a recognized stock exchange, as held-for-trading securities and reports them at an estimated fair value (see Note 2(p)). The amounts by which future market values of these securities will differ from recorded cost will represent unrealized gains and losses and will be recognized in the Company’s consolidated statement of operations. All realized gains and losses will be recognized in the net income (loss) in the period of disposition.
	f)	Computer Equipment
		Computer equipment is recorded at cost and will be depreciated over an estimated useful life of three years on a straight-line basis.
	g)	Financial Instruments
		The Company’s financial instruments include cash, marketable securities, accounts payable and accrued liabilities, amounts due to related parties, amount due to shareholder, promissory note payable, promissory notes payable to related parties, loan payable and convertible notes. All such instruments are carried at cost, which, due to the short maturity of these financial instruments, approximate fair value at November 30, 2009.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
5.	MINERAL PROPERTY ACQUISITION COSTS (Continued)
	h)	Foreign Currency Translation
	a)	Clisbako Claims
		The Company’s functional currency is the US dollar. Transactions in foreign currency are translated into U.S. dollars as follows:
		On December 16, 2008, the Company entered into a purchase agreement to acquire an undivided 100% interest in a group of ten mineral claims (collectively known as the “Clisbako” claims) located in the Cariboo Mining Division of British Columbia, Canada. Consideration for the claims was 6,000,000 shares (issued – see Note 11(a)) of the Company’s common stock with a value of $300,000 and the issuance to the vendor of a promissory note in the amount of CDN$70,000 (US$56,600) payable June 30, 2009. On July 23, 2009, the Company reached an agreement with the vendor to extend the deadline of the CDN$70,000 mineral property payment (“Property Payment”) to December 31, 2009. In consideration of the extension of the deadline, the Company issued 60,000 common shares to the vendor with a fair value of $36,000.
		i)	monetary items are translated at the exchange rate prevailing at the balance sheet date;
		On January 21, 2010, the Company reached an agreement with the vendor to further extend the due date of the Property Payment to February 15, 2010. In consideration of the further extension of the deadline, the Company issued 10,000 shares of its common stock to the vendor with a value of $4,200.
		ii)	non-monetary items are translated at the historical exchange rate;
		On March 15, 2010, the Company entered into a third extension agreement dated for reference February 15, 2010, with the vendor to extend the Property Payment from February 15, 2010 to June 30, 2010. In consideration of the extension, the Company issued to the vendor 20,000 common shares with a value of $2,200.
		iii)	revenue and expense items are translated at the average rate in effect during the applicable accounting period.
		On September 15, 2010, and as amended by letter agreement dated November 15, 2010, the Company, through its wholly owned subsidiary, CMI., entered into an option agreement (the "Clisbako Option Agreement") with Manado Gold Corp. whereby the Company granted Manado Gold Corp. the sole and exclusive right and option to acquire a 75% undivided interest in the Clisbako Property. Under the terms of the Option Agreement, Manado Gold Corp. will exercise its option upon completing the following:
	i)	Use of Estimates
		The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results may differ from the estimates.
	j)	Basic and Diluted Loss Per Share
		Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.
		The following outstanding convertible notes, stock options, and share purchase warrants were excluded from the diluted EPS computation as their effect would have been anti- dilutive:

		2009		2008
	1.	Paying an aggregate of $150,000 to CMI. as follows:
Convertible notes		2,910,856		-
		(a)	$50,000 on execution of the agreement (CDN$50,000 or US$48,650 has been paid);
Share purchase warrants		4,650,000		3,000,000
		(b)	a further $50,000 on or before February 28, 2011 (paid CDN$39,000 subsequent to November 30, 2010); and
		(c)	a further $50,000 on or before April 30, 2011.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
5.	MINERAL PROPERTY ACQUISITION COSTS (Continued)
	k)	Income Taxes
	a)	Clisbako Claims (Continued)
		The Company uses an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.
		2.	Issuing an aggregate of 600,000 Shares to CMI as follows:
	l)	Impairment of Long-Lived Assets
			(a)	100,000 Shares on or before September 15, 2011;
		The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. In such cases, the amount of the impairment is determined based on the relative fair values of the impaired assets. The Company tests the recoverability of the assets whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.
			(b)	a further 200,000 Shares on or before September 15, 2012; and
	m)	Asset Retirement Obligations
			(c)	a further 300,000 Shares on or before September 15, 2013.
		An asset retirement obligation (“ARO”) is a legal obligation associated with the retirement of a tangible long-lived asset and is recognized as a liability in the period which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset.
		The cost of the tangible asset, including the initially recognized ARO, is depleted, such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO is measured using expected future cash flows, discounted at the Company’s credit-adjusted risk-free interest rate. To date, no significant asset retirement obligation exists due to the early stage of exploration. Accordingly, no liability has been recorded.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

3.	Incurring Exploration Expenditures of CDN$650,000 on the Clisbako Property as follows:

	(a)	CDN$100,000 on or before September 15, 2011;

	(b)	a further CDN$300,000 on or before September 15, 2012; and

	(c)	a further CDN$250,000 on or before September 15, 2013.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
	n)	Share-based Compensation
		The Company accounts for stock-based compensation under the provisions of FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation, which requires the recognition of the fair value of stock-based compensation. Under the fair value recognition provisions for ASC 718, stock-based compensation cost is estimated at the grant date based on the fair value of the awards expected to vest and recognized as expense ratably over the requisite service period of the award. The Company has used the Black-Scholes valuation model to estimate fair value of its stock-based awards which requires various judgmental assumptions including estimating stock price volatility and expected life. The Company’s computation of expected volatility is based on a combination of historical and market-based volatility. In addition, the Company considers many factors when estimating expected life, including types of awards and historical experience. If any of the assumptions used in the Black-Scholes valuation model change significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period.
		The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718 and the conclusions reached by ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505-50.
	o)	Environmental Protection and Reclamation Costs
		The operations of the Company have been, and may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restorations costs. Both the likelihood of new regulations and their overall effect upon the Company may vary from region to region and are not predictable.
		Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against statements of operations as incurred or capitalized and amortized depending upon their future economic benefits. The Company does not currently anticipate any material capital expenditures for environmental control facilities because its property holding is at an early stage of exploration.

Manado Gold Corp. will also be responsible to make all government payments required to keep the claims in good standing.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

b)	Eureka Claims

	On May 29, 2009, the Company entered into an assignment agreement to acquire an undivided 100% interest in a series of mineral claims (collectively known as the “Eureka” claims) situated in the Eureka County, Esmeralda County and Mineral County, Nevada. Consideration for the claims is as follows:

	i)	150,000 common shares (issued) with a value of $37,500;

	ii)	$10,000 advance royalty payment due on or before August 28, 2009 (paid);

	iii)	$15,000 advance royalty payment due on or before August 28, 2010 (paid);

	iv)	$20,000 advance royalty payment due on or before August 28, 2011;

	v)	$25,000 advance royalty payment due on or before August 28, 2012;

	vi)	$30,000 advance royalty payment due on or before August 28, 2013, with an additional $30,000 due each year thereafter for a period of ten years, with an option to renew for an additional ten years.

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
	p)	Fair Value of Financial Instruments
		Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market.
		The Company uses a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 and 2009
(Stated in U.S. Dollars)

	Level 1:	Observable inputs such as quoted prices in active markets;
5.	MINERAL PROPERTY ACQUISITION COSTS (Continued)
	Level 2:	Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	c)	Manado Gold Claims
	Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
		On January 19, 2010, the Company entered into an option agreement dated for reference November 2, 2009 (the “Agreement”) to acquire interests in four mineral claims (collectively referred to as the “Manado Gold claims”) in the Lobongan District of Northern Sulawesi, Indonesia.
		In consideration of $35,000 paid on execution of the Agreement, the Company has been granted an exclusive right, for a period of 90 days (to January 31, 2010) from the date of execution of this Agreement (the “Due Diligence Period”) to enter into an acquisition agreement (the “Acquisition Agreement”) to acquire up to an 85% undivided interest in the Manado Gold claims. At any time prior to the expiration of the Due Diligence Period, the Company may elect, by notice in writing, to exercise its option to enter into the Acquisition Agreement (exercised).
		During the year ended November 30, 2010, the Company elected to exercise its option to enter into the Acquisition Agreement. The Acquisition Agreement shall provide for the earning of interests by the Company in the Manado Gold claims by making cash payments, stock issuances and completing work programs as follows:
		i)	A 10% interest by:
				Making a cash payment of $90,000 on execution of the Acquisition Agreement ($15,050 paid);
				Issuing 150,000 shares of the Company’s common stock on execution of the Acquisition Agreement; and
				Completing a mineral exploration program at a cost of not less than $250,000 within one year of the Acquisition Agreement.
		ii)	An additional 15% interest by:
				Making an additional cash payment of $100,000 on the first anniversary of the Acquisition Agreement;
				Issuing an additional 300,000 shares of the Company’s common stock on the first anniversary of the Acquisition Agreement; and
				Completing an additional mineral exploration program at a cost of not less than $500,000 prior to the second anniversary of the Acquisition Agreement.

~~The~~PENGRAM ~~Company~~CORPORATION ~~measured their marketable~~ ~~securities using Level 3 fair value assumptions as at November 30, 2009. The fair value of the common shares received~~ (~~see~~An ~~Note~~Exploration ~~11)~~Stage ~~was determined as the difference between the~~ Company’s) ~~cash advances paid and the cash advances to be~~ ~~recovered~~ NOTES ~~from~~TO ~~Solfotara~~CONSOLIDATED ~~Minerals~~FINANCIAL ~~Corp.~~STATEMENTS ~~The Company did not have any fair value~~ ~~adjustments~~ NOVEMBER ~~for~~30, ~~assets~~2010 and ~~liabilities~~2009 ~~measured at fair value on a nonrecurring~~ ~~basis~~ (Stated ~~during~~in ~~the year ended November 30, 2009~~U.S. Dollars)

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

5.	MINERAL PROPERTY ACQUISITION COSTS (Continued)

	c)	Manado Gold Claims (Continued)

		iii)	An additional 26% interest by:

				Making an additional cash payment of $200,000 on the second anniversary of the Acquisition Agreement;
				Issuing an additional 500,000 shares of the Company’s common stock on the second anniversary of the Acquisition Agreement; and
				Completing an additional mineral exploration program at a cost of not less than $1,000,000 prior to the third anniversary of the Acquisition Agreement.

		iv)	An additional 34% interest on completion of a scoping study on the claims.

			Upon the Company earning an 85% interest as outlined above, the vendor shall be carried and shall not be obligated to pay their proportionate share of the costs to complete a feasibility study and to place the claims into commercial production. On completion of the feasibility study, the Company shall have the option to acquire the remaining 15% interest for a cash payment of $5,000,000.

			In August 2010, the Company entered into an agreement with Manado Gold Corp. (”the Assignee”) to assign a 75% undivided interest in the original option agreement. The consideration for the assignment is:

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
	p)	Fair Value of Financial Instruments (Continued)
		The following table presents information about the Company’s financial instruments that have been measured at fair value as of November 30, 2009, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair values:

The reimbursement by the Assignee of $80,000 in expenditures incurred by the Company in connection with the original option agreement payable is as follows:

				QUOTED		SIGNIFICANT
(i)	$40,000 on execution of this Agreement (received);
				PRICES		OTHER
(ii)	$40,000 on or before September 15, 2010 ($28,427 received as at November 30, 2010).
		FAIR VALUE		IN ACTIVE		OBSERVABLE		UNOBSERVABLE
		AT		MARKETS		INPUTS		INPUTS
		NOVEMBER 30
DESCRIPTION		2009		(LEVEL 1)		(LEVEL 2)		(LEVEL 3)
Assets:
Cash	$	3,711	$	3,711	$	-	$	-
Marketable securities		10,367		-		-		10,367
Assets measured at fair value at November 30, 2009	$	14,078	$	3,711	$	-	$	10,367

q)	Comparative Figures
b)	The Assignee incurring expenditures to complete exploration on or place into production the Manado Gold Property is as follows:
	Certain comparative figures have been reclassified to conform with the current year’s presentation.
	(i)	$250,000 within the first year of the Acquisition Agreement;
r)	Recent Accounting Pronouncements
	(ii)	$500,000 prior to the second anniversary of the Acquisition Agreement; and
	In February 2010, FASB issued ASU 2010-09 Subsequent Event (Topic 855) Amendments to Certain Recognition and Disclosure Requirements. ASU 2010-09 removes the requirement for an SEC filer to disclose a date in both issued and revised financial statements. Revised financial statements include financial statements revised as a result of either correction of an error or retrospective application of GAAP. All of the amendments in ASU 2010-09 are effective upon issuance of the final ASU, except for the use of the issued date for conduit debt obligors. That amendment is effective for interim or annual periods ending after June 15, 2010. The Company adopted ASU 2010- 09 in February 2010 and did not disclose the date the financial statements are available to be issued.
	(iii)	$1,000,000 prior to the third anniversary of the execution of the Acquisition Agreement.
c)	Following completion of the expenditures set out above, the Assignee making the expenditures will complete a scoping study on the Manado Gold Property.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
5.	MINERAL PROPERTY ACQUISITION COSTS (Continued)
	r)	Recent Accounting Pronouncements (Continued)
	c)	Manado Gold Claims (Continued)
		In January 2010, the FASB issued ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820), Improving Disclosures about Fair Value Measurements, amending ASC 820. ASU 2010-06 requires entities to provide new disclosures and clarify existing disclosures relating to fair value measurements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2010- 06, but does not expect its adoption to have a material impact on the Company’s financial position or results of operations.
		d)	The Assignee will issue 950,000 shares of its common stock to the Company, as follows:
		In October 2009, the FASB issued ASU 2009-13, Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements amending ASC 605. ASU 2009-13 requires entities to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy. ASU 2009-13 eliminates the residual method of revenue allocation and requires revenue to be allocated using the relative selling price method. ASU 2009-13 is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. The Company is currently evaluating the impact of ASU 2009-13, but does not expect its adoption to have a material impact on the Company’s financial position or results of operations.
			(i)	150,000 shares on execution of the Acquisition Agreement;
		In June, 2009, the FASB issued Update No. 2009-01, The FASB Accounting Standards CodificationTM (“ASC”) as the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. This guidance is set forth in Topic 105 (“ASC 105”). Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This statement is effective for financial statements issued for fiscal years and interim periods ending after September 15, 2009, which, for the Company, is the fiscal year ending November 30, 2009. The adoption of this statement did not have a material effect on its financial results.
			(ii)	300,000 shares prior to the first anniversary the Acquisition Agreement; and
			(iii)	500,000 shares prior to the second anniversary of the Acquisition Agreement.
		e)	The Assignee will make payments to the Concession Owners as follows:
			(i)	$75,000 on execution of the Acquisition Agreement;
			(ii)	$100,000 on the first anniversary of the execution of the Acquisition Agreement; and
			(iii)	$200,000 on the second anniversary of the execution of the Acquisition Agreement.

~~PENGRAM~~Upon ~~CORPORATION~~completing ~~(An~~the ~~Exploration~~payments expenditures ~~Stage~~and ~~Company)~~share ~~NOTES~~issuance TOas ~~CONSOLIDATED~~set ~~FINANCIAL~~out ~~STATEMENTS~~above, ~~NOVEMBER~~the ~~30,~~Assignee ~~2009~~will ~~AND~~earn ~~2008~~up ~~(Stated~~to 75% of the Company’s interest in ~~U.S.~~the ~~Dollars)~~Manado Gold Property as follows:

2.	SIGNIFICANT ACCOUNTING POLICIES (Continued)
	r)	Recent Accounting Pronouncements (Continued)
		In May, 2009, the FASB issued ASC 855, Subsequent Events. The new standard is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. This statement is effective for financial statements issued for interim or annual financial periods ending after June 15, 2009, which, for the Company, was the interim period ending August 31, 2009. The Company has evaluated subsequent events through to March 15, 2010. The adoption of ASC 855 did not have a material effect to the Company’s current practice.

	(i)	7.5% undivided interest upon completion of the items set out in (a), (b)(i), (d)(i) and (e)(i) above;

	(ii)	11.25% undivided interest upon completion of the items set out in paragraphs (b)(ii), (d)(ii) and (e)(ii) above;

	(iii)	19.5% undivided interest upon completion of the items set out in paragraphs (b)(iii), (d)(iii) and (e)(iii) above; and

	(iv)	25.5% undivided interest on completing the scoping study described in paragraph (c) above.

3If the Assignee exercises its rights under the Agreement, the Company will be carried through the first $1,750,000 of expenditures and through completion of a scoping study. ~~COMPUTER~~Thereafter ~~EQUIPMENT~~the Company will be responsible for its proportionate share. The Company will remain responsible to issue up to 950,000 of its common shares to the Concession Holders under the formal agreement.

		2009						2008
				ACCUMULATED		NET BOOK		NET BOOK
		COST		AMORTIZATION		VALUE		VALUE
Computer Equipment	$	1,516	$	1,263	$	253	$	758

In the event the Company elects to exercise its option to purchase the Concession Owners’ 15% carried interest, the Assignee will have the right to participate as to 75% in the exercise of that option.

4.PENGRAM ~~MINERAL~~CORPORATION ~~PROPERTY~~ (An ~~AND~~Exploration ~~ACQUISITION~~Stage ~~COSTS~~Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2010 and 2009 (Stated in U.S. Dollars)

							ABANDONED,
5.	MINERAL PROPERTY AND ACQUISITION COSTS (Continued)
			2008		ADDITIONS		IMPAIRED		2009
	c)	Manado Gold Claims (Continued)
	Mineral Property
		Assuming that the Assignee exercises all its options under the Agreement, the Assignee will have acquired a 63.75% undivided interest in the Manado Gold Property and the Company will retain an 11.25% interest in the Manado Gold Property, In the event the option to acquire the Concession Holder’s carried interest is exercised, the Assignee will hold a 75% undivided interest and the Company will hold a 25% undivided interest.
	Clisbako claims (b)	$	-	$	392,600	$	-	$	392,600
		As of November 30, 2010, the Company has not entered into the Acquisition Agreement.
	Eureka claims (c)		-		47,500		-		47,500
	d)	June Claims
		$	-	$	440,100	$	-	$	440,100
		On February 5, 2010, the Company entered into an option agreement to acquire an undivided 100% interest in a series of mineral claims (collectively known as the “June claims”) situated in the Alberni Mining Division of British Columbia, Canada. Consideration for the claims is as follows:
		i)	Payment of $3,000 due on February 5, 2010 (paid);
		ii)	Payment of $10,000 due on or before May 6, 2010;
		iii)	Payment of $10,000 and the issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2011;
		iv)	Payment of $10,000 and the issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2012;
		v)	Payment of $10,000 and the issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2013.

							ABANDONED,
	During the year ended November 30, 2010, the Company abandoned and wrote off all costs incurred with respect to the June property.
			2007		ADDITIONS		IMPAIRED			2008
6.	PROMISSORY NOTE PAYABLE
	Mineral Property
	a)	On January 11, 2010, the Company entered into a promissory note agreement whereby it borrowed $75,000 from an arm’s length party. The note bears interest at 10% per annum, is unsecured and repayable on demand. As at November 30, 2010, a total of $6,637 has been accrued as interest on this note.
	Spelter claim (a)	$	6,000	$	-	$	(6,000	)	$	-

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

4.	MINERAL PROPERTY AND ACQUISITION COSTS (Continued)
6.	PROMISSORY NOTE PAYABLE (Continued)
	a)	Spelter Claim
	b)	Pursuant to a purchase agreement to acquire the Clisbako claims outlined in Note 5(a), the Company issued a promissory note in the amount of CDN$70,000 (translated to US$65,913 as at November 30, 2009) payable June 30, 2009. The promissory note is unsecured and free of interest. During the year ended November 30, 2009, the Company reached an agreement with the vendor to extend the deadline of the promissory note to December 31, 2009.
		During the period ended November 30, 2006, the Company entered into a purchase agreement to acquire an undivided 100% interest in a mineral claim (known as the “Spelter” property) located in the Yellow Pine Mining District, Clark County, Nevada. The consideration was $6,000 cash (paid) on execution of the agreement.
		During the year ended November 30, 2010, the Company obtained various extensions from the vendor to postpone the Property Payment. The Company repaid CDN$55,000 on the promissory note. Subsequent to the year ended November 30, 2010, the Company repaid the remaining balance of CDN$15,000 of the promissory note.
		During the year ended November 30, 2008, the Company abandoned and wrote off all costs incurred with respect to the Spelter property.
7.	PROMISSORY NOTE PAYABLE TO RELATED PARTY
	b)	Clisbako Claims
	On December 19, 2007, the Company entered into a promissory note agreement whereby it borrowed $20,000. The note is unsecured, repayable on demand and bears interest at 10% per annum, payable annually. As at November 30, 2010, a total of $5,901 (2009 - $3,901) has been accrued as interest payable on the loan. During the year ended November 30, 2008, the owner of the company holding the promissory note became an officer and director of the Company.
		On December 16, 2008, the Company entered into a purchase agreement to acquire an undivided 100% interest in a group of ten mineral claims (collectively known as the “Clisbako” claims) located in the Cariboo Mining Division of British Columbia, Canada. Consideration for the claims was 6,000,000 shares (issued – see Note 7(a)) of the Company’s common stock with a value of $300,000 and the issuance to the vendor of a promissory note in the amount of $56,600 (CDN$70,000 translated to US$65,913 as at November 30, 2009) payable June 30, 2009. On July 23, 2009, the Company reached an agreement with the vendor to extend the deadline of the promissory note to December 31, 2009. In consideration of the extension of the deadline, the Company issued 60,000 common shares to the vendor with a fair value of $36,000. The promissory note is unsecured and free of interest.
8.	LOAN PAYABLE
		On January 21, 2010, the Company reached an agreement with the vendor to further extend the due date of the promissory note to February 15, 2010. In consideration of the further extension of the deadline, the Company will issue 10,000 shares of its common stock to the vendor (subsequently issued).
	On October 1, 2008, the Company received a loan from an arm’s length party of $10,000. The loan is unsecured, repayable on demand and bears interest at 10% per annum, payable annually. During the year ended November 30, 2009, the Company paid back $4,610 of this balance. As at November 30, 2010, a total of $1,625 (2009 - $1,086) has been accrued as interest payable on the loan.
		On March 15, 2010, the Company entered into a third extension agreement dated for reference February 15, 2009, with the vendor to extend the due date of a non-interest bearing promissory note in the amount of CDN $65,000 payable to the vendor from December 31, 2009 to June 30, 2010. In consideration of the extension, the Company agreed to pay $5,000 of the promissory note and issue to the vendor 20,000 common shares.
9.	CONVERTIBLE NOTES
	On April 30, 2009, the Company issued 55, $2,500 Convertible Notes (the “Notes”) in the aggregate amount of $137,500 due and payable on or before October 31, 2010, with interest charged at the rate of 10% per annum payable annually. Attached to the Notes were 550,000 share purchase warrants (10,000 attached to each of the 55 Notes). Each warrant entitles the holder to purchase three shares of the Company’s common stock for a period expiring one year from the date of issuance of the Notes at an exercise price of $0.25 ($0.083 per share). At the election of the holder, the Notes and interest accrued thereon are convertible into such number of shares of the Company’s common stock as shall be equal to the principal amount of the Note to be converted divided by $0.05. Conversion of the Notes does not affect the warrants.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

4.	MINERAL PROPERTY AND ACQUISITION COSTS (Continued)
9.	CONVERTIBLE NOTES (Continued)
	c)	Eureka Claims
	During the year ended November 30, 2008, the Company had received $67,500 towards the convertible notes offering. During the year end November 30, 2009, the Company received the remaining $70,000 towards this offering.
		On May 29, 2009, the Company entered into an assignment agreement to acquire an undivided 100% interest in a series of mineral claims (collectively known as the “Eureka” claims) situated in the Eureka County, Esmeralda County and Mineral County, Nevada. Consideration for the claims is as follows:
	The Company has allocated the proceeds received between the notes and the detachable warrants on a relative fair value basis. The fair value of the warrants was estimated using the Black-Scholes option pricing model at the date of issue with the following weighted average assumptions: expected dividend yield of 0%; average risk free interest rate of 0.63%; expected volatility of 229% and a term of 1.0 year. The fair value of the notes was estimated by multiplying the number of shares that would result from an immediate exercise of the conversion option, by the market price on the date of issue. The relative fair values of the notes and the warrants determine the debt discount attributable to the warrants. The result was $47,479 of the proceeds being allocated to the warrants and $90,021 being allocated to the notes. The resulting discount on the notes is amortized over the term of the notes to maturity such that, in the absence of any conversions, the carrying value of the notes at maturity would be equal to the face amount of $137,500. In the event of a conversion of any, or all, of the face amount of the notes, the proportionate amount of the unamortized discount as of the date of conversion is immediately charged to operations.
		i)	150,000 common shares (issued) with a value of $37,500;
	In accordance with the provisions of ASC 470 – 20, the Company determined the intrinsic value of the beneficial conversion feature on the notes by comparing the market price of the Company’s common stock at issuance of the notes to the effective conversion price of the notes, as determined by dividing the proceeds allocated to the notes by the number of shares that would result from an immediate exercise of the conversion option. The initial beneficial conversion feature was determined to be $734,250; however, in accordance with the provisions of ASC 470 – 20, it is limited to the proceeds allocated to the notes, being $90,021. This beneficial conversion feature was recorded as an immediate charge to additional paid-in capital and a further discount on the convertible note carrying value. This further discount is to be amortized over the term of the notes to maturity. In the event of a conversion of any, or all, of the face amount of the notes, the proportionate amount of the unamortized beneficial conversion feature as of the date of conversion is immediately charged to operations.
		ii)	$10,000 advance royalty payment due on or before August 28, 2009 (paid);
	During the year ended November 30, 2010, the Company recorded as finance charges, $28,964 of amortization (2009 - $18,515) of the discount resulting from the allocation of proceeds to the warrants and a further $54,917 of the intrinsic value of the beneficial conversion feature (2009 - $35,104), leaving total unamortized amounts of $Nil (2009 - $83,881). The accrued interest of $20,406 remains unpaid as of November 30, 2010, and is included in accounts payable and accrued liabilities.
		iii)	$15,000 advance royalty payment due on or before August 28, 2010;
		iv)	$20,000 advance royalty payment due on or before August 28, 2011;
		v)	$25,000 advance royalty payment due on or before August 28, 2012;
		vi)	$30,000 advance royalty payment due on or before August 28, 2013, with an additional $30,000 due each year thereafter for a period of five years.
5.	PROMISSORY NOTES PAYABLE TO RELATED PARTIES
	On December 19, 2007, the Company entered into a promissory note whereby it borrowed $20,000. The note is unsecured, repayable on demand and bears interest at 10% per annum, payable annually. As at November 30, 2009, a total of $3,901 has been accrued as interest payable on the loan. During the year ended November 30, 2008, the owner of the company holding the promissory note became an officer and director of the Company.
	On August 26, 2009, the Company received two demand loans for a total of $7,000 from companies controlled by an officer and director of the Company. During the year ended November 30, 2009, the Company repaid these loans in full. These notes were unsecured, repayable on demand and free of interest.
6.	LOAN PAYABLE
	On October 1, 2008, the Company received a loan from an arm’s length party of $10,000. The loan is unsecured, repayable on demand and bears interest at 10% per annum, payable annually. During the year ended November 30, 2009, the Company paid back $4,610 of this balance. As at November 30, 2009, a total of $1,086 has been accrued as interest payable on the loan.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

7.	CAPITAL STOCK
9.	CONVERTIBLE NOTES (Continued)
	a)	Common Stock
	During the year ended November 30, 2010, the entire principal of $137,500 was converted into 2,750,000 shares of the Company’s common stock.
		On June 19, 2006, the Company issued 27,000,000 common shares to the Company’s founder (9,000,000 pre-stock split shares at a price of $0.001 for gross proceeds of $9,000).
10.	UNIT AND SHARE SUBSCRIPTIONS RECEIVED IN ADVANCE
		During the year ended November 30, 2006, pursuant to a private placement, the Company issued 17,997,144 common shares (5,999,048 pre-stock split shares at a price of $0.02 for gross proceeds of $119,981).
		During the year ended November 30, 2008, the Company received $80,000 from completing a private placement of 3,000,000 units (1,000,000 pre-stock split units at a price of $0.08 per unit). Each unit was comprised of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the subscriber to purchase one share of the Company’s common stock for a period expiring two years from the date of issue at an exercise price of $0.033 per share.
		During the year ended November 30, 2009, the Company completed the following stock transactions:
			issued 6,000,000 common shares pursuant to a mineral property purchase agreement (see Note 4). The Company recorded these shares at a price of $0.05 per share for a total value of $300,000;
			issued 150,000 common shares pursuant to a mineral property assignment agreement (see Note 4). The Company recorded these shares at a price of $0.25 per share for a total value of $37,500; and
			issued 60,000 common shares pursuant to an extension to a mineral property purchase agreement (see Note 4). The Company recorded these shares at a price of $0.60 per share for a total value of $36,000.
	b)	Share Purchase Warrants
		As at November 30, 2009, share purchase warrants were outstanding for the purchase of common shares as follows:

NUMBER OF		EXERCISE	EXPIRY
	a)	Unit subscriptions received
WARRANTS		PRICE	DATE
		During the year ended November 30, 2010, the Company received $22,465 (2009 - $18,860) in advance of a private placement. Under the terms of the financing, the subscription price for each unit is $0.05. Each unit will consist of one common share and one common share warrant, each whole warrant entitling the holder thereof to purchase an additional common share at $0.10 for a period of two years. A total of $26,360 in subscription funds, representing 527,200 units, has been approved for issuance subsequent to the year end and therefore has been classified as unit subscription received in advance as of November 30, 2010.
3,000,000		$ 0.033	September 4, 2010
		The Company received $14,965 in subscription funds in connection with the private placement mentioned above. Due to the provision in the subscription agreements that the subscription funds will constitute non-interest bearing demand loans to the Company in the event the subscriptions are not accepted by the Company, the Company classified the unit subscriptions received in advance as current liabilities.
1,650,000		$ 0.083	April 30, 2010
	b)	Share subscriptions received in advance
4,650,000
		During the year ended November 30, 2009, the Company received $2,500 towards the exercise of share purchase warrants. A total of 30,000 shares of the Company’s common stock were issued in March 2010 upon exercise of the warrants.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

11.	CAPITAL STOCK

	a)	Common Stock

		On June 19, 2006, the Company issued 27,000,000 common shares to the Company’s founder (9,000,000 pre-stock split shares at a price of $0.001 for gross proceeds of $9,000).

		During the year ended November 30, 2006, pursuant to a private placement, the Company issued 17,997,144 common shares (5,999,048 pre-stock split shares at a price of $0.02 for gross proceeds of $119,981).

7.	CAPITAL STOCK (Continued)
	b)	Share Purchase Warrants (Continued)
		A summary of changes in share purchase warrants for the years ended November 30, 2008 and 2009 is presented below:

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 and 2009
(Stated in U.S. Dollars)

					WEIGHTED
11.	CAPITAL STOCK (Continued)
					AVERAGE
	a)	Common Stock (Continued)
			NUMBER OF		EXERCISE
		During the year ended November 30, 2008, the Company received $80,000 from completing a private placement of 3,000,000 units (1,000,000 pre-stock split units at a price of $0.08 per unit). Each unit was comprised of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the subscriber to purchase one share of the Company’s common stock for a period expiring two years from the date of issue at an exercise price of $0.033 per share.
			WARRANTS		PRICE
		During the year ended November 30, 2009, the Company completed the following stock transactions:
	Balance, November 30, 2006 and 2007		-	$	-
			issued 6,000,000 common shares pursuant to a mineral property purchase agreement (see Note 5). The Company recorded these shares at a price of $0.05 per share for a total value of $300,000;
	Issued		3,000,000	$	0.033
			issued 150,000 common shares pursuant to a mineral property assignment agreement (see Note 5). The Company recorded these shares at a price of $0.25 per share for a total value of $37,500; and
	Balance, November 30, 2008		3,000,000	$	0.033
			issued 60,000 common shares pursuant to an extension to a mineral property purchase agreement (see Note 5). The Company recorded these shares at a price of $0.60 per share for a total value of $36,000.
	Issued (Note 8)		1,650,000	$	0.083
		During the year ended November 30, 2010, the Company completed the following stock transactions:
	Balance, November 30, 2009		4,650,000	$	0.05
			issued 600,000 units for total proceeds of $60,000 in relation to a private placement. Each unit consists of one common share and one share purchase warrant, each whole warrant entitling the holder thereof to purchase an additional common share at a price of $0.15 for a period of two years.
			issued 150,000 common shares from exercise of warrants;
			issued 2,750,000 common shares with a value of $137,500 pursuant to the conversion of convertible notes (see Note 9);
			issued 30,000 common shares with a value of $6,400 pursuant to an extension to a mineral property purchase agreement (see Note 5).

~~The~~PENGRAM ~~fair~~CORPORATION ~~value~~ (An ofExploration ~~the~~Stage ~~warrants~~Company) ~~issued~~ in NOTES ~~connection~~TO ~~with~~CONSOLIDATED ~~the~~FINANCIAL ~~private~~STATEMENTS ~~placement~~ NOVEMBER ~~during the year ended November~~ 30, ~~2008 was~~2010 measured at the award date using the Black-Scholes option pricing model with the following weighted average assumptions: expected dividend yield of 0%; average risk free interest rate of 4.90%; expected volatility of 162% and a2009 ~~term~~ of (Stated ~~0.75~~in ~~years~~U. ~~Of the total proceeds, $35,700 was allocated to share purchase warrants~~S. Dollars)

The fair value of the warrants issued during the year ended November 30, 2009 was measured as disclosed in Note 8.

11.	CAPITAL STOCK (Continued)

	b)	Share Purchase Warrants

		As at November 30, 2010 share purchase warrants were outstanding for the purchase of common shares as follows:

c) Stock Options As at November 30, 2009, the Company does not have an incentive stock option plan.

NUMBER OF	EXERCISE
WARRANTS	PRICE	EXPIRY DATE

500,000	$ 0.15	July 20, 2012
100,000	$ 0.15	August 4, 2012
600,000

~~PENGRAM~~A ~~CORPORATION~~summary ~~(An~~of ~~Exploration~~changes ~~Stage~~in ~~Company)~~share ~~NOTES~~purchase warrants TOfor ~~CONSOLIDATED~~the ~~FINANCIAL~~years ~~STATEMENTS~~ended ~~NOVEMBER~~November 30, 2009 ~~AND~~and ~~2008~~2010 ~~(Stated~~is inpresented ~~U.S.~~below: ~~Dollars)~~

8.	CONVERTIBLE NOTES
		NUMBER OF			WEIGHTED AVERAGE
	On April 30, 2009, the Company issued 55, $2,500 Convertible Notes (the “notes”) in the aggregate amount of $137,500 due and payable on or before October 31, 2010, with interest charged at the rate of 10% per annum payable annually. Attached to the Notes were 550,000 share purchase warrants (10,000 attached to each of the 55 notes). Each warrant entitles the holder to purchase three shares of the Company’s common stock for a period expiring one year from the date of issuance of the notes at an exercise price of $0.25 ($0.083 per share). At the election of the holder, the notes and interest accrued thereon are convertible into such number of shares of the Company’s common stock as shall be equal to the principal amount of the convertible note to be converted divided by $0.05. Conversion of the notes does not affect the warrants.
		WARRANTS			EXERCISE PRICE
	During the year ended November 30, 2008, the Company had received $67,500 towards the convertible notes offering. During the year end November 30, 2009, the Company received the remaining $70,000 towards this offering.
	Balance, November 30, 2008	3,000,000		$	0.033
	The Company has allocated the proceeds received between the notes and the detachable warrants on a relative fair value basis. The fair value of the warrants was estimated using the Black-Scholes option pricing model at the date of issue with the following weighted average assumptions: expected dividend yield of 0%; average risk free interest rate of 0.63%; expected volatility of 229% and a term of 1.0 year. The fair value of the notes was estimated by multiplying the number of shares that would result from an immediate exercise of the conversion option, by the market price on the date of issue. The relative fair values of the notes and the warrants determine the debt discount attributable to the warrants. The result was $47,479 of the proceeds being allocated to the warrants and $90,021 being allocated to the notes. The resulting discount on the notes is amortized over the term of the notes to maturity such that, in the absence of any conversions, the carrying value of the notes at maturity would be equal to the face amount of $137,500. In the event of a conversion of any or all of the face amount of the notes, the proportionate amount of the unamortized discount as of the date of conversion is immediately charged to operations.
	Issued	1,650,000		$	0.083
	Balance, November 30, 2009	4,650,000		$	0.05
	Granted	600,000		$	0.15
	Exercised	(150,000	)	$	(0.083	)
	Expired	(4,500,000	)	$	(0.05	)
	Balance, November 30, 2010	600,000		$	0.15

~~PENGRAM~~The ~~CORPORATION~~fair ~~(An~~value ~~Exploration~~of ~~Stage~~the ~~Company)~~warrants ~~NOTES~~issued in TOconnection ~~CONSOLIDATED~~with ~~FINANCIAL~~the ~~STATEMENTS~~private ~~NOVEMBER~~placement during the year ended November 30, ~~2009~~2010 was ~~AND~~measured ~~2008~~at ~~(Stated~~the inaward Udate using the Black-Scholes option pricing model with the following weighted average assumptions: expected dividend yield of 0%; average risk free interest rate of 1.S46%; expected volatility of 168% and a term of 2 years. ~~Dollars)~~Of the total proceeds, $21,750 was allocated to share purchase warrants.

8.	CONVERTIBLE NOTES (Continued)
	In accordance with the provisions of ASC 470 – 20, the Company determines the intrinsic value of the beneficial conversion feature on the notes by comparing the market price of the Company’s common stock at issuance of the notes to the effective conversion price of the notes, as determined by dividing the proceeds allocated to the notes by the number of shares that would result from an immediate exercise of the conversion option. The initial beneficial conversion feature was determined to be $734,250; however, in accordance with the provisions of ASC 470 – 20, it is limited to the proceeds allocated to the notes, being $90,021. This beneficial conversion feature is recorded as an immediate charge to additional paid-in capital and a further discount on the convertible note carrying value. This further discount is amortized over the term of the notes to maturity. In the event of a conversion of any, or all of, the face amount of the notes, the proportionate amount of the unamortized beneficial conversion feature as of the date of conversion is immediately charged to operations.
	During the year ended November 30, 2009, the Company recorded as finance charges, $18,515 of amortization of the discount resulting from the allocation of proceeds to the warrants and a further $35,104 of the intrinsic value of the beneficial conversion feature, leaving total unamortized amounts of $83,881.
	During the year ended November 30, 2009, no amounts of principal or accrued interest were converted into shares of the Company’s common stock.
9.	UNIT AND SHARE SUBSCRIPTIONS RECEIVED IN ADVANCE
	a)	Unit subscriptions received
		During the year ended November 30, 2009, the Company received $18,860 in advance of a private placement. Under the terms of the financing, a total of 94,300 units will be issued at a price of $0.20 per unit. Each unit will consist of one common share and one share purchase warrant, each whole warrant entitling the holder thereof to purchase an additional common share at a price of $0.30 for a period of one year. Due to the provision in the subscription agreements that the subscription funds will constitute non- interest bearing demand loans to the Company in the event the subscriptions are not accepted by the Company, the Company classified the unit subscriptions received in advance as current liabilities.

The fair value of the warrants issued with the convertible notes during the year ended November 30, 2009 was measured as disclosed in Note 9.

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, ~~2009~~2010 ~~AND~~and ~~2008~~2009 (Stated in U.S. Dollars)

9.	UNIT AND SHARE SUBSCRIPTIONS RECEIVED IN ADVANCE (Continued)
11.	CAPITAL STOCK (Continued)
	b)	Share subscriptions received in advance
	c)	Stock Options
		During the year ended November 30, 2009, the Company received $2,500 towards the exercise of share purchase warrants. A total of 30,000 shares of the Company’s common stock will be issued in fiscal 2010 (subsequently issued).
		As at November 30, 2010, the Company does not have an incentive stock option plan.
		Subsequent to the year ended November 30, 2010, the Company adopted its 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan provides for the issuance of incentive and non-qualified shares of the Company's stock to officers, directors, employees, and non-employees. A total of 5,500,000 shares of the Company’s common stock are available for issuance under the Plan. The exercise price must be at least 80% of the market price of the Company’s common shares as calculated on the date of grant. The options can be granted for a maximum term of 10 years and vest as determined by the Board of Directors.
12.	RELATED PARTY TRANSACTIONS
	During the year ended November 30, 2010, the Company entered into the following transactions with related parties:
	a)	Paid or accrued $36,000 (2009 - $36,000) for management fees to the board of directors of MAC.
	b)	Paid or accrued $2,500 (2009 - $nil) for consulting fees to a director of the Company.

10. RELATED PARTY TRANSACTIONS During the year ended November 30, 2009, the Company paid management fees for services performed in the amount of $Nil (2008 - $2,800) to a former director and paid or accrued a total of $36,000 (2008 - $9,000) to the board of directors of MAC.

	These transactions with related parties were in the normal course of operations and were measured at the exchange value which represented the amount of consideration established and agreed to by the parties. The amount due to the related parties is non- interest bearing with no fixed terms of repayment.

13.	COMMITMENTS AND CONTRACTUAL OBLIGATIONS

	The Company has no significant commitments or contractual obligations with any parties respecting executive compensation, consulting arrangements or other matters. Rental of premises and investor relations services are provided on a month-to-month basis.

11.	MARKETABLE SECURITIES AND ADVANCES
	The Company entered into a letter of intent dated August 6, 2008 with Magellan Copper and Gold PLC (“Magellan”) to acquire 100% of the issued and outstanding shares of Magellan Resources PTE Ltd. and St. Anthony Resources PTE Ltd. (“Magellan Subsidiaries”). Consideration for the transaction will consist of the following:
		Issuance of up to 47,000,000 shares of the Company;
		Cash payments of $50,000 on the execution of a formal agreement and $250,000 on closing; and
		The assumption of liabilities, totaling not more than $110,000, of Magellan related to the preparation of technical reports and title opinions on the mineral resource properties held by Magellan subsidiaries.
	Pending the closing of the transaction, the Company will advance $35,000 per month to Magellan for payment of expenses related to the mineral properties held by Magellan Subsidiaries. During the year ended November 30, 2008, the Company advanced a total of $110,367 to Magellan in connection with the letter of intent.

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 and 2009
(Stated in U.S. Dollars)

~~PENGRAM~~14. ~~CORPORATION~~SEGMENT ~~(An~~INFORMATION ~~Exploration~~The ~~Stage~~ Company) ~~NOTES~~has TOone ~~CONSOLIDATED~~reportable ~~FINANCIAL~~operating ~~STATEMENTS~~segment, ~~NOVEMBER~~being ~~30,~~the ~~2009~~acquisition ~~AND~~and ~~2008~~exploration ~~(Stated~~of inmineral Uproperties.S. ~~Dollars)~~Details of identifiable assets by geographic segments are as follows:

11.	MARKETABLE SECURITIES AND ADVANCES (Continued)
				MINERAL
	On December 15, 2008, the Company decided not to pursue with the letter of intent and entered into an agreement with Solfotara Minerals Corp., a private Canadian company, whereby the Company would transfer their option to acquire the Magellan Subsidiaries for consideration as follows:
		CAPITAL		PROPERTY
	1.	$20,000 cash payment within three days of the agreement date (received in February 2009);
		ASSETS		INTERESTS
	2.	$30,000 note receivable due March 15, 2009 and free of interest (received in July 2009);
November 30, 2010
	3.	$50,000 note receivable due June 15, 2009 and free of interest (received in September 2009); and
USA	$	-	$	62,525
	4.	250,000 shares of common stock (received in February 2009).
Canada		-		350,350
	The total value attributed to the common stock received from Solfotara Minerals Corp. was $10,367, or approximately $0.04 per share.
	$	-	$	412,875
12.	COMMITMENTS AND CONTRACTUAL OBLIGATIONS
	The Company has no significant commitments or contractual obligations with any parties respecting executive compensation, consulting arrangements or other matters. Rental of premises and investor relations services are provided on a month-to-month basis.
13.	SEGMENT INFORMATION
	The Company has one reportable operating segment, being the acquisition and exploration of mineral properties. Details of identifiable assets by geographic segments are as follows:

					MINERAL	~~MINERAL~~
		CAPITAL	~~CAPITAL~~		PROPERTY	~~PROPERTY~~
		ASSETS	~~ASSETS~~		INTERESTS	~~INTERESTS~~
November 30, 2009	~~November 30, 2009~~
USA	~~USA~~$	$-	-	$	$47,500	~~47,500~~
Canada	~~Canada~~	253	~~253~~		392,600	~~392,600~~
	$	$253	~~253~~	$	$440,100	~~440,100~~
	November 30, 2008
	USA	$	-		$	-
	Canada		758			-
		$	758		$	-

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

15.	INCOME TAXES

	a)	Income Tax Expense (Recovery)

		The income tax expense (recovery) differs from the result which would be obtained by applying the statutory income tax rate of 34% (2009 – 34%) to income (loss) before income taxes. The difference results from the following items:

14.	INCOME TAX
			2010			2009
	a)	Income Tax Provision
	Loss for the year	$	(426,953	)	$	(375,580	)
		The provision for income taxes differs from the result which would be obtained by applying the statutory income tax rate of 34% (2008 – 34%) to income before income taxes. The difference results from the following items:
	Computed expected income tax expense (recovery)	$	(145,000	)	$	(128,000	)
	Non-deductible item		8,000			17,600
	Increase in valuation allowance		137,000			110,400
	Income tax expense (recovery)	$	-		$	-

		2009			2008
Loss for the period	$	(375,580	)	$	(139,039	)
Computed expected (benefit of) income taxes		(128,000	)		(47,000	)
Non-deductible item		17,600			-
Increase in valuation allowance		110,400			47,000
Income tax provision	$	-		$	-

PENGRAM CORPORATION
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOVEMBER 30, 2010 and 2009
(Stated in U.S. Dollars)

b)15. ~~Significant~~INCOME ~~components~~TAXES ~~of the Company’s deferred income tax assets are as follows:~~(Continued)

		2009			2008
Deferred income tax assets:
Non-capital loss carryforward	$	198,000		$	90,000
Mineral property and exploration expenditures		21,000			3,200
		219,000			93,200
Valuation allowance		(219,000	)		(93,200	)
Net deferred income tax assets	$	-		$	-

Significant components of the Company’s deferred income tax assets are as follows:

PENGRAM CORPORATION (An Exploration Stage Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)

		2010			2009

Deferred income tax assets:
Non-capital loss carryforward	$	335,000		$	198,000
Mineral property and exploration expenditures		28,000			21,000
		363,000			219,000
Valuation allowance		(363,000	)		(219,000	)

Net deferred income tax assets	$	-		$	-

14.	INCOME TAX (Continued)
	c)	The Company has incurred operating losses of approximately $582,000 which, if unutilized, will expire in 2029. Subject to certain restrictions, the Company has mineral property and exploration expenditures of $501,000 available to reduce future taxable income. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry forwards:

The Company has incurred operating losses of approximately $986,000 which, if unutilized, will expire in 2030. Subject to certain restrictions, the Company has mineral property and exploration expenditures of $494,000 available to reduce future taxable income. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance.

		INCOME TAX OPERATING
		LOSS CARRY FORWARD
			EXPIRATION
		AMOUNT	DATE
2009	$	324,000	2029
2008		139,000	2028
2007		99,000	2027
2006		20,000	2026
Total income tax operating loss carry forward	$	582,000

ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

15.	SUBSEQUENT EVENTS
	Other than as disclosed elsewhere in these consolidated financial statements, the Company had the following events occurring subsequent to the year ended November 30, 2009:
		On January 19, 2010, the Company entered into an option agreement dated for reference November 2, 2009 (the “Agreement”) to acquire interests in four mineral claims (collectively referred to as the “Manado Gold claims”) in the Lobongan District of Northern Sulawesi, Indonesia.
		In consideration of $35,000 (subsequently paid) to be paid on execution of this Agreement, the Company has been granted an exclusive right, for a period of 90 days (to January 31, 2010) from the date of execution of this Agreement (the “Due Diligence Period”) to enter into an acquisition agreement (the “Acquisition Agreement”) to acquire up to an 85% undivided interest in the Manado Gold claims. At any time prior to the expiration of the Due Diligence Period, the Company may elect, by notice in writing, to exercise its option to enter into the Acquisition Agreement.

On June 18, 2009, we dismissed Williams & Webster, P.S. (“Williams & Webster”)(now known as BehlerMick, P.S), as our independent public accountants. Our Board of Directors approved the dismissal of Williams & Webster. On the same date, we appointed Davidson & Company LLP, Chartered Accountants, ("Davidson") as our new independent registered public accounting firm. Our Board of Directors approved the engagement of Davidson.

~~PENGRAM~~Williams ~~CORPORATION~~& ~~(An~~Webster’s ~~Exploration~~reports ~~Stage~~on ~~Company)~~our ~~NOTES~~financial TOstatements for ~~CONSOLIDATED~~the ~~FINANCIAL~~years ~~STATEMENTS~~ended ~~NOVEMBER~~November 30, ~~2009~~2008 ~~AND~~and ~~2008~~2007 ~~(Stated~~did innot Ucontain an adverse opinion or disclaimer of opinion, nor were they modified or qualified as to uncertainty, audit scope or accounting principles with the exception of a statement regarding the uncertainty of our ability to continue as a going concern.S. ~~Dollars)~~

~~15.~~There ~~SUBSEQUENT~~have ~~EVENTS~~been ~~(Continued)~~no disagreements during the fiscal years ended November 30, 2008 and 2007 and the subsequent interim period up to and including the date of dismissal between Pengram and Williams & Webster on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which, if not resolved to the satisfaction of Williams & Webster, would have caused them to make reference to the subject matter of the disagreement in connection with Williams & Webster’s report for the financial statements for the past year and any subsequent interim period up to and including to the date of Williams & Webster’s dismissal.

~~The~~ITEM ~~Acquisition Agreement shall provide~~9AT. ~~for~~ CONTROLS ~~the~~AND ~~earning of interests by the Company in the Manado Gold claims by making cash payments, stock issuances and completing work programs as follows:~~ PROCEDURES.

a)	A 10% interest by:
		Making a cash payment of $90,000 on execution of the Acquisition Agreement;
		Issuing 150,000 shares of the Company’s common stock on execution of the Acquisition Agreement; and
		Completing a mineral exploration program at a cost of not less than $250,000 within one year of the Acquisition Agreement.
b)	An additional 15% interest by:
		Making an additional cash payment of $100,000 on the first anniversary of the Acquisition Agreement;
		Issuing an additional 300,000 shares of the Company’s common stock on the first anniversary of the Acquisition Agreement; and
		Completing an additional mineral exploration program at a cost not less than $500,000 prior to the second anniversary of the Acquisition Agreement.
c)	An additional 26% interest by:
		Making an additional cash payment of $200,000 on the second anniversary of the Acquisition Agreement;
		Issuing an additional 500,000 shares of the Company’s common stock on the second anniversary of the Acquisition Agreement; and
		Completing an additional mineral exploration program at a cost not less than $1,000,000 prior to the third anniversary of the Acquisition Agreement.

Disclosure Controls and Procedures

d)In Anconnection ~~additional~~with ~~34%~~the ~~interest~~preparation of this Annual Report on Form ~~completion~~10-K, an evaluation was carried out by the Company's management, with the participation of athe ~~scoping~~Chief ~~study~~Executive onOfficer and the ~~claims~~Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act")) as of November 30, 2010.

~~Upon~~Based ~~the~~upon ~~Company~~that ~~earning an 85% interest as outlined above~~evaluation, ~~the~~our ~~vendor~~Chief ~~shall~~Executive beOfficer ~~carried~~ and ~~shall not be~~ ~~obligated~~Chief toFinancial ~~pay~~Officer ~~their~~concluded ~~proportionate~~that ~~share~~our ofdisclosure ~~the~~controls ~~costs~~and ~~to complete a~~procedures ~~feasibility~~were ~~study~~not ~~and~~effective toas ~~place~~of the ~~claims~~Evaluation ~~into~~Date ~~commercial~~as ~~production.~~a ~~On completion~~result of the ~~feasibility study, the Company shall have the option to~~material ~~acquire~~weaknesses ~~the~~in ~~remaining~~internal ~~15%~~control ~~interest~~over ~~for~~financial areporting ~~cash~~discussed ~~payment of $5,000,000~~below.

OnNotwithstanding ~~January~~the ~~21,~~assessment ~~2010,~~that ~~the~~our ~~Company~~internal ~~and~~control over ~~the~~financial ~~vendor~~reporting ~~agreed~~was tonot ~~extend~~effective ~~the~~and ~~Due~~that ~~Diligence~~there ~~Period~~were ~~from~~material ~~January~~weaknesses 31as identified below, ~~2010~~we tobelieve that our financial statements contained in our ~~March~~Annual 31Report for the year ended November 30, 2010 fairly present our financial condition, results of operations and cash flows in all material respects.

~~PENGRAM~~Management’s ~~CORPORATION~~Report ~~(An~~on ~~Exploration~~Internal ~~Stage~~Control ~~Company)~~over ~~NOTES~~Financial Reporting ~~TO CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2009 AND 2008 (Stated in U.S. Dollars)~~

15Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. ~~SUBSEQUENT~~The ~~EVENTS~~Company's internal control over financial reporting is a process, under the supervision of the Chief Executive Officer and the Chief Financial Officer, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with United States generally accepted accounting principles (~~Continued~~GAAP). Internal control over financial reporting includes those policies and procedures that:

On- ~~February~~Pertain 5,to ~~2010,~~the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company's ~~entered~~assets; ~~into~~- anProvide ~~option~~reasonable ~~agreement~~assurance that transactions are recorded as necessary to ~~acquire~~ anpermit ~~undivided~~preparation ~~100%~~of ~~interest~~the financial statements in aaccordance ~~series~~with ofgenerally ~~mineral~~accepted ~~claims~~accounting ~~(collectively known~~principles, asand ~~the~~that ~~“June~~receipts 1-and 4expenditures ~~Claims”)~~are ~~situated~~being made only in accordance with authorizations of management and the ~~Alberni~~Board ~~Mining~~of ~~Division~~Directors; and - Provide reasonable assurance regarding prevention or timely detection of ~~British~~ ~~Columbia~~unauthorized acquisition, ~~Canada.~~use, ~~Consideration~~or ~~for~~disposition of the ~~claims~~Company's isassets asthat ~~follows:~~could have a material effect on the financial statements.

a) Payment of $3,000 due on February 5, 2010 (paid); b) Payment of $10,000 due on or before May 6, 2010; c) Payment of $10,000 and issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2011; d) Payment of $10,000 and issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2012; e) Payment of $10,000 and issuance of 100,000 shares of the Company’s common stock due on or before February 5, 2013.42

~~The~~Because ~~Company~~of ~~entered~~its ~~into~~inherent alimitations, ~~promissory~~internal ~~note~~control ~~agreement~~over financial ~~whereby~~reporting itmay ~~borrowed $75~~not prevent or detect misstatements. Also,~~000~~ ~~from~~projections of anany ~~arm’s~~evaluation ~~length~~of ~~party.~~effectiveness ~~The~~to ~~note~~future ~~bears~~periods ~~interest~~are atsubject ~~10%~~to ~~per~~the ~~annum,~~risk isthat ~~unsecured~~controls ~~and~~may ~~repayable~~become oninadequate ~~demand.~~because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

~~ITEM~~The 9Company's management conducted an assessment of the effectiveness of the Company's internal control over financial reporting as of November 30, 2010, based on criteria established in Internal Control –Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). ~~CHANGES~~As INa ~~AND~~result ~~DISAGREEMENTS~~of ~~WITH~~this ~~ACCOUNTANTS~~assessment, ONmanagement ~~ACCOUNTING~~identified ~~AND~~a material ~~FINANCIAL~~weakness ~~DISCLOSURE~~in internal control over financial reporting.

OnA ~~June~~material ~~18,~~weakness ~~2009,~~is wea ~~dismissed~~deficiency, ~~Williams~~or &a ~~Webster,~~combination ~~P.S.~~of ~~(“Williams~~deficiencies, &in ~~Webster”)(now~~internal ~~known~~control asover ~~BehlerMick,~~financial ~~P.S),~~reporting assuch ~~our~~that ~~independent public~~there ~~accountants.~~is ~~Our~~a reasonable ~~Board~~possibility ofthat ~~Directors~~a ~~approved~~material ~~the~~misstatement ~~dismissal~~ of ~~Williams & Webster. On~~ the ~~same~~Company's ~~date,~~annual weor interim ~~appointed~~financial ~~Davidson~~statements &will ~~Company~~not ~~LLP, Chartered~~be ~~Accountants,~~prevented ~~("Davidson")~~or asdetected ~~our~~on ~~new~~a ~~independent registered public~~timely ~~accounting firm~~basis. ~~Our Board of Directors approved the engagement of Davidson.~~

~~Williams~~The &material ~~Webster’s~~weakness ~~reports~~identified onis ~~our~~described financial statements for the years ended November 30, 2008 and 2007 did not contain an adverse opinion or disclaimer of opinion, nor were they modified or qualified as to uncertainty, audit scope or accounting principles with the exception of a statement regarding the uncertainty of our ability to continue as a going concernbelow.

~~There~~1. ~~have~~Certain ~~been~~entity nolevel ~~disagreements~~controls ~~during~~establishing a “tone at the ~~fiscal~~top” ~~years~~were ~~ended~~ considered material weaknesses. As of November 30, ~~2008~~2010, ~~and~~the ~~2007~~Company ~~and~~did ~~the~~not ~~subsequent~~have ~~interim~~a ~~period~~policy upon tofraud. ~~and~~A ~~including~~ whistleblower policy is not necessary given the ~~date~~small size of ~~dismissal~~the ~~between~~organization. ~~Pengram~~2. ~~and~~Due ~~Williams~~to &the ~~Webster~~significant onnumber ~~any~~and ~~matter~~ magnitude of ~~accounting~~out-of-period ~~principles~~adjustments oridentified ~~practices~~during the year- end closing process, management has concluded that the controls over the period-end financial ~~statement~~reporting ~~disclosure~~process ~~or auditing~~were ~~scope~~not oroperating ~~procedure,~~effectively. ~~which,~~A ifmaterial weakness in the period-end financial reporting process could result in us not ~~resolved~~being able to ~~the~~meet ~~satisfaction~~our ~~of Williams~~regulatory &filing ~~Webster~~deadlines and, ~~would~~if ~~have~~not ~~caused~~remediated, ~~them~~has the potential to ~~make~~cause ~~reference~~a material misstatement or to ~~the~~miss ~~subject matter~~a offiling deadline in the ~~disagreement~~future. inManagement ~~connection~~override ~~with~~of ~~Williams~~existing &controls ~~Webster’s~~is ~~report for~~possible given the ~~financial~~small ~~statements~~size ~~for~~of the ~~past~~organization ~~year~~ and ~~any~~lack ~~subsequent~~of ~~interim~~personnel. ~~period up~~3. There is no system in place to review and ~~including~~monitor tointernal ~~the~~control ~~date~~over financial reporting. The Company maintains an insufficient complement of ~~Williams~~personnel &to ~~Webster’s~~carry ~~dismissal~~out ongoing monitoring responsibilities and ensure effective internal control over financial reporting.

~~ITEM~~As ~~9AT.~~a ~~CONTROLS~~result ~~AND~~of ~~PROCEDURES~~the material weakness in internal control over financial reporting described above, the Company's management has concluded that, as of November 30, 2010, the Company's internal control over financial reporting was not effective based on the criteria in Internal Control - Integrated Framework issued by COSO.

~~Disclosure~~This ~~Controls~~annual ~~and~~report ~~Procedures~~does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. We were not required to have, nor have we, engaged our independent registered public accounting firm to perform an audit of internal control over financial reporting pursuant to the rules of the SEC that permit us to provide only management's report in this annual report.

InChanges connection with the preparation of this Annual Report on Form 10-K, an evaluation was carried out by the Company's management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in ~~Rules~~Internal 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act")) as of November 30, 2009. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. Controls

~~Based~~There onhave ~~that~~been ~~evaluation,~~no ~~the~~changes ~~Company's~~in ~~management~~our ~~concluded, as~~internal ofcontrol ~~the~~over financial ~~end~~reporting of(as ~~the~~such ~~period~~term ~~covered~~is bydefined ~~this~~in ~~report,~~Rules ~~that~~13a-15(f) ~~the~~and ~~Company's~~15d-15 (f) ~~disclosure~~under ~~controls~~the ~~and~~Exchange ~~procedures~~Act) ~~were~~during ~~not~~our ~~effective~~quarter inended ~~recording,~~November ~~processing~~30, 2010 that have ~~summarizing~~materially affected, ~~and~~or ~~reporting~~are ~~information~~reasonably ~~required~~likely to bematerially ~~disclosed~~affect, ~~within~~our ~~the time~~internal ~~periods~~control ~~specified~~over infinancial ~~the Securities and Exchange Commission's rules and forms~~reporting.

~~Management’s~~Limitations ~~Report~~ on ~~Internal~~the ~~Control~~effectiveness ~~over~~of ~~Financial~~controls and procedures ~~Reporting~~

~~Management~~Our ~~of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is a process~~management, ~~under~~including ~~the~~our ~~supervision of the~~ Chief Executive Officer and ~~the~~ Chief Financial Officer, ~~designed~~do tonot ~~provide reasonable~~expect ~~assurance~~that ~~regarding~~ the ~~reliability~~our ofcontrols ~~financial reporting~~ and ~~the~~procedures will ~~preparation~~prevent ofall ~~the~~potential ~~Company's~~errors ~~financial~~or ~~statements~~fraud. ~~for~~A ~~external~~control ~~purposes~~system, inno matter how well ~~accordance~~conceived ~~with~~and ~~United~~operated, ~~States~~can ~~generally~~provide ~~accepted~~only ~~accounting~~reasonable, ~~principles~~not ~~(GAAP).~~absolute, assurance ~~Internal~~that ~~control~~the ~~over~~objectives ~~financial~~of ~~reporting~~the ~~includes~~control ~~those~~system ~~policies~~are ~~and~~met. ~~procedures that:~~

~~Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company's assets;~~ 43

~~Provide~~ITEM ~~reasonable~~9B. ~~assurance~~OTHER that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and INFORMATION.

37None.

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. 44

~~Because~~PART of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. III

~~The~~ITEM Company's management conducted an assessment of the effectiveness of the Company's internal control over financial reporting as of November 30, 2009, based on criteria established in Internal Control –Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO")10. ~~As a result of this assessment~~DIRECTORS, ~~management~~EXECUTIVE ~~identified~~OFFICERS ~~a material~~AND ~~weakness~~CORPORATE ~~in internal control over financial reporting~~GOVERNANCE.

ADirectors ~~material~~and ~~weakness~~Executive is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. Officers

The ~~material~~following ~~weakness~~table ~~identified~~sets isforth ~~described~~the ~~below.~~names, ages and positions of our officers and directors as of the date hereof:

1. Certain entity level controls establishing a “tone at the top” were considered material weaknesses. As of November 30, 2009, the Company did not have an audit committee. There is no policy on fraud. A whistleblower policy is not necessary given the small size of the organization. 2. Due to the significant number and magnitude of out-of-period adjustments identified during the year- end closing process, management has concluded that the controls over the period-end financial reporting process were not operating effectively. A material weakness in the period-end financial reporting process could result in us not being able to meet our regulatory filing deadlines and, if not remediated, has the potential to cause a material misstatement or to miss a filing deadline in the future. Management override of existing controls is possible given the small size of the organization and lack of personnel. 3. There is no system in place to review and monitor internal control over financial reporting. The Company maintains an insufficient complement of personnel to carry out ongoing monitoring responsibilities and ensure effective internal control over financial reporting.

Name	Age	Position

Richard W. Donaldson	72	Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director

Bryan H. Wilson	60	Director

AsSet aforth ~~result~~below ofis ~~the~~a ~~material~~brief ~~weakness~~description inof ~~internal control over financial reporting described above,~~ the ~~Company's~~background ~~management has concluded~~and ~~that,~~business asexperience of ~~November~~our ~~30,~~executive ~~2009,~~officer ~~the~~and ~~Company's~~directors: ~~internal control over financial reporting was not effective based on the criteria in Internal Control - Integrated Framework issued by COSO.~~

~~This~~Richard ~~annual~~W. ~~report~~Donaldson ~~does~~was ~~not~~appointed ~~include~~as anour ~~attestation report of~~Chief ~~our~~Executive ~~independent~~Officer, ~~registered~~Chief ~~public~~Financial ~~accounting~~Officer, ~~firm~~President, ~~regarding~~Secretary, ~~internal~~Treasurer ~~control~~and ~~over~~as ~~financial~~a ~~reporting.~~member Weof ~~were~~our ~~not~~Board ~~required~~of toDirectors ~~have~~on May 2, ~~nor~~2008. ~~have~~Mr. ~~we,~~Donaldson ~~engaged~~is ~~our~~a self ~~independent~~employed ~~registered~~business ~~public~~consultant, ~~accounting~~involved ~~firm~~in tocorporate ~~perform~~management anreorganizations, mergers ~~audit~~and ofacquisitions ~~internal control~~for over ~~financial~~25 ~~reporting~~years. ~~pursuant~~Mr. toDonaldson ~~the~~is ~~rules~~a former director and officer of ~~the~~numerous ~~Securities~~private and ~~Exchange~~ ~~Commission~~public ~~that~~companies, ~~permit~~including usNoront toResources Ltd., ~~provide~~Aiviv ~~only~~Ventures ~~management's~~Inc., ~~report~~Cherokee inMinerals ~~this~~Corp., Canzona Minerals, Inc. and ~~annual~~Renox ~~report~~Creek Petroleum Corp.

~~Changes~~Bryan H. Wilson was appointed as a member of our Board of Directors on December 19, 2008. Mr. Wilson obtained a Bachelor of Science from the University of Waterloo in ~~Internal~~1975. ~~Controls~~He has worked in the fields of mining exploration and development for 18 years and financial services for 12 years. He has filled various roles such as Mining Analyst for C.M Oliver and Dominick & Dominick Securities Inc. and as a Corporate Finance Specialist for Thames Capital. Since September 2008, Mr. Wilson has served as a Director, Exploration Business Development of Centerra Gold (CG - TSX), a company engaged in the acquisition, development, and production of gold properties in Central Asia, the former Soviet Union and emerging markets. Mr. Wilson also serves as a member of the board of directors for Canyon Copper Corp (CNYC – OTCBB), a company engaged in the acquisition of mineral projects, Doubleview Capital Corp. (DBV.P – TSX-V), a capital pool company listed on the TSX Venture Exchange and Spider Resources (SPQ – TSX-V) a junior exploration company.

~~There~~In ~~have~~addition ~~been~~to nothe ~~changes~~companies inabove, ~~our~~Mr. ~~internal~~Wilson ~~control~~also ~~over financial~~acted ~~reporting (~~as President, ~~such~~CEO ~~term~~and isDirector ~~defined~~of inSt. ~~Rules~~Genevieve ~~13a-15(f)~~Resources ~~and~~Ltd. ~~15d~~(SGVL-15CNSX, (fSTGIF-OTCBB), ~~under~~ a ~~the~~mining ~~Exchange~~exploration ~~Act)~~and ~~during~~development ~~our~~company, ~~quarter~~from ~~ended~~January ~~November~~2003 ~~30,~~to ~~2009~~March ~~that have~~2008 ~~materially~~ and ~~affected,~~President orand ~~are~~CEO ~~reasonably~~of ~~likely~~Gee-Ten toVentures ~~materially~~(GTV ~~affect,~~– ~~our~~TSX.V) ~~internal~~a mining exploration ~~control~~ and ~~over~~development ~~financial~~company ~~reporting~~from February 2008 to February 2010.

~~Limitations~~Term ~~on the effectiveness~~ of ~~controls and procedures~~Office

~~Our~~Members ~~management,~~of ~~including~~ our ~~Chief~~board ~~Executive~~of ~~Officer~~directors ~~and~~are ~~Chief Financial~~appointed ~~Officer,~~to dohold ~~not~~office until ~~expect~~the ~~that~~next ~~the~~annual meeting of our ~~controls~~stockholders ~~and~~or ~~procedures~~until ~~will~~his or her successor ~~prevent~~is ~~all~~elected ~~potential~~and ~~errors~~qualified, or ~~fraud.~~until Ahe ~~control~~or ~~system,~~she noresigns ~~matter~~or ~~how~~is ~~well~~removed ~~conceived~~in ~~and~~accordance with ~~operated,~~the ~~can~~provisions ~~provide~~of ~~only~~the ~~reasonable,~~Nevada ~~not absolute,~~Revised ~~assurance~~Statutes. ~~that~~Our ~~the~~officers ~~objectives~~are appointed by our board of ~~the~~directors ~~control~~and ~~system~~hold ~~are~~office ~~met~~until removed by the board.

38Significant Employees

~~ITEM~~We ~~9B.~~have ~~OTHER~~no ~~INFORMATION~~significant employees other than our sole executive officer and our directors.

OnCommittees March 15, 2010, we entered into a third extension agreement dated for reference February 15, 2010 (the "Third Extension Agreement") with Bako Resources Inc. ("Bako") whereby Bako agreed to extend the due date of ~~a non-interest bearing promissory note in~~ the ~~amount~~Board of CDN $65,000 payable to Bako from February 15, 2010 to June 30, 2010. In consideration of the extension, we agreed to pay CDN $5,000 of the Promissory Note and issue to Bako 20,000 shares of our common stock. These shares were issued pursuant to Regulation S promulgated under the Securities Act on the basis of representations provided by Bako that it is not a “U.S. Person” as that term is defined in Regulation S of the Securities Act.Directors

~~The~~Our ~~promissory~~board ~~note~~of ~~was~~directors ~~initially~~does ~~issued~~not asmaintain ~~part consideration~~a ~~for~~separately-designated standing audit committee. As a result, our ~~acquisition~~entire board of directors ~~the~~acts ~~Clisbako~~as ~~Property~~our ~~under~~audit committee. Neither Mr. Donaldson nor Mr. Wilson meets the ~~terms~~definition of ~~the~~an ~~purchase~~“audit committee financial expert.” We believe ~~agreement~~that ~~dated~~the ~~December~~cost ~~16,~~related ~~2008~~to ~~between~~appointing ~~Bako~~a ~~and~~financial usexpert to our board of directors at this time is prohibitive.

3945

~~PART~~We ~~III~~presently do not have a compensation committee, nominating committee, an executive committee of our board of directors, stock plan committee or any other committees.

~~ITEM~~Code ~~10.~~of ~~DIRECTORS,~~Ethics ~~EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.~~

~~Directors~~We adopted a Code of Ethics applicable to our directors and officers, ~~Executive~~which ~~Officers~~is a “code of ethics” as defined by applicable rules of the SEC. Our Code of Ethics is attached as an exhibit to our Annual Report on Form 10-KSB for the fiscal year ended November 30, 2007, filed on March 6, 2008. If we make any amendments to our Code of Ethics other than technical, administrative, or other non-substantive amendments, or grant any waivers, including implicit waivers, from a provision of our Code of Ethics to our directors and officers, we will disclose the nature of the amendment or waiver, its effective date and to whom it applies in a Current Report on Form 8-K filed with the SEC.

~~The~~Compliance ~~following~~with ~~table~~Section ~~sets~~16(a) ~~forth~~Beneficial ~~the names, ages and positions of~~Ownership ~~our~~Compliance ~~officers and directors as of the date hereof:~~

Name	Age	Position
Richard W. Donaldson	71	Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director
Bryan H. Wilson	59	Director

Section 16(a) of the Exchange Act requires our executive officers and directors, and persons who beneficially own more than 10% of our equity securities (collectively, the “Reporting Persons”), to file reports of ownership and changes in ownership with the SEC. Reporting Persons are required by SEC regulation to furnish us with copies of all forms they file pursuant to Section 16(a). Based on our review of the copies of such forms received by us, we believe that during the year ended November 30, 2010, the following persons have failed to file, on a timely basis, the identified reports required by Section 16(a) of the Exchange Act:

Set forth below is a brief description of the background and business experience of our executive officer and directors:

		Transactions	Known Failures
	Number of Late	Not Timely	to File a
Name and Principal Position	Reports	Reported	Required Form
Richard W. Donaldson	None	None	None
CEO, CFO, President, Secretary, Treasurer and Director
Bryan H. Wilson	None	None	None
Director
Bako Resources Inc.	One	One	One
10% Holder

~~Richard~~ITEM W11. ~~Donaldson~~EXECUTIVE ~~was appointed as our Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and as a member of our Board of Directors on May 2, 2008~~COMPENSATION. Mr. Donaldson is a self employed business consultant, involved in corporate management reorganizations, mergers and acquisitions for over 25 years. Mr. Donaldson is a former director and officer of numerous private and public companies, including Noront Resources Ltd., Aiviv Ventures Inc., Cherokee Minerals Corp., Canzona Minerals, Inc. and Renox Creek Petroleum Corp.

~~Bryan~~Summary H.Compensation ~~Wilson~~Table was appointed as a member of our Board of Directors on December 19, 2008. Mr. Wilson obtained a Bachelor of Science from the University of Waterloo in 1975. He has worked in the fields of mining exploration and development for 18 years and financial services for 12 years. He has filled various roles such as Mining Analyst for C.M Oliver and Dominick & Dominick Securities Inc. and as a Corporate Finance Specialist for Thames Capital. Since September 2008, Mr. Wilson has served as a Director, Exploration Business Development of Centerra Gold (CG - TSX), a company engaged in the acquisition, development, and production of gold properties in Central Asia, the former Soviet Union and emerging markets. Mr. Wilson previously served as President and CEO of Gee-Ten Ventures Inc. from February 2008 to February 2010. Since September 1999, Mr. Wilson has acted as a director of Spider Resources Inc. (SPQ-TSX.V), a junior exploration company, and was the CEO and president of Spider Resources Inc. from June 2003 to June 2005. In addition, Mr. Wilson has served as a member of the board of directors for Canyon Copper Corp (CNYC – OTCBB) (formerly, Aberdene Mines Ltd.), a company engaged in the acquisition of mineral projects since April 2006 and was the President and Treasurer of Canyon Copper Corp. from May 2006 to November 2007.

InThe ~~addition~~following totable ~~the~~sets ~~companies~~forth ~~above,~~total ~~Mr.~~compensation ~~Wilson~~paid ~~also~~to ~~acted as~~or ~~CEO,~~earned ~~President~~by ~~and~~our ~~Director~~named ofexecutive ~~Vencan~~officers ~~Gold~~as ~~Corp.~~that ~~(now~~term ~~known~~is asdefined ~~Red~~in ~~Pine Exploration~~Item ~~Inc.~~ 402(~~RPX – TSX.V~~m)(2)~~, a company engaged in the exploration~~ of ~~various gold~~Regulation ~~projects~~S-K, ~~from~~during ~~April~~our ~~2003~~fiscal toyears ~~September~~ended ~~2005.~~November ~~Mr. Wilson also served as President~~30, ~~CEO~~2010 and ~~Director of St. Genevieve Resources Ltd. (SGVL-CNSX,~~2009: ~~STGIF-OTCBB), a mining exploration and development company, from January 2003 to March 2008.~~

Term of Office

Name & Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non- Equity Incentive Plan Compen- sation ($)	Non- qualified Deferred Compen- sation Earnings ($)	All Other Compen- sation ($)	Total ($)
Richard W. Donaldson⁽¹⁾ CEO, CFO, President, Secretary, Treasurer, Director & Director of MAC	2010 2009	- -	- -	- -	- -	- -	- -	12,000 12,000	12,000 12,000

Members of our board of directors are appointed to hold office until the next annual meeting of our stockholders or until his or her successor is elected and qualified, or until he or she resigns or is removed in accordance with the provisions of the Nevada Revised Statutes. Our officers are appointed by our board of directors and hold office until removed by the board.46

Significant Employees

Name & Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non- Equity Incentive Plan Compen- sation ($)	Non- qualified Deferred Compen- sation Earnings ($)	All Other Compen- sation ($)	Total ($)
Don Archibald⁽²⁾ Director of MAC	2010 2009	- -	- -	- -	- -	- -	- -	12,000 12,000	12,000 12,000
David K. Ryan⁽³⁾ Director of MAC and sole officer and director of Clisbako	2010 2009	- -	- -	- -	- -	- -	- -	12,000 12,000	12,000 12,000

~~We have no significant employees other than our sole executive officer and our directors.~~Notes:

(1)	We accrue $1,000 per month for Mr. Donaldson acting as a director of Magellan Acquisition Corp. (“MAC”), our wholly owned subsidiary.
(2)	We have paid or accrued $1,000 per month for Mr. Archibald acting as a director of MAC.
(3)	We have paid $1,000 per month for Mr. Ryan acting as a director of MAC.

~~Committees~~Outstanding ofEquity ~~the~~Awards ~~Board~~At ofFiscal ~~Directors~~Year-End

~~Our~~We ~~board~~have ~~of directors does~~ not ~~maintain~~issued ~~a separately-designated~~any ~~standing~~outstanding ~~audit~~equity ~~committee.~~awards Assince ~~a result,~~ our ~~entire board of~~ ~~directors acts as our audit committee~~inception. Neither Mr. Donaldson nor Mr. Wilson meets the definition of an “audit committee financial expert.” We believe that the cost related to appointing a financial expert to our board of directors at this time is prohibitive.

WeCompensation ~~presently do not have a compensation committee, nominating committee, an executive committee~~ of ~~our board of directors, stock plan committee or any other committees.~~Directors

~~Code~~During the year ended November 30, 2010, we did not pay or accrue any compensation to Mr. Wilson, a member of ~~Ethics~~our Board of Directors.

WeITEM ~~adopted a Code of Ethics applicable to our directors and officers, which is a “code of ethics” as defined by applicable rules of the SEC~~12. ~~Our~~ ~~Code~~SECURITY ofOWNERSHIP ~~Ethics~~OF isCERTAIN ~~attached~~BENEFICIAL asOWNERS anAND ~~exhibit~~MANAGEMENT toAND ~~our~~RELATED ~~Annual~~STOCKHOLDER ~~Report on Form 10-KSB for the fiscal year ended November 30, 2007, filed on March 6, 2008~~MATTERS. If we make any amendments to our Code of Ethics other than technical, administrative, or other non-substantive amendments, or grant any waivers, including implicit waivers, from a provision of our Code of Ethics to our directors and officers, we will disclose the nature of the amendment or waiver, its effective date and to whom it applies in a Current Report on Form 8-K filed with the SEC.

~~Compliance~~EQUITY ~~with~~COMPENSATION ~~Section 16(a) Beneficial Ownership Compliance~~PLANS

~~Section~~As ~~16(a)~~at ofNovember ~~the~~30, ~~Exchange Act requires our executive officers and directors~~2010, ~~and~~we ~~persons~~had ~~who~~no ~~beneficially own more than 10% of our~~ equity ~~securities~~compensation plans (~~collectively,~~including ~~the~~individual ~~“Reporting~~compensation ~~Persons”~~arrangements), tounder ~~file~~which ~~reports~~our ofequity ~~ownership~~securities ~~and changes in ownership with the SEC. Reporting Persons~~ are ~~required by~~authorized ~~SEC~~for ~~regulation to furnish us with copies of all forms they file pursuant to Section 16(a)~~issuance. Based on our review of the copies of such forms received by us, we believe that during the year ended November 30, 2009, the following persons have failed to file, on a timely basis, the identified reports required by Section 16(a) of the Exchange Act:

Name and Principal Position	Number of Late Reports	Transactions Not Timely Reported	Known Failures to File a Required Form
Richard W. Donaldson CEO, CFO, President, Secretary, Treasurer and Director	None	None	None
Bryan H. Wilson Director	None	None	None
Bako Resources Inc. 10% Holder	One	One	None

Subsequent to our fiscal year ended November 30, 2010, we adopted our 2011 Stock Incentive Plan (the “2011 Plan”). The purpose of the 2011 Plan is to enhance our long-term stockholder value by offering opportunities to our directors, officers, employees and eligible consultants to acquire and maintain stock ownership in us in order to give these persons the opportunity to participate in our growth and success, and to encourage them to remain in our service.

41The 2011 Plan allows us to grant options to our officers, directors and employees. In addition, we may grant options to individuals who act as our consultants, so long as those consultants do not provide services connected to the offer or sale of our securities in capital raising transactions and do not directly or indirectly promote or maintain a market for our securities.

~~ITEM~~A ~~11.~~total ~~EXECUTIVE~~of ~~COMPENSATION~~5,500,000 shares of our common stock are available for issuance under the 2011 Plan.

~~Summary~~The ~~Compensation~~2011 ~~Table~~Plan provides for the grant of incentive stock options and non-qualified stock options. Incentive stock options granted under the 2011 Plan are those intended to qualify as “incentive stock options” as defined under Section 422 of the Internal Revenue Code. However, in order to qualify as “incentive stock options” under Section 422 of the Internal Revenue Code, the 2011 Plan must be approved by our stockholders within 12 months of its adoption. The 2011 Plan has not been approved by our stockholders.

The following table sets forth total compensation paid to or earned by our named executive officers as that term is defined in Item 402(m)(2) of Regulation S-K, during our fiscal years ended November 30, 2009 and 2008:47

Name & Principal Position	Year	Salary($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non- Equity Incentive Plan Compen- sation ($)	Non- qualified Deferred Compen- sation Earnings ($)	All Other Compen- sation ($)	Total ($)
Richard W. Donaldson(1) CEO, CFO, President, Secretary, Treasurer, Director & Director of MAC	2009 2008	- -	- -	- -	- -	- -	- -	12,000 3,000	12,000 3,000
Don Archibald(2) Director of MAC	2009 2008	- -	- -	- -	- -	- -	- -	12,000 3,000	12,000 3,000
David K. Ryan(3) Director of MAC and sole officer and director of Clisbako	2009 2008	- -	- -	- -	- -	- -	- -	12,000 3,000	12,000 3,000
Bernie J. Hoing(4) Former Executive Officer & Former Director	2009 2008	n/a -	n/a -	n/a -	n/a -	n/a -	n/a -	n/a 2,800	n/a 2,800

Non-qualified stock options granted under the 2011 Plan are option grants that do not qualify as incentive stock options under Section 422 of the Internal Revenue Code.

Notes:
(1)	Mr. Donaldson was appointed as our CEO, CFO, President, Secretary, Treasurer and Director on May 2, 2008. Commencing September 1, 2008, we accrued $1,000 per month for Mr. Donaldson acting as a director of Magellan Acquisition Corp. (“MAC”), our wholly owned subsidiary.
(2)	Mr. Archibald serves as a director of MAC. Commencing September 1, 2008, we have paid or accrued $1,000 per month for Mr. Archibald acting as a director of MAC.
(3)	Mr. Ryan serves as a director of MAC. Commencing September 1, 2008, we have paid $1,000 per month for Mr. Ryan acting as a director of MAC.
(4)	Mr. Hoing resigned as our President, Secretary, Treasurer and Director on May 2, 2008.

Options granted under the 2011 Plan are non-transferable, other than by will or the laws of descent and distribution.

~~Outstanding~~The ~~Equity~~2011 ~~Awards~~Plan Atterminates ~~Fiscal~~on ~~Year-End~~March 1, 2021, unless sooner terminated by action of our Board of Directors. No option is exercisable by any person after such expiration. If an award expires, terminates or is canceled, the shares of our common stock not purchased thereunder shall again be available for issuance under the 2011 Plan.

WeSECURITY ~~have~~OWNERSHIP ~~not~~OF ~~issued~~CERTAIN ~~any~~BENEFICIAL ~~outstanding~~OWNERS ~~equity awards since our~~AND ~~inception.~~MANAGEMENT

~~Compensation~~The following table sets forth certain information concerning the number of ~~Directors~~shares of our common stock owned beneficially as of March 10, 2011 by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) each of our directors, (iii) each of our named executive officers; and (iv) officers and directors as a group. Unless otherwise indicated, the shareholder listed possesses sole voting and investment power with respect to the shares shown.

During the year ended November 30, 2009, we did not pay or accrue any compensation to Mr. Wilson, a member of our Board of Directors.

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percentage of Common Stock⁽¹⁾
DIRECTORS AND OFFICERS
Common Stock	Richard W. Donaldson Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director	23,975,000⁽²⁾ (direct)	41.2%
Common Stock	Bryan H. Wilson Director	1,000,000⁽²⁾ (direct)	1.7%
Common Stock	All Officers and Directors as a Group (2 persons)	23,975,000	41.2%
5% STOCKHOLDERS
Common Stock	Richard W. Donaldson P.O. Box 230, Town Plaza Leeward Highway, Providenciales Turks & Caicos Islands, BWI	23,975,000⁽²⁾ (direct)	41.2%
Common Stock	Bako Resources Inc. Suite 950, 650 W. Georgia St. Vancouver, BC V6B 4N8	6,090,000 (direct)	10.5%

~~ITEM~~(1) 12Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. ~~SECURITY~~Certain ~~OWNERSHIP~~shares OFmay ~~CERTAIN~~be ~~BENEFICIAL~~deemed ~~OWNERS~~to ~~AND~~be ~~MANAGEMENT~~beneficially ~~AND~~owned ~~RELATED~~by ~~STOCKHOLDER~~more ~~MATTERS~~than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on March 10, 2011. As of March 10, 2011, there were 58,264,344 shares of our common stock issued and outstanding.

~~EQUITY COMPENSATION PLANS~~48

We(2) ~~have~~On noJuly ~~equity~~9, ~~compensation~~2009, ~~plans~~Mr. ~~(including~~Wilson ~~individual compensation~~entered ~~arrangements)~~into ~~under~~an option agreement dated July 9, 2009 with Mr. Donaldson, our sole executive officer, pursuant to which Mr. Donaldson granted an option to Mr. Wilson to acquire 1,000,000 shares of our ~~equity~~common ~~securities~~stock ~~are~~at ~~authorized~~a ~~for issuance~~price of $0.05 per share until July 31, 2012.

42Change in Control

~~SECURITY~~We ~~OWNERSHIP~~are OFnot ~~CERTAIN~~aware ~~BENEFICIAL~~of ~~OWNERS~~any ~~AND~~arrangement that might result in a ~~MANAGEMENT~~change in control in the future.

~~The~~ITEM ~~following~~13. ~~table~~CERTAIN ~~sets~~RELATIONSHIPS ~~forth~~AND ~~certain~~RELATED ~~information concerning the number of shares of our common stock owned beneficially as of March 15~~TRANSACTIONS, ~~2010 by:~~AND ~~(i)~~DIRECTOR each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) each of our directors, (iii) each of our named executive officers; and (iv) officers and directors as a groupINDEPENDENCE. ~~Unless otherwise indicated, the shareholder listed possesses sole voting and investment power with respect to the shares shown.~~

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percentage of Common Stock(1)
DIRECTORS AND OFFICERS
Common Stock	Richard W. Donaldson Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director	23,000,000(2) (direct)	42.4%
Common Stock	Bryan H. Wilson Director	1,000,000(2) (direct)	1.8%
Common Stock	All Officers and Directors as a Group (2 persons)	24,000,000	44.2%
5% STOCKHOLDERS
Common Stock	Richard W. Donaldson Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director P.O. Box 230, Town Plaza Leeward Highway, Providenciales Turks & Caicos Islands, BWI	23,000,000(2) (direct)	42.4%
Common Stock	Bako Resources Inc. Suite 950, 650 W. Georgia St. Vancouver, BC V6B 4N8	6,090,000 (direct)	11.2%

Certain Relationships and Related Transactions

(1)

Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on March 15, 2010. As of March 15, 2010, there were 54,247,144 shares of our common stock issued and outstanding.

(2)

On July 9, 2009, Mr. Wilson entered into an option agreement dated July 9, 2009 with Mr. Donaldson, our sole executive officer, pursuant to which Mr. Donaldson granted an option to Mr. Wilson to acquire 1,000,000 shares of our common stock at a price of $0.05 per share until July 31, 2012.

Except as disclosed below, none of the following persons has, in the last two fiscal years, had any material interest, director or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:

~~Change~~(a) Inany ~~Control~~director or officer; (b) any proposed nominee for election as a director; (c) any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our common stock; (d) any promoters; or (e) any relative or spouse of any of the foregoing persons, or any relative of such spouse, who has the same house as such person or who is a director or officer of any parent or subsidiary.

WeOn ~~are~~December ~~not~~16, ~~aware~~2008, ofwe ~~any~~entered ~~arrangement~~into a purchase agreement (the “Purchase Agreement”) with Bako Resources Inc. (“Bako”), a British Columbia company that ~~might~~is ~~result~~a inholder of more than five percent (5%) of our common stock. Under the terms of the Purchase Agreement, our wholly owned British Columbian subsidiary, Clisbako Minerals Inc., acquired a ~~change~~ 100% interest in ~~control~~ten mineral claims located 80 miles west of Quesnel, British Columbia, Canada (the “Clisbako Property”). In consideration of the Clisbako Property we issued to Bako 2,000,000 pre-split shares (6,000,000 post-split shares) of our common stock and a non-interest bearing promissory note in the ~~future~~amount of CDN $70,000 (“Property Payment”) payable on June 30, 2009. On July 23, 2009, we entered into an extension agreement with Bako to extend the due date of the Property Payment to December 31, 2009. In consideration of the extension, we issued 60,000 post-split shares of our common stock to Bako. On January 21, 2010, we entered into a second extension agreement with Bako, whereby Bako agreed to extend the due date of the Property Payment payable to Bako from December 31, 2009 to February 15, 2010. In consideration of the extension, we issued to Bako 10,000 post-split shares of our common stock. On March 15, 2010, we entered into a third extension agreement dated for reference February 15, 2009 with Bako whereby Bako agreed to extend the due date of the Property Payment to June 30, 2010. In consideration of the extension, we agreed to pay CDN $5,000 of the promissory note and issue to Bako 20,000 shares of our common stock. On September 17, 2010, we paid $50,000 CDN of the promissory note and pursuant to a verbal agreement have agreed to extend the balance of the promissory note, being $15,000 CDN, to December 31, 2010.

43As at November 30, 2010, we were indebted to Kahala Financial Corp., a company controlled by Mr. Donaldson, our sole executive officer and director, in the principal amount of $20,000. The loan is unsecured and bears an interest at a rate of 10% per annum and is due on demand. As at November 30, 2010, a total of $5,901 of interest has accrued in respect of the above loan.

~~ITEM~~Director ~~13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.~~Independence

~~Certain~~Our ~~Relationships~~common ~~and~~stock ~~Related~~is ~~Transactions~~quoted on the OTCQB, which does not have director independence requirements. Under NASDAQ Rule 5605(a)(2), a director is not considered to be independent if he or she is also or has been an executive officer or employee of the corporation. In applying the definition, we have determined that Bryan H. Wilson is our sole independent director. Mr. Donaldson does not qualify as an independent member of our Board of Directors.

~~(a)~~ITEM ~~any~~14. ~~director~~PRINCIPAL orACCOUNTING ~~officer;~~FEES ~~(b)~~AND any proposed nominee for election as a director; (c) any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our common stock; (d) any promoters; or (e) any relative or spouse of any of the foregoing persons, or any relative of such spouse, who has the same house as such person or who is a director or officer of any parent or subsidiarySERVICES.

OnThe ~~December~~aggregate ~~16,~~fees ~~2008,~~billed wefor ~~entered into a purchase agreement (~~the ~~“Purchase~~ ~~Agreement”)~~two ~~with~~most ~~Bako~~recently ~~Resources Inc. (“Bako”), a British Columbia~~completed ~~company~~fiscal ~~that~~years isfor aprofessional ~~holder~~services ofrendered ~~more~~by ~~than~~the ~~five~~principal ~~percent~~accountant ~~(5%) of our common stock.~~for ~~Under~~ the ~~terms~~audit of ~~the Purchase Agreement,~~ our ~~wholly~~annual ~~owned~~financial ~~British~~statements ~~Columbian subsidiary,~~and ~~Clisbako~~review ~~Minerals Inc., acquired a 100% interest in ten mineral claims located 80 miles west~~ of ~~Quesnel, British Columbia, Canada (~~the ~~“Clisbako~~financial ~~Property”).~~statements Inincluded ~~consideration~~in ~~of the Clisbako Property we issued to Bako 2,000,000 pre-split shares (6,000,000 post-split shares) of~~ our ~~common~~Quarterly ~~stock~~Reports ~~and a non-interest bearing promissory note in the amount of CDN $70,000 payable~~ on ~~June~~ ~~30,~~Form ~~2009. On July 23, 2009, we entered into an extension agreement with Bako to extend the due date of the promissory to December 31, 2009. In consideration of the extension, we issued 60,000 post~~10-~~split~~Q ~~shares~~and ofservices ~~our~~that ~~common~~are ~~stock~~normally toprovided ~~Bako.~~by ~~On January 21, 2010, we entered into a second extension agreement with Bako, whereby Bako agreed to extend~~ the ~~due~~accountant ~~date of a non-interest bearing promissory note~~ in ~~the~~connection ~~amount~~with ofstatutory ~~CDN~~and ~~$70,000 payable to Bako from December 31,~~regulatory ~~2009~~filings toor ~~February~~engagements ~~15, 2010. In consideration of the extension, we issued to Bako 10,000 post-split shares of our common stock. On March 15, 2010, we entered into a third extension agreement dated~~ for ~~reference~~those ~~February~~fiscal ~~15,~~periods ~~2009~~were ~~with~~as ~~Bako whereby~~follows: Bako agreed to extend the due date of a non-interest bearing promissory note to June 30, 2010. In consideration of the extension, we agreed to pay CDN $5,000 of the promissory note and issue to Bako 20,000 shares of our common stock.

As at November 30, 2009, we were indebted to Kahala Financial Corp., a company controlled by Mr. Donaldson, our sole executive officer and director, in the principal amount of $20,000. The loan is unsecured and bears an interest at a rate of 10% per annum and is due on demand. As at November 30, 2009, a total of $3,901 of interest has accrued in respect of the above loan.

	Year Ended November 30, 2010	Year Ended November 30, 2009
Audit Fees	$41,726	$28,267
Audit-Related Fees	$Nil	$Nil
Tax Fees	$Nil	$Nil
All Other Fees	$Nil	$Nil
Total	$41,726	$28,267

~~Director~~ITEM ~~Independence~~15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

~~Our~~The ~~common~~following ~~stock~~exhibits isare ~~quoted~~either onprovided ~~the~~with ~~OTC~~this ~~Bulletin Board~~Annual ~~interdealer~~Report ~~quotation system, which does not have director independence requirements. Under NASDAQ Rule 5605(a)(2), a director is not considered to be independent if he~~ or ~~she~~are isincorporated ~~also~~herein orby ~~has~~reference: been an executive officer or employee of the corporation. In applying the definition, we have determined that Bryan H. Wilson is our sole independent director. Mr. Donaldson does not qualify as an independent member of our Board of Directors.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

Exhibit
Number	Description of Exhibits

3.1	Articles of Incorporation.⁽¹⁾

3.2	Certificate of Change Pursuant to NRS 78.209 increasing the authorized capital of common stock to 300,000,000 shares, par value $0.001 per share.⁽⁵⁾

3.3	Bylaws, as amended.⁽¹⁾

4.1	Specimen Stock Certificate.⁽¹⁾

10.1	Loan Agreement dated December 19, 2007 between the Company (as the borrower) and Kahala Financial Corp. (as the lender).⁽²⁾

10.2	Purchase Agreement dated December 15, 2008 among Magellan Acquisition Corp., Solfotara Mining Corp. and Magellan Copper and Gold plc (Magellan Singapore Subsidiaries).⁽⁴⁾

10.3	Purchase Agreement dated December 16, 2008 between the Company and Bako Resources Inc. (Clisbako Property).⁽⁴⁾

10.4	Extension Agreement dated July 23, 2009 between the Company and Bako Resources Inc.⁽⁷⁾

10.5	Assignment Agreement dated May 29, 2009 among the Company, Portal Resources US Inc. and Portal Resources Ltd. (Golden Snow Project, Fish Project and CPG Project)⁽⁶⁾

10.6	Agreement dated for reference November 2, 2009 executed on January 19, 2010 between the Company and Agus Abidin (Manado Gold Property).⁽⁸⁾

10.7	Second Extension Agreement dated January 21, 2010 between the Company and Bako Resources Inc.(Clisbako Property).⁽⁹⁾

10.8	Extension Agreement Dated January 21, 2010 between the Company and Agus Abidin (Manado Gold Property).

10.9	Option agreement dated February 5, 2010 between the Company and Larry Sostad (June Claims). (8)

10.10	Third Extension Agreement dated March 15, 2010 between the Company and Bako Resources Inc. (Clisbako Property).⁽¹⁰⁾

10.11	Second Extension Agreement Dated March 29, 2010 between the Company and Agus Abidin (Manado Gold Property).⁽¹¹⁾

10.12	Loan Agreement dated January 11, 2010 between the Company and Laverne Assets Group Corp.⁽¹²⁾

The aggregate fees billed for the two most recently completed fiscal years for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our Quarterly Reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal periods were as follows:50

Exhibit
Number	Description of Exhibits

10.12	Agreement dated for reference April 23, 2010 executed on April 28, 2010 between the Company and Bull and Bear Financial Report.⁽¹³⁾

10.13	Option Agreement dated July 23, 2010 between the Clisbako Minerals Inc. and Interior Plateau Mining Corp.⁽¹⁴⁾

10.14	Assignment Agreement dated August 24, 2010 between the Company and Manado Gold Corp.⁽¹⁵⁾

10.15	Option Agreement dated for September 15, 2010 between Clisbako Minerals Inc. and Manado Gold Corp.⁽¹⁶⁾

10.16	Extension Agreement dated November 30, 2010 between the Company and Manado Gold Corp.

10.17	2011 Stock Option Plan.⁽¹⁷⁾

14.1	Code of Ethics.⁽³⁾

21.1	List of Subsidiaries.

31.1	Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Certification of Chief Executive Officer and Chief Financial Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

		Year Ended November 30, 2009		Year Ended November 30, 2008
Audit Fees	$	28,267	$	22,900
Audit-Related Fees	$	Nil	$	Nil
Tax Fees	$	Nil	$	Nil
All Other Fees	$	Nil	$	Nil
Total	$	28,267	$	22,900

Notes:

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(1)	Previously filed as an exhibit to our Registration Statement on Form SB-2 filed on April 24, 2007.
(2)	Previously filed as an exhibit to our Current Report on Form 8-K filed on December 26, 2007.
(3)	Previously filed as an exhibit to our Annual Report on Form 10-KSB filed on March 6, 2008.
(4)	Previously filed as an exhibit to our Current Report on Form 8-K filed on December 22, 2008.
(5)	Previously filed as an exhibit to our Current Report on Form 8-K filed on April 17, 2009.
(6)	Previously filed as an exhibi

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