| June 30 | June 30 | |
| 1997 | 1996 | |
| Operating Activities | ||
| Operating gain/(loss) | $ (216,558) | $ 51,651 |
| Items not affecting cash | ||
| Foreign Exchange (gain) loss on royalty | 37,395 | |
| Amortization | 1,023 | 903 |
| $ (178,140) | $ 52,554 | |
| Changes in non-cash working balances | ||
| Accounts receivable (increase) | -- | (24,399) |
| Accounts payable (decrease) | (1,281,358) | (704,112) |
| (1,281,358) | (728,511) | |
| $ (1,459,498) | $ (675,957) | |
| Financing Activities | ||
| Proceeds from Share Issuance | $ 1,289,178 | $ 1,351,914 |
| Additions (reductions) to loan payable | 57,736 | (430,546) |
| Advances from (repayment to) a shareholder | (74,649) | (251,469) |
| $ 1,272,265 | $ 669,899 | |
| Investing Activities | ||
| Deffered exploration & development cost | $ (1364) | $ (10,285) |
| Advances to an affiliated company | 185,226 | -- |
| $ (183,862) | $ (10,285) | |
| Increase (decrease) cash | $ (3,371) | $ (16,343) |
| Cash (bank indebtedness), beginning of period | $ 13, 632 | $ (410) |
| Cash and equivalents, end of period | $ 10,261 | $ (16,753) |
| June 30 | June 30 | |
| 1997 | 1996 | |
| Current Assets | ||
| Cash | $ 10,261 | $ -- |
| Marketable securities | 1,295 | 1,295 |
| $ 11,556 | $ 1,295 | |
| Investment in shares | 4,664,749 | 1,707 |
| Mineral properties including deferred exploration
and development cost and fixed assets | $ 729,584 | $ 5,365,408 |
| $ 5,405,889 | $ 5,368,410 |
| Current Liabilities | ||
| Bank Indebtedness | $ -- | $ 16,753 |
| Loans payable | 57,736 | -- |
| Accounts payable | 1,536,520 | 1,371,493 |
| Payable to shareholders | 680,427 | 425,931 |
| $ 2,274,683 | $ 1,814,177 | |
| Royalty payable | 2,595,300 | 2,547,871 |
| $ 4,869,983 | $ 4,362,048 |
| Capital Stock: | ||
| Authorized 5,000,000 common shares | ||
| without par value | ||
| Issued (1997 - 4,444,379 shares) | ||
| (1996 - 4,148,345 shares) | $ 26,175,893 | $ 25,262,462 |
| Subsidiary Share Capital | 1,057,259 | -- |
| Contributed surplus | 4,786,726 | 4,919,539 |
| Deficit | (31,483,972) | (29,175,639) |
| $ 535,906 | $ 1,006,362 | |
| 5,405,889 | 5,368,410 |
| June 30 | June 30 | |
| 1997 | 1996 | |
| Administrative expenses | ||
| Interest and exchange (loss) | $ 28,960 | $ 35,877 |
| Other general and administrative expenses | 453,703 | 268,792 |
| 482,663 | 304,669 | |
| Other Items | ||
| Revenue | 303,500 | 356,320 |
| Foreign Exchange (Loss) on Royalty | (37,395) | -- |
| $ 266,105 | $ 356,320 | |
| Decrease (increase) in deficit | (216,558) | 51,651 |
| Deficit, beginning of period | $ (31,267,414) | $ (29,227,290) |
| Deficit, end of period | $ (31,483,972) | $ (29,175,639) |