--12-31 urz URANERZ ENERGY CORP. 2014-06-30 0001162324 No Accelerated Filer No 10-Q false 86238806 Yes 2014 Q2 0001162324 2014-07-31 0001162324 2014-01-01 2014-06-30 0001162324 2014-06-30 0001162324 2013-12-31 0001162324 1999-05-26 2014-06-30 0001162324 2014-04-01 2014-06-30 0001162324 2013-04-01 2013-06-30 0001162324 2013-01-01 2013-06-30 0001162324 1999-05-25 0001162324 2012-12-31 0001162324 2013-06-30 0001162324 us-gaap:CommonStockMember 2013-12-31 0001162324 us-gaap:AdditionalPaidInCapitalMember 2013-12-31 0001162324 us-gaap:RetainedEarningsMember 2013-12-31 0001162324 us-gaap:NoncontrollingInterestMember 2013-12-31 0001162324 us-gaap:AdditionalPaidInCapitalMember 2014-01-01 2014-06-30 0001162324 us-gaap:CommonStockMember 2014-01-01 2014-06-30 0001162324 us-gaap:NoncontrollingInterestMember 2014-01-01 2014-06-30 0001162324 us-gaap:RetainedEarningsMember 2014-01-01 2014-06-30 0001162324 us-gaap:CommonStockMember 2014-06-30 0001162324 us-gaap:AdditionalPaidInCapitalMember 2014-06-30 0001162324 us-gaap:RetainedEarningsMember 2014-06-30 0001162324 us-gaap:NoncontrollingInterestMember 2014-06-30 0001162324 us-gaap:SubsidiariesMember 2014-01-01 2014-06-30 0001162324 us-gaap:ComputerEquipmentMember 2014-06-30 0001162324 us-gaap:ComputerEquipmentMember 2013-12-31 0001162324 urz:FieldEquipmentMember 2014-06-30 0001162324 urz:FieldEquipmentMember 2013-12-31 0001162324 urz:NicholsRanchISRUraniumProjectMember 2005-11-01 2005-11-30 0001162324 urz:PowderRiverBasinAreaMember 2005-12-01 2005-12-31 0001162324 urz:PowderRiverBasinAreaMember us-gaap:MinimumMember 2005-12-01 2005-12-31 0001162324 urz:PowderRiverBasinAreaMember us-gaap:MaximumMember 2005-12-01 2005-12-31 0001162324 urz:CampbellCountyMember 2007-02-01 2007-02-28 0001162324 urz:PowderRiverBasinAreaMember 2008-01-01 2008-01-31 0001162324 urz:PowderRiverBasinAreaMember 2008-01-15 0001162324 urz:NicholsRanchISRUraniumProjectMember 2008-08-20 0001162324 urz:NicholsRanchISRUraniumProjectMember 2008-08-01 2008-08-31 0001162324 us-gaap:SubsidiariesMember us-gaap:LeaseAgreementsMember 2008-08-20 0001162324 us-gaap:SubsidiariesMember us-gaap:LeaseAgreementsMember 2008-08-01 2008-08-31 0001162324 urz:NorthRenoCreekMember us-gaap:LeaseAgreementsMember 2008-09-18 0001162324 us-gaap:SubsidiariesMember us-gaap:LeaseAgreementsMember 2008-12-03 0001162324 us-gaap:SubsidiariesMember us-gaap:LeaseAgreementsMember 2008-12-01 2008-12-31 0001162324 us-gaap:SubsidiariesMember us-gaap:LeaseAgreementsMember 2009-07-07 0001162324 urz:NorthRenoCreekMember 2010-01-01 2010-01-31 0001162324 urz:PowderRiverBasinAreaMember urz:WarrantsIssuedForMineralPropertyMember 2010-08-01 2010-08-31 0001162324 urz:NicholsRanchISRUraniumProjectMember us-gaap:ManufacturingFacilityMember 2014-01-01 2014-06-30 0001162324 urz:NicholsRanchISRUraniumProjectMember us-gaap:ManufacturingFacilityMember 2013-01-01 2013-06-30 0001162324 us-gaap:OfficerMember urz:ConsultingServicesMember 2014-01-01 2014-06-30 0001162324 us-gaap:OfficerMember urz:ConsultingServicesMember 2013-01-01 2013-06-30 0001162324 us-gaap:OfficerMember urz:ConsultingServicesMember 2014-06-30 0001162324 us-gaap:OfficerMember urz:ConsultingServicesMember 2013-12-31 0001162324 us-gaap:DirectorMember 2014-01-01 2014-06-30 0001162324 us-gaap:DirectorMember 2013-01-01 2013-06-30 0001162324 us-gaap:OfficerMember urz:BonusMember 2014-01-01 2014-06-30 0001162324 us-gaap:OfficerMember urz:BonusMember 2013-01-01 2013-06-30 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2015-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2014-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2016-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2017-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2018-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2019-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2020-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2014-06-30 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2013-12-01 2013-12-31 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2013-12-03 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2014-01-01 2014-06-30 0001162324 urz:WyomingIndustrialDevelopmentRevenueBondMember 2013-12-31 0001162324 2008-12-31 0001162324 2010-01-01 2010-12-31 0001162324 2010-12-31 0001162324 2014-01-01 2014-01-31 0001162324 2014-02-01 2014-02-28 0001162324 2014-03-01 2014-03-31 0001162324 2014-04-01 2014-04-30 0001162324 2014-05-01 2014-05-31 0001162324 2014-06-01 2014-06-30 0001162324 urz:ConsultingServicesMember 2014-03-01 2014-03-31 0001162324 urz:ConsultingServicesMember 2014-05-01 2014-05-31 0001162324 urz:NonvestedStockOptionsMember 2013-12-31 0001162324 urz:NonvestedStockOptionsMember 2014-01-01 2014-06-30 0001162324 urz:NonvestedStockOptionsMember 2014-06-30 0001162324 us-gaap:StockCompensationPlanMember 2005-11-07 0001162324 urz:TwoZeroZeroFiveNonqualifiedStockOptionPlanMember 2011-06-14 0001162324 urz:TwoZeroZeroFiveNonqualifiedStockOptionPlanMember 2011-06-15 0001162324 urz:OptionsGrantedOneMember 2014-01-01 2014-06-30 0001162324 urz:OptionsGrantedTwoMember 2014-01-01 2014-06-30 0001162324 urz:OptionsGrantedThreeMember 2014-01-01 2014-06-30 0001162324 urz:GeneralandadministrativeMember 2014-01-01 2014-06-30 0001162324 urz:ExplorationExpensesMember 2014-01-01 2014-06-30 0001162324 us-gaap:StockCompensationPlanMember 2014-06-30 0001162324 urz:ModificationOfStockOptionsMember 2014-06-30 0001162324 urz:ModificationOfStockOptionsMember urz:GeneralandadministrativeMember 2014-01-01 2014-06-30 0001162324 urz:ExpireDecemberFiveTwoZeroOneFiveMember 2014-06-30 0001162324 urz:ExpireMarchFiveTwoZeroOneSixMember 2014-06-30 0001162324 2013-09-01 2013-09-30 0001162324 2013-06-01 2013-06-30 0001162324 2013-06-06 0001162324 2013-08-16 0001162324 2010-08-01 2010-08-31 0001162324 2010-08-13 0001162324 us-gaap:RightsMember 2014-06-30 0001162324 urz:TwoMiningLeaseAgreementsMember 2008-09-18 0001162324 us-gaap:LeaseAgreementsMember 2013-05-07 0001162324 us-gaap:LeaseAgreementsMember 2014-01-22 0001162324 urz:ProcessingAgreementMember 2014-06-30 0001162324 us-gaap:ConstructionContractsMember 2014-01-01 2014-06-30 0001162324 us-gaap:LeaseAgreementsMember 2013-05-01 2013-05-07 0001162324 us-gaap:LeaseAgreementsMember 2014-01-01 2014-01-22 0001162324 us-gaap:SubsequentEventMember 2014-07-01 2014-07-25 0001162324 us-gaap:SubsequentEventMember 2014-07-25 0001162324 urz:ReducedAcreageLeasedByTheArkoseMiningVentureMember 2014-07-17 shares iso4217:USD iso4217:USD shares pure utr:acre utr:ha urz:unit iso4217:USD urz:unit iso4217:CAD

2930779

11915676

798378

1313558

749030

55676

76654

4533863

13305888

266664

307120

480361

548271

2081039

791961

706447

8153888

16948765

429879

580984

582326

1674779

1417615

13220

2443040

2255763

18582385

20000000

1816907

1241481

22842332

23497244

86269

85815

158123303

156814709

172926627

163562491

-14717055

-6661967

28611

113488

-14688444

-6548479

8153888

16948765

10000000

0.001

750000000

0.001

86268806

85815074

86268806

85815074

1342894

55527

52583

106939

108599

167259

14986

19104

36817

37136

8422

33474

5257

74399

5052

66805916

1821459

1268949

3176699

2545154

109474279

2369471

1679351

5689284

4469669

177781926

4227969

3014730

8935340

7155506

-177781926

-4227969

-3014730

-8935340

-7155506

79129

2089489

3933

2614

11405

6614

1944295

307728

237106

615456

237106

-112569

1108

19431

152477 0 0 0 0

264231

-302687

-234492

-584620

-230492

-177517695

-4530656

-3249222

-9519960

-7385998

-28732

979709

950977

-176566718

-4530656

-3249222

-9519960

-7385998

-3640091

-75797

-55556

-155824

-111587

-172926627

-4454859

-3193666

-9364136

-7274411

-173877604

-4454859

-3193666

-9364136

-7274411

-172926627

-4454859

-3193666

-9364136

-7274411

-0.05

-0.04

-0.11

-0.10

86214000

77209000

86059000

77208000

-176566718

-9519960

-7385998

1342894

106939

108599

525461

127780

338658

40456

86641

1642155

531116

36914

-74617

79129

37500 0 0 19105000 0 0 1258000 0 0

31033379

817538

478181

1272503

-583089

-211835

741537

55650

-20979

11368

1142871

-1243558

-466291

483979

13220

1342

-122505904

-9374332

-6775229

2081039

20512

20548664

2037519

193534

17861

20432035

905092

-3076373

-173022

-17861

26000000

6000000

6098414

656187

296840

10700

3668703

70947

66500

111244539

527718

2275

5656285

36208

128513056

562457

5771935

2930779

-8984897

-1021155

7016710

5995555

774216 0 0 37500 0 0 98414 0 0 170598 0 0 744080 0 0 525461 0 525461 1258000 0 0 19105000 0 0

1082667

564884

22685

85815074

85815

156814709

-163562491

113488

717638

268732

269

327449

327718

125000

125

199875

200000

60000

99840

99900

36208

70947

-9364136

-155824

86268806

86269

158123303

-172926627

28611

-2090823

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%">2.</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Summary of Significant Accounting Policies</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">a)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Basis of Presentation</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the Securities and Exchange Commission (“SEC”) instructions for companies filing Form 10-Q. In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2014, and the results of operations and cash flows for the period then ended. The financial data and other information disclosed in the notes to the interim consolidated financial statements related to this period are unaudited. The results for the three and six-month period ended June 30, 2014 are not necessarily indicative of the results to be expected for any subsequent quarter or the entire year ending December 31, 2014. The unaudited interim consolidated financial statements have been condensed pursuant to the Securities and Exchange Commission's rules and regulations and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K filed on March 14, 2014 with the SEC.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and the accounts of an unincorporated venture, Arkose Mining Venture (“Arkose”) in which the Company holds an 81% interest and maintains majority voting control. The Company’s fiscal year-end is December 31. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">b)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Cash and Cash Equivalents</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company considers all highly liquid instruments with maturities of three months or less at the time of issuance to be cash equivalents.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">c)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Inventory</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Inventories of uranium concentrates (U3O8) are classified as in-process (solutions) and finished goods. In- process inventory represents U3O8 that has been extracted from the wellfield and captured in the Nichols Ranch processing plant. The captured U3O8 is then transferred to the toll processor where the uranium concentrate is extracted, purified and dried into yellowcake before being drummed. The U3O8 becomes finished goods inventory once it is packaged in drums. The finished goods inventory is then shipped to the conversion facility. Inventory sent and accepted at the conversion facility is available for the Company to sell to its customers.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company uses solution flow rates and measured concentration of U3O8 in its processing plant’s ion exchange columns and assays of pregnant resin at our toll processor to calculate the amount of in-process inventory. The amount of finished goods is determined by weighing and assaying the amount of U3O8 packaged into drums at the toll processor and at the conversion facility. The amount of U3O8 in the finished goods inventory is subject to final weighing and assay adjustments at the conversion facility.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company values its concentrates at the lower of weighted average cost or net realizable value at the end of each reporting period. Costs include direct labor, materials and other mining and processing costs and depreciation related to production of uranium concentrate.</p> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">d)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Financial Instruments/Concentrations</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Financial instruments consist principally of cash and cash equivalents, mineral property reclamation security deposits, accounts payable and notes payable. Pursuant to ASC 820, <i>Fair Value Measurements</i> and Disclosures and ASC 825, <i>Financial Instruments</i> the fair value of cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The reclamation deposits are deposits mainly invested in at major financial institutions and their fair value was estimated to approximate their carrying value. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates and current market rates for similar instruments. The Company's operations and financing activities are conducted primarily in United States dollars and as a result, the Company is not subject to significant exposure to market risks from changes in foreign currency rates. The Company is exposed to credit risk through its cash and cash equivalents, but mitigates this risk by keeping deposits at major financial institutions. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">e)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Fair Value Measurements</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company measures its available-for-sale securities at fair value in accordance with ASC 820, <i>Fair Value Measurements</i> . ASC 820 specifies a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions. These two types of inputs have created the following fair value hierarchy: </p> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="right"> </td> <td align="right" width="5%"> </td> <td align="center" width="3%">•</td> <td align="left" width="87%">Level 1 – Quoted prices for identical instruments in active markets;</td> </tr> <tr> <td align="right"> </td> <td align="right" width="5%"> </td> <td align="left" width="3%"> </td> <td align="left" width="87%"> </td> </tr> <tr valign="top"> <td align="right"> </td> <td align="right" width="5%"> </td> <td align="center" width="3%">•</td> <td align="left" width="87%">Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and</td> </tr> <tr> <td align="right"> </td> <td align="right" width="5%"> </td> <td width="3%"> </td> <td width="87%"> </td> </tr> <tr valign="top"> <td align="right"> </td> <td align="right" width="5%"> </td> <td align="center" width="3%">•</td> <td align="left" width="87%">Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.</td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">As at June 30, 2014 and December 31, 2013, cash is the Company's only financial instrument that is measured at fair value on a recurring basis within Level 1 of the fair value hierarchy. The Company does not have any Level 2 or Level 3 financial instruments.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">f)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Mineral Property Costs</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company is primarily engaged in the acquisition, exploration and exploitation of mineral properties with the objective of extracting minerals from these properties.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Mineral property exploration and evaluation costs are expensed as incurred. Development costs are expensed as incurred until proven and probable reserves are established. Subsequent development costs are capitalized. Costs for acquired mineral properties and mineral rights are initially capitalized when incurred, then assessed quarterly for impairment under ASC 360, <i>Property, Plant and Equipment</i> . The Company has not established proven or probable reserves on any of its mineral projects. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">g)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Asset Retirement Obligations</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> United States regulatory authorities require the Company to restore and reclaim its mine area after mining is completed. Pursuant to ASC 410, <i>Asset Retirement and Environmental Obligations</i> , the fair value of asset retirement obligations is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. Upon initial recognition of a liability, the fair value of the liability is expensed or added to the carrying amount of the associated asset and, if capitalized, this additional carrying amount is depreciated over the life of the asset. Future reclamation and remediation costs are accrued based on management's best estimate at the end of each period of the costs expected to be incurred to remediate each project. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Estimations and assumptions used in applying the expected present value technique to determine fair values are reviewed periodically. At June 30, 2014, the Company had accrued $1,816,907 for restoration and reclamation obligations (December 31, 2013 -$1,241,481). </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Estimated site restoration costs for exploration activities are accrued when incurred. Costs for environmental remediation are estimated each period by management based on current regulations, actual expenses incurred, available technology and industry standards. Any change in these estimates is included in exploration expense during the period and the actual restoration expenditures incurred are charged to the accumulated asset retirement obligation provision as the restoration work is completed. At June 30, 2014 the Company has recorded $28,590 (December 31, 2013 - $39,000) for well reclamation obligations in accrued liabilities for which work is required as part of its ongoing exploration expenses. </p> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">h)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Income Taxes</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, <i>Income Taxes</i> as of its inception. Pursuant to ASC 740 the Company is required to compute tax asset benefits for net operating losses carried forward and mineral property acquisition, exploration and development costs. The potential benefits of deferred income tax assets have not been recognized in these consolidated financial statements because the Company cannot be assured that it is more likely than not to utilize the net operating losses carried forward in future years. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">i)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Recently Adopted Accounting Pronouncements</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> In February 2013, the FASB issued ASU No. 2013-04, <i>Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date</i> . The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of the pronouncement did not have a material effect on our consolidated financial statements. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> In April 2013, the FASB issued ASU No. 2013-07, <i>Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting</i> . The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The adoption of the pronouncement did not have a material effect on our consolidated financial statements. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">In July 2013, ASC guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating loss carryforward, a similar tax loss, or tax credit carryforwards. A gross presentation will be required only if such carryforwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The adoption of the pronouncement did not have a material effect on our consolidated financial statements.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The adoption of the pronouncement did not have a material effect on our consolidated financial statements.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">In April 2014, ASC guidance was issued related to Discontinued Operations which changed the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. The updated guidance requires an entity to only classify discontinued operations due to a major strategic shift or a major effect on an entity’s operations in the financial statements. The updated guidance will also require additional disclosures relating to discontinued operations. The Company early adopted this guidance prospectively at the beginning of fiscal year January 1, 2014. Adoption of the new guidance did not have an impact on the consolidated financial position, results of operations or cash flows.</p> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">In June 2014, ASU guidance was issued to resolve the diversity of practice relating to the accounting for stock based performance awards that the performance target could be achieved after the employee completes the required service period. The update is effective prospectively or retrospectively beginning January 1, 2015. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">In May 2014, ASU guidance was issued related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods and is to be retrospectively applied. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.</p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table>

0.81

28590

39000

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">As at As at</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">As at As at</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">June 30,</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">December 31,</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2013</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="center" valign="bottom" width="12%">$</td> <td align="center" valign="bottom" width="2%"> </td> <td align="center" valign="bottom" width="1%"> </td> <td align="center" valign="bottom" width="12%">$</td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">In-process</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 341,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Finished goods</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 407,698 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> – </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 749,030 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

341332

407698

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">June 30,</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">December 31,</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">2013</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Accumulated</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Net Carrying</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Net Carrying</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Cost</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Depreciation</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Value</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">Value</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">$</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">$</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">$</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="10%">$</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Computers and office equipment</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 363,037 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 264,014 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 99,023 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 103,024 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Field equipment</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,693,947 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,001,009 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 692,938 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 603,423 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="5%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="10%"> 2,056,984 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="10%"> 1,265,023 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="10%"> 791,961 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="10%"> 706,447 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

363037

264014

99023

103024

1693947

1001009

692938

603423

2056984

1265023

250000

1.00 44 0.06 0.08 138

3120000

0.81

82000

33100

891

22275

6073

151828

984

1680

83993

320

600000

1258000 2000000 3.00

4915515

3991661

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">June 30,</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">December 31,</td> <td align="left" nowrap="nowrap" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2013</td> <td align="left" nowrap="nowrap" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">$</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">$</td> <td align="left" nowrap="nowrap" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Exploration costs</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 7,635 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Insurance</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 222,711 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 254,122 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Investor relations</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 8,462 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 59,232 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Lease costs</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 102,509 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 392,884 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Reclamation bonding</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 96,870 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 195,558 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Current portion power supply advance</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 8,083 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Surface use and damage costs</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 204,877 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 309,054 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Deposits</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 76,800 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 76,800 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Listing fees</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 33,344 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Other</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 44,722 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 18,273 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Current prepaid expenses and deposits</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 798,378 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 1,313,558 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Deposits</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,892 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,892 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Power supply advance</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 182,773 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 195,727 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Surface use and damage costs</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 267,696 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 322,652 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Non-current prepaid expenses and deposits</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 480,361 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 548,271 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> </td> </tr> </table>

0 7635

222711

254122

8462 59232 102509 392884

96870

195558

8083 0 204877 309054

76800

33344 0

44722

18273

798378

1313558

29892

182773 195727 267696 322652

480361

548271

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">June 30,</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">December 31,</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2013</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="center" valign="bottom" width="12%">$</td> <td align="center" valign="bottom" width="2%"> </td> <td align="center" valign="bottom" width="1%"> </td> <td align="center" valign="bottom" width="12%">$</td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Mineral exploration expenses (Note 14(f))</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 238,532 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 703,192 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Employee costs</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 241,309 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 219,580 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Executive and employee compensation</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 604,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Insurance fees</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,723 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Professional fees</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 54,060 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Reclamation costs (Note 9)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 28,590 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 39,000 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Taxes and royalties</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 73,895 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Other</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> – </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 47,224 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Total accrued liabilities</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 582,326 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 1,674,779 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

238532 703192

241309

219580

604000

7723

54060

73895 0

47224

425836

345116

13220

79650

62250

322500

2876280

3045266

3224181

3413608

3614163

3826502

20000000

1417615

18582385

20000000

0.0575

327348

266664

307120

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Balance at December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,241,481 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Liabilities incurred</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 531,116 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Accretion expense</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 44,310 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Balance at June 30, 2014</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%">$</td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 1,816,907 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

1241481

531116

44310

1816907

622500

250

1700000

6800000

381039

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">Shares</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">Proceeds</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom">Month</td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">Issued</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">$</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">January</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 22,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 24,580 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">February</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 67,700 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 90,041 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">March</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 60,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 78,110 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">April</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 35,032 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 44,912 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">May</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 84,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 90,075 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">June</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> – </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> – </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Total</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 268,732 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 327,718 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

22000

24580

67700

90041

60000

78110

35032

44912

84000

90075

268732

327718

125000

200000

30000

51000

30000

48900

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%">11.</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Stock-based Compensation</p> </td> </tr> <tr> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company adopted a Stock Option Plan dated November 7, 2005 under which the Company is authorized to grant stock options to acquire up to a total of 10,000,000 shares of common stock. No options shall be issued under the Stock Option Plan at a price per share less than the defined Market Price. On June 11, 2008, the Company modified the Stock Option Plan to define Market Price as the volume weighted average trading price of the Company’s common shares for the five trading days before the date of grant on the Toronto Stock Exchange or American Stock Exchange, now the NYSE MKT, whichever has the greater trading volume. On June 15, 2011, the Company amended the 2005 Non-Qualified Stock Option Plan to increase the number of shares authorized for issuance under the plan from 10,000,000 to 30,000,000 and extend the plan termination date for an additional 10 years. </p> </td> </tr> <tr> <td width="5%"> </td> <td> </td> </tr> <tr> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">During the six months ended June 30, 2014, the Company granted the following options:</p> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="center" width="5%">•</td> <td align="left" width="89%"> 7,500 stock options at an exercise price of $1.52 per share for 10 years that vest 40% on the date of grant, 30% on the first anniversary of the grant date and 30% on the second anniversary of the grant date, </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="center" width="5%">•</td> <td align="left" width="89%"> 30,000 stock options at an exercise price of $1.36 per share for 10 years that vest 40% on August 27, 2014, 30% on the first anniversary of the grant date and 30% on the second anniversary of the grant date and </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="center" width="5%">•</td> <td align="left" width="89%"> 49,000 stock options at an exercise price of $1.36 for 1.5 years that vest immediately. </td> </tr> </table> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> During the six months ended June 30, 2014, the Company recorded stock-based compensation for the vested portion of the options of $19,555 as general and administrative expense and $9,160, as mineral property expenditures. </p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> On February 15, 2014 Executive Officers and Directors forfeited 1,814,000 stock options with an average exercise price of $3.43, resulting in a decrease in the number of options outstanding and an increase in the amount of options available for future grants. </p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> During the six months ended June 30, 2014, the Company recorded stock-based compensation for the vesting of previously granted stock options of $461,244 as general and administrative expense and $102,940 as mineral property expenditures. During the six month period ended June 30, 2013, the Company recorded $478,181 of stock-based compensation for the vesting of previously granted stock options. At June 30, 2014, the Company had 17,722,860 shares of common stock available to be issued under the Stock Option Plan. </p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> The weighted average grant date fair value of stock options granted during the six month period ended June 30, 2014 was $0.75, per share. The total intrinsic value of stock options exercised during the six months ended June 30, 2014 and 2013, was $116,248, and $2,380 respectively. During the six months ended June 30, 2014, the Company modified the terms of 587,500 outstanding options held by a former employee and a consultant of the Company. The options were set to expire and the Company extended the expiration date to December 31, 2015. The weighted average grant date fair value of the modified stock options was $0.20 and the Company recognized an additional $124,739 stock-based compensation expense which is included in general and administrative expense related to the modification of these options. </p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">The fair value of stock options granted was calculated using the Black-Scholes option-pricing model based on the following assumptions:</p> <p align="justify" style="margin-left: 10%; font-family: times new roman,times,serif; font-size: 10pt;"> <i>Risk-Free Interest Rate:</i> Based on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the options being valued. </p> <p align="justify" style="margin-left: 10%; font-family: times new roman,times,serif; font-size: 10pt;"> <i>Dividend Yield:</i> Based on the projection of future stock prices and dividends expected to be paid. </p> <p align="justify" style="margin-left: 10%; font-family: times new roman,times,serif; font-size: 10pt;"> <i>Expected Term:</i> Represents the period of time that stock options are expected to be outstanding based on historic exercise behavior. </p> <p align="justify" style="margin-left: 10%; font-family: times new roman,times,serif; font-size: 10pt;"> <i>Expected Volatility:</i> Based on the Company's historical stock prices for a period of time equal to the expected term of the award. </p> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">The weighted average assumptions used for each of the six months ended June 30, are as follows:</p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2013</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Expected dividend yield</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Risk-free interest rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1.32% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Expected volatility</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 74% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Expected option life (in years)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 5.18 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The following table summarizes the continuity of the Company’s stock options:</p> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Weighted-</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Weighted</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Average</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Average</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Remaining</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Aggregate</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Number of</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Exercise</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Contractual</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Intrinsic</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Options</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Price</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Term (years)</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Value</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%">$</td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%">$</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Outstanding, December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 11,245,380 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2.07 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Granted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 86,500 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1.37 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Forfeited</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> (1,814,000 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 3.43 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Exercised</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> (268,732 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1.22 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> (987,500 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 2.58 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Outstanding, June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 8,261,648 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1.73 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 5.68 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,517,809 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Exercisable, June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 6,510,998 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1.87 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 4.98 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,031,905 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> </table> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;">A summary of the changes of the Company’s non-vested stock options is presented below:</p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="12%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Weighted Average</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Number of</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Grant Date</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom">Non-vested stock options</td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Options</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Fair Value</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%">$</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Non-vested at December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,842,150 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1.07 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Granted</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 86,500 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 0.75 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Vested</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (52,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.45 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> (126,000 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1.06 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Non-vested at June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1,750,650 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1.07 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> As at June 30, 2014, there was $1,008,216 of unrecognized compensation cost related to non-vested stock option agreements. This cost is expected to be recognized over a weighted average period of 1.07 years. </p> </td> </tr> <tr> <td width="5%"> </td> <td width="5%"> </td> <td> </td> </tr> </table>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2014</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">2013</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Expected dividend yield</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Risk-free interest rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1.32% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Expected volatility</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 74% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> – </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Expected option life (in years)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 5.18 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> – </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

0.00

0.0132

0.00

0.74

0.00

P5Y2M5D

P0Y

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Weighted-</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Weighted</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Average</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Average</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Remaining</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Aggregate</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Number of</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Exercise</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Contractual</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Intrinsic</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Options</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Price</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Term (years)</td> <td align="right" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="10%">Value</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%">$</td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%">$</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Outstanding, December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 11,245,380 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2.07 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td valign="bottom"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Granted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 86,500 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1.37 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Forfeited</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> (1,814,000 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 3.43 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Exercised</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> (268,732 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1.22 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> (987,500 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 2.58 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Outstanding, June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 8,261,648 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1.73 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 5.68 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,517,809 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="10%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Exercisable, June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 6,510,998 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1.87 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 4.98 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="10%"> 1,031,905 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> </table>

11245380

2.07

86500

1.37

1814000

3.43

1.22

987500

2.58

8261648

1.73

P5Y8M5D

1517809

6510998

1.87

P4Y11M23D

1031905

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="12%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Weighted Average</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Number of</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Grant Date</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom">Non-vested stock options</td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Options</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="right" nowrap="nowrap" valign="bottom" width="12%">Fair Value</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%">$</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Non-vested at December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,842,150 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1.07 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Granted</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 86,500 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 0.75 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Vested</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (52,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.45 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Expired</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> (126,000 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%">)</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1.06 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> <tr> <td width="10%"> </td> <td bgcolor="#e6efff" valign="bottom"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Non-vested at June 30, 2014</td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1,750,650 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1.07 </td> <td align="left" style="border-bottom: 1px solid rgb(0, 0, 0);" width="2%"> </td> </tr> </table>

1842150

1.07

86500

0.75

52000 0.45

126000

1.06

1750650

1.07

10000000

30000000

7500

1.52

P10Y 0.40 0.30 0.30

30000

1.36

P10Y 0.40 0.30 0.30

49000

1.36

P1Y6M

19555

9160

461244 102940 478181

17722860

0.75

116248

2380

587500

0.20

124739

1008216 P1Y25D

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%">Weighted Average</td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom"> </td> <td align="left" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%">Number</td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%">Exercise Price</td> <td align="left" nowrap="nowrap" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" nowrap="nowrap" valign="bottom"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="12%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="1%">$</td> <td align="right" nowrap="nowrap" valign="bottom" width="12%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom">Balance December 31, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 7,875,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1.96 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" valign="bottom">Expired</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (2,000,000 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3.00 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom">Exercised</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> (125,000 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="12%"> 1.60 </td> <td align="left" bgcolor="#e6efff" style="border-bottom: 1px solid rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td width="10%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom">Balance June 30, 2014</td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 5,750,000 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="1%"> </td> <td align="right" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="12%"> 1.60 </td> <td align="left" style="border-bottom: 3px double rgb(0, 0, 0);" valign="bottom" width="2%"> </td> </tr> </table>

7875000

1.96 2000000 3.00 1.60

5750000

1.60

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom">Number of Warrants</td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="15%">Exercise Price</td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="left" nowrap="nowrap" valign="bottom" width="50%">Expiry Date</td> <td align="left" width="2%"> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" valign="bottom" width="10%"> </td> <td align="center" nowrap="nowrap" valign="bottom"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="15%">$</td> <td align="center" nowrap="nowrap" valign="bottom" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="2%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="50%"> </td> <td align="center" width="2%"> </td> </tr> <tr valign="top"> <td valign="bottom" width="10%"> </td> <td align="center" bgcolor="#e6efff" valign="bottom">             1,600,000 </td> <td align="center" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="center" bgcolor="#e6efff" valign="bottom" width="15%"> 1.60 </td> <td align="center" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="50%">December 5, 2015</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td valign="bottom" width="10%"> </td> <td align="center" valign="bottom">             4,150,000 </td> <td align="center" valign="bottom" width="2%"> </td> <td align="center" valign="bottom" width="15%"> 1.60 </td> <td align="center" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="50%">March 5, 2016</td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

1600000

1.60

4150000

1.60

4275000 1.60 1600000 1.60 1200000 400000 P30M 2000000 3.00

8.75

75000 51700 55000 142010 450000

240000

10 P3Y P2Y P2Y

9600000 1.25 12000000

1035000

1 0.5

P30M 1.60 138000