During fiscal 2011, the Company entered into an option agreement to acquire 100% of certain claims located in the State of Alaska, USA.In order to acquire the interest in the project, the Company must complete the following: Make cash payments aggregating $270,000 payable as follows: • $25,000 (paid) on execution of the agreement; • $95,000 (paid)within seven days of TSX approval; and • $150,000 on August 18, 2014. Incur exploration expenditures aggregating $3,300,000 and make additional cash payments aggregating $3,650,000 in order to maintain the option and earn an interest in the property as follows: Year of term and expenditure date Minimum property expenditures Cash payments (%) On or before October 31, 2012 $100,000 (incurred) 0 On or before October 31, 2013 $ 200,000 (incurred) 0 On or before October 31, 2014 $1,000,000 51
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