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Firestone Ventures Inc. Management Reports 2025
43804_rns_2025-07-29_a59f907e-e4ed-4613-b2b3-71e92e69e591.pdf
Management Reports
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1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
(Expressed in Canadian Dollars unless otherwise indicated)
FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
1.0 INTRODUCTION
The following Management's Discussion and Analysis ("MD&A") is Management's review of the financial condition and results of operations for the year ended March 31, 2025 (the "Reporting Period") of Firestone Ventures Inc. ("Firestone" or the "Company"). This MD&A is prepared as of July 29, 2025, unless otherwise indicated and should be read in conjunction with the annual financial statements for the years ended March 31, 2025 and 2024 ("Annual Financial Statements") and the notes related thereto, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts have been expressed in Canadian Dollars unless otherwise indicated. Additional information relating to the Company can be found on SEDAR at www.sedar.com.
2.0 CAUTIONARY NOTE – “FORWARD-LOOKING INFORMATION”
This MD&A contains "forward-looking information" under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking information, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the Company's expectations in connection with the expected exploration on its projects, potential development and expansion plans on the Company's projects, the impact of general business and economic conditions, global liquidity, inflation, inability to raise additional funds as may be required through debt or equity markets, fluctuating metal prices (such as those of zinc, lead, copper and silver, currency exchange rates (such as the Canadian Dollar ("$") versus the United States Dollar ("USD"))), possible variations in metal grade encountered in exploration, changes in accounting policies, risks related to non-core project disposition, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, if any, success of exploration activities, permitting time lines, government regulation and the risk of government expropriation of exploration properties, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of labour disputes and/or shortages, as well as those risk factors discussed or referred to herein. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or Management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information
FIRESTONE VENEUREE INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.
Examples of such forward-looking information in this document include, but are not limited to statements with respect to the following, each of which is subject to significant risks and uncertainties and is based on a number of assumptions which may prove to be incorrect:
- Our intention to raise additional funds to finance corporate and exploration expenditures. See Section 11.0 – Liquidity, Capital Management and Going Concern
- The discussions of future plans including identifying and securing a new project of merit.
3.0 REPORT DATED: July 29, 2025
4.0 CORPORATE INFORMATION
Corporate Office
8 King St. East – Ste. 1800
Toronto, Ontario Canada M5C 1B5
Tel: (416) 583-1646
Email: [email protected] and website: www.firestoneventures.com
The Company's registered office is currently located at Suite 1250, 639 – 5th Ave. S.W., Calgary, Alberta, T2P 0M9, Canada.
Directors, Management and Advisors
Dr. Keith Barron – Chairman, President & CEO, Director
Donna McLean – Chief Financial Officer
Warren Boyd – Independent Director
Dr. Scott Morrison – Independent Director
5.0 DESCRIPTION OF BUSINESS
Firestone was incorporated on May 25, 1987 under the name "Gold Torch Resources Ltd." It has undergone several name changes with the current name having taken effect on December 6, 1999. Firestone is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange NEX Board ("TSXV" - "NEX") under the symbol FV.H and the Frankfurt Stock Exchange under the symbol F5V.
FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
Nature of Operations
Firestone is a junior mineral exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests with a focus on precious and base metals. Historically, the Company was exploring certain mineral property interests in Guatemala ("Property Interests") however in December 2021, the Company sold its Property Interests.
6.0 SELECTED FINANCIAL INFORMATION
| As at | March 31, 2025 | March 31, 2024 | March 31, 2023 |
|---|---|---|---|
| Cash | $376,975 | $458,089 | $561,389 |
| Working capital (deficiency) | $(295,502) | $(232,279) | $(150,044) |
| Total assets | $387,806 | $468,800 | $582,513 |
| Total liabilities | $683,308 | $701,079 | $732,557 |
| Deficit | $(24,728,875) | $(24,665,652) | $(24,542,126) |
| For the years ended March 31, | |||
| --- | --- | --- | --- |
| 2025 | 2024 | 2023 | |
| General and administrative expenses excluding share-based compensation (“G&A”) | $86,427 | $(79,393) | $(96,338) |
| Share-based compensation | — | (41,291) | (96,295) |
| Foreign exchange gain (loss) | (23,204) | 2,362 | (44,608) |
| Net (loss) for the year | $(63,223) | $(123,526) | $(148,025) |
| Basic and diluted loss per share | $(0.00) | $(0.00) | $(0.00) |
7.0 OVERALL PERFORMANCE - Financial position, operating results and cash flows
7.1.1 Financial Position
As an exploration company, Firestone does not generate revenue. At March 31, 2025, the Company had accumulated losses of $24,728,875 (March 31, 2024 – $24,665,652) and will continue to incur losses until achieving commercial production if its exploration program is successful in delineating a commercially viable ore reserve.
Since 2014, cash has been minimal and cash calls were made to a director/related party (the "Lender") only 'as needed'. Upon the sale of its subsidiary's Guatemala assets in December 2021, the Company added significantly to treasury. As at March 31, 2025, the Company had available cash of $376,975 to satisfy accounts payables and accrued liabilities of $42,595 due to related parties of $891 and promissory notes of $639,822. (At March 31, 2024, cash of $458,089 to satisfy accounts payable and accrued liabilities of $54,477, due to related parties of $6,780 and promissory notes of $639,822).
FIRESTONE VENEUREA PRESS
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
7.1.2 Operating Results and Financial Performance for years ended March 31, 2025 and 2024 (the "Reporting Periods")
For the F2025 Reporting Period, the Company posted a net loss and comprehensive loss of $63,223 (2024 - $123,526). Management continues to evaluate potential projects to replace the project assets sold in December 2021.
Operations general and administrative costs (other than share-based compensation) ("G&A")) for F2025 ($86,427) were marginally higher than that recorded for F2024 ($79,873). Professional and administrative expense was higher (50%) primarily due to legal fees incurred for counsel received related to a potential new project. Management fees year-over-year remained constant while regulatory and transfer agent fees were higher in the prior year for costs incurred for the AGM held in December 2023. Office and insurance costs were higher in F2024 principally due to a higher-than-expected audit fee and D&O insurance premium. Happily, both have decreased since then. As no options were granted in F2025, no share-based compensation expense ("SBC") was recorded. A total of 2,000,000 stock options were granted to directors and officers in F2024 and the SBC estimate for these options was charged to the statement of loss.
Amounts receivable is principally comprised of HST to be refunded. Management believes this is fully collectible. Firestone's directors receive no directors' fees however they are eligible to participate in the Company's stock option plan. During the years ended March 31 2025 and 2024, there were no capital transactions.
7.1.3 General and Administrative Expenses ("G&A")
| For the years ended | March 31, 2025 | March 31, 2024 |
|---|---|---|
| Professional and administrative fees | $35,784 | $23,795 |
| Management fees | 24,000 | 24,000 |
| Regulatory fees and transfer agent | 14,479 | 18,709 |
| Investor relations and business development | 9,614 | 1,383 |
| Office and insurance | 2,550 | 11,986 |
| $86,427 | $79,873 | |
| Share-based compensation | — | 41,291 |
| TOTAL G&A | $86,427 | $121,164 |
Management continues to conserve cash wherever possible, while Management endeavours to remain compliant with all regulatory and reporting requirements.
See section 7.1.2 above for a comparative analysis of the annual G&A costs.
FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
7.1.4 Exploration Expenses ("E&E")
During the years ended March 31, 2025 and 2024, the Company recorded no E&E expenses, however, Management continues to evaluate projects of merit for potential acquisition by the Company.
7.1.5 Cash Flows and Financing Activities
For F2025, Management continued to draw down on its 2021 project sale proceeds to fund its operations. At March 31, 2025 and 2024, the Lender is owed $639,822. This indebtedness is non-interest-bearing and due on demand.
There is no immediate need to cash call the Lender in the near term as the Company has sufficient treasury to meet the day-to-day ongoing costs of the operations; however, when Management is successful in securing a new project, it is highly probable that the Company will need to obtain additional financing. Attracting new capital continues to be a challenge for the Company but Management believes this is achievable with the right project.
8.0 QUARTERLY RESULTS
While the costs of maintaining Firestone as a public company are primarily fixed in nature, (e.g., tariffs for annual Exchange listing, SEDAR fees and transfer agent fees, are mandated), Management continues to conserve cash wherever possible and negotiate consulting and other fees where discretionary.
The following summary of quarterly results are derived from the financial statements prepared by Management:
| F2025 | F2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| Mar. | Dec. | Sep. | Jun. | Mar. | Dec. | Sep. | Jun. | |
| G&A expenses, other than share-based compensation | $31,567 | $22,069 | $16,313 | $16,478 | $ (18,352) | $ (31,307) | $ (12,580) | $ (17,634) |
| Share-based compensation exp. | — | — | — | — | — | — (41,291) | — | — |
| Foreign exchange gain (loss) | (535) | (23,139) | 5,074 | (4,604) | 10,037 | (9,961) | 9,387 | (11,825) |
| Net (loss) for the period | 31,032 | (1,070) | 21,387 | 11,874 | (8,315) | (82,559) | (3,193) | (29,459) |
| Basic and diluted (loss) per share | $(0.00) | $(0.00) | $(0.00) | $(0.00) | $(0.00) | $(0.00) | $(0.00) | $(0.00) |
FIRESTONE VENEUREA P.C.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
10.0 SHARE CAPITAL AND SHARE-BASED COMPENSATION
As at March 31, 2025, there are 56,320,791 common shares issued and outstanding. There are no issued and outstanding warrants.
10.1 STOCK OPTIONS
(a) Issued share capital during the year ended March 31, 2025, and 2024
During the year ended March 31, 2025 and 2024, there were no share issuances. There are no preference shares issued and outstanding.
(b) Stock options
The Company maintains a stock option plan (the "Plan") under which directors, officers, employees and consultants of the Company and its affiliates are eligible to receive stock options. The maximum number of common shares reserved for issuance under the Plan is 10% of the issued shares of the Company at the time of granting the options.
i) On July 26, 2023, a total of 500,000 stock options expired, unexercised.
ii) On December 14, 2023, a total of 2,000,000 stock options were issued to directors and officers, for the purchase of 2,000,000 common shares, exercisable at $0.05 per share and expiring on December 14, 2028. The fair value of the stock options was estimated to be $41,291 using the Black-Scholes option pricing model, based on the following assumptions:
- expected volatility of 100%; expected useful life of 5 years, risk-free rate of 3.24%; expected dividend yield of 0%; and share price of $0.05.
FIRESTONE VENEUREA PIECE
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
The following table summarizes the stock option activity for the years ended March 31, 2024 and March 31, 2025:
| Number of Options | Weighted Average Exercise Price | |
|---|---|---|
| Balance – March 31, 2023 | 2,450,000 | $0.13 |
| Granted | 2,000,000 | $0.05 |
| Expired | (500,000) | $(0.075) |
| Balance – March 31, 2024 and 2025 | 3,950,000 | $0.09 |
The following table summarizes the outstanding stock options as at March 31, 2025:
| Issued Number of Options | Exercisable Number of Options | Exercise Price | Expiry Date | Estimated Fair Value |
|---|---|---|---|---|
| 1,950,000 | 1,950,000 | $0.13 | November 16, 2026 | $208,764 |
| 2,000,000 | 2,000,000 | $0.05 | December 14, 2028 | $41,291 |
| 3,950,000 | 3,950,000 | $250,055 |
The weighted average contractual life remaining for stock options at March 31, 2025 is 2.68 (2024 – 3.68) years. The above stock options were not included in the computation of diluted net loss per share for the periods presented as they are anti-dilutive.
11.0 LIQUIDITY, CAPITAL MANAGEMENT AND GOING CONCERN
The Company considers its capital structure to include share capital, contributed surplus and equity, which at March 31, 2025 was in deficiency of $295,502 (March 31, 2024 – $232,279). A total of $639,822 or 94% of the Company's current indebtedness is owed to Dr. Keith Barron, the Company's principal shareholder (31%) who serves as Chairman and CEO.
The Company's capital management objective is to ensure that there are adequate capital resources to fund planned exploration, sustain operations, and continue as a going concern. Fluctuations in commodity prices, along with political and economic uncertainties in Guatemala, have influenced financial markets and made it difficult to raise capital there, in order to fund exploration. See Section 19.0 – Other Risks and Uncertainties, for more information. There were no financing opportunities during the Reporting Period and Management continues to rely on related party loans to meet its financial obligations.
In the meantime, Management continues to examine current and other potential projects while considering various financing alternatives therein, including reorganizations, mergers, sales of assets, and other forms of debt and equity financing. There is no assurance that any such activity will generate funds that will be available for operations.
FIRESTONE VENEUREA PRESS
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
12.0 RELATED PARTY TRANSACTIONS
Management fees
During the year ended March 31, 2025, a total of $24,000 (2024 - $24,000) was charged to the Company by a company controlled by the CFO, on account of management consulting fees. Included in account payables and accrued liabilities at March 31, 2025 is $891 (2024 - $6,780) owed to the CFO for unpaid services.
All amounts owed to these related parties are unsecured, non-interest-bearing and due on demand.
12.1 KEY MANAGEMENT COMPENSATION
In accordance with IAS 24, Key Management personnel are those having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and nonexecutive) of the Company.
The Chief Executive Officer ("CEO") receives no cash compensation and the cash compensation paid to the CFO is listed in table below. The directors receive no cash compensation however they are eligible to be awarded stock options.
For the years ended March 31, 2025 and 2024, the following is the compensation recorded for Key Management:
| Years ended | March 31, 2025 | March 31, 2024 |
|---|---|---|
| Management consulting fees | $24,000 | $24,000 |
| Share-based compensation | — | 41,291 |
| Total | $24,000 | $65,291 |
See Section 17.0 - Commitments and Contingencies.
13.0 PROMISSORY NOTES
(a) Promissory note advances
| Years ended | March 31, 2025 | March 31, 2024 |
|---|---|---|
| Balance, beginning of year | $639,822 | $639,822 |
| Cash advances | — | — |
| Balance, end of year | $639,822 | $639,822 |
No cash calls were made to the Lender during the fiscal years 2025 and 2024.
FIRESTONE VENUEES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
14.0 TREND INFORMATION
There are no major trends that are anticipated to have a material effect on the Company's financial condition and results of operations in the near future.
15.0 OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet arrangements, no capital lease agreements, and no long-term debt obligations other than that owed to the Lender.
16.0 PROPOSED TRANSACTIONS
As at March 31, 2025, the Company has no definitive transactions to acquire or dispose of any asset, however, Management has been actively reviewing potential property acquisitions, investment and joint venture transactions and other opportunities.
17.0 COMMITMENTS AND CONTINGENCIES
Environmental Contingencies
The Company's exploration activities are subject to various federal, state and municipal laws and regulations governing the protection of the environment. The Company conducts its operations so as to protect public health and the environment.
18.0 DISCLOSURE OF OUTSTANDING SHARE DATA
At July 29, 2025, Firestone has issued/granted:
- 56,320,791 common shares
- 3,950,000 stock options, with exercise prices of $0.05 to 0.13, expiring from November 16, 2026, to December 14, 2028.
There are no warrants or RSUs issued.
19.0 ACCOUNTING POLICIES
See Annual Financial Statements - note 2 – Significant Accounting Policies for a detailed description of the adopted changes to certain accounting standards and policies made during the Reporting Period. These new standards and changes, other than reclassifying the operations of FESA as a discontinued operation, did not have any material impact on the Company's Annual Financial Statements.
20.0 INCOME TAXES
See Annual Financial Statements – note 8 – Income Taxes for details of the Company's provision for tax, tax losses and deferred tax position.
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FIRESTONE VENEUREA INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
21.0 CAPITAL AND FINANCIAL RISK MANAGEMENT
21.1 Capital management
The Company considers the capital that it manages to include share capital, contributed surplus and deficit, which at March 31, 2025, was a deficiency of $295,502 (March 31, 2024 - $232,279). The Company manages its capital structure and makes adjustments to it, based on the funds needed in order to support the acquisition, exploration and development of mineral properties. Management does this in light of changes in economic conditions and the risk characteristics of the underlying assets. There has been no change with respect to the overall capital risk management strategy during the years ended March 31, 2025 and 2024.
During the years ended March 31, 2025 and 2024, the Company continued to draw down on the net proceeds of the project sale to meet its financial obligations. As at period end, the Company has sufficient funds to continue operating in the normal course in the near term.
See Section 5.0 - Description of Business.
21.2 Financial risk management
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate, foreign exchange rate, and commodity price risk). Risk management is carried out by the Company's Management team with guidance from the Audit Committee under policies approved by the Board of Directors. The Board of Directors also provides regular guidance for overall risk management.
(a) Credit risk
Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. The Company has no significant concentration of credit risk arising from its operations. Cash is held at select Canadian financial institutions, from which management believes the risk of loss to be remote.
The Company does not have any material risk exposure to any single debtor or group of debtors.
(b) Liquidity risk
Liquidity risk arises through an excess of financial obligations over financial assets at any point in time. The Company's approach to managing liquidity risk is to maintain sufficient readily available cash to continue operations and meet its financial obligations as they become due. As the Company has no producing assets and operations profitability will not occur within the next twelve months, continued operations are dependent upon its ability to raise adequate financing. Successful completion of the Transaction resulted in adding USD$500,000 (less any costs related to the sale) to Treasury.
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FIRESTONE VENEUREA INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
As the Company has no producing assets, continued operations are dependent upon its ability to raise adequate financing in the market, through equity raises, short-term debt or by the disposition of assets.
As at March 31, 2025, the Company had $376,975 in cash to settle $42,595 of accounts payable and accrued liabilities, $891 due to related parties and $639,822 of promissory notes (March 31, 2024 - $458,089 in cash to settle $54,477 of accounts payable and accrued liabilities, $6,780 due to related parties and $639,822 of promissory notes).
Working capital will continue to fluctuate until the Company has achieved profitable levels of operations and profitability. Dependent on the Company's business strategy for the next twelve months, Management may need to raise additional funds to finance future corporate and exploration expenditures.
(c) Market risk
Market risk is the risk related to changes in the market prices, such as fluctuations in foreign exchange rates and interest rates that will affect the Company's net earnings or the value of its financial instruments.
(d) Interest rate risk
Cash balances are deposited in highly accessible and low-interest bank accounts that are used for short-term working capital requirements. The Company regularly monitors compliance to its cash management policy.
i. Foreign currency risk
Certain of the Company's expenses are incurred in USD and are therefore subject to gains or losses due to fluctuations in these currencies. Management believes that the foreign exchange risk derived from currency conversions is best served by not hedging its foreign exchange risk.
At March 31, 2025 and March 31, 2024, the Company's exposure to foreign currency risk with respect to amounts denominated in USD was substantially as follows:
| In Canadian $ equivalents | March 31, 2025 | March 31, 2024 |
|---|---|---|
| Cash | $374,687 | $419,562 |
| Accounts payable and accrued liabilities | — | (884) |
| Net exposure | $374,687 | $418,678 |
FIRESTONE VENEUREA PARK
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
(e) Commodity price risk
Commodity price risk is defined as the potential adverse future impact on earnings and economic value due to commodity price movements and volatility. The ability of the Company to develop its mineral properties and the future profitability of the Company is directly related to the market price of precious and base metals. Commodity prices have fluctuated significantly in recent years. There is no assurance that these metals will be produced in the future or that a profitable market will exist for them. At March 31, 2025 and 2024, the Company was not a metals commodity producer.
(f) Sensitivity analysis
As of March 31, 2025, and 2024, both the carrying and fair value amounts of the Company's financial instruments are approximately equivalent due to their short-term nature. Based on Management's knowledge and experience of the financial markets, the Company believes that a 10% strengthening of the Canadian dollar against the USD would have decreased the net asset position of the Company as at March 31, 2025, by $37,469 (2024 – decreased by $41,868). A 10% weakening of the Canadian dollar against the same would have had an equal but opposite effect.
(g) Fair value of financial instruments
The Company's financial instruments include cash, amounts receivable, accounts payable and accrued liabilities, due to related parties and promissory notes. The fair values of cash, amounts receivable, accounts payable and accrued liabilities, due to related parties and promissory notes approximate their carrying amounts due to the short terms to maturity. The Company has no unrecognized financial instruments or derivative financial instruments.
It is Management's opinion that the Company is not exposed to other significant market risks arising from its financial instruments.
See Annual Financial Statements - note 2(g) – Financial Instruments
22.0 OTHER RISKS AND UNCERTAINTIES
The success of Firestone's business is subject to a number of factors including, but not limited to, those risks normally encountered by junior resource exploration companies such as exploration uncertainty, operating hazards, more onerous environmental regulation, competition with companies having greater resources, fluctuations in the price and demand for minerals, fluctuations in exchange rates and lack of operating cash flow. Firestone's ongoing ability to finance corporate and exploration costs will depend on, amongst other things, the viability of equity markets.
An investment in the common shares of the Company is speculative in nature and involves a high degree of risk.
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FIRESTONE VENUEES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED MARCH 31, 2025
Exploration, Development and Operating Risk
Mineral exploration involves many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration and development, any of which could result in work stoppages, damage to the property, and possible environmental damage. None of the properties in which Firestone has an interest has a known body of commercially viable ore. Mining involves a high degree of risk and few properties that are explored are ultimately developed into producing mines. There is no assurance that any of Firestone's mineral exploration activities will result in discoveries of commercially viable ore bodies. In addition, operating in a foreign jurisdiction exposes the Company to additional risks including potential political change, arbitrary changes in law or policies, inability or delays in obtaining permits, limitations on foreign ownership and other risks not specified here. Foreign currency fluctuations may also adversely affect the Company's financial position and operating results.
Management attempts to mitigate risks associated with exploration and mining and minimize their effect on the Company's financial performance, but there is no guarantee that the Company will be operationally successful.
Title
Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.
Although the Company takes steps to verify title to the properties on which it is conducting exploration, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the title to the permitted properties.
Environmental Matters
The Company's mining and exploration activities are subject to various federal, state and international laws and regulations governing the protection of the environment.
The Company believes its operations are materially in compliance with applicable laws and regulations.
Foreign Country Risk
If the future property interests of the Company should be located outside of Canada, Management is aware of the potential risk of foreign investment, including increases in taxes and royalties, renegotiation of permits and currency exchange fluctuations.
The Company mitigates foreign country risk by keeping apprised of the foreign country's economic policies and political climate and by relying on certain advisors, including technical and financial consultants, to inform Management of any proposed change to the laws and regulations that could significantly impact the financial results of the Company.
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