Laramide Resources Ltd. — Annual Report 2013

Apr 25, 2013

LARAMIDE RESOURCES LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

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INDEPENDENT AUDITORS' REPORT

Collins Barrow Toronto LLP Collins Barrow Place 11 King Street West Suite 700, Box 27 Toronto, Ontario M5H 4C7 Canada T. 416.480.0160 F. 416.480.2646

www.collinsbarrow.com

To the Shareholders of Laramide Resources Ltd.

We have audited the accompanying consolidated financial statements of Laramide Resources Ltd. and its subsidiaries, which comprise the consolidated balance sheets as at December 31, 2012 and December 31, 2011 and the consolidated statements of operations, comprehensive income (loss), changes in shareholders’ equity and cash flows for the years then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Laramide Resources Ltd. and its subsidiaries as at December 31, 2012 and December 31, 2011 and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards.

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Licensed Public Accountants Chartered Accountants Toronto, Ontario March 27, 2013

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This office is independently owned and operated by Collins Barrow Toronto LLP The Collins Barrow trademarks are used under License.

LARAMIDE RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (EXPRESSED IN CANADIAN DOLLARS)

	December 31, 2012 December 31, 2011
Assets Current Assets Cash and cash equivalents Short-term investments (Note 7) Accounts receivable and prepaid expenses (Note 8) Investments (Note 9) Prepaid royalty (Note 11) Property and equipment (Note 10) Mineral properties and related deferred costs (Note 11)	$ 256,707 $ 794,524 73,477 1,060,000 1,363,065 657,600 6,677,394 9,404,009 8,370,643 11,916,133 363,802 - 132,458 364,487 77,678,197 72,924,250 $ 86,545,100 $ 85,204,870
Liabilities Current Liabilities Accounts payable and accrued liabilities (Note 12) Long-term debt (Note 13) Deferred rent recovery (Note 14) Deferred tax liability (Note 5) Shareholders' Equity Capital stock (Note 15) Warrants (Note 16) Contributed surplus Deficit Accumulated other comprehensive income (loss)	$ 3,053,275 $ 2,299,551 4,764,437 - 70,512 211,512 3,167,480 2,745,700 11,055,704 5,256,763 119,766,752 119,229,122 488,827 2,128,909 23,901,659 21,437,045 (67,010,748) (63,294,760) (1,657,094) 447,791 75,489,396 79,948,107 $ 86,545,100 $ 85,204,870

Commitments and Contingencies (Note 20) Subsequent Events (Note 21)

SIGNED ON BEHALF OF THE BOARD

(Signed) "Marc C. Henderson" (Signed) "Scott Patterson" Director Director

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

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LARAMIDE RESOURCES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31,	2012 2011
Revenues Investment income Loss in value of fair value through profit and loss ("FVTPL") investments (Note 9) Loss on sale of investments (Note 9) Expenses Administrative and office Audit and legal Consulting Interest and transaction costs Foreign exchange loss Stock-based compensation (Note 17) Amortization of property and equipment De-recognition of available for sale investment (Note 9) Write-down of mineral properties (Note 11) Loss before income tax Income tax (Note 5) Net loss for the year	$ 14,975 $ 25,004 (140,431) (1,407,924) (342,998) (608,282) (468,454) (1,991,202) 1,536,202 $ 1,777,120 175,890 153,455 156,751 135,398 163,649 - 24,191 12,460 295,987 202,631 17,313 15,813 244,000 - 193,341 117,716 2,807,324 2,414,593 (3,275,778) (4,405,795) (440,210) 59,900 $ (3,715,988) $ (4,345,895)
Loss per share- basic and dilluted (Note 6)	$ (0.05) $ (0.06)

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

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LARAMIDE RESOURCES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31,	2012	2011
Net loss for the year	$ (3,715,988)	$ (4,345,895)
Other comprehensive income (loss)
Unrealized loss on available for sale investments, net of tax	(1,663,804)	(4,541,235)
Reclassification of realized loss on available for sale investments to
income, net of tax	319,430	187,120
Reclassification of unrealized loss on available for sale investments to
income upon de-recognition	244,000	-
Foreign currencytranslation adjustment	(1,004,511)	1,566,747
	(2,104,885)	(2,787,368)
Comprehensive loss for the year	$ (5,820,873)	$ (7,133,263)

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

LARAMIDE RESOURCES LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (EXPRESSED IN CANADIAN DOLLARS)

							Accumulated	Accumulated
								Other
	Number of				Contributed	Comprehensive
	Shares	Capital Stock	Warrants		Surplus	Deficit	Income (Loss)		Total
Balance, December 31, 2010	67,607,592	$117,047,490	**$ **	2,062,358	$ 21,102,163	**$(58,948,865) **	$	3,235,159	$ 84,498,305
Shares issued for cash on private
placement (Note 15)	2,125,000	1,700,000		-	-	-		-	1,700,000
Cost of issue - cash	-	(76,817)		-	-	-		-	(76,817)
Issuance of warrants (Note 16)	-	(245,886)		245,886	-	-		-	-
Exercise of warrants (Notes 15 and 16)	250,000	625,000		-	-	-		-	625,000
Fair value of exercised warrants	-	179,335		(179,335)	-	-		-	-
Stock-based compensation (Note 17)	-	-		-	334,882	-		-	334,882
Net loss for the year	-	-		-	-	(4,345,895)		-	(4,345,895)
Other comprehensive loss	-	-		-	-	-		(2,787,368)	(2,787,368)
Balance, December 31, 2011	69,982,592	$119,229,122	**$ **	2,128,909	$ 21,437,045	$(63,294,760)	$	447,791	$ 79,948,107
Shares issued for cash on private
placement (Note 15)	750,000	600,000		-	-	-		-	600,000
Cost of issue - cash	-	(30,000)		-	-	-		-	(30,000)
Issuance of warrants (Note 16)	-	(90,714)		90,714	-	-		-	-
Issuance of warrants (Note 16)	-	-		152,227	-	-		-	152,227
Expiry of warrants (Note 16)	-	-		(1,883,023)	1,883,023	-		-	-
Exercise of options (Notes 15 and 17)	35,000	38,500		-	-	-		-	38,500
Fair value of exercised options	-	19,844		-	(19,844)	-		-	-
Stock-based compensation (Note 17)	-	-		-	601,435	-		-	601,435
Net loss for the year	-	-		-	-	(3,715,988)		-	(3,715,988)
Other comprehensive loss	-	-		-	-	-		(2,104,885)	(2,104,885)
Balance, December 31, 2012	70,767,592	$119,766,752	$	488,827	$ 23,901,659	$(67,010,748)	**$ **	(1,657,094)	$ 75,489,396

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

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LARAMIDE RESOURCES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31,	2012 2011
Cash and cash equivalents (used in) provided by: Operating Activities Net loss for the year Adjustments for: Loss on sale of investments Stock-based compensation Change in value of FVTPL investments Amortization of property and equipment Deferred rent amortized (Note 14) Transaction costs amortized Write-down of mineral properties (Note 11) De-recognition of available for sale investments (Note 9) Deferred tax expense (recovery) Net change in non-cash working capital items: Accounts receivable and prepaid expenses Accounts payable and accrued liabilities Financing Activities Long-term debt, net of cash transaction costs Issue of common shares for cash, net of issue costs Options/warrants exercised Investing Activities Purchase of investments Proceeds on sale of investments Purchase of short-term investments Proceeds on sale of short-term investments Royalty prepayment Acquisition of property and equipment Acquisition of mineral properties and related deferred costs Change in cash and cash equivalents Cash and cash equivalents, beginning of year Exchange difference on cash and cash equivalents held in foreign currencies	$ (3,715,988) $ (4,345,895) 342,998 608,282 295,987 202,631 140,431 1,407,924 17,313 15,813 (141,000) (141,000) 26,526 - 193,341 117,716 244,000 - 421,780 (59,900) (2,174,612) (2,194,429) (705,470) 16,759 481,106 927,915 (2,398,976) (1,249,755) 4,890,137 - 570,000 1,623,183 38,500 625,000 5,498,637 2,248,183 (127,273) (198,660) 1,011,688 2,570,240 (2,800,000) (1,780,000) 3,810,000 970,000 (363,802) - (18,434) (4,885) (5,077,634) (4,826,194) (3,565,455) (3,269,499) (465,794) (2,271,071) 794,524 2,955,536 (72,023) 110,059
Cash and cash equivalents, end of year	$ 256,707 $ 794,524

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

LARAMIDE RESOURCES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31,	2012 2011
Supplementary cash flow information Changes in non cash investing activities: Amortization of property and equipment capitalized to mineral properties (Note 10) Stock-based compensation capitalized to mineralproperties(Note 17)	$ 200,132 $ 369,685 $ 305,448 $ 132,251

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

LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. NATURE OF OPERATIONS

Laramide Resources Ltd. (the “Company” or "Laramide”) is a publicly traded company incorporated in Canada and listed on the Toronto Stock Exchange ("TSX") under the symbol “LAM”. The Company is involved in the exploration and development of mineral properties in Australia and the United States of America ("USA"). The mineral properties of Laramide are all in the exploration stage. Laramide's registered office address is 130 King Street West, Suite 3680, Toronto, Ontario, Canada.

The Company is in the process of determining whether its mineral properties contain reserves that are economically recoverable. The recovery of amounts capitalized for mineral exploration properties on the consolidated balance sheets is dependent upon the existence of economically recoverable reserves, the ability of the Company to arrange appropriate financing to complete the development of the properties and upon future profitable production or proceeds from their disposition.

On March 27, 2013, the Board of Directors approved the consolidated financial statements for the year ended December 31, 2012.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standard Board ("IASB").

Principles of Consolidation

All entities, in which the Company has a controlling interest, specifically when it has the power to direct the financial and operational policies of these companies to obtain benefit from their operations, are fully consolidated.

The consolidated financial statements include the accounts of the Company, its wholly owned U.S. subsidiaries, Cerro Dorado, Inc., Laramide La Sal Inc. and Laramide Resources (USA) Inc.; its whollyowned Mexican subsidiary, Mineral Lara S.A. de C.V.; and its wholly owned Australian subsidiaries, Lagoon Creek Resources Pty Ltd., Westmoreland Resources Pty Ltd. and Tackle Resources Pty Ltd.

Intercompany balances and any unrealized gains and losses or income and expenses arising from intercompany transactions are eliminated in preparing the consolidated financial statements.

Basis of Preparation

The consolidated financial statements are presented in Canadian dollars which is also the functional currency of the parent, Laramide Resources Ltd., located in Canada and Mexican subsidiary. The functional currencies of the Australian and the U.S. subsidiaries are the Australian dollar and US dollar, respectively.

The financial statements are prepared on the historical cost basis except the following assets and liabilities, which are stated at their fair value: financial assets classified as fair value through profit and loss ("FVTPL"), financial instruments held for trading and financial instruments classified as availablefor-sale.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The accounting policies set out below have been applied consistently to all periods presented in the consolidated financial statements.

Foreign Currency Translation

Foreign currency transactions are initially recorded into the functional currency at the transaction date exchange rate. At year end, monetary assets and liabilities denominated in a foreign currency are translated into the functional currency at the balance sheet date's exchange rate and non-monetary assets and liabilities at the historical rate. All foreign currency adjustments are expensed, apart from adjustments on borrowing in foreign currencies, constituting a hedge for the net investment in a foreign entity. These adjustments are allocated directly to equity until the divestiture of the net investment.

Financial statements of the Australian and U.S. subsidiaries for which the functional currency is not the Canadian dollar are translated to Canadian dollar, as this is the presentation currency, as follows: all asset and liability accounts are translated at the balance sheet date's exchange rate and all earnings and expense accounts and cash flow statement items are translated at average exchange rates for the period. The resulting translation gains and losses are recorded as foreign currency translation adjustments in other comprehensive income (loss).

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign currency gains and losses arising from such item are considered to form part of a net investment in the foreign operation and are recognized in other comprehensive income.

Cash and Cash Equivalents

The “cash and cash equivalents” category consists of cash in banks, cash held by brokers and cash on hand.

Short-term Investments

Short-term investments represent temporary excess of liquidity invested in preferred investment accounts and GICs with initial maturities of three months or less; their book values approximate their fair values.

Financial Instruments

The Company classifies its financial assets in the following categories: at fair value through profit or loss ("FVTPL"), loans and receivables and available-for-sale investments ("AFS"). The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition.

Financial assets classified as FVTPL include cash and cash equivalents, short-term investments and investments classified as current investments. These assets are measured at fair value, with any resultant gain or loss recognized in the consolidated statement of operations.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Financial instruments classified as AFS include the non-current investments and are measured at fair value, with any resultant gain or loss being recognized directly under other comprehensive income (loss), except for impairment losses and, in the case of monetary items such as securities denominated in foreign currency, which are recorded in foreign exchange gains and losses. When these investments are derecognized, the cumulative gain or loss previously recognized directly in accumulated other comprehensive income is recognized in profit or loss.

The fair value of financial instruments classified as FVTPL and AFS is their quoted bid price at the balance sheets date, except for AFS assets whose quoted price is not available and are carried at cost.

Financial liabilities classified as other financial liabilities include accounts payable and accrued liabilities and long-term debt and are measured at amortized cost using the effective interest rate method. Effective interest method: The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognized on an effective interest rate basis for debt instruments other than those financial assets at FVTPL.

Transaction costs associated with FVTPL financial assets are expensed as incurred, while transaction costs associated with all other financial assets and liabilities are included in the initial carrying amount of the asset.

Impairment losses for the different financial assets and liabilities are recognized as follows.

FVTPL: An impairment loss on a financial asset or financial liability classified as FVTPL is recognized in net income in the period in which it arises.

Available-for-sale financial assets: When a decline in the fair value of an available-for-sale financial asset has been recognized directly in equity and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized directly in equity is transferred to profit or loss even though the financial asset has not been derecognized. The amount of the cumulative loss that is recognized in profit or loss is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.

Property and Equipment

Property and equipment are carried at historical cost less any accumulated depreciation and impairment losses. Historical cost includes the acquisition cost or production cost as well as the costs directly attributable to bringing the asset to the location and condition necessary for its use in operations. When property and equipment include significant components with different useful lives, they are recorded and amortized separately. Amortization is computed using the straight-line and declining balance methods based on the estimated useful life of the assets. Useful life is reviewed at the end of each reporting period.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company recognizes in the carrying amount of an item of property and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the Company and the cost of the item can be measured reliably. All other costs are recognized in the consolidated statements of operations as an expense as incurred.

Depreciation is calculated based on the cost of property and equipment less their estimated residual value on a straight-line and declining balance methods, over the estimated useful lives of each item of property and equipment, as follows.

Computer equipment 20% Declining balance Furniture and fixtures 20% Declining balance Office equipment and software 10% Declining balance Field equipment Straight line, over five years Motor vehicles Straight line, over five years Leasehold improvements Straight line, over three years

Mineral Properties and Related Deferred Costs

The Company defers pre-exploration, post-exploration and evaluation expenditures until such time as the properties are either put into commercial production, sold, determined not to be economically viable or abandoned. Capitalized expenditures include all the costs incurred in exploration and evaluation of potential mineral reserves and resources, such as exploratory drilling and sample testing and the costs of pre-feasibility studies. Exploration expenditures are related to the initial search for deposits of minerals with economic value. Evaluation expenditures are related to the detailed economic assessments of identified deposits that are economically viable.

Impairment

The Company continually reviews and evaluates the events or changes in the economic environment that indicate a risk of impairment of assets to determine whether the carrying amount of the asset or group of assets under consideration exceeds its or their recoverable amount. Impairment of the assets is evaluated at the cash-generating unit ("CGU") level which is the smallest identifiable group of asset that generates cash inflows, independent of the cash inflows from other assets, as defined by International Accounting Standards ("IAS") 36 "Impairment of assets". Recoverable amount is defined as the higher of an asset’s fair value (less costs to sell) and its value in use. The active market or a binding sale agreement provides the best evidence for the determination of the fair value, but where neither exists, fair value is based on the best information available to reflect the amount the Company could receive for the CGU in an arm's length transaction. Value in use is equal to the present value of future cash flows expected to be derived from the use and sale of the asset.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Provisions

A provision is recognized on the consolidated balance sheet when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Deferred Taxes

Pursuant to the liability method, deferred taxes are recorded for temporary differences existing at balance sheet date between the tax base value of assets and liabilities and their carrying amount on the consolidated balance sheet.

• Deferred tax assets and liabilities are measured at the expected tax rates for the year during which the asset will be realized or the liability settled, based on tax rates (and tax regulations) enacted or substantially enacted at year end. They are reviewed at the end of each year, in line with any changes in applicable tax rates.

• Deferred tax assets are recognized for all deductible temporary differences, carry forward of tax losses and unused tax credits, insofar as it is probable that a taxable profit will be available, or when a current tax liability exists, to make use of those deductible temporary differences, tax loss carry forwards and unused tax credits, except where the deferred tax asset associated with the deductible temporary difference is generated by initial recognition of an asset or liability in a transaction which is not a business combination, and which, at the transaction date, does not impact earnings, tax income or loss.

• Current tax and deferred tax shall be charged or credited directly to equity if the tax relates to items that are credited or charged directly to equity.

• Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Stock-based Compensation

The Company offers a stock option plan. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured using the Black Scholes option pricing model. Compensation expense for those providing employee like services is recognized over the tranche's vesting period by increasing contributed surplus based on the number of awards expected to vest. Any consideration paid on exercise of stock options is credited to capital stock. The contributed surplus resulting from stock based payment is transferred to capital stock when the options are exercised.

For equity settled transactions, the Company measures goods or services received at their fair value, unless that fair value cannot be estimated reliably, in which case the Company measures their value by reference to the fair value of the equity instruments granted.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loss per Share

Basic loss per share amount is calculated by dividing net loss for the year attributable to common shareholders by the weighted average number of common shares outstanding during the year.

Diluted income (loss) per share amounts are calculated by dividing the net income (loss) attributable to common share holders of the parent by the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential ordinary shares into common shares.

Revenue Recognition

Investment income is recognized on a time-proportion basis using the effective interest method.

Environment Rehabilitation Provision

The Company's activities could give rise to obligations for environmental rehabilitation which can include facilities dismantling, removal, treatment of waste materials, monitoring, compliance with environmental regulations, security and other site-related costs required to perform the rehabilitation work. Any current expenditures regarding the environmental rehabilitation are charged to the cost of the project. Provisions for rehabilitation are periodically adjusted by the Company, when applicable; such adjustments are recorded as a change in the value of the related mineral property.

Segment Reporting

The geographical segment is a distinguishable component of the Company based on a particular economic environment, which is subject to risks and rewards that are different from those of other segments.

Accounting Standards Issued but not yet Effective

At the date of authorization of these financial statements, the IASB has issued the following new and revised standard and interpretation which is not yet effective.

IFRS 13 - Fair Value Measurement defines fair value, requires disclosure about fair value measurements and provides a framework for measuring fair value when it is required or permitted within the IFRS standards. IFRS 13 is effective for annual periods beginning on and after January 1, 2013.

The IASB also amended the following standard which is effective as per the date identified.

IAS 1 - Presentation of Financial Statements was amended and requires companies to group items presented within Other Comprehensive Income based on whether they may be subsequently reclassified to profit or loss. This amendment is effective for annual periods beginning on or after July 1, 2012.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

IFRS 9 - Financial Instruments addresses the classification and measurement of financial assets. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value. The new standard also requires a single impairment method to be used. The IASB has extended the effective date to January 1, 2015, with earlier adoption permitted.

IFRS 10 - Consolidated Financial Statements provides a single model to be applied in the control analysis for all investees stating that an investor controls an investee when it is exposed, or has rights, to variable returns from its involvement wth the investee and has the ability to affect those returns through its power over the investee. IFRS 10 carries forward the consolidation procedures substantially unmodified from IAS 27 and is effective for annual periods beginning on or after January 1, 2013.

The Company has not early adopted these standards, amendments and interpretations, however it is currently assessing the impact of their application in the consolidated financial statements of the Company.

3. ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of consolidated financial statements in compliance with IFRS requires the Company’s management to make certain estimates and assumptions that they consider reasonable and realistic. Despite regular reviews of these estimates and assumptions, based in particular on past achievements or anticipations, facts and circumstances may lead to changes in these estimates and assumptions which could impact the reported amount of the Company’s assets, liabilities, equity or earnings. These estimates, assumptions and judgements notably relate to the following items:

Measurement of impairment in Mineral properties and related deferred costs and Investments Management uses significant judgement in determining whether there is any indication that mineral properties and related deferred costs and investments may be impaired. Management also uses significant judgment in evaluating whether there is objective evidence that the investments classified as available for sale are impaired.

Stock-based payment and warrants - The Company utilizes the Black-Scholes option pricing model to determine the fair values of the stock-based payments and warrants. The Company uses significant judgement in the evaluation of the input variables in the Black-Scholes calculation which includes: risk free interest rate, expected stock price volatility, expected life, expected dividend yield, forfeiture rate and a quoted market price of the Company’s shares on the Toronto Stock Exchange.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

3. ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)

Deferred income taxes - In assessing the probability of realizing deferred income taxes, the Company makes estimates related to expectations of future taxable income, applicable tax planning opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, the Company gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. The Company considers relevant tax planning opportunities that are within the Company’s control, are feasible and within management’s ability to implement. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. Also, future changes in tax laws could limit the Company from realizing the tax benefits from the deferred taxes. The Company reassesses unrecognized income tax at each reporting period.

Functional currency - The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which each operates, Canadian Dollar, Australian Dollar and US Dollar. Determination of functional currency may require certain judgements to determine the primary economic environment. The Company reconsiders the functional currency used when there is a change in events and conditions which determined the primary economic environment.

Going concern - The current working capital position is not sufficient to sustain minimum spending requirements over the next twelve months. The Company applied judgement with respect to funds to be available over the next twelve months from the current working capital position, funds to be raised as part of the pending Australian Securities Commission listing, and in particular the minimum corporate and tenement spending requirements in assessing its ability to finance the next twelve months and has determined these to be sufficient.

4. BUSINESS SEGMENT DATA

The Company operates in the mining, exploration and development business and has operations in Australia, Canada and the USA. The Company’s Board of Directors evaluates the performance of the locations and allocates resources based on certain measures.

The information based on the geographical location of the assets is as follows:

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. BUSINESS SEGMENT DATA (Continued)

	December 31, 2012 Canada USA Australia Consolidated
	Current assets $ 6,993,778 $ 68,987 $ 1,307,878 $ 8,370,643 Prepaid royalty - 363,802 - 363,802 Property and equipment 84,420 - 48,038 132,458 Mineral properties and related deferred costs - 11,528,799 66,149,398 77,678,197
	Total assets $ 7,078,198 $11,961,588 $ 67,505,314 $ 86,545,100
	Current liabilities $ 1,441,170 $ - $ 1,612,105 $ 3,053,275 Long-term debt 4,764,437 - - 4,764,437 Deferred rent recovery 70,512 - - 70,512 Deferred tax liability 3,174,381 - (6,901) 3,167,480
	Total liabilities $ 9,450,500 $ - $ 1,605,204 $ 11,055,704
	Year Ended December 31, 2012 Losses $ (98,497) $ - $ (369,957) $ (468,454) Expenses $ (2,611,931) $ (2,052) $ - $ (2,613,983) Write-down of mineral properties $ - $ - $ (193,341) $ (193,341) Other comprehensive loss $ (1,369,059) $ (502,951) $ (232,875) $ (2,104,885)
	December 31, 2011 Canada USA Australia Consolidated Current assets $10,509,041 $ - $ 1,407,092 $ 11,916,133 Property and equipment 90,763 - 273,724 364,487 Mineral properties and related deferred costs - 10,891,112 62,033,138 72,924,250 Total assets $10,599,804 $10,891,112 $63,713,954 $ 85,204,870 Current liabilities $ 1,101,375 $ - $ 1,198,176 $ 2,299,551 Deferred rent recovery 211,512 - - 211,512 Deferred tax liability 2,752,658 - (6,958) 2,745,700 Total liabilities $ 4,065,545 $ - $ 1,191,218 $ 5,256,763 Year Ended December 31, 2011 Losses $ (1,830,038) $ - $ (161,164) $ (1,991,202) Expenses $ (2,296,877) $ - $ - $ (2,296,877) Write-down of mineral properties $ - $ - $ (117,716) $ (117,716) Other comprehensive income (loss) $ (3,352,964) $ 280,797 $ 284,799 $ (2,787,368)

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

5. DEFERRED TAXES

The following table reconciles the expected income tax recovery at the blended statutory income tax rates of approximately 26.5% (2011 - 28.25%) to the amounts recognized in the statements of operations:

December 31,	December 31,	December 31,	December 31,
	2012		2011
Net loss reflected in the consolidated statements of operations	(3,275,778)		(4,405,795)
Expected income tax recovery	(868,080)		(1,244,600)
Permanent differences	99,760		(9,300)
Amounts taxed in foreign jurisdictions, tax rate changes and other
adjustments	(402,430)		266,400
Impact of Research & Development tax concessions	558,210		-
Increase in unrecognizedportion of deferred taxes	1,052,750		927,600
Income tax provision reflected in the consolidated statement of	440,210		(59,900)
operations
Current tax expense	18,430		-
Deferred tax expense (recovery)	421,780		(59,900)
$	440,210	$	(59,900)

The Company's deferred income tax assets and liabilities as at December 31, 2012 and 2011 are as follows:

	December 31,	December 31,	December 31,	December 31,
Deferred Tax Assets		2012		2011
Non-capital losses-Canada	$	3,929,460	$	3,088,000
Non-capital losses-Australia		12,710,110		12,001,600
Capital losses		103,480		34,200
Undeducted share issue costs		71,580		145,700
Short term investments		2,852,860		2,407,500
Total deferred tax assets		19,667,490		17,677,000
Less: allocated against deferred income tax liabilities		(13,277,600)		(12,760,000)
Less: unrecognized portion of deferred taxes		(6,389,890)		(4,917,000)
	$	-	$	-

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. DEFERRED TAXES (Continued)

Deferred Tax Liabilities
Canadian and U.S. mineral properties	$	(581,920)	$	(758,300)
Australian mineral properties		(15,848,690)		(14,654,200)
Capital assets		(14,470)		(93,200)
Less: reduction due to allocation of applicable deferred income tax
assets		13,277,600		12,760,000
Total deferred tax liabilities	$	(3,167,480)	$	(2,745,700)
Net deferred income tax liabilities	$	(3,167,480)	$	(2,745,700)

The Company's non-capital tax losses expire as follows:

2014	$	647,350
2025		1,467,550
2026		1,160,710
2028		488,530
2029		5,138,280
2030		991,020
2031		2,456,790
2032		2,477,920
	$	14,828,150

In addition, the Company's Australian subsidiaries have non-capital losses of approximately $42,370,000 that do not expire.

6. LOSS PER SHARE

LOSS PER SHARE
December 31	2012	2011
Weighted average shares outstanding-basic and diluted	70,754,341	67,810,674

Note: The options and warrants are not dilutive.

7. SHORT-TERM INVESTMENTS

Short-term investments are invested in Canadian Chartered Banks in preferred investment accounts and GIC's with a maturity less than three months and are recorded at fair market value.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

8. ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

	December 31,	December 31,	December 31,	December 31,
		2012		2011
Recoverable taxes	$	174,483	$	61,745
Prepaid expenses		922,536		277,034
Other receivables		266,046		318,821
	$	1,363,065	$	657,600

9. INVESTMENTS

The Company's investments are carried at fair value and are comprised of the following:

	Number of	December	Number of		December
	Shares	31, 2012	Shares		31, 2011
Pan American Silver Corp. - shares	10,000	$ 185,900	25,000	$	554,500
Pan American Silver Corp. - warrants	110,000	22,218	110,000		123,699
Total FVTPL investments		208,118			678,199
Treasury Metals Inc.	5,011,600	4,761,021	5,187,500		5,810,000
Corona Gold Corporation	-	-	150,000		85,500
Nation River Resources Ltd. (no quoted value)	149,885	6,681	149,885		6,681
Alligator Energy Ltd.	4,925,000	483,736	7,000,000		766,163
Uranium Equities Limited	6,983,218	231,038	8,894,807		407,966
Khan Resources Inc.	7,300,000	876,000	7,100,000		1,420,000
Anthem Resources inc. (i)	400,000	52,000	-		-
Virginia Energy Resources Inc. (Formerly known
as Santoy Resources Ltd.) (i)	120,000	58,800	1,350,000		229,500
Total available-for-sale investments		6,469,276			8,725,810
Total investments		$6,677,394		$	9,404,009

• i) In September, 2012, Virginia Energy Resources Inc. ("Virginia") announced the division of its portfolio of exploration and development properties between Virginia and Anthem Resources Inc. ("Anthem"). As per the division arrangement ("arrangement"), the shareholders were entitled to receive one third of a post-arrangement common share of Anthem and one tenth of a post-arrangement common share of Virginia. As a result, the Laramide portfolio of 1,200,000 shares was converted to 400,000 shares of Anthem and 120,000 shares of Virginia. In connection with this transaction, Laramide derecognized the Virginia shares at October 2, 2012, resulting in a reclassification of $244,000 out of consolidated other comprehensive loss into the consolidated statement of operations.

The realized loss on AFS investments is $319,430 (2011 - $187,120) and the realized loss on FVTPL investments is $22,853 (2011 - $421,162) .

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

10. PROPERTY AND EQUIPMENT

	Computer	Computer
	equipment,			Office
		furniture	equipment
		and		and		Field		Motor		Leasehold
Cost		fixtures	software		equipment			vehicles	improvements			Total
January 1, 2012	$	388,139	$	59,049	$2,189,190		$	332,498	$	122,527	$	3,091,403
Additions		8,850		-		7,466		-		-		16,316
Translation		245		(410)		(17,836)		(2,712)		(457)		(21,170)
adjustment
December 31, 2012	$	397,234	$	58,639	$2,178,820		$	329,786	$	122,070	$	3,086,549
Accumulated amortization
January 1, 2012	$	301,609	$	47,080	$1,941,101		$	320,001	$	117,125	$	2,726,916
Additions		14,373		3,684		189,336		6,452		3,600		217,445
Translation		(1,744)		373		13,087		(1,530)		(456)		9,730
adjustment
December 31, 2012	$	314,238	$	51,137	$2,143,524		$	324,923	$	120,269	$	2,954,091
Net book value	$	82,996	$	7,502	$	35,296	$	4,863	$	1,801	$	132,458
December 31, 2012

During the year, $200,132 (December 31, 2011 - $369,685) of the $217,445 (December 31, 2011 - $385,498) amortization charged against property and equipment was capitalized to mineral properties and related deferred costs.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

10. PROPERTY AND EQUIPMENT (Continued)

	Computer	Computer
	equipment,			Office
		furniture	equipment
		and		and		Field		Motor		Leasehold
Cost		fixtures	software		equipment		vehicles		improvements			Total
January 1, 2011	$	377,875	$	57,873	$2,137,947		$	324,715	$	121,214	$	3,019,624
Additions		4,885		-		-		-		-		4,885
Translation
adjustment		5,379		1,176		51,243		7,783		1,313		66,894
December 31, 2011	$	388,139	$	59,049	$2,189,190		$	332,498	$	122,527	$	3,091,403
Accumulated amortization
January 1, 2011	$	281,733	$	39,498	$1,495,201		$	262,015	$	112,213	$	2,190,660
Additions		11,630		4,642		325,393		40,233		3,600		385,498
Translation		8,246		2,940		120,507		17,753		1,312		150,758
adjustment
December 31, 2011	$	301,609	$	47,080	$1,941,101		$	320,001	$	117,125	$	2,726,916
Net book value	$	86,530	$	11,969	$	248,089	$	12,497	$	5,402	$	364,487
December 31, 2011

11. MINERAL PROPERTIES AND RELATED DEFERRED COSTS

The accumulated costs with respect to the Company's interest in mineral properties owned, leased or under option, consisted of the following:

	Opening				Ending
	Balance				Balance
	January 1,	Net	Translation		December
	2012	Additions	Adjustment		31, 2012
Westmoreland Project, Queensland, Australia	$ 53,095,937	$ 4,317,486	$	(320,273)	$ 57,093,150
Joint Ventures and other properties, Northern
Territory, Australia	8,937,200	227,491		(108,443)	9,056,248
Grants District, New Mexico and Lisbon
Valley, Utah, USA	6,744,488	1,140,637		(148,665)	7,736,460
Uranium Resources Inc. USA-Mineral Royalty	4,146,625	-		(354,286)	3,792,339
	$ 72,924,250	$ 5,685,614	$	(931,667)	$ 77,678,197

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

11.	MINERAL PROPERTIES AND RELATED DEFERRED COSTS (Continued) Opening Balance January 1, 2011 Net Additions Translation Adjustment Ending Balance December 31, 2011
	Westmoreland Project, Queensland, Australia $ 48,002,734 $4,005,094 $1,088,109 $ 53,095,937 Joint Ventures and other properties, Northern Territory, Australia 8,429,113 311,767 196,320 8,937,200 Grants District, New Mexico and Lisbon Valley, Utah, USA 5,686,280 881,424 176,784 6,744,488 Uranium Resources Inc. USA-Mineral Royalty 4,055,294 - 91,331 4,146,625
	$ 66,173,421 $5,198,285 $1,552,544 $ 72,924,250

(1) Westmoreland Project, Queensland, Australia

In 2005, the Company acquired the Westmoreland Project by way of a purchase of all the shares of Tackle Creek Resources Pty Ltd., a private Australian company, in return for 3 million shares of Laramide. A further 1.5 million shares of Laramide may be issued in the future to the previous shareholders of Tackle Creek Resources Pty Ltd., based on successful delineation of copper and gold resources on the property.

During 2006, the Company entered into a data license agreement (“DLA”) with Rio Tinto Exploration Pty Ltd, a wholly owned subsidiary of Rio Tinto Ltd (“Rio Tinto”), to license Rio Tinto’s extensive historical database for the Westmoreland uranium project located in Queensland, Australia. The database is a compilation of much of the previous exploration work which was completed by various parties on Westmoreland from its initial discovery in 1956 until the year 1999. The database, which is available in both digital and hard copy formats, includes approximately 2,100 drill holes as well as geophysical and metallurgical data.

The Company paid Rio Tinto a license fee consisting of AUD $200,000 (CAD $170,860), 333,608 common shares of Laramide issued on March 16, 2006 valued at $1,751,442, and a further 197,241 common shares on April 6, 2006, valued at $1,309,680. On successfully attaining a mining permit for Westmoreland, the Company must make a further AUD $500,000 (CAD $469,750) cash payment (inflation indexed) to Rio Tinto.

In addition, the Company has granted to Rio Tinto a 1% Net Smelter Royalty on any production from Westmoreland, with cumulative payments capped at AUD $10 million (CAD $9,395,000; but also inflation indexed). In December 2008, Rio Tinto announced that they had sold this royalty to International Royalty Corporation ("IRC"), and in February 2010, IRC was acquired by Royal Gold Inc.

In October 2006, the Company completed an independent National Instrument 43-101 technical report on the Westmoreland project.

In April 2007, the Company completed a scoping study for Westmoreland. Other activities in the year included the preparation for a feasibility study program, construction of an exploration camp at the site, completion of drill clearance procedures with the aboriginal traditional owners, and commencement of a drill program in December 2007.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

11. MINERAL PROPERTIES AND RELATED DEFERRED COSTS (Continued)

Activities in 2012 and previous years were focused on completion of the planned drill program which commenced in December 2007, completion of an updated resource estimate in April 2009, ongoing metallurgical testing, and work on environmental survey.

Permitting is dealt with at the individual State government level. In Queensland, the party in power up to March 24, 2012 was the Australian Labor Party ("ALP") which had traditionally been opposed to new uranium mine development. On March 24, 2012, the Queensland State election was held and following five consecutive terms in office, the ALP was defeated as the Liberal National Party ("LNP") and their leader won 77 of 89 seats in the state parliament.

In March 2013, the six-person independent committee issued their report which found Queensland’s existing system for regulating mining and radiation safety appropriate for uranium mining and concluded a new legislative framework was not necessary. The committee also concluded that a comprehensive regulatory system for the uranium industry is also in place at a federal government level. Assessments of possible uranium mines will be a joint decision between the Commonwealth and the Queensland governments, although the committee did recommend a coordinated approvals process. The committee presented the report to Cabinet, but did not give a time frame on when the government would respond to the 40 recommendations.

(2) Joint Ventures and other properties, Northern Territory, Australia

Laramide has entered into four separate joint venture agreements in Australia:

Nupower Lagoon Creek Joint Venture

On May 18, 2005 Laramide entered into a letter of intent with Nupower Resources Ltd. ("Nupower"), (formerly Arafura Resources NL), pursuant to which the Company can farm in to Nupower’s granted exploration license EL23573, Lagoon Creek, in the Northern Territory, approximately 380 kilometres NNW of Mt Isa.

Laramide can earn 50% equity in the tenement with the expenditure of AUD $3 million (CAD $2.8 million) over a four year period on exploration and development. Laramide can also earn an additional 10% equity interest in the joint venture with the expenditure of a further AUD $2.5 million (CAD $2.3 million) before the end of 5 years. The Company’s minimum expenditure commitment before withdrawal is AUD $1 million (CAD $0.9 million). As part of the agreement, Laramide made two payments in 2005 of AUD $50,000 (CAD $43,350) each. The AUD $3 million expenditure has been incurred and the Company is working with Nupower to formalize the transfer of the 50% equity in the tenement.

Activities in 2012 and previous years, starting in 2008, were focused on completion of the planned drill program.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

11. MINERAL PROPERTIES AND RELATED DEFERRED COSTS (Continued)

Gulf Mines Joint Venture

Immediately north of the Lagoon Creek tenement are the tenements held by private Australian explorer Gulf Mines Ltd. (formerly Hartz Range Mines). Laramide has signed an option to earn 90% of any resource pegged under mining tenure consequent to exploration over a defined area on the three Exploration Permits (EPM’s) that Gulf Mines owns in the Northern Territory. The defined area covers approximately 65,000 Hectares and Laramide’s interest encompasses all minerals with the exception of diamonds. To earn 90% Laramide has to complete a bankable feasibility study on a prospect within the area and following this obtain a mine permit. The first year expenditure commitment with Gulf Mines is AUD $300,000 (CAD $275,610) (spent). The area is also adjacent to Westmoreland and has numerous small uranium – gold occurrences despite the lack of significant previous systematic exploration. As of December 31, 2012, the Company has spent $3,360,215 (December 31, 2011 - $3,294,713) on this joint venture project.

Benmarra Properties, Northern Territory, Australia

The Benmarra properties consist of two 100% Laramide owned tenements in the Northern Territory. In June of 2010, the Company entered into a joint venture agreement with Predictive Discovery Limited ("PDI"), a listed exploration company on the Australian Security Exchange ("ASX"), under the symbol "PDI" effective December 2010, under which PDI will spend or commit AUD$300,000 on the tenements by March 1, 2011 as an option commitment, and can earn a 51% interest in the properties by spending AUD$2 million over a period of four years from the date of the agreement. A tenement with a cumulative expenditure of $117,716 was dropped and surrendered in February 2011. The expenditure has been written down from the properties accounts and recorded in the consolidated statement of operations of the year 2011.

In January 2012, following disappointing drilling results, PDI withdrew from the Joint Venture. The licence expired in March 2012 and no renewal was sought; consequently, $193,341 expenditure relating to this licence was written off in the year ended December 31, 2012.

Murphy Joint Venture, Northern Territory, Australia

In May 2011, the Company announced the signing of a Binding Farm-In and Joint Venture Term Sheet with Rio Tinto Exploration Pty Limited (RTX) pursuant to which the Company can joint venture two strategically located uranium tenements in the Northern Territory (“Project”) comprising tenement applications, ELA 9319 (579 km2) and ELA 9414 (387 km2), that are situated geologically within Murphy Uranium Province and are along strike from Laramide’s flagship Westmoreland Project in northwest Queensland.

Under the terms of the agreement, Laramide can earn 51% in the Project with the expenditure of AUD$10 million over a 4-year period on exploration and development. The first AUD$1 million of this earn-in is a firm commitment by Laramide, and it will be dedicated to a large-scale helicopter supported airborne survey.

(3) Grants District, New Mexico and Lisbon Valley, Utah, USA

In 2005, the Company entered into an agreement with Homestake Mining Company of California and La Jara Mesa Mining Company (collectively “Homestake”), both being wholly owned subsidiaries of Barrick Gold Corporation, to acquire Homestake’s uranium portfolio in the western United States.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

11. MINERAL PROPERTIES AND RELATED DEFERRED COSTS (Continued)

Terms of the transaction require Laramide to pay Homestake a total of US $3,750,000 (CAD $3,941,250) in cash. US $1,500,000 (CAD $1,576,500) has been paid which includes the US $500,000 paid in September 2010 upon exercise of the option to purchase the La Sal property. The remaining balance of US $2,250,000 (CAD $2,364,750) is represented by milestone payments tied to the permitting of the projects and commencement of commercial production. In addition Laramide committed to expend and has paid US $1,500,000 (CAD $1,827,000) by November 2007 on the properties and to pay a royalty of US $0.25 (CAD $0.30) per pound of uranium ("U3O8") on any production in excess of eight million pounds from the La Jara Mesa property.

In 2006, the Company completed an independent National Instrument 43-101 technical report on the La Jara Mesa property.

In April 2012 the Company made a proposal to each of the current royalty holders (“Royalty holders”), who are the owners of a proportionate interest in the proceeds on the production from the La Sal property ("units"), offering to either sell back the royalty stream or receive advance royalty payments. In the event the Royalty holders elected to sell back the royalty stream, the Royalty holders may choose to sell the royalty for either US$15 per unit payable on June 24, 2012 or US$30 per unit payable 121 days after issuance and receipt of all necessary permits required to bring the mine into production. In the event the Royalty holders elected to receive advance royalty payments, the Royalty holders may choose to receive an advanced royalty of US$8 per unit payable on June 24, 2012, or $12 per unit payable 121 days after issuance and receipt of all necessary permits to bring the mine into production, or US$15 per unit on the date 8,500 tons of saleable ore is produced over any 30 day period or when 50,000 tons of saleable ore has been produced from the La Sal property.

From elections made by and received from the Royalty holders, the Company paid US$365,667 to Royalty holders electing the US$8 per unit advanced royalty payment option, and recorded the payment as a prepaid royalty on the consolidated balance sheet. In addition, the Company was obligated to pay US$154,500 to Royalty holders who elected for the US$15 per unit purchase and sale option and recorded the payment as an addition to mineral properties and related deferred costs. Based on the alternate elections made by the Royalty holders, the Company is contigently liable for potential payments of US$1,566,420 and US$685,625, based on production thresholds and permitting.

(4) Uranium Resources Inc. USA-Mineral Royalty (UNC)

On December 20, 2006, the Company acquired a portfolio of uranium royalties in the Grant’s Mineral District of New Mexico, USA from United Nuclear Corporation ("United Nuclear"), a wholly owned indirect subsidiary of General Electric Company (GE) since 1997. The royalty portfolio covers three separate parcels of mineral leases (Section 8, Section 17, and Mancos) in the Churchrock area of McKinley County which is located 20 miles northeast of Gallup, New Mexico. The properties are presently owned by a subsidiary of Uranium Resources Inc (“URI”), a US publicly traded uranium producer, who acquired them from United Nuclear in a series of transactions between 1986 and 1991.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

11. MINERAL PROPERTIES AND RELATED DEFERRED COSTS (Continued)

The royalty interests being acquired are sliding scale gross revenue royalties with minimum levels of 5% and maximum levels of 25% depending on the spot price of uranium. Stated reserves on the property are not compliant with Canadian National Instrument 43-101 reporting standards but historic resources being utilized as the basis for the feasibility study are 18.6 million pounds on all of the parcels with 6.5 million of that on Section 8 which is anticipated to be developed using the insitu leach (ISL) production method.

Terms of the acquisition call for Laramide to pay United Nuclear US $9.25 million (CAD $11.3 million) in cash, structured as follows :

• US $3.5 million (CAD $4,071,900) at closing (paid);

• US $3 million (CAD $3,153,000) on issuance of the final regulatory permit required to allow production to commence on Section 8; (permits not yet issued);

• US $1.25 million (CAD $1,313,750) on issuance of the final regulatory permit required to allow production to commence on Section 17; and

• US $1.5 million (CAD $1,576,500) on issuance of the final regulatory permit required to allow production to commence on Mancos (also known as Sections 7,12, and 13)

On August 9, 2012, the Company completed a transaction with Anglo Pacific Group PLC (“Anglo Pacific”) in connection with the Company’s variable rate gross revenue royalty on the development stage ISL uranium properties owned by URI. In return for a loan facility of CAD$5 million due in December 2015, Laramide has granted Anglo Pacific a basic option exercisable until December 31, 2015 to acquire a 5% gross revenue royalty for an exercise price of US$15 million and an increased rate option at an exercise price, on a pro rata basis, equivalent to US$3 million for each one percent up to an additional five percent (5%) . In connection with the transaction, Laramide has also issued 650,000 warrants, each warrant entitling Anglo Pacific to acquire one Laramide common share at an exercise price of $1.35 per share on or before December 31, 2015 (Note 16(ii)). Also, the Company agreed to deposit, into an escrow account, under a escrow agreement acceptable to the lender, 25% of all proceeds from assets sales, and equity or debt financings completed after the date of the agreement and on or prior the option exercise date. More details about the loan facility with Anglo Pacific are included in the Note 13.

12. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31,	December 31,	December 31,	December 31,
		2012		2011
Accrued liabilities	$	2,406,577	$	1,652,856
Trade accounts payable		570,184		604,265
Payroll liabilities		76,514		42,430
	$	3,053,275	$	2,299,551

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

13. LONG - TERM DEBT

On August 9, 2012, the Company signed an agreement with Anglo Pacific Group PLC by which the Company received a loan facility of CAD$5 million, due on December 31, 2015 and bearing interest at a rate of 7% (8.805% effective interest rate) per annum payable quarterly in arrears. The facility is secured by a pledge of the shares of Laramide Resources (USA) Inc. ("Laramide USA"), a wholly owned subsidiary of the Company, a mortgage on all right, title and interest in the royalty interest in URI owned directly by Laramide USA, and an assignment and postponement of inter-corporate obligations from Laramide USA to Laramide Resources Ltd. Upon 3 months notice to the lender, the Company may prepay the loan, in whole or in part without payment of any premium or penalty. More information on the agreement is included in the Note 11(4).

agreement is included in the Note 11(4).
	December 31,		December 31,
		2012		2011
Loan facility	$	5,000,000	$	-
Unamortized transaction costs		(235,563)		-
	$	4,764,437	$	-

14. DEFERRED RENT RECOVERY

During previous fiscal years, the Company subleased office space for its Canadian head offices in a shared space agreement from Aquiline Resources Inc. (which was taken over by Pan American Silver Corp. ("PAA") in December 2009). The Company has assumed the premises and primary lease in exchange for $400,000 cash consideration and furniture and equipment ascribed a fair value of $93,515 received from PAA. The total consideration received is amortized as a reduction of the administrative and office expenses over the underlying lease term which expires in June 2013. In the year ended December 31, 2012, $141,000 (2011 - $141,000) has been amortized in the statement of operations.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

15. CAPITAL STOCK

• a) AUTHORIZED

Unlimited common shares

2,231,622 preferred shares

• b) ISSUED

CAPITAL STOCK a) AUTHORIZED Unlimited common shares 2,231,622 preferred shares b) ISSUED
	Number of
COMMON SHARES	Shares	Stated Value
Balance, December 31, 2011	67,607,592	$ 117,047,490
Shares issued for cash on private placement	2,125,000	1,700,000
Cost of issue - cash	-	(76,817)
Issuance of warrants	-	(245,886)
Exercise of warrants	250,000	625,000
Fair value of exercised warrants	-	179,335
Balance, December 31, 2011	69,982,592	119,229,122
Shares issued for cash on private placement	750,000	600,000
Cost of issue - cash	-	(30,000)
Issuance of warrants	-	(90,714)
Exercise of options	35,000	38,500
Fair value of exercised options	-	19,844
Balance, December 31, 2012	70,767,592	$ 119,766,752

On December 30, 2011, the Company closed the first tranche of a non-brokered private placement (the "Offering") of 2,125,000 units of the Company (the "Units") at a price of $0.80 per unit for aggregate gross proceeds of $1,700,000. Each Unit consisted of one Common Share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each full warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional Common Share upon payment of the exercise price of $1.00 on or before December 30, 2013. The Company paid finder's fees of 6% cash commission totaling $59,040 to certain parties with respect to services provided in connection with the Offering. On January 6, 2012, the Company completed the second tranche of 750,000 units at a price of $0.80 per unit, for aggregate gross proceeds of $600,000 and paid finder's fees of $30,000.

In connection of this private offering, the Company issued, in the first tranche, 1,062,500 warrants exercisable at a price of $1.00 per share until December 30, 2013. The warrants were assigned a fair value of $245,886 using the Black Scholes pricing model with the following assumptions: Share price $0.72, dividend yield 0%, expected volatility, based on historical volatility, 75.99%, a risk free interest rate of 1.27% and an expected life of 2 years. In the second tranche, the value assigned to the 375,000 warrants issued was $90,714 using the Black Scholes pricing model with the following assumptions: Share price $0.74, dividend yield 0%, expected volatility 75.58%, a risk free interest rate of 1.27% for future rate and an expected life of 2 years. The warrants were measured based on the fair value of the equity instruments granted as the fair value of the services was not reliably measured.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

16. WARRANTS

The following table reflects the continuity of warrants for the year ended December 31, 2012 and December 31, 2011, respectively.

			January 1,			December
	Exercise		2012			31, 2012		Warrant
Expiry Date		Price	Balance	Issued	Expired	Balance		Value
March 5, 2012	$	2.50	2,625,000	-	(2,625,000)	-	$	-
December 30, 2013 (i)	$	1.00	1,062,500	-	-	1,062,500		245,886
January 6, 2014 (i)	$	1.00	-	375,000	-	375,000		90,714
December 31,2015(ii)	$	1.35	-	650,000	-	650,000		152,227
			3,687,500	1,025,000	(2,625,000)	2,087,500	$	488,827

• (i) See Note 15(b)

(ii) In connection with an agreement signed with Anglo Pacific Group PLC (“Anglo Pacific”), disclosed in the notes 11(4) and 13, the Company has issued 650,000 warrants, entitling Anglo Pacific to acquire one Laramide common share per warrant at an exercise price of $1.35 per share on or before December 31, 2015. The fair value of $152,227 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: share price $0.78, dividend yield 0%, expected volatility based on historical volatility 73.91%, a risk free interest rate of 1.14% and an expected maturity of 2.5 years.

			January 1,			December
	Exercise		2011			31, 2011	Warrant
Expiry Date		Price	Balance	Issued	Exercised	Balance	Value
March 5, 2012	$	2.50	2,875,000	-	(250,000)	2,625,000	$ 1,883,023
December 30, 2013	$	1.00	-	1,062,500	-	1,062,500	245,886
			2,875,000	1,062,500	(250,000)	3,687,500	$2,128,909

17. STOCK OPTIONS

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, and 5% with respect to any one optionee, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period and the board of directors may specify a vesting period on a grant by grant basis.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

17. STOCK OPTIONS (Continued)

A summary of the status of the Company's stock option plan is as follows:

			Weighted	Weighted	Weighted	Weighted
	Number of	Number of	Average		Average
	Stock Options	Stock Options	Exercise		Exercise
	2012	2011	Price-2012		Price-2011
Balance, beginning of the year	4,155,000	4,030,000	**$ **	1.46	$	1.45
Options granted	2,225,000	-	**$ **	1.20	$	-
Options granted	-	125,000	$	-	$	1.90
Options exercised	(35,000)	-	**$ **	1.10	$	-
Options expired	(2,010,000)	-	**$ **	1.80	$	-
Options cancelled	(175,000)	-	**$ **	1.10	$	-
Options cancelled	(130,000)	-	**$ **	1.20	$	-
Balance, December 31	4,030,000	4,155,000	**$ **	1.18	$	1.46

The weighted average market value of the options exercised in 2012 was $1.32.

As at December 31, 2012, the issued and outstanding options to acquire common shares of the Company are as follows:

Number of
Options	Exercise Price	Expiry Date
1,810,000	$ 1.10	May 19, 2013
125,000	$ 1.90	January 06, 2013
2,095,000	$ 1.20	September 15, 2014
4,030,000	$ 1.18

There are 2,982,500 exercisable options as of December 31, 2012 (December 31, 2011 - 4,092,500).

The Company's stock option plan was ratified at the last shareholders' meeting held in 2011.

On February 15, 2012 the Company granted 2,225,000 options. The fair value assigned was estimated using the Black Scholes option pricing model with the following assumptions: share price $0.91, dividend yield 0%, expected volatility based on historical volatility 75.22%, a risk free interest rate of 1.28%, and an expected maturity of 2 years. These options vested at a rate of 50% every six months after the date of grant. As a result, the fair value of the options estimated at $671,966 will be recognized over the periods the underlying options vest.

During the year, $305,448 (2011 - $132,251) of stock based compensation was capitalized to mineral properties and $295,987 (2011 - $202,631) was expensed to operations. The offsetting charge pertaining to the recognition of the fair value of options vesting during the year of $601,435 (2011 - $334,882) was allocated to contributed surplus.

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LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

18. RELATED PARTY TRANSACTIONS

During the year, $46,541 (2011 - $57,579) was charged by a firm, in which an officer of the Company is a partner, for legal services, of which $11,825 is included in accounts payable and accrued liabilities as of December 31, 2012 (December 31, 2011 - $44,239). In the year 2012, the Company granted to this officer 80,000 stock options with a market value of $25,600 (2011 - Nil).

During the year, the Company charged $509,499 to Treasury Metals Inc., a company having a director and an officer in common with Laramide (2011 - $347,279) for office space rent, administrative, financial and investor relations services and other expenditures paid by the Company on behalf of Treasury Metals Inc. At December 31, 2012, there is $63,196 accounts receivable (December 31, 2011 - net payable of $27,660) from / to Treasury Metals Inc.

19. KEY MANAGEMENT COMPENSATION

Key management includes Chief Executive Officer, Chief Financial Officer, Vice-president of Exploration and directors of the Company.

The compensation paid or payable to key management is shown below:

For the year ended December 31,	2012	2011
Salaries and other payments (i)	$ 1,084,983	$ 1,167,859
Director fees	90,000	90,000
Stock-based compensation, at fair market value	380,520	-
	$ 1,555,503	$ 1,257,859

(i) Included in the year ended December 31, 2012 is an accrual for $150,000 (2011 - $150,000) related to unpaid bonuses.

20. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies not otherwise disclosed in these statements and notes are as follows:

• a) COMMITMENTS

Exploration Tenement Expenditure Requirements

In order to maintain current rights to tenure of exploration tenements, the Company will be required to outlay amounts in respect of tenement rent to the relevant governing authorities and to meet certain annual exploration expenditure commitments. It is likely that variations to the terms of the current and future tenement holdings, the granting of new tenements and changes at renewal or expiry, will change the expenditure commitments for the Company from time to time. During the year 2010 the commitments were renewed for a new three-year term.

These outlays (exploration expenditure and rent) which arise in relation to granted tenements inclusive of tenement applications granted subsequent to December 31, 2012 but not recognised as liabilities are as follows:

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• Page 30 -

LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. COMMITMENTS AND CONTINGENCIES (Continued)

OMMITMENTS AND CONTINGENCIES (Continued)
	December 31,		December 31,
		2012		2011
Not longer than one year	$	6,260,265	$	4,528,204
Longer than oneyear but not longer than threeyears		682,374		7,192,560
	$	6,942,639	$	11,720,764

Occupancy Lease Agreement

The Company is committed to minimum annual rent payments of $298,000 until the end of the underlying lease in June 2018.

b) CONTINGENCIES

With respect to the Company's wholly owned Australian subsidiary, Tackle Resources Pty Ltd, no provision has been made for the possibility of native title claim applications at some future time, under the provisions of the Australian Native Title Act (1993), which may impact exploration tenements under application. Any substantiated claim may have an effect on the value of the tenement application affected by the claim. The amount and likelihood of any such claim(s) in the future cannot be reasonably estimated at this time.

21. SUBSEQUENT EVENTS

• a) On January 18, 2013 Laramide announced it has entered into a milling agreement with Energy Fuels Inc. ("Energy Fuels"), whereby Energy Fuels' White Mesa Mill will process all material produced from Laramide's 100% owned and operated La Sal Project in Utah. The agreement has a two-year term with an optional three-year extension and commences in January 2013.

• b) The Company has lodged a prospectus with the Australian Securities and Investment Commission by way of an Australian initial public offering (the “Offering”), ahead of a planned co-listing of its shares on the Australian Securities Exchange (“ASX”). The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the ASX. To date, approval is still pending and is anticipated early in the second quarter of 2013.

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Capital management

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition, exploration and development of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company defines capital to include its working capital position and the capital stock, warrant, and option components of its shareholders equity.

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• Page 31 -

LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

22. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

At December 31, 2012, the Company has working capital of $5,317,368 (December 31, 2011 - $9,616,582). Capital stock and warrants total $120,255,579 (December 31, 2011 - $121,358,031). There are 4,030,000 options outstanding as at December 31, 2012 (December 31, 2011 - 4,155,000) with an average exercise price of $1.18 (December 31, 2011 - $1.46).

The properties in which the Company currently has an interest are in the exploration stage; as such the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the year ended December 31, 2012. The Company is not subject to any externally imposed capital requirements.

Risk disclosures

Exposure to credit, interest rate and currency risks arises in the normal course of the Company’s business.

Interest rate risk

The Company has no significant exposure to interest rate risk as the Company has fixed interest longterm debt.

Foreign currency risk

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are the Australian dollar and the US dollar.

Credit risk

The Company has cash and cash equivalents balance of $256,707 (December 31, 2011 - $794,524) and short-term investments of $73,477 (2011 - $1,060,000). The Company's current policy is to invest excess cash in investment grade short-term deposit certificates issued by its banking institutions. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks.

Other receivables of $266,046 (December 31, 2011 - $318,821) are in good standing as of December 31, 2012. Management believes that the credit risk concentration with respect to financial instruments included in other receivable is minimal.

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• Page 32 -

LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

Liquidity risk

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2012, the Company had a cash and cash equivalents balance of $256,707 (December 31, 2011 - $794,524), liquid short-term investment balance of $73,477 (December 31, 2011 - $1,060,000) and an investments balance of $6,677,394 (December 31, 2011 - $9,404,009) to settle current liabilities of $3,053,275 (December 31, 2011 - $2,299,551). All of the Company's financial liabilities are subject to normal trade terms.

Sensitivity analysis

In managing currency risks the Company aims to reduce the impact of short-term fluctuations on the earnings. Over the longer term, however, permanent changes in foreign exchange would have an impact on consolidated earnings.

As at December 31, 2012, the carrying and fair value amounts of the Company's financial instruments are approximately equivalent.

Based on management's knowledge and experience of the financial markets, the Company believes the following movements are "reasonably possible" over a twelve month period.

• i) The Corporation is exposed to foreign currency risk on fluctuations of financial instruments that are denominated in US and Australian dollars related to cash and cash equivalents, accounts receivable, investments and accounts payable and accrued liabilities. Sensitivity to a plus or minus 10% change in the foreign exchange rate would affect the net comprehensive income by $30,600.

• ii) The Company is exposed to market risk as it relates to its investments held in marketable securities. If market prices had varied by 10% from their December 31, 2012 fair market value positions, the net loss and/or comprehensive income would have varied by approximately $667,739.

Fair value hierarchy

The following summarizes the methods and assumptions used in estimating the fair value of the Company's financial instruments where measurement is required. The fair value of short-term financial instruments approximates their carrying amounts due to the relatively short period to maturity. These include cash and cash equivalents and short-term investments. The fair value of long-term debt approximates their carrying amount due to the interest rate being close to the market rate. Fair value amounts represent point in time estimates and may not reflect fair value in the future. The measurements are subjective in nature, involve uncertainties and are a matter of significant judgment. The methods and assumptions used to develop fair value measurements, for those financial instruments where fair value is recognized in the balance sheet, have been prioritized into three levels as per their fair value hierarchy. Level one includes quoted prices (unadjusted) in active markets for identical assets or liabilities. Level two includes inputs that are observable other than quoted prices included in level one. Level three includes inputs that are not based on observable market data.

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• Page 33 -

LARAMIDE RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN CANADIAN DOLLARS)

Years ended December 31, 2012 and 2011

1. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

December 31, 2012		Level One		Level Two	Level Three	Level Three
Cash and cash equivalents	$	256,707	$	-	$	-
Short-term investments	$	73,477	$	-	$	-
Investments	$	6,648,495	$	-	$	28,899
December 31, 2011		Level One		Level Two	Level Three
Cash and cash equivalents	$	794,524	$	-	$	-
Short-term investments	$	1,060,000	$	-	$	-
Investments	$	9,273,629	$	-	$	130,380

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• Page 34 -