Summary of First Quarterly Report for the Three Months Ended May 31, 2003
Vancouver, British Columbia, Canada July 30, 2003 - For the three months ended May 31, 2003, the Company incurred a net loss of $66,125, which is substantially higher than the net loss of $289 for the same period in 2002. Operating expenses were one of the primary factors for the higher net loss, reflecting the increased activities of the Company subsequent to its reactivation in November 2002. Expenses of $34,017 for property investigations and $20,000 for consultants were incurred for seeking projects and identifying those for potential acquisitions. Regulatory filing fees and legal services were incurred for operating activities and for property acquisitions.
In June 2002, the Company received a loan of $25,000 which bears an interest rate of 9% per annum with repayment due on or before September 30, 2002. A loan bonus of 50,000 shares was issued at a deemed price of $0.10 per share in the 2003 fiscal year. On May 31, 2003, the loan was not repaid and interest of $2,186 had been accrued.
As at May 31, 2003, the Company had cash of $62,496 and a working capital of $34,931, which declined relative to the February 28, 2003 year end balances of $151,574 for cash and $100,739 for working capital. Also at May 31, 2003, the Company had capitalized costs of $51,100 for its Otish Mountain property.
The Company's mineral exploration and development activities have provided the Company with no sources of income and a history of losses, working capital deficiencies and capital deficiencies. However, given the nature of its business, the results of operations as reflected in the net losses and losses per share do not provide meaningful interpretation of the Company's pe rformance and valuation.
/s/ Bradford J. Cooke
Bradford J. Cooke
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