Alaris Royalty Corp.  Consolidated statement of financial position December 31  December 31  January 1  Note 2011 2010 2010 Assets  Cash and cash equivalents $3,888,465 $1,816,868  $ 3,826,000  Prepayments 119,508 343,184  103,472  Trade and other receivables  3,443,679  688,514  2,470  Current Assets  7,451,652 2,848,566  3,931,942  Equipment 7 66,743 69,671 74,477 Intangible assets  5  6,661,138  12,896,916  13,070,150  Preferred LP Units  5  207,408,290 182,907,000 122,286,000 Investment tax credit receivable 6 10,922,393 10,922,393 11,030,007 Deferred income taxes  6  13,967,984 18,158,192  22,454,167 Non-current assets  239,026,548 224,954,172 168,914,801 Total Assets  $246,478,200 $227,802,738 $172,846,743 Liabilities  Accounts payable and accrued liabilities   $1,546,705 $1,421,992  $939,085  Dividends payable  1,850,145 1,396,262 802,604 Income taxes payable  67,590  -  -  Loans and borrowings  9,11  -  -  9,350,000  Current Liabilities  3,464,440 2,818,254 11,091,689 Loans and borrowings  9  6,500,000 29,200,000 19,700,000 Non-current liabilities  6,500,000 29,200,000 19,700,000 Total Liabilities  9,964,440 32,018,254 30,791,689 Equity Share capital  8  200,822,160 157,402,328 111,663,148 Warrants 8 - 405,306 845,000 Equity reserve  4,626,500  3,174,831  1,869,901  Fair value reserve  2,292,939 22,350,157 9,766,188 Translation reserve  (124,947)  -  -  Retained Earnings 28,897,108 12,451,862  17,910,817  Total Equity 236,513,760 195,784,484 142,055,054 Total Liabilities and Equity  $246,478,200 $227,802,738 $172,486,743 (signed)  “Jack C. Lee” Director (signed)  “Mary Ritchie” Director 18  2011 Annual Report  Alaris Royalty Corp.