December 31, 2000 balance of US$0.024 million. During the year ended December 31, 2001 and prior to the RTO Transaction AXMIN raised US$1.000 million through the issuance of shares.  In February 2001 the Company raised US$0.065 million through the issuance of shares. Concurrent with the RTO Transaction the Company closed a further share issuance for gross proceeds of US$2.298 million. The Company’s cash resources were utilized main- ly on capitalized exploration and development costs, administration and costs directly attributable to the RTO Transaction and the Offering. As at December 31, 2001 the Company had a surplus of working capital (defined as the difference between current assets and current liabilities) which amounted to US$1.313 million. Since at this stage the Company has no economically recoverable reserves the decision has been made that it is inappropriate for the Company to have any hedging or derivative activities. There are many risks inherent in the exploration and development of a mineral deposit. The success of the Company will be influenced by a number of factors including environmental risks, legal and political risks, gold prices and the ability of the Company to discover economically recoverable reserves and to bring such reserves into future profitable production.  Risks and Uncertainties Hedging and Derivative Instruments 10