NEW OROPERU RESOURCES INC.  Notes to Consolidated Financial Statements (Expressed in US dollars)  Years ended December 31, 2012 and 2011  New Oroperu Resources Inc. (the “Company”) was incorporated under the laws of British Columbia on October 12,  1994. The Company is in the business of acquiring and exploring mineral properties in Peru and Canada , and has  not yet determined whether its properties contain ore reserves that are economically recoverable. The Company is  listed on the TSX Venture Exchange and is a reporting issuer in Ontario, Alberta and British Columbia.  The Company is not generating any operating revenue, has never paid any dividends and is unlikely to pay  dividends or generate earningsfrom operationsin the immediate or foreseeable future. As at  December 31, 2012  the Company has an accumulated deficit of $ 26,336,932 (2011 - $25,992,685) and incurred a loss of $ 344,247  (2011 - $650,933) during the year ended December 31, 2012and a working capital deficit of $16,551 . The  continuation of the Company as a going concern is dependent uponthe ability of the Company to obtain the  necessary financing to continue operations and to determine the existence and successful exploit ation of  economically recoverable reserves in itsexploration and evaluationproperties, confirmation of the Company’s  interests in the underlying properties and the attainment of profitable operations, or realize proceeds from their sale.  The Company is dependent on raising funds through the issuance of sharesand/or obtaining debt financing. Management believes that additional financing is available and may be sourced in time to allow the Company to  continue its current planned activities in the normal  course. There can, however, be no assurance the Company will  be able toraise funds in the near future. The Company has been receiving anet annual advance royalty payment of $175,000 in connection with the Tres  Cruces Project in Peru (note 4a). Although it is anticipated that this annual payment will continue under the related  option agreement, there is no certainty that the optionee will co ntinue to maintain the option. The head office and principal address of the Company is situated at Suite 320  – 800 West Pender Street,  Vancouver, British Columbia, Canada, V6C 2V6.  These consolidated financial statements are preparedon an accrual basis in accordance with International  Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).  These consolidated financial statements have bee n prepared on a historical cost basisusing the accrual basis of  accounting, except for cash flow information. The significant accounting policies set out in note 3 have been applied consistently to allyearspresented. The consolidated financial statements of the Company for the year ended December 31, 2012 were reviewed by  the Audit Committee and approved and authorized for issue by the Board of Directors on April  23, 2013.  The IASB issued a number of new and revised International Accounting Standards (“IAS”), IFRS, amendments and  related interpretations, which are effective for the Company’s financial years beginning on or after January 1, 2012.  For the purpose of preparing and presenting the financial information for the relevant periods, the Company has  consistently adopted all these new standards for the relevant reporting periods. 2. BASIS OF PRESENTATION  a)  Statement of Compliance b)  Approval of Consolidated Financia l Statements c)  Adoption of New and RevisedStandards and Interpretation s  7  1. NATUREOF OPERATIONSAND GOING CONCERN 