Form51-102F  MANAGEMENT’S DISCUSSION & ANALYSIS  For the period ended June 30, 2010  Buffalo Reef Prospect 1.3  Selected Annual Financial Information  1.4  Results of Operations  Through Damar, the Company holds 100% of the Buffalo Reef Prospect consisting of two contiguous tenements approximately  2,050 acres in size in Pahang State of Malaysia and extending the total contiguous and continuous land position northward  from and including the Selinsing Gold Mine Project for approximately 4.2 kilometres along the gold trend. As part of the due diligence program prior to the closing of the acquisition of Damar, the Company commissioned the  preparation of a NI 43-101 report on the Damar Buffalo Reef Prospect. The report concluded there was a historic resource  which was not NI 43-101 compliant. Prior to fiscal 2010, the Company completed two drilling programs in 2008 and 2009 for 11,871 meters of reverse circulation  drilling (“RC drilling”) with 1,400 meters of diamond drilling pending at the South, Central and Northern Zone of Buffalo Reef.  The assay results were announced by the Company through a series of news releases with a positive outlook confirming historic  drill results (refer to www.sedar.com). These adjacent mineral exploration programs, if successful, are expected to result in an  increase in economic benefit for the planned mine development at Selinsing by adding potential resources within economic  haulage distance of the Selinsing Gold Project.  The diamond drilling work included in Phase I program was not commenced during fiscal year 2010 due to financial constraints  caused by non-delivery of a $10 million credit facility during the period of economic downturn in 2008. On September 22, 2010,  upon completion of the $13 million financing, the Company has initiated a drill program including 33 drill holes comprising  2,500m RC drilling and 3,200m diamond drilling, budgeted at $0.8 million. The drill program is an extension to the previous  11,871m of shallow RC drilling programs completed in 2008. It is aimed to convert the inferred resources into measured and  indicated, and to update the JORC Code compliant gold resource to NI 43-101 standards. Metallurgical and recovery test work  will also be performed on the Buffalo Reef ore as part of the ongoing development program.  The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting  principles, and are expressed in Canadian dollars except common shares outstanding.  BALANCE SHEET  June 30, 2010 June 30, 2009 June 30, 2008 Current assets  $ 10,999,920  $ 6,263,962  $ 7,491,928  Other assets  53,585,678  56,837,573  47,431,649  Total assets  64,585,598  63,101,535  54,923,577  Current liabilities  3,859,014  2,110,014  3,771,936  Other liabilities  3,330,019  2,288,102  830,537  Shareholders’ equity  57,396,565  58,703,419  50,321,104  Total shareholders’ liabilities and equity  64,585,598  63,101,535  54,923,577  Working capital  $ 7,140,906  $ 4,153,948  $ 3,719,992  Three Months ended June 30,  Year ended June 30,  2010  2009 2010  2009  Net loss for the period $ (601,649)  $ (990,066)  $ (2,936,587)  $ (3,498,950)  Earnings (loss) per share  (0.01)  (0.01)  (0.02)  (0.02)  Weighted average number of common shares  156,115,028  155,640,028  156,003,110  150,492,713  9 | P a g e