- 5 -  See Accompanying Notes to the Financial Statements  Supplemental Cash Flow Information (Note 17) Note 2012 2011 Cash provided from (used in): Operating activities Net income (loss) for the year $ 924,471 $ (3,974,813) Items not involving cash Amortization 4,266 6,587 Share-based payments 100,002 425,121 Loss on investment in securities - 73,885 Impairment loss on available-for-sale securities 471,486 - Write-off of assets 917,135 3,958,624 Deferred tax recovery (195,938) (1,462,492) Share of loss and dilution loss in associate 10 264,852 - Gain on disposal of subsidiary 10 (3,186,676) - (700,402) (973,088) Changes in non-cash working capital items Receivables 41,112 38,892 Prepaid expenses 2,428 8,010 Accounts payable and accrued liabilities 33,174 46,506 Cash used in operating activities (623,688) (879,680) Investing activities Proceeds from sale of securities - 112,678 Deposit and others 7,792 (12,792) Expenditures on exploration and evaluation assets (1,437,296) (4,923,303) Recoveries from exploration and evaluation assets 797,693 3,181,853 Change in working capital related to exploration and evaluation assets (229,681) - Purchase of equipment - (2,211) Sale of shares of former subsidiary 10 1,035,000 - Cash surrendered on disposal of subsidiary 10 (202,486) - Cash used in investing activities (28,978) (1,643,775) Financing activity Shares and warrants issued for cash, net of issuance costs - 1,954,717 Cash provided by financing activity - 1,954,717 Decrease in cash and cash equivalents (652,666) (568,738) Cash and cash equivalents, beginning of year 1,175,776 1,744,514 Cash and cash equivalents, end of year $ 523,110 $ 1,175,776 COMMANDER RESOURCES LTD.  Statements of Cash Flows For the Years Ended December 31 (An Exploration Stage Company) (Expressed in Canadian dollars)