COMMANDER RESOURCES LTD.  (An Exploration Stage Company)  Notes to Financial Statements  For the Years Ended December 31, 2012 and 2011  (Expressed in Canadian dollars)  5.  Cash and Cash Equivalents 6.  Investment in Securities  7.  Capital Management  - 18 -  As at December 31, 2012, the cash balance includes only Commander’s accounts while the balance at December 31,  2011 included Maritime’s cash of $134,402. As at December 31, 2012, there was no (2011 - $309,940) remaining  balance of exploration funds raised through the issuance of flow-through shares, which were required to be spent on  mineral exploration related activities in Canada only. The Company had fair market valued investment in securities as follows:  During the year ended December 31, 2012, the Company received the following shares on properties:  The Company holds less than 10% of the outstanding common shares of each investment, except for its investment in  Aston Bay, of which the Company owns more than 10% of the common shares but less than 20% of the total common  shares outstanding. During the year ended December 31, 2012, the Company reclassified investments impairment loss on securities of  $471,486 (2011 - $Nil) to the statement of income.  The Company defines its capital as all components of equity. The Company manages its capital structure and makes  adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration of  mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but  rather relies on the expertise of the Company's management to sustain future development of the business.  The properties in which the Company currently has an interest are in the exploration stage; as such, the Company is  dependent on external financing to fund its activities. In order to carry out the planned exploration and pay for  administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. The  Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is  sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its  capital management approach on an ongoing basis and believes that this approach, given the relative size of the  Company, is reasonable. There were no changes in the Company's approach to capital management during the year  ended December 31, 2012. The Company is not subject to externally imposed capital requirements.  December 31, 2012 December 31, 2011 Cost 701,879 $ 672,338 $ Unrealized loss (524,232) (404,131) 177,647 $ 268,207 $ i. 1 million shares from Aston Bay Ventures Ltd. (“Aston Bay”) as part of the $15 million Option Agreement  with Aston Bay signed in 2011 for the Storm property (Note 9(c)). $_{ii.}$  60,000 common shares of Stratabound Minerals Corp. (“Stratabound”) under the terms of the option  agreements for the Nepisiguit and Stewart properties (Note 9(g)(iv)). 