Notes to the Consolidated Financial Statements (All tabular amounts stated in thousands of United States dollars unless otherwise indicated) AXMIN has the right to earn a 42.5% interest in the Siga Hills property from joint venture partner Ormonde Mining (Tanzania) Limited (“Ormonde”) by spending US$350,000 on the property before October 20, 2002. AXMIN has the right to earn a 50% interest in the Magamba property from joint venture partner Ormonde by spending US$350,000 on the property before October 20, 2002. The Magamba property is subject to a 3% net smelter royalty in favour of E-B Hance Company Limited, the underlying Tanzanian licence holder. B-B Lake, NWT represents a 25% interest in 16 leased contiguous mining claims. The Company earned its interest  by means of a Cdn$375,000 expenditure on the property in prior years. The claims are subject to a 12.5% net  profits royalty. The Company sold its 75% interest in 16 leased mining claims in the Timmins area of Ontario (known as “Tully Township”) to a third party in 1998. The Company retains a 1.5% net smelter royalty on the property, which may be purchased by the third party. Pursuant to a letter agreement dated April 2, 2001, subject to regulatory approval,  the Company agreed to sell the 1.5% net smelter royalty on the property to Black Pearl Minerals Consolidated Inc. (“Black Pearl”) (YBL-CDNX) for 300,000 common shares of Black Pearl. The Company is awaiting the delivery of the shares in Black Pearl. Diana property, Manitoba represents a 100% interest in one unpatented mining claim in southern Manitoba. Subsequent to December 31, 2001 the claim was allowed to lapse. Unlimited number of common shares and class ‘A’ shares. On November 21, 2001 the Company successfully completed the reverse take-over of AXMIN by the acquisition of all of the outstanding shares of AXMIN in exchange for the issuance to the AXMIN shareholders of 34,506,532 common shares of the Company (the “RTO Transaction”). Concurrent with the completion of the RTO Transaction the Company closed the issue and sale of 14,627,000 common shares of the Company at a price of Cdn$0.25 per common share for total gross proceeds of Cdn$3,656,750 (the “Offering”). See note 1. Adryx Mining & Metals Limited (“Adryx”), a wholly owned subsidiary of The Addax & Oryx Group Limited, received pursuant to the RTO Transaction 30,546,409 common shares of the Company in exchange for the shares of AXMIN held by Adryx. Adryx also purchased an additional 3,180,000 common shares of the Company under the Offering. As a result, Adryx now holds 33,726,409 common shares of the Company representing as at December 31, 2001 approximately 55% of the Company’s outstanding shares. Adryx has advised the Company that these shares were acquired by it for investment purposes and it may in the future increase or decrease its ownership of securities of the Company from time to time, depending upon the business and prospects of the Company and future market conditions. Adryx has entered into an agreement with the Company wherein Adryx has agreed not to sell the shares it received pursuant to the RTO Transaction for a two year period expiring on November 21, 2003. As well, the shares Adryx acquired under the RTO Transaction are subject to the terms of an escrow agreement entered into by Adryx in accordance with the requirements of the Canadian Venture Exchange. Adryx has also advised the Company that it did not own any shares of the Company prior to the RTO Transaction. The contributed surplus (US$590,567 being Cdn$877,500) included in the amount for common shares and  contributed surplus shown in the above table represents the value of common shares cancelled during 1999. 18 Tanzania Canada 4. Share Capital and Contributed Surplus (a) Authorized share capital (b) Issued share capital and contributed surplus Common shares and contributed surplus Number of  Amount common shares Balance as at January 1, 2000 10,736,986 8,053 Exercise of stock options 45,000 8 Issued for cash 1,000,000 166 Balance as at December 31, 2000 11,781,986 8,227 Issue for cash (February 9, 2001) 500,000 65 Issue for RTO Transaction, net 34,506,532 169 Issue for cash (November 21, 2001) 14,627,000 2,298 Balance as at December 31, 2001 61,415,518 10,759