CONSOLIDATED STATEMENTS OF  CASH FLOWS For The Years Ending June 30, 2001 2000 1999 Cash flows from operating activities Net income (loss) $ 1,138,297 $ 3,952,979 $ (8,808,173) Adjustments to reconcile net income (loss)  to net cash provided by (used in) operating activities: Depreciation and depletion 1,270,621 1,193,108 463,733 Loss on marketable securities — 5,444 35,446 Impairment of mining assets 490,215 — 4,615,731 Non cash compensation — 136,500 — (Increase) decrease in: Royalty receivables 542,119 (1,449,168) (95,068) Other current assets 29,239 222,702 61,627 Increase (decrease) in: Accounts payable and accrued liabilities (308,424) 122,782 93,687 Other liabilities 2,403 43,599 (26,399) Total adjustments 2,026,173 274,967 5,148,757 Net cash provided by (used in) operating activities 3,164,470 4,227,946 (3,659,416) Cash flows from investing activities Capital expenditures for property and equipment (2,195,454) (8,340,629) (740,696) Maturity (purchase) of held-to-maturity securities, net — 4,000,000 980,312 Purchase of available for sale securities (250,000) (1,320,488) — Increase in other assets 126,498 (417,270) (200) Net cash provided by (used in) investing activities (2,318,956) (6,078,387) 239,416 Cash flows from financing activities Dividends (885,004) — — Purchase of common stock (53,242) — (422,447) Proceeds from issuance of common stock 23,850 1,827,125 50,840 Net cash provided by (used in) financing activities (914,396) 1,827,125 (371,607) Net increase (decrease) in cash and equivalents (68,882) (23,316) (3,791,607) Cash and equivalents at beginning of period 4,647,160 4,670,476 8,462,083 Cash and equivalents at end of period $ 4,578,278 $ 4,647,160 $ 4,670,476 Supplemental Information: The Company declared a dividend on common stock of $894,491 during fiscal 2001, which was paid in July 2001. The Company declared a dividend on common stock of $885,004 during fiscal year 2000, which was paid in July 2000. The accompanying notes are an integral part of these consolidated financial statements. 20