CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For The Years Ending June 30, 2001 2000 1999 Royalty revenues $ 5,963,153 $ 9,406,656 $ 959,014 Costs and expenses Costs of operations 784,993 692,940 361,055 General and administrative 1,715,512 1,768,428 1,704,326 Exploration costs 743,627 1,625,698 2,831,095 Lease maintenance and holding costs 30,433 242,127 410,249 Impairment of mining assets 490,215 — 4,615,731 Depreciation and depletion 1,270,621 1,193,108 463,733 Total costs and expenses 5,035,401 5,522,301 10,386,189 Operating income (loss) 927,752 3,884,355 (9,427,175) Interest and other income 258,010 271,347 654,448 Loss on marketable securities — 5,444 35,446 Interest and other expense 24,234 116,541 — Income (loss) before income taxes 1,161,528 4,033,717 (8,808,173) Income tax expense 23,231 80,738 — Net earnings $ 1,138,297 $ 3,952,979 $ (8,808,173) Adjustments to comprehensive income Unrealized loss on available for sale securities (153,257) (400,215) — Comprehensive income $ 985,040 $ 3,552,764 $ (8,808,173) Basic earnings per share $ 0.06 $ 0.23 $ (0.51) Basic weighted average shares outstanding 17,765,877 17,528,244 17,160,228 Diluted earnings per share $ 0.06 $ 0.22 $ (0.51) Diluted weighted average shares outstanding 17,770,735 17,710,371 17,160,228 The accompanying notes are an integral part of these consolidated financial statements. 17