COMMANDER RESOURCES LTD.  (An Exploration Stage Company)  Notes to Financial Statements  For the Years Ended December 31, 2012 and 2011  (Expressed in Canadian dollars)  13. Income Taxes As at December 31, 2012, the Company has non-capital losses of $6,760,500, which may be applied against future  income for Canadian income tax purposes. The potential income tax benefits of these losses have been recognized in  these financial statements against deferred income tax liabilities. The losses expire as follows:  The reconciliation of income tax provision computed at statutory rates (2012 – 25.0%; 2011 - 26.5%) to the reported  income tax provision is as follows:  Deferred income tax assets and liabilities are recognized for temporary differences between their carrying amounts and  their corresponding tax values as well as for the benefit of losses available to be carried forward to future years for tax  purposes that are probable of being realized. Significant components of the Company’s deferred tax assets and liabilities, after applying enacted corporate income tax  rates are as follows:  - 27 -  2012 2011 Deferred income tax liabilities Temporary differences on mineral properties (2,128,652) $ (2,318,963) $ Investment in associated company (35,827) - (2,164,479) (2,318,963) Deferred income tax assets Non-capital losses carried forward 1,290,825 1,503,474 Share issue costs 13,137 35,667 Temporary differences on investment in marketable securities 57,994 42,981 Temporary difference on property and equipment 59,834 58,869 Non-refundable investment tax credits 281,163 1,702,953 1,640,991 Deferredincome tax liabilities, net (461,526) $ (677,972) $ 2012 2011 Income (loss) before income taxes 728,533 $ (5,437,305) $ Statutory tax rate 25.0% 26.5% Income tax benefit computed at Canadian statutory rates 182,133 (1,440,886) Items deductible (non-deductible) for income taxes purposes 25,941 113,620 Impact of flow-through shares - (327,750) Change in timing differences for the year (other temporary differences) (404,012) 514,872 Effect on changes in tax rate - 5,982 Income tax recovery (195,938) $ (1,134,162) $ 2014 891,400 $ 2015 705,800 2026 927,300 2027 1,001,500 2028 873,500 2029 760,900 2030 245,500 2031 740,100 2032 614,500 Total 6,760,500 $