Commander Resources Ltd.  Management Discussion and Analysis  For the Year Ended December 31, 2012  Commander’s assessment of its ability to sell the property for an amount exceeding the deferred costs, a provision is made for the  impairment in value.  Management’s estimates of exploration, operating, capital and reclamation costs are subject to certain risks and uncertainties which may  affect the recoverability of mineral property costs. Although management has made its best estimate of these factors, it is possible that  changes could occur in the near term that could adversely affect management’s estimate of the net cash flow to be generated from its  properties.  Another significant accounting estimate relates to accounting for share-based payments. Commander uses the Black-Scholes Option  Pricing Model to estimate the fair value of share-based payments and warrants. Option pricing models require the input of highly  subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair  value estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of Commander’s  stock options granted/vested during the period.  Commander has not early adopted the following revised standards and is currently assessing the impact that these standards will  have on the financial statements.  Standards, Amendments and Interpretations Affecting the 2013 and Future Year-Ends New Accounting Policies i. IFRS 11, “Joint Arrangements”, provides for a more realistic reflection of joint arrangements by focusing on the rights and  obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in  the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. The  standard is effective for annual periods beginning on or after January 1, 2013. iii. IFRS 13, “Fair Value Measurement”, is a new comprehensive standard on measuring and disclosing fair value and will  supersede all other fair value guidance in IFRS. The standard is effective for annual periods beginning on or after January 1,  2013. ii. IFRS 12, “Disclosure of Interests in Other Entities”, is a new and comprehensive standard on disclosure requirements for all  forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured  entities. The standard is effective for annual periods beginning on or after January 1, 2013. There will be no significant  impact to the Company upon implementation of the issued standard.  iv. IAS 1, “Presentation of Financial Statements”, is amended to revise the way other comprehensive income is presented. The  amendments preserve the amendments made to IAS 1 in 2007 to require profit or loss and other comprehensive income to be  presented together. The amendments require entities to group items presented in other comprehensive income based on  whether they are potentially reclassifiable to profit or loss subsequently. The amendments also require tax associated with  items presented before tax to be shown separately for each of the two groups of other comprehensive income items.  v. IAS 27, “Separate Financial Statements”, is amended to deal with the requirements for separate financial statements, which  have been carried over largely unamended from IAS 27, “Consolidated and Separate Financial Statements”. Requirements  for consolidated financial statements are now contained in IFRS 10, “Consolidated Financial Statements”. This standard is  effective for annual periods beginning on or after January 1, 2013. There will be no significant impact to the Company upon  implementation of the issued standard. vi. IAS 28, “Investments in Associates and Joint Ventures”, is amended to prescribe the accounting for investments in associates  and sets out the requirements for the application of the equity method when accounting for investments in associates and  joint ventures. The standard defines “significant influence” and provides guidance on how the equity method of accounting is  to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in  associates and joint ventures should be tested for impairment. This standard is effective for annual periods beginning on or  after January 1, 2013. There will be no significant impact to the Company upon implementation of the issued standard. vii. IAS 32, “Financial Instruments: Presentation”, is amended to clarify certain aspects because of diversity in application of the  requirements on offsetting, focused on four main areas: 1) the meaning of “currently as a legally enforceable right of set-off”,  2) the application of simultaneous realization and settlement, 3) the offsetting of collateral amounts and 4) the unit of account  for applying the offsetting requirements.  - 9 - 