(a) Title to mineral property interests  (b) Realization of assets  (c) Environmental  (d) Reserves and resource estimates  1.17  Disclosure Controls and Internal Controls over Financial Reporting  Disclosure Controls and Procedures  The Company has no producing mines except Selinsing gold mine, however has limited cash flow from the recently  commissioned gravity plant, and has no other source of operating cash flow other than through debt and/or equity financing  and the above. Any further significant work would likely require additional equity or debt financing. The Company has very  limited financial resources and there is no assurance that additional funding will be available to allow the Company to proceed  with any plans for exploration and development of its mineral properties.  Some major risks associated with the business are, but are not limited to, the following:  Although the Company has taken steps to verify the title to its mineral property interests, in accordance with industry  standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title.  Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defect. To  the best of the Company’s knowledge, title to its properties is in good standing.  Mineral property interests comprise a significant portion of the Company’s assets. Realization of the Company’s investment in  these assets is dependent upon the establishment of legal ownership, obtaining of permits, satisfaction of governmental  requirements and possible aboriginal claims, attainment of successful production from the properties or from the proceeds of  their disposal.  Environmental legislation is becoming increasingly stringent and costs and expenses of regulatory compliance are increasing. The impact of new and future environmental legislation on the Company’s operations may cause additional expenses and  restrictions. If the restrictions adversely affect the scope of exploration and development on the mineral properties, the  potential for production on the property may be diminished or negated.  The Company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates,  including provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may  also be held liable should environmental problems be discovered that were caused by former owners and operators of its  properties and properties in which it has previously had an interest. The Company conducts its mineral exploration activities in  compliance with applicable environmental protection legislation. The Company is not aware of any existing environmental  problems related to any of its current properties.  There is a degree of uncertainty attributable to the calculation of reserves and resources and the corresponding grades.  Reserve and resource estimates are dependent partially on statistical information drawn from drilling, sampling and other data.  Reserve and resource figures set forth by the Company are estimates, and there is no certainty that the mineral deposits would  yield the production of metals indicated by reserve and resource estimates. Declines in the market price for metals may  adversely affect the economics of a deposit and may require the Company to reduce its estimates.  Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and  reported to senior management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) on a  timely basis so that appropriate decisions can be made regarding public disclosure.  An evaluation of the effectiveness of the design and operation of disclosure controls and procedures was conducted as of June  30, 2010, by and under the supervision of the CEO and CFO. Based on this evaluation, the CEO and CFO have concluded that the  disclosure controls and procedures, as defined in Canada by Multilateral Instrument 52-109, Certification of Disclosure in  Issuers’ Annual and Interim Filings are effective to ensure that (i) information required to be disclosed in reports that are filed  or submitted under Canadian securities legislation and the Exchange Act is recorded, processed, summarized and reported  within the time periods specified in those rules and forms; and (ii) material information relating to the Company is accumulated  and communicated to the Company’s management, including the CEO and CFO, or persons performing similar functions. 18 | P a g e Form51-102F  MANAGEMENT’S DISCUSSION & ANALYSIS  For the period ended June 30, 2010 