1.  Nature of Operations and Going Concern  2.  Statement of Compliance 3.  Summary of Significant Accounting Policies  (a) Principles of consolidation and deconsolidation  The interest of non-controlling shareholders is initially measured at the non-controlling interest’s proportionate share  of the subsidiary’s identifiable net assets. Subsequent to acquisition, non-controlling interests consist of the amount  attributed to such interests at initial recognition and the non-controlling interest’s share of changes in equity since  the date of the combination. All material intercompany transactions, balances, income and expenses are eliminated  on consolidation. Changes in the Company’s interest in a subsidiary that do not result in a loss of control are  accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are  adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the  Company.  For the year ended December 31, 2012, the financial statements include the accounts of the Company and its former  subsidiary, Maritime Resources Corp. (“Maritime”) up to February 15, 2012. Refer to Note 10, “Investment in  Maritime”, for details. The comparative figures for 2011 in these financial statements include the accounts of  Maritime.  - 7 -  These financial statements have been prepared under the historical cost convention, except for certain financial assets  and financial liabilities recorded at fair value, including derivative instruments and available-for-sale instruments. The  financial statements are presented in Canadian dollars, unless otherwise noted.  These annual financial statements are prepared in accordance with IFRS, as issued by the International Accounting  Standards Board. The accounting policies set out in Note 3 have been applied consistently to all years presented in these  financial statements unless otherwise indicated. These financial statements were authorized for issue by the Board of  Directors on February 26, 2013.  For the year ended December 31, 2012, the Company reported a net income of $924,471 (2011 - net loss of $3,974,813)  and as of December 31, 2012 had a deficit of $19,384,712 (December 31, 2011 - $20,937,101), and working capital of  $702,207 (December 31, 2011 - $1,292,030). The Company has relied on the issuance of share capital to finance its activities. Future capital requirements will depend  on many factors including the Company's ability to execute its business plan. The Company intends to continue relying  upon the issuance of shares to finance its future activities, but there can be no assurance that such financing will be  available on a timely basis under terms acceptable to the Company. Inability to secure future financing would have a  material adverse effect on the Company's business, results of operations and financial condition.  The address of the Company’s corporate office and principal place of business is 1100 - 1111 Melville Street, Vancouver,  British Columbia, Canada, V6E 3V6.  These financial statements of the Company have been prepared in accordance with International Financial Reporting  Standards (“IFRS”) on a going concern basis, which contemplates that the Company will be able to realize its assets and  discharge its liabilities in the normal course of business. Accordingly, these financial statements do not include any  adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be  unable to continue as a going concern.  Commander Resources Ltd. (the “Company” or “Commander”) is actively exploring and developing its mineral  properties and has not yet determined whether these properties contain mineral resources that are economically  recoverable. The Company has not earned significant revenues from its mineral property interests and is considered to  be in the exploration stage. COMMANDER RESOURCES LTD.  (An Exploration Stage Company)  Notes to Financial Statements  For the Years Ended December 31, 2012 and 2011  (Expressed in Canadian dollars) 