Notes to the Consolidated Financial Statements (All tabular amounts stated in thousands of United States dollars unless otherwise indicated) The statement of cash flows of Asquith Resources Inc. for the period January 1, 2001 to November 20, 2001 (i.e. immediately prior to completion of the RTO Transaction) was as follows: (Stated in thousands of Canadian dollars) Period ended November 20, 2001 The Company operates in one industry segment, mineral exploration and mining. The Company’s exploration  activities are carried out in the CAR, Mali, Ghana, Senegal, Tanzania, Canada and, more recently, Burkina Faso. Note 3 to these financial statements sets out details of capitalized exploration and development costs by country and project. Under the terms of the Heads of Agreement, AXMIN will make a payment of Cdn$55,000 to Channel and a  second payment of Cdn$75,000 will be due to Channel on the six month anniversary of the first payment. AXMIN may earn a 65% undivided beneficial interest in the Bouroum Permit by completing a bankable feasibility study. Should AXMIN decide to proceed with development then AXMIN will buy out the pro rata interest of Channel in the proven and probable reserves on the Bouroum Permit. The buy out price will be US$10/oz at a gold price of less than US$300/oz, escalating at a rate of US$1/oz for each US$25/oz increase in the gold price, up to a  maximum of US$15/oz (i.e. spot gold price at, or greater than US$400/oz). In addition, there is a minimum  expenditure of US$250,000 on exploration across the Bouroum Permit by AXMIN within twelve months of  signature of the Heads of Agreement.  22 (d) On April 8, 2002 the Company acquired a mobile drill rig for a purchase price of Cdn$50,000 to be settled by the issue of 200,000 common shares of the Company to the vendor, United Reef Limited a company previously  related to the Company, at a deemed price of Cdn$0.25 per common share. This transaction is subject to  regulatory approval. (c) On May 3, 2002 AXMIN entered into a formal Heads of Agreement to acquire an interest in the Bouroum Permit (275 sq. kms.) in Burkina Faso which is owned by Channel Resources Ltd. (“Channel”) (CHU-TSE). (b) Effective January 18, 2002 the Company granted options for: (i) 3,625,000 shares in the Company exercisable at Cdn$0.32 each expiring January 17, 2007; and (ii) 500,000 shares in the Company exercisable at Cdn$0.32 each expiring July 18, 2003.  (a) The investors identified in note 4(e) exercised their 250,000 warrants on February 8, 2002 for total gross proceeds to the Company of Cdn$62,500 and as a result the Company issued 250,000 common shares of the Company to the investors. 10. Subsequent Events 9. Segmented Information Statement of Cash Flows Operating activities Net loss for the period (189) Write-down of exploration and development costs 3 Change in working capital (76) Net cash outflow from operating activities (262) Investing activities Exploration and development costs 60 Net cash inflow from investing activities 60 Financing activities Issuance of common shares 100 Advance from joint venture partner 93 Related parties 5 Net cash inflow from financing activities 198 Net cash outflow from operations (4) Cash and short term investments, beginning of period 10 Cash and short term investments, end of period 6