Commander Resources Ltd.  Management Discussion and Analysis  For the Year Ended December 31, 2012  - After December 31, 2012, 337,500 stock options have been accelerated to expire on March 30, 2013.  - 100,000 stock options expired unexercised on January 19, 2013.  - 740,000 stock options expired on February 7, 2013. Mineral Property Expenditure Table  At December 31, 2012 and 2011, the Company’s exploration and evaluation assets comprise properties located in Canada. Expenditures incurred on mineral properties during the year are as follows: - 11 -  Nunavut Ontario Other  Newfoundland Qimmiq Bravo Lake Glenmorangie Storm Omineca StumpLake Sabin Properties Green Bay Total Balance at December 31, 2010 10,041,959 $ 2,590,023 $ - $ 116,144 $ 106,642 $ - $ 127,027 $ 8,133,079 $ 769,268 $ 21,884,142 $ Acquisition costs - - 60,373 - - 109,433 - 1,440 1,750 172,996 Exploration costs: Drilling 568,026 71,414 63,722 1,200 - 304 450 2,203 565,516 1,272,835 Geochemistry 45,364 5,449 46,938 521 - 49,530 - - - 147,802 Geology 800,468 242,613 233,417 162,419 15,345 286,235 10,526 48,535 162,696 1,962,254 Geophysics  255,992 - 267 725,012 - 110,134 - - - 1,091,405 Property  111,828 - 970 14,829 - 3,386 3,870 7,803 3,107 145,793 Other  16,426 6,338 - 135 - 3,784 27 198 440 27,348 1,798,104 325,814 345,314 904,116 15,345 453,373 14,873 58,739 731,759 4,647,437 Less: Recoveries (2,596,363) (361,040) - (90,000) - - - (12,000) (222,450) (3,281,853) Write down  - - - - - - - (3,958,279) - (3,958,279) Net additions (798,259) (35,226) 405,687 814,116 15,345 562,806 14,873 (3,910,100) 511,059 (2,419,699) Balance at December 31, 2011 9,243,700 $ 2,554,797 $ 405,687 $ 930,260 $ 121,987 $ 562,806 $ 141,900 $ 4,222,979 $ 1,280,327 $ 19,464,443 $ Baffin, Nunavut  Yukon British Columbia Yukon Nunavut Ontario Other  Newfoundland Qimmiq Bravo Lake Glenmorangie Storm Omineca StumpLake Sabin Properties Green Bay Total Balance at December 31, 2011 9,243,700 $ 2,554,797 $ 405,687 $ 930,260 $ 121,987 $ 562,806 $ 141,900 $ 4,222,979 $ 1,280,327 $ 19,464,443 $ Acquisition costs - - 27,750 - - - - 65,000 - 92,750 Exploration costs: Drilling - - 1,154 - 29,561 206,396 - 800 2,016 239,927 Environmental  - 140,000 - - - 1,700 9,000 - - 150,700 Geochemistry 9,635 4,129 16,957 - 14,956 41,228 23,225 - - 110,130 Geology 330,060 23,829 62,694 11,752 82,882 53,705 83,908 38,722 11,587 699,139 Geophysics  - (489) - - - 16,000 - - - 15,511 Property  116,565 1,147 7,727 (3,360) - 6,270 4,470 8,313 - 141,132 Other  568 384 57 14 - 14 371 266 382 2,056 456,828 169,000 88,589 8,406 127,399 325,313 120,974 48,101 13,985 1,358,595 Less: Recoveries (397,369) (140,000) - (120,000) - - - (69,864) - (727,233) Write down - - - - - (888,119) - (28,670) - (916,789) Net additions 59,459 29,000 116,339 (111,594) 127,399 (562,806) 120,974 14,567 13,985 (192,677) Derecognition of Green Bay Property - - - - - - - - (1,294,312) (1,294,312) Balance at December 31, 2012 9,303,159 $ 2,583,797 $ 522,026 $ 818,666 $ 249,386 $ - $ 262,874 $ 4,237,546 $ - $ 17,977,454 $ Baffin, Nunavut  British Columbia