Commander Resources Ltd.  Management Discussion and Analysis  For the Year Ended December 31, 2012  For the year ended December 31, 2012, Commander’s net income was $924,471 (2011 – net loss of $3,974,813). The increase  in income was mainly due to the gain of $3,186,676 on the disposal of subsidiary and the reduction in expenses post  deconsolidation.  At December 31, 2012, Commander had $523,110 in cash and cash equivalents. Commander has relied on equity financings to meet its cash requirements however there were no equity financings during the year  ended December 31, 2012. On February 15, 2012, Commander sold 4.5 million common shares of Maritime through a private transaction at a price of $0.23 per  share for gross cash proceeds of $1,035,000.  Although Commander has been successful in the past in obtaining financing through the sale of equity securities, there can be no  assurance that Commander will be able to obtain adequate financing in the future or that the terms of such financings will be  favourable.  There is no significant commitment for capital expenditure.  Commander has not entered into any off-balance sheet arrangements.  The Company’s related parties consist of companies controlled by executive officers and directors. The Company incurred the following  fees and expenses in the normal course of operations in connection with those companies for the years ended December 31, 2012 and  2011 as follows: During the year ended December 31, 2012, the Company charged Maritime $78,707 (2011 - $56,653), in respect of office  administration, accounting, rent, insurance and investor relation expense shared by the companies. At December 31, 2012, included in receivables were $3,060 (2011 - $254) for administrative and office expenses from companies related  by common directors. At December 31, 2012 included in accounts payable were amounts due to related parties of $765 (2011 - $17,706) for legal fees to a law  firm related by a director in common.  - 7 -  2012 2011 Legal 9,628 $ 24,188 $ Office rent and administrative 84,410 78,590 94,038 $ 102,778 $ Off-Balance Sheet Arrangements  Related Party Transactions  Liquidity and Capital Resources Summary of Quarterly Results Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 2011 2011 2011 2011 2012 2012 2012 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mineral property costs deferred, net (377,968) $ 896,791 $ 728,872 $ (3,667,394) $ (980,182) $ 106,917 $ (676,554) $ 62,830 $ G&A (incl. share-basedpayments) 381,846 $ 425,098 $ 275,342 $ 308,773 $ 257,214 $ 203,536 $ 204,484 $ 144,447 $ Share-basedpayments expense 119,385 $ 173,711 $ 49,377 $ 82,648 $ 2,118 $ 13,395 $ 63,174 $ 21,315 $ AdjustedG&A (less share-basedpayments) 262,461 $ 251,387 $ 225,965 $ 226,125 $ 255,096 $ 190,141 $ 141,310 $ 123,132 $ Income (loss) (324,725) $ (458,800) $ (224,672) $ (2,966,616) $ 2,880,488 $ (235,693) $ (1,136,743) $ (583,581) $ Income (loss) attributable to owners of the parent (346,364) $ (423,109) $ (196,114) $ (2,979,290) $ 2,900,443 $ (235,693) $ (1,136,743) $ (583,581) $ Income (loss) per share  - basic and diluted (0.004) $ (0.005) $ (0.002) $ (0.030) $ 0.029 $ (0.002) $ (0.011) $ (0.006) $ Weightedavg. common shares 90,942,516 95,904,894 99,853,418 99,892,548 99,892,548 99,909,032 100,042,548 100,042,521 In Accordance with IFRS