Commander Resources Ltd.  Management Discussion and Analysis  For the Year Ended December 31, 2012  The largest portion of exploration expenditures was $625,828 on the Baffin properties for camp purchases, geology cost and  environmental cleanup, of which $537,369 were recovered from AngloGold as a final settlement for discontinuing the Farm-in and  JV agreement with Commander. Spending on other properties for the year ended December 31, 2012 totalled to $718,782 including  $325,313 on the Stump Lake property, $127,399 on the Omineca property, $120,974 on the Sabin property, $88,589 on the  Glenmorangie property, $8,406 on the Storm property and $48,101on the rest of the Company’s properties. The Company recovered  $120,000 on the Storm property through Aston Bay’s cash payment and share distribution. More information is available on the  Mineral Property Expenditure Table and in Note 9 of the Financial Statements for the year ended December 31, 2012. Commander had no revenue and general and administrative expenses decreased by $581,378 to $809,681 compared to $1,391,059  in 2011. Decreases in most expenses were the result of deconsolidation of Maritime as at February 15, 2012. Some notable variances are analyzed below:  - Accounting and audit decreased by $64,685 (41%) to $91,735 (2011 - $156,420).  - Administration and others decreased by $47,425 (23%) in relation to the following:  - Consulting expense decreased by $58,413 (46%) to $68,900 (2011 - $127,313).  - Salaries and benefits expense decreased by $32,917 (14%) to $209,448 (2011 - $242,365).  - Investor relations and promotion expenses decreased by $40,386 (21%) in relation to the following:  - Legal fees decreased by $10,112 (32%) to $21,559 (2011 - $31,671 in 2011). 2012 2011 Annual report and meeting 5,141 $ 6,269 $ Insurance 20,582 32,709 Office and miscellaneous 47,285 49,364 Regulatory and transfer agent fees 25,880 46,997 Rent and storage 62,596 73,570 161,484 $ 208,909 $ - Share-based payments for the year were $100,002 compared to $425,121 in 2011 in respect of the vesting of stock option, in  relation to the following: - Commander recognized an impairment loss of $471,486 (2011 - $Nil) on investment in securities. - Commander wrote down a total of $916,789 on impaired properties (2011 - $3,958,279). . - Commander’s share of loss in Maritime after deconsolidation from February 16 through December 31, 2012 was $161,438.  - Commander recognized dilution losses resulting from the decrease in equity interest in Maritime amounted to $103,414.  - A total gain of $3,186,676 was realized on the deconsolidation of Maritime, including a cash gain of $198,529 and non-cash  gain of $2,988,147. 2012 2011 Conferences and trade shows  $ 30,119  37,731  Consulting, wages and benefits 94,078  91,976  Media 14,088  35,950  Printing 716  - Promotion and advertising 13,286  27,016   $ 152,287   $ 192,673  2012 2011 Accounting and audit $ 2,659 $ 7,227 Consultants 46,508 192,937 Investor relations 8,564 21,059 Salaries and benefits 42,271 203,898 $ 100,002  $ 425,121 - 6 - 