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Drn - Delrand Resources Limited - Unaudited Group Results For The Three And

Release Date: 18/08/2011 17:44:06      Code(s): DRN
DRN - Delrand Resources Limited - Unaudited group results for the three and     
six months ended 30 June 2011                                                   
DELRAND RESOURCES LIMITED                                                       
(formerly BRC DiamondCore Ltd.)                                                 
(Incorporated in Canada)                                                        
(Corporation number 627115-4)                                                   
Share code: DRN & ISIN Number: CA2472671072                                     
("Delrand" or "the Company")                                                    
UNAUDITED GROUP RESULTS FOR THE THREE AND SIX MONTHS ENDED 30 JUNE 2011         
NOTICE TO READER                                                                
These interim condensed consolidated financial statements of Delrand            
Resources Limited (the "Company") as at and for the three and six month         
periods ended June 30, 2011 have been prepared by and are the responsibility    
of the Company`s management.  These interim condensed consolidated financial    
statements have not been audited or reviewed by the Company`s auditors.         
The accompanying notes are an integral part of these interim condensed          
consolidated financial statements.                                              
Condensed Consolidated Statements of Financial Position                         
(Expressed in Canadian dollars - unaudited)                                     
Notes June 30, 2011   December 31,   January 1,          
                                             2010           2010                
                             $               $              $                   
Assets                                                                          
Current Assets                                                                  
Cash and cash                                                                   
equivalents                   339,952         126,931        664,495            
Prepaid expenses and                                                            
other assets                  34,410          21,713         163,175            
Total Current Assets                                                            
                             374,362         148,644        827,670             
                                                                                
Non-Current Assets                                                              
Property, plant and     4                                                       
equipment                     640             4,100          141,794            
Exploration and         5                                                       
evaluation                    4,628,195       5,074,302      5,826,083          
Total Non-Current                                  5,078,402                    
Assets                        4,628,835                      5,967,877          
                                                                                
Total Assets                                       5,227,046                    
                             5,003,197                      6,795,547           
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Accounts payable and                                                            
accrued liabilities           594,645         834,176        1,027,172          
Notes payable           7                                                       
                             -               400,493        377,884             
Taxes payable                                                                   
                             -               6,127          -                   
Due to related parties                                                          
                             49,614          106,029        -                   
Total Current                                      1,346,825                    
Liabilities                   644,259                        1,405,056          

Non-current                                                                     
Future tax liability                                                            
                             15,789          15,789         57,030              
Total Liabilities                                  1,362,614                    
                             660,048                        1,462,086           
                                                                                
Shareholders` Equity                                                            
Share capital           8                                                       
                             116,283,812     115,457,876    115,457,876         
Contributed surplus                                                             
                             7,812,242       7,812,242      7,774,233           
Deficit                                                                         
                             (119,752,905)   (119,405,686)  (117,898,648)       
Total Shareholders`                                3,864,432                    
Equity                        4,343,149                      5,333,461          
Total Liabilities and                              5,227,046                    
Shareholders` Equity          5,003,197                      6,795,547          
                                                                                
Common shares                                                                   
Authorized                    Unlimited       Unlimited      Unlimited          
Issued and outstanding                                                          
                             49,704,341      89,408,640     89,408,640          
Condensed Consolidated Statements of Comprehensive Loss                         
(Expressed in Canadian dollars - unaudited)                                     
                 Notes For the     For the     For the    For the six           
                       three       three       six month  month period          
                       month       month       period     ended June 30,        
period      period      ended      2010                  
                       ended June  ended June  June 30,                         
                       30, 2011    30, 2010    2011                             
                       $           $           $          $                     
Expenses                                                                        
Consulting and          97,196      64,251      202,318    144,593              
professional                                                                    
fees                                                                            
General and             75,004      34,220      145,414    106,556              
administrative                                                                  
Share-based       9     -           -           -          73,116               
payment expense                                                                 
Foreign exchange        (2,756)     323         (513)      2,360                
(gain) loss                                                                     
Loss from               (169,444)   (98,794)    (347,219)  (326,625)            
operations                                                                      

                                                                                
Headline loss           (169,444)   (98,794)    (347,219)  (326,625)            
per share                                                                       

Loss for the            (169,444)   (98,794)    (347,219)  (326,625)            
period                                                                          
                                                                                
Comprehensive           (169,444)   (98,794)    (347,219)  (326,625)            
loss for the                                                                    
period                                                                          
                                                                                
Loss per share,         (0.00)      (0.00)      (0.00)     (0.00)               
basic and                                                                       
diluted                                                                         
Condensed Consolidated Statements of Changes in Equity                          
(Expressed in Canadian dollars - unaudited)                                     
       N  Common shares              Contribut  Deficit       Total Share-      
       o                             ed                       holder`s          
       t                             Surplus                  equity            
e                                                                        
       s                                                                        
          Number of     Amount                                                  
          shares                                                                
$            $          $             $                 
Balance                  115,457,876                                            
at         89,408,640                 7,774,233  (117,898,648) 5,333,461        
January                                                                         
1, 2010                                                                         
                                                                                
Net                                                                             
loss                                             (326,625)     (326,625)        
for the                                                                         
period                                                                          
Share   9                                                                       
based                                 95,189                   95,189           
compens                                                                         
ation                                                                           
Balance                                                                         
at June    89,408,640    115,457,876  7,869,422  (118,225,273) 5,102,025        
30,                                                                             
2010                                                                            
Net                                                                             
loss                                             (1,180,413)   (1,180,413)      
for the                                                                         
period                                                                          
Share                                                                           
based                                 (57,180)                 (57,180)         
compens                                                                         
ation                                                                           
Balance at                                                                      
December   89,408,640    115,457,876  7,812,242  (119,405,686) 3,864,432        
31, 2010                                                                        
                                                                                
Balance                                                                         
at         89,408,640    115,457,876  7,812,242  (119,405,686) 3,864,432        
January                                                                         
1, 2011                                                                         
Net                                                                             
loss                                             (347,219)     (347,219)        
for the                                                                         
period                                                                          
Share   9                                                                       
based                                                                           
compens                                                                         
ation                                                                           
Share                                                                           
issue      10,000,000    825,936                               825,936          
Two to  8                                                                       
one     a  (49,704,299                                                          
share      )                                                                    
consoli                                                                         
dation                                                                          
Balance                                                                         
at June *  49,704,341    116,283,812  7,812,242  (119,752,905) 4,343,149        
30,                                                                             
2011                                                                            
* 2 to 1 consolidation of shares was implemented June 2011 after the share      
issue                                                                           
Condensed Consolidated Statements of Cash Flows                                 
(Expressed in Canadian dollars - unaudited)                                     
                        Notes  Three      Three      Six         Six            
                               months     months     months     months          
                               ended      ended      ended      ended           
June 30,   June 30,   June 30,   June 30,        
                               2011       2010       2011       2011            
                               $          $          $          $               
                                                                                
Cash flows from                                                                 
operating activities                                                            
Net loss for the period                                                         
                               (169,444)  (98,794)   (347,219)  (326,625)       
Adjustments to reconcile                                                        
loss to net cash used in                                                        
operating activities                                                            
Share based payments     9                                                      
-          -          -          73,116          
Accrued interest in                                                             
notes payable                   3,069      -          8,000      -              
Changes in non-cash                                                             
working capital                                                                 
Prepaid expenses and                                                            
other current assets            (24,133)   1,658      (12,697)   36,606         
Taxes payable                                                                   
(6,127)    -          (6,127)    -               
Accounts payable and                                                            
accrued liabilities             (248,435)  (27,339)   (239,531)  (146,073)      
Net cash flows from                                                             
operating activities            (445,070)  (124,475)  (597,574)  (362,976)      
                                                                                
Cash flows from                                                                 
investing activities                                                            
Expenditures on                                                                 
exploration and                 326,508    (34,949)   145,233    (34,949)       
evaluation                                                                      
Funds received from Rio                                                         
Tinto                           113,071    -          304,334    -              
Net cash used in                                                                
investing activities            439,579    (34,949)   449,567    (34,949)       
                                                                                
Cash flows from                                                                 
financing activities                                                            
Issue of shares                                                                 
                               825,936    -          825,936    -               
Repayment of notes       7                                                      
payable                         (408,493)  -          (408,493)  -              
Due to related parties                                                          
                               (219,832)  (35,583)   (56,415)   (259,373)       
Net cash from financing                                                         
activities                      197,611    (35,583)   361,028    (259,373)      
                                                                                
Net increase in cash                                                            
during the period               192,120    (195,007)  213,021    (657,298)      
Cash and cash                                                                   
equivalents, beginning          147,832    202,204    126,931    664,495        
of the period                                                                   
Cash and cash                                                                   
equivalents, end of the         339,952    7,197      339,952    7,197          
period                                                                          
Supplemental cash flow information (Note 12)                                    
1    Corporate Information                                                      
The principal business of Delrand Resources Limited (the "Company") is the      
acquisition and exploration of mineral properties in the Democratic Republic    
of the Congo ("DRC"). In June 2011, the Company effected a change in the name   
of the Company from BRC DiamandCore Ltd. to Delrand Resources Limited and a     
consolidation of the outstanding common shares of the Company on a two to one   
basis.                                                                          
These interim condensed consolidated financial statements as at and for the     
three and six month periods ended June 30, 2011 include the accounts of the     
Company and of its wholly-owned subsidiaries incorporated in the DRC, BRC       
DiamondCore Congo SPRL, and in South Africa, BRC Diamond South Africa           
(Proprietary) Limited.                                                          
The Company is a publicly traded company whose outstanding common shares are    
listed for trading on the Toronto Stock Exchange and the JSE Limited in         
Johannesburg, South Africa. The head office of the Company is located at 1      
First Canadian Place, 100 King St. West, Suite 707O, Toronto, Ontario, M5X      
1E3, Canada.                                                                    
2    Basis of Preparation                                                       
These interim condensed consolidated financial statements are prepared on a     
going concern basis, which assumes that the Company will continue in            
operation for a reasonable period of time and will be able to realize its       
assets and discharge its liabilities in the normal course of operations. The    
Company has not generated revenues from operations. The Company incurred a      
net loss of $347,219 during the six months ended June 30, 2011 and, as of       
that date, the Company`s deficit was $119,752,905.  These conditions along      
with other matters indicate the existence of material uncertainties that may    
cast significant doubt about the Company`s ability to continue as a going       
concern. As such, the Company`s ability to continue as a going concern          
depends on its ability to successfully raise additional financing for           
development of the mineral properties. Although the Company has been            
successful in the past in obtaining financing and subsequently raised           
financing, there is no assurance that it will be able to obtain adequate        
financing in the future or that such financing will be available on             
acceptable terms.                                                               
a)   Statement of compliance                                                    
                                                                                
These interim condensed consolidated financial statements have been         
    prepared in accordance with International Accounting Standard ("IAS") 34    
    Interim Financial Reporting using accounting policies consistent with       
    International Financial Reporting Standards ("IFRS") issued by the          
International Accounting Standards Board ("IASB").                          
    The Company`s annual consolidated financial statements previously were      
    prepared in accordance with Canadian generally accepted accounting          
    principles (GAAP). Canadian GAAP differs from IFRS in some areas. In        
preparing the IFRS statements, management amended certain accounting,       
    valuation, and consolidation methods previously applied under Canadian      
    GAAP.                                                                       
    The Company`s date of transition was January 1, 2010 (the "transition       
date"). An explanation of how the transition of previously prepared         
    financial statements in accordance with Canadian GAAP to IFRS has           
    affected the reported financial position, financial performance and cash    
    flows of the Company is provided in Note 14. This note includes             
reconciliations of equity and profit/loss for comparative periods and of    
    equity at the date of transition reported under Canadian GAAP to those      
    reported for those periods and at the date of transition under IFRS. The    
    2010 comparative figures have been restated to reflect the adjustments,     
except as described in the accounting policies. These interim condensed     
    consolidated financial statements and comparative figures presented are     
    in accordance with IFRS and have not been audited.                          
    The policies applied in these interim condensed consolidated financial      
statements are presented in Note 3 and are based on IFRS expected to be     
    effective as of December 31, 2011. The date the Company`s Audit             
    Committee approved these financial statements was August 12, 2011.          
2    Basis of measurement                                                       

    These interim condensed consolidated financial statements have been         
    prepared under the historical cost convention, except for certain           
    financials assets which are presented at fair value, as explained in the    
accounting policies set out in Note 3.                                      
3    Summary of Significant Accounting Policies                                 
                                                                                
    The accounting policies set out below have been applied consistently to     
all periods presented in these interim condensed consolidated financial     
    statements and in preparing the opening IFRS consolidated statements of     
    financial position at January 1, 2010 for the purposes of the transition    
    to IFRS, unless otherwise indicated. The exemptions taken in applying       
IFRS for the first time are set out in Note 14. The accounting policies     
    have been applied consistently by all entities.                             
a)   Basis of Consolidation                                                     
(i)  Subsidiaries                                                               
Subsidiaries are entities controlled by the Company. Control exists when    
    the Company has the power, directly or indirectly, to govern the            
    financial and operating policies of an entity so as to obtain benefits      
    from its activities. This control is evidenced through owning more than     
50% of the voting rights or currently exercisable potential voting          
    rights of a company`s share capital. The financial statements of            
    subsidiaries are included in the consolidated financial statements of       
    the Company from the date that control commences until the date that        
control ceases. Consolidation accounting is applied for all of the          
    Company`s subsidiaries.                                                     
(ii) Transactions eliminated on consolidation                                   
    Inter-company balances, transactions, and any unrealized income and         
expenses, are eliminated in preparing the consolidated financial            
    statements.                                                                 
                                                                                
    Unrealized losses are eliminated in the same way as unrealized gains,       
but only to the extent that there is no evidence of impairment.             
b)   Use of Estimates and Judgments                                             
    The preparation of these interim condensed consolidated financial           
    statements in conformity with IFRS requires management to make              
judgments, estimates and assumptions that affect the application of         
    accounting policies and the reported amounts of assets, liabilities,        
    income and expenses. Actual results may differ from these estimates.        
                                                                                
In preparing these interim condensed consolidated financial statements,     
    the significant judgments made by management applying the Company`s         
    accounting policies and the key sources of estimation uncertainty are       
    expected to be the same as those to be applied in the first annual IFRS     
financial statements.  Estimates and underlying assumptions are reviewed    
    on an ongoing basis. Revisions to accounting estimates are recognized in    
    the period in which the estimates are revised and in any future periods     
    affected. Information about critical judgments in applying accounting       
policies that have the most significant effect on the amounts recognized    
    in the interim condensed consolidated financial statements is included      
    in the following notes:                                                     
i)   Provisions and contingencies                                               
The amount recognized as provision, including legal, contractual,               
constructive and other exposures or obligations, is the best estimate of the    
consideration required to settle the related liability, including any related   
interest charges, taking into account the risks and uncertainties surrounding   
the obligation. In addition, contingencies will only be resolved when one or    
more future events occur or fail to occur. Therefore assessment of              
contingencies inherently involves the exercise of significant judgment and      
estimates of the outcome of future events. The Company assesses its             
liabilities and contingencies based upon the best information available,        
relevant tax laws and other appropriate requirements.                           
(ii) Exploration and evaluation expenditure                                     
The application of the Company`s accounting policy for exploration and          
evaluation expenditure requires judgment in determining whether it is likely    
that future economic benefits will flow to the Company, which may be based on   
assumptions about future events or circumstances. Estimates and assumptions     
made may change if new information becomes available. If, after the             
expenditure is capitalized, information becomes available suggesting that the   
recovery of the expenditure is unlikely, the amount capitalized is written      
off in the statement of comprehensive loss during the period the new            
information becomes available.                                                  
(iii)     Impairment                                                            
Assets, including property, plant and equipment and exploration and             
evaluation, are reviewed for impairment whenever events or changes in           
circumstances indicate that their carrying amounts exceed their recoverable     
amounts. The assessment of the fair value often requires estimates and          
assumptions such as discount rates, exchange rates, commodity prices,           
rehabilitation and restoration costs, future capital requirements and future    
operating performance. Changes in such estimates could impact recoverable       
values of these assets. Estimates are reviewed regularly by management.         
iv)  Income taxes                                                               
The Company is subject to income taxes in various jurisdictions and subject     
to various rates and rules of taxation. Significant judgment is required in     
determining the provision for income taxes. There are many transactions and     
calculations undertaken during the ordinary course of business for which the    
ultimate tax determination is uncertain. The Company recognizes liabilities     
for anticipated tax audit issues based on the Company`s current understanding   
of the tax law. Where the final tax outcome of these matters is different       
from the amounts that were initially recorded, such differences will impact     
the current and deferred tax provisions in the period in which such             
determination is made.                                                          
In addition, the Company has recognized deferred tax assets relating to tax     
losses carried forward to the extent there are sufficient taxable income        
relating to the same taxation authority and the same subsidiary against which   
the unused tax losses can be utilized. However, future realization of the tax   
losses also depends on the ability of the entity to satisfy certain tests at    
the time the losses are recouped, including current and future economic         
conditions, production rates and production costs.                              
v)   Share-based payment transactions                                           
The Company measures the cost of equity-settled transactions with employees     
by reference to the fair value of the equity instruments at the date at which   
they are granted. Estimating fair value for share-based payment transactions    
requires determining the most appropriate valuation model, which is dependent   
on the terms and conditions of the grant. This estimate also requires           
determining the most appropriate inputs to the valuation model including the    
expected life of the share option, volatility and dividend yield and making     
assumptions about them. The assumptions and models used for estimating fair     
value for share-based payment transactions are disclosed in Note 9.             
vi)  Decommissioning and environmental provisions                               
The Company`s operations are subject to environmental regulations in the DRC.   
Upon establishment of commercial viability of a site, the Company estimates     
the cost to restore the site following the completion of commercial             
activities and depletion of reserves. These future obligations are estimated    
by taking into consideration closure plans, known environmental impacts, and    
internal and external studies which estimate the activities and costs that      
will be carried out to meet the decommissioning and environmental               
obligations. Amounts recorded for decommissioning and environmental             
provisions are based on estimates of decommissioning and environmental costs    
which may not be incurred for several years or decades. The decommissioning     
and environmental cost estimates could change due to amendments in laws and     
regulations in the DRC. Additionally, actual estimated decommissioning and      
reclamation costs may differ from those projected as a result of an increase    
over time of actual remediation costs, a change in the timing for utilization   
of reserves and the potential for increasingly stringent environmental          
regulatory requirements.                                                        
c)   Foreign Currency Translation                                               
    Functional and presentation currency                                        
These interim condensed consolidated financial statements are presented     
    in Canadian dollars ("$"), which is the Company`s functional and            
    presentation currency.                                                      
    Foreign currency transactions                                               
The functional currency for each of the Company`s subsidiaries is the       
    currency of the primary economic environment in which the entity            
    operates. Transactions entered into by the Company`s subsidiaries in a      
    currency other than the currency of the primary economic environment in     
which they operate (their "functional currency") are recorded at the        
    rates ruling when the transactions occur except depreciation and            
    amortization which are translated at the rates of exchange applicable to    
    the related assets, with any gains or losses recognized in the              
consolidated statements of comprehensive loss. Foreign currency monetary    
    assets and liabilities are translated at current rates of exchange with     
    the resulting gain or losses recognized in the consolidated statements      
    of comprehensive loss. Exchange differences arising on the retranslation    
of unsettled monetary assets and liabilities are recognized immediately     
    in profit or loss. Non-monetary assets and liabilities are translated       
    using the historical exchange rates. Non-monetary assets and liabilities    
    measured at fair value in a foreign currency are translated using the       
exchange rates at the date when the fair value is determined.               
d)   Cash                                                                       
    Cash and cash equivalents includes cash on hand, deposits held with         
    financial institutions and other short-term, highly liquid investments      
with original maturities of three months or less that are readily           
    convertible to known amounts.                                               
e)   Financial Assets                                                           
    Financial assets are classified as either financial assets at fair value    
through profit or loss ("FVTPL"), loans and receivables, held to            
    maturity investments ("HTM"), or available for sale financial assets        
    ("AFS"), as appropriate at initial recognition and, except in very          
    limited circumstances, the classification is not changed subsequent to      
initial recognition. The classification is determined at initial            
    recognition and depends on the nature and purpose of the financial          
    asset. A financial asset is derecognized when contractual rights to the     
    asset`s cash flows expire or if substantially all the risks and rewards     
of the asset are transferred.                                               
i.   Financial assets at FVTPL                                                  
    Financial assets are classified as FVTPL when the financial asset is        
    held for trading or it is designated upon initial recognition as at         
FVTPL. A financial asset is classified as held for trading if (1) it has    
    been acquired principally for the purpose of selling or repurchasing in     
    the near term; (2) it is part of an identified portfolio of financial       
    instruments that the Company manages and has an actual pattern of short     
term profit taking; or (3) it is a derivative that is not designated and    
    effective as a hedging instrument. Financial assets at FVTPL are carried    
    in the consolidated statement of financial position at fair value with      
    changes in fair value recognized in profit or loss. Transaction costs       
are expensed as incurred.                                                   
    The Company has classified cash and cash equivalents as FVTPL.              
    Loans and receivables                                                       
    Trade receivables, loans and other receivables that have fixed or           
determinable payments that are not quoted in an active market are           
    classified as loans and receivable.                                         
                                                                                
    Loans and receivables are initially recognized at fair value plus           
transaction costs that are directly attributable to their acquisition or    
    issue, and are subsequently carried at amortized cost less losses for       
    impairment. The impairment loss of receivables is based on a review of      
    all outstanding amounts at period end. Bad debts are written off during     
the period in which they are identified. Amortized cost is calculated       
    taking into account any discount or premium on acquisition and includes     
    fees that are an integral part of the effective interest rate and           
    transaction costs. Gains and losses are recognized in the statements of     
comprehensive loss when the loans and receivables are derecognized or       
    impaired, as well as through the amortization process.                      
    HTM investments                                                             
    HTM financial instruments are initially measured at fair value.             
Subsequently, HTM financial assets are measured at amortized cost using     
    the effective interest rate method, less any impairment losses. The         
    Company did not classify any assets as HTM.                                 
iii. AFS financial assets                                                       
Non-derivative financial assets not included in the above categories are    
    classified as AFS financial assets. They are carried at fair value with     
    changes in fair value generally recognized in other comprehensive loss      
    and accumulated in the AFS reserve. Impairment losses are recognized in     
profit or loss. Purchases and sales of AFS financial assets are             
    recognized on settlement date with any change in fair value between         
    trade date and settlement date being recognized in the AFS reserve. On      
    sale, the cumulative gain or loss recognized in other comprehensive loss    
is reclassified from the AFS reserve to profit or loss. The Company has     
    not designated any of its financial assets as AFS.                          
iv.  Impairment of financial assets                                             
    The Company assesses at each reporting date whether a financial asset or    
a group of financial assets is impaired. A financial asset or group of      
    financial assets is deemed to be impaired, if, and only if, there is        
    objective evidence of impairment as a result of one or more events that     
    has occurred after the initial recognition of the asset and that event      
has an impact on the estimated future cash flows of the financial asset     
    or the group of financial assets that can be reliably estimated.            
    For financial assets carried at amortized cost, the amount of the           
    impairment is the difference between the asset`s carrying amount and the    
present value of estimated future cash flows, discounted at the asset`s     
    original effective rate.                                                    
    The carrying amount of all financial assets, excluding advances             
    receivables and balances due from related parties, is directly reduced      
by the impairment loss. The carrying amount of trade receivables is         
    reduced through the use of an allowance account. Associated allowances      
    are written off when there is no realistic prospect of future recovery      
    and all collateral has been realized or has been transferred to the         
Company. Subsequent recoveries of amounts previously written off are        
    credited against the allowance account. Changes in the carrying amount      
    of the allowance account are recognized in profit or loss. A provision      
    for impairment is made in relation to advances receivable, and an           
impairment loss is recognized in profit and loss when there is objective    
    evidence that the Company will not be able to collect all of the amounts    
    due under the original terms. The carrying amount of the receivable is      
    reduced through use of an allowance account.                                
With the exception of AFS equity instruments, if in a subsequent period     
    the amount of impairment loss decreases and the decrease relates to an      
    event occurring after the impairment was recognized, the previously         
    recognized impairment loss is reversed through profit or loss. On the       
date of impairment reversal, the carrying amount of the financial asset     
    cannot exceed its amortized cost had the impairment not been recognized.    
    Reversal for AFS equity instruments are not recognized in profit or         
    loss.                                                                       
Effective interest method                                                   
    The effective interest method calculates the amortized cost of a            
    `financial instrument asset or liability and allocates interest income      
    over the corresponding period. The effective interest rate is the rate      
that discounts estimated future cash receipts over the expected life of     
    the financial asset or liability, or where appropriate, a shorter           
    period. Income is recognized on an effective interest basis for debt        
    instruments other than those financial assets classified as FVTPL.          
f)   Financial Liabilities                                                      
    Financial liabilities are classified as FVTPL, or other financial           
    liabilities, as appropriate upon initial recognition. A financial           
    liability is derecognized when the obligation under the liability is        
discharged, cancelled or expired.                                           
    i.   Financial liabilities classified as other financial liabilities are    
         initially recognized at fair value less directly attributable          
         transaction costs. Subsequent to the initial recognition, other        
financial liabilities are measured at amortized cost using the         
         effective interest method. The Company`s other financial               
         liabilities include accounts payables and accrued liabilities and      
         notes payable.                                                         
ii.  Financial liabilities classified as FVTPL include financial            
         liabilities held for trading and financial liabilities designated      
         upon initial recognition as FVTPL. Financial liabilities are           
         classified as held-for-trading if they are acquired for the purpose    
of selling in the near term. This category includes derivative         
         financial instruments (including separated embedded derivatives)       
         held for trading unless they are designated as effective hedging       
         instruments. Gains or losses on liabilities held for trading are       
recognized in the consolidated statement of comprehensive loss. The    
         Company does not have any financial liabilities classified as          
         FVTPL.                                                                 
g)   Loss Per Share                                                             
Basic loss per share is computed by dividing the net loss applicable by     
    the weighted average number of common shares outstanding during the         
    reporting period. Diluted loss per share is computed by dividing the net    
    loss by the sum of the weighted average number of common shares issued      
and outstanding during the reporting period and all additional common       
    shares for the assumed exercise of stock options and warrants               
    outstanding for the reporting period, if dilutive. The treasury method      
    stock method is used for the assumed proceeds upon the exercise of stock    
options and warrants that are used to purchase common shares at the         
    average market price during the reporting period. As the Company is         
    incurring losses, basic and diluted loss per share are the same since       
    including the exercise of outstanding stock options and share purchase      
warrants in the diluted loss per share calculation would be anti-           
    dilutive.                                                                   
h)   Property, Plant and Equipment ("PPE")                                      
    i)Recognition and measurement                                               
Items of PPE are measured at cost less accumulated depreciation and         
    accumulated impairment losses. Cost includes expenditures that are          
    directly attributable to the acquisition of the asset. The cost of self-    
    constructed assets includes the cost of materials, directed labor and       
any other cost directly attributable to bring the asset to the location     
    and condition necessary to be capable of operating in the manner            
    intended by the Company. Assets in the course of construction are           
    capitalized in the capital construction in progress category and            
transferred to the appropriate category of PPE upon completion. When        
    components of an asset have different useful lives, depreciation is         
    calculated on each separate component.                                      
    ii. Subsequent costs                                                        
The cost of replacing part of an item of PPE is recognized in the       
        carrying amount of the item if it is probable that the future           
        economic benefits embodied within the part will flow to the Company     
        and its cost can be measured reliably. The carrying amount of the       
replaced part is derecognized and included in net loss. If the          
        carrying amount of the replaced component is not known, it is           
        estimated based on the cost of the new component less estimated         
        depreciation. The costs of the day-to-day servicing of property,        
plant and equipment are recognized in profit or loss as incurred.       
    iii. Depreciation                                                           
         Depreciation is based on the cost of an asset less its residual        
         value. Significant components of individual assets are assessed to     
determine whether a component has an estimated useful life that is     
         different from that of the remainder of that asset, in which case      
         that component is depreciated separately. Depreciation is              
         recognized in profit or loss on a straight line basis over the         
estimated useful lives of each item or component of an item of PPE     
         as follows:                                                            
    *    Furniture and office equipment          two to seven years             
    *    Vehicles                                four years                     
*    Computer equipment                      three years                    
    *    Exploration and mining assets           two to four years              
                                                                                
    Depreciation methods, useful lives and residual values are reviewed         
annually and adjusted, if appropriate. Depreciation commences when an       
    asset is available for use. Changes in estimates are accounted for          
    prospectively.                                                              
                                                                                
iv.  Gains and losses                                                       
    Gains and losses on disposal of an item of PPE are determined by            
    comparing the proceeds from disposal with the carrying amount of the        
    PPE, and are recognized net within other income/expenses in profit or       
loss.                                                                       
    v.   Repairs and maintenance                                                
         Repairs and maintenance costs are charged to expense as incurred,      
         except major inspections or overhauls that are performed at regular    
intervals over the useful life of an asset is capitalized as part      
         of PPE.                                                                
    vi.  De-recognition                                                         
         An item of PPE is derecognized upon disposal or when no future         
economic benefits are expected to arise from the continued use of      
         the asset. Any gain or loss arising on de-recognition of the assets    
         (calculated as the difference between the net disposal proceeds and    
         the carrying amount of the item) is included in net earnings (loss)    
in the period the item is derecognized.                                
i)   Exploration and Evaluation Assets                                          
    All direct costs related to exploration and evaluation of mineral           
    properties, net of incidental revenues, are capitalized under               
exploration and evaluation assets. Exploration and evaluation               
    expenditures include such costs as acquisition of rights to explore;        
    sampling, trenching and surveying costs; costs related to topography,       
    geology, geochemistry and geophysical studies; drilling costs and costs     
in relation to technical feasibility and commercial viability of            
    extracting a mineral resource.                                              
    A regular review of each property is undertaken to determine the            
    appropriateness of continuing to carry forward costs in relation to         
exploration and evaluation of mineral properties. Should the carrying       
    value of the expenditure not yet amortized exceed its estimated             
    recoverable amount in any year, the excess is written off to the            
    consolidated statements of comprehensive loss.                              
j)   Impairment of Non-financial Assets                                         
                                                                                
    The Company`s PPE is assessed for indication of impairment at each          
    consolidated statements of financial position date. Exploration and         
evaluation assets are assessed for impairment when facts and                
    circumstances suggest that the carrying amount of an exploration and        
    evaluation asset may exceed its recoverable amount. Internal factors,       
    such as budgets and forecasts, as well as external factors, such as         
expected future prices, costs and other market factors are also             
    monitored to determine if indications of impairment exist. If any           
    indication of impairment exists, an estimate of the asset`s recoverable     
    amount is calculated. The recoverable amount is determined as the higher    
of the fair value less costs to sell for the asset and the asset`s value    
    in use. This is determined for an individual asset, unless the asset        
    does not generate cash inflows that are largely independent of those        
    from other assets or the Company`s assets. If this is the case, the         
individual assets are grouped together into cash generating units           
    ("CGU") for impairment purposes. Such CGUs represent the lowest level       
    for which there are separately identifiable cash inflows that are           
    largely independent of the cash flows from other assets.                    
If the carrying amount of the asset exceeds its recoverable amount, the     
    asset is impaired and an impairment loss is charged to the consolidated     
    statements of comprehensive loss so as to reduce the carrying amount to     
    its recoverable amount (i.e., the higher of fair value less cost to sell    
and value in use). Fair value less cost to sell is the amount obtainable    
    from the sale of an asset or CGU in an arm`s length transaction between     
    knowledgeable, willing parties, less the costs of disposal. Value in use    
    is determined as the present value of the future cash flows expected to     
be derived from an asset or CGU. Estimated future cash flows are            
    calculated using estimated future prices, mineral reserves and resources    
    and operating and capital costs. All assumptions used are those that an     
    independent market participant would consider appropriate. The estimated    
future cash flows are discounted to their present value using a pre-tax     
    discount rate that reflects current market assessments of the time value    
    of money and the risks specific to the asset for which estimates of         
    future cash flows have not been adjusted.                                   
The Company has not recognized impairment of tangible assets during the     
    three and six month periods ended June 30, 2011 and June 30, 2010 (year     
    ended December 31, 2010 - $740,975).                                        
k)   Income Taxes                                                               
Income tax expense consists of current and deferred tax expense. Income     
    tax expense is recognized in profit and loss, except to the extent that     
    it relates to items recognized in other comprehensive income or directly    
    in equity. In this case, the tax is also recognized in other                
comprehensive income or directly in equity.                                 
    Current income tax assets and liabilities for the current and prior         
    periods are measured at the amount expected to be recovered from or paid    
    to the taxation authorities. The tax rates and tax laws used to compute     
current income tax assets and liabilities are measured at future            
    anticipated tax rates, which have been enacted or substantively enacted     
    at the reporting date. Current tax assets and current tax liabilities       
    are only offset if a legally enforceable right exists to set off the        
amounts, and the Company intends to settle on a net basis, or to realize    
    the asset and settle the liability simultaneously.                          
    Deferred taxation is provided on all qualifying temporary differences at    
    the reporting date between the tax basis of assets and liabilities and      
their carrying amounts for financial reporting purposes. Deferred tax       
    assets are only recognized to the extent that it is probable that the       
    deductible temporary differences will reverse in the foreseeable future     
    and future taxable profit will be available against which the temporary     
difference can be utilized.                                                 
    Deferred tax liabilities and assets are not recognized for temporary        
    differences between the carrying amount and tax bases of investments in     
    controlled entities where the parent entity is able to control the          
timing of the reversal of the temporary differences and it is probable      
    that the differences will not reverse in the foreseeable future.            
    Deferred tax assets and liabilities are offset when there is a legally      
    enforceable right to offset current tax assets and liabilities and when     
the deferred tax balances relate to the same taxation authority.            
l)   Share-Based Payments                                                       
    Equity-settled share-based payments for directors, officers and             
    employees are measured at fair value at the date of grant and recorded      
as compensation expense in the financial statements.  The fair value        
    determined at the grant date of the equity-settled share-based payments     
    is expensed on a straight-line basis over the vesting period based on       
    the Company`s estimate of shares that will eventually vest.  The number     
of forfeitures likely to occur is estimated on grant date.  Any             
    consideration paid by the optionee on exercise of equity-settled share-     
    based payments is credited to share capital.  Shares are issued from        
    treasury upon the exercise of equity-settled share-based instruments.       
Compensation expense on stock options granted to non-employees is           
    measured at the earlier of the completion of performance and the date       
    the options are vested using the fair value method and is recorded as an    
    expense in the same period as if the Company had paid cash for the goods    
or services received.                                                       
    When the value of goods or services received in exchange for the share-     
    based payment cannot be reliably estimated, the fair value is measured      
    by use of a Black-Scholes valuation model.  The expected life used in       
the model is adjusted, based on management`s best estimate, for the         
    effects of non-transferability, exercise restrictions, and behavioural      
    considerations.                                                             
m)   Provisions and Contingencies                                               
Provisions are recognized when a legal or constructive obligation           
    exists, as a result of past events, and it is probable that an outflow      
    of resources that can be reliably estimated will be required to settle      
    the obligation. Where the effect is material, the provision is              
discounted using an appropriate current market-based pre-tax discount       
    rate. The increase in the provision due to passage of time is recognized    
    as interest expense.                                                        
    When a contingency substantiated by confirming events, can be reliably      
measured and is likely to result in an economic outflow, a liability is     
    recognized as the best estimate required to settle the obligation. A        
    contingent liability is disclosed where the existence of an obligation      
    will only be confirmed by future events, or where the amount of a           
present obligation cannot be measured reliably or will likely not result    
    in an economic outflow. Contingent assets are only disclosed when the       
    inflow of economic benefits is probable. When the economic benefit          
    becomes virtually certain, the asset is no longer contingent and is         
recognized in the consolidated financial statements.                        
n)   Related Party Transactions                                                 
    Parties are considered to be related if one party has the ability,          
    directly or indirectly, to control the other party or exercise              
significant influence over the other party in making financial and          
    operating decisions. Parties are also considered to be related if they      
    are subject to common control or common significant influence, related      
    parties may be individuals or corporate entities. A transaction is          
considered to be a related party transaction when there is a transfer of    
    resources or obligations between related parties. Related party             
    transactions that are in the normal course of business and have             
    commercial substance are measured at the exchange amount.                   
o)   New Pronouncements Adopted                                                 
    March 31, 2011 was the Company`s first reporting period under IFRS.         
    Accounting standards effective for periods beginning on January 1, 2011     
    have been adopted as part of the transition to IFRS.                        
p)   Recent Pronouncements Issued                                               
    The Company has reviewed new and revised accounting pronouncements that     
    have been issued but are not yet effective and determined that the          
    following may have an impact on the Company:                                
IFRS 9 Financial instruments ("IFRS 9") was issued by the IASB on           
    November 12, 2009 and will replace IAS 39 Financial Instruments:            
    Recognition and Measurement ("IAS 39"). IFRS 9 replaces the multiple        
    rules in IAS 39 with a single approach to determine whether a financial     
asset is measured at amortized cost or fair value and a new mixed           
    measurement model for debt instruments having only two categories:          
    amortized cost and fair value. The approach in IFRS 9 is based on how an    
    entity manages its financial instruments in the context of its business     
model and the contractual cash flow characteristics of the financial        
    assets. The new standard also requires a single impairment method to be     
    used, replacing the multiple impairment methods in IAS 39. IFRS 9 is        
    effective for annual periods beginning on or after January 1, 2013. The     
Company is currently evaluating the impact of IFRS 9 on its consolidated    
    financial statements.                                                       
    A revised version of IAS 24 Related party disclosures ("IAS 24") was        
    issued by the IASB on November 4, 2009. IAS 24 requires entities to         
disclose in their consolidated financial statements information about       
    transactions with related parties. Generally, two parties are related to    
    each other if one party controls, or significantly influences, the other    
    party. IAS 24 has simplified the definition of a related party and          
removed certain of the disclosures required by the predecessor standard.    
    The revised standard is effective for annual periods beginning on or        
    after January 1, 2011. The adoption of this issuance did not have a         
    significant impact on the Company`s consolidated financial statements.      
IFRS 10 Consolidated Financial Statements ("IFRS 10") establishes           
    principles for the presentation and preparation of consolidated             
    financial statements when an entity controls one or more other entities.    
    IFRS 10 supersedes IAS 27 "Consolidated and Separate Financial              
Statements" and SIC-12 "Consolidated - Special Purpose Entities" and is     
    effective for annual periods beginning on or after January 1, 2013.         
    Earlier application is permitted. The Company is currently evaluating       
    the impact of this standard on its consolidated financial statements.       
IFRS 11 Joint Arrangements ("IFRS 11") establishes principles for           
    financial reporting by parties to a joint arrangement. IFRS 11              
    supersedes the current IAS 31 "Interests in Joint Ventures" and SIC-13      
    "Jointly Controlled Entities - Non-Monetary Contributions by Venturers"     
and is effective for annual periods beginning on or after January 1,        
    2013. Earlier application is permitted. The Company is currently            
    evaluating the impact of this standard on its consolidated financial        
    statements.                                                                 
IFRS 12 Disclosure of Interests in Other Entities ("IFRS 12") applies to    
    entities that have an interest in a subsidiary, a joint arrangement, an     
    associate or an unconsolidated structured entity. IFRS 12 is effective      
    for annual periods beginning on or after January 1, 2013. Earlier           
application is permitted. The Company is currently evaluating the impact    
    of this standard on its consolidated financial statements.                  
    IFRS 13 Fair Value Measurements ("IFRS 13") defines fair value, sets out    
    in a single IFRS framework for measuring fair value and requires            
disclosures about fair value measurements. IFRS 13 applies to IFRSs that    
    require or permit fair value measurements or disclosures about fair         
    value measurements (and measurements, such as fair value less costs to      
    sell, based on fair value or disclosures about those measurements),         
except in specified circumstances. IFRS 13 is to be applied for annual      
    periods beginning on or after January 1, 2013. Earlier application is       
    permitted. The Company is currently evaluating the impact of these          
    standards on its consolidated financial statements.                         
IFRS 7 Financial instruments: disclosures ("IFRS 7") The Accounting         
    Standards Board ("AcSB") approved the incorporation of the IASB`s           
    amendments to IFRS 7 Financial Instruments: Disclosures and the related     
    amendment to IFRS 1 First-time Adoption of International Financial          
Reporting Standards into Part I of the Handbook. These amendments were      
    made to Part I in January 2011 and are effective for annual periods         
    beginning on or after July 1, 2011. Earlier application is permitted.       
    The amendments relate to required disclosures for transfers of financial    
assets to help users of the financial statements evaluate the risk          
    exposures relating to such transfers and the effect of those risks on an    
    entity`s financial position. The Company is currently evaluating the        
    impact of IFRS 7 on its consolidated financial statements.                  
An amendment to IAS 1, Presentation of financial statements was issued      
    by the IASB in June 2011. The amendment requires separate presentation      
    for items of other comprehensive income that would be reclassified to       
    profit or loss in the future, such as foreign currency differences on       
disposal of a foreign operation, if certain conditions are met from         
    those that would never be reclassified to profit or loss. The effective     
    date is July 1, 2012 and earlier adoption is permitted. The Company is      
    currently evaluating the impact of this amendment on its consolidated       
financial statements.                                                       
    IAS 27, Separate financial statements ("IAS 27") was re-issued by the       
    IASB in May 2011 to only prescribe the accounting and disclosure            
    requirements for investments in subsidiaries, joint ventures and            
associates when an entity prepares separate financial statements. The       
    consolidation guidance will now be included in IFRS 10. The amendments      
    to IAS 27 are effective for annual periods beginning on or after January    
    1, 2013. The Company is currently evaluating the impact of the              
amendments on its consolidated financial statements.                        
    IAS 28, Investments in associates and joint ventures ("IAS 28") was re-     
    issued by the IASB in May 2011. IAS 28 continues to prescribe the           
    accounting for investments in associates, but is now the only source of     
guidance describing the application of the equity method. The amended       
    IAS 28 will be applied by all entities that have an ownership interest      
    with joint control of, or significant influence over, an investee. The      
    amendments to IAS 28 are effective for annual periods beginning on or       
after January 1, 2013. The Company is currently evaluating the impact of    
    the amendments on its consolidated financial statements.                    
4    Property, Plant and Equipment                                              
The Company`s property, plant and equipment are summarized as follows:          
Notes  Exploration  Computer  Vehicles  Furniture Total             
                   assets       equipment           and                         
                                                    office                      
                                                    equipment                   
$            $         $         $         $                 
Cost                                                                            
Balance at            316,476                                                   
January 1,                       28,659    254,436   18,106    617,677          
2010                                                                            
Additions                                                                       
                   -            -         -         -         -                 
Disposals            (207,371)                                                  
-         (94,323)  (1,255)   (302,949)         
Balance at            109,105                                                   
December 31,                     28,659    160,113   16,851    314,728          
2010                                                                            
Additions                                                                       
                   -            -         -         -         -                 
Disposals                                                                       
                   -            -         -         -         -                 
Balance at                                                                      
June 30,            109,105      28,659    160,113   16,851    314,728          
2011                                                                            
                                                                                
Accumulated                                                                     
Depreciation                                                                    
Balance at            216,384                                                   
January 1,                       19,478    225,820   14,200    475,882          
2010                                                                            
Depreciation            34,398                                                  
for the year                     6,985     28,616    2,686     72,685           
Disposals            (142,578)                                                  
(94,323)  (1,040)   (237,941)         
Balance at            108,204                                                   
December 31,                     26,463    160,113   15,846    310,626          
2010                                                                            
Depreciation                                                                    
for the             901          1,621     -         940       3,462            
period                                                                          
Disposals                                                                       
-            -         -         -         -                 
Balance at                                                                      
June 30,            109,105      28,084    160,113   16,786    314,088          
2011                                                                            
5    Exploration and Evaluation Assets                                          
The following table summarizes the Company`s tangible exploration and           
evaluation expenditures with respect to its properties in the DRC:              
           Notes  Tshikapa   Lubao      Tshikapa   Northern   Total             
Project               (Candore)  DRC                          
                                                   Project                      
                  $          $          $          $          $                 
Cost                                                                            
Balance per                                                     5,826,083       
IFRS as at         2,901,003  325,416    415,559    2,184,105                   
January 1,                                                                      
2010                                                                            
Additions                                                                       
                  120,938    -          -          (131,744)  (10,806)          
Impairment                                                                      
                  -          (325,416)  (415,559)  -          (740,975)         
Balance as                                                                      
at December        3,021,941  -          -          2,052,361  5,074,302        
31, 2010                                                                        
Additions                                                                       
89,527     -          -          (535,634)  (446,107)         
Balance as                                                                      
at June 30,        3,111,468  -          -          1,516,727  4,628,195        
2011                                                                            
There are $2,219 of intangible exploration and evaluation expenditures as at    
January 1, 2010 (December 31, 2010: $2,219).                                    
There have not been any additions or disposals since January 1, 2010.           
    a    Tshikapa Project                                                       

         The Tshikapa project is located in the south-western part of the       
         Kasai Occidental province of the DRC near the town of Tshikapa. The    
         Tshikapa project is located within the so-called Tshikapa triangle,    
bordering the Kasai River in the east, the Loange River in the west    
         and the Angolan border in the south. The properties also lie within    
         the broader kimberlite emplacement corridor which extends from         
         known kimberlite pipes located in Angola. The Tshikapa diamond         
field has been extensively mined by alluvial diamond companies and     
         small-scale miners, and it is estimated that it has produced over      
         100 million carats of diamonds since 1912. The Company has focused     
         its attention on the Tshikapa triangle through nine exploration        
permits covering an area of 1,429 kmSquared.  One of these permits     
         is held by the Company`s wholly-owned DRC subsidiary and the other     
         eight permits are controlled through option agreements with the        
         permit holders.                                                        

    b    Northern DRC Project                                                   
                                                                                
         The Company`s northern DRC diamond project is located in Orientale     
Province of the DRC and consists of 46 exploration permits, two of     
         which are held by the Company directly through its DRC subsidiary      
         and the balance of which are held through an option agreement with     
         the holder of the permits. Rio Tinto Mining and Exploration Limited    
("Rio Tinto") is also party to this agreement. Under this              
         agreement, funding for the exploration of the areas covered by the     
         permits is provided by Rio Tinto. Funds received from Rio Tinto        
         under this agreement are deducted from exploration and evaluation      
expenditures in the Company`s statement of financial position.         
         Assuming ongoing satisfactory exploration results, the Company will    
         acquire a 30% interest in the said permits subject to certain          
         conditions. The 44 exploration permits under option cover an area      
of 7,313 kmSquared. The two additional exploration permits held by     
         the Company`s DRC subsidiary cover an area of 749 kmSquared            
         directly north of the optioned ground.                                 
         During the year ended December 31, 2010, the Company decided to        
discontinue its Lubao and Candore projects which resulted in an        
         impairment loss of $740,975.                                           
    c    In April 2011, the Company sold the containerized bulk sampling        
         plant that had been constructed for the alluvial deposits on the       
Kwango River in southern DRC. The Kwango project had previously        
         been abandoned by the Company and the related licences relinquished    
         when it was concluded that the project would not be economically       
         viable.  The gross proceeds from the sale of the plant were            
US$575,000.                                                            
6    Segmented Reporting                                                        
    The Company has one operating segment: the acquisition, exploration and     
    development of mineral properties located in the DRC. The operations of     
the Company are located in two geographic locations, Canada and the DRC.    
    All of the items of property, plant and equipment and exploration and       
    evaluation assets in the Company`s statements of financial poition as at    
    June 30, 2011, December 31, 2010 and January 1, 2010 are located in the     
DRC.                                                                        
7    Notes Payable                                                              
    In December 2010, the Company entered into two promissory notes payable     
    (the "Notes") in amounts of $100,000 and $300,000. The Notes bore simple    
interest at a rate of 5% per annum and were unsecured and due on demand.    
    The fair value approximated the carrying value as at December 31, 2010.     
    The notes were repaid in May 2011 including accrued interest of $8,493.     
8    Share Capital                                                              
a)   Authorized                                                                 
    The Company`s authorized share capital consists of an unlimited number      
    of common shares with no par value.                                         
    The holders of the common shares are entitled to receive notice of and      
to attend all meetings of the shareholders of the Company and shall have    
    one vote for each common share held at all meetings of the shareholders     
    of the Company. The holders of the common shares are entitled to (a)        
    receive any dividends as and when declared by the board of directors,       
out of the assets of the Company properly applicable to the payment of      
    dividends, in such amount and in such form as the board of directors may    
    from time to time determine, and (b) receive the remaining property of      
    the Company in the event of any liquidation, dissolution or winding-up      
of the Company.                                                             
    On May 11, 2011 the Company closed a non-brokered private placement of      
    7,500,000 units of the Company at a price of $0.08 per unit for proceeds    
    of $600,000, and on May 27, 2011 the Company closed a non-brokered          
private placement of 2,500,000 units of the Company at a price of $0.10     
    per unit for proceeds of $250,000.  Each of the said units was comprised    
    of one common share of the Company and one warrant of the Company           
    entitling the holder to purchase one common share of the Company at a       
price of $0.11 for a period of three years from the date of issuance of     
    the warrant. The purchasers of the units under the May 27, 2011 private     
    placement were directors and officers of the Company.                       
    In June 2011 the Company consolidated its outstanding common shares on a    
two to one basis. Immediately prior to the consolidation, the Company       
    had 99,408,640 common shares outstanding (December 31, 2010 -               
    89,408,640, January 1, 2010 - 89,408,640). Upon effecting the               
    consolidation, and as of June 30, 2011, the Company had 49,704,341          
common shares outstanding.                                                  
b)   Share purchase warrants                                                    
    The Company`s outstanding warrants have been adjusted to reflect the two    
    to one share consolidation that occurred in June 2011 (see Note 8a). As     
at June 30, 2011, the Company had outstanding warrants to purchase          
    15,000,000 (December 31, 2010 - 20,000,000)common shares of the Company.    
    Of the 15,000,000 warrants outstanding, 10,000,000 are exercisable at a     
    price of $0.132 per share until November 2013 and the remaining             
5,000,000 are exercisable at a price of $0.22 per share until May 2014.     
c)   Loss per share                                                             
                                                                                
    Loss per share was calculated on the basis of the weighted average          
number of common shares outstanding for the period ended June 30, 2011,     
    amounting to 49,995,756  (June 30, 2010 - 89,408,640) common shares.        
    Diluted loss per share was calculated using the treasury stock method.      
    Total stock options as at June 30, 2011 of 1,040,000 (December 31, 2010     
- 2,280,000) and warrants of 15,000,000 (December 31, 2010 - 20,000,000)    
    were excluded from the calculation of diluted loss per share as their       
    effect would have been anti-dilutive.                                       
9    Share-Based Payments                                                       
The Company has a stock option plan under which non-transferable options    
    to purchase common shares of the Company may be granted by the Board of     
    Directors to any director, officer, employee or consultant of the           
    Company or any subsidiary of the Company.  This stock option plan           
contains provisions providing that the term of an option may not be         
    longer than five years and the exercise price of an option shall not be     
    lower than the last closing price of the Company`s shares on the Toronto    
    Stock Exchange prior to the date the stock option is granted. Unless the    
Board at any time makes a specific determination otherwise, a stock         
    option and all rights to purchase Company shares pursuant thereto shall     
    expire and terminate immediately upon the optionee who holds such stock     
    option ceasing to be at least one of a director, officer or employee of     
or consultant to the Company or a subsidiary of the Company, as the case    
    may be.  One-quarter of the stock options granted pursuant to the stock     
    option plan vest immediately on their date of grant and successive          
    quarters of such stock options vest 6 months, 12 months and 18 months       
after the grant date.  Under the stock option plan, there are 910,000       
    additional options that may be issued.                                      
    The Company`s outstanding stock options have been adjusted to reflect       
    the two to one share consolidation that was implemented by the Company      
in June 2011. As at June 30, 2011, the Company had outstanding under the    
    stock option plan stock options to acquire 1,040,000 (December 31, 2010     
    - 2,280,000) common shares of the Company at a weighted-average exercise    
    price of $4.59 (December 31, 2010 - $2.42) per share.                       
The following tables summarize information about stock options:                 
For the six months ended June 30, 2011:                                         
Exer-   Opening    During the                Closing    Weig  Vested  Un        
cise    Balance    Period                    Balance    hted  &       ve        
Price                                                   aver  Exercis st        
Range                                                   age   able    ed        
($)                                                     rema                    
                                                       inin                     
g                        
                                                       cont                     
                                                       ract                     
                                                       ual                      
life                     
                                                       (yea                     
                                                       rs)                      
                  Gra  Exerci  Expire  For                                      
nte  sed     d       fei                                      
                  d                    ted                                      
       800,000    -    -      -    -        800,000    2.16  800,000 -          
2.10 -                                                                          
5.00                                                                            
       100,000     -                                         -       -          
5.20 -                  -      (100,000)  -  -          -                       
7.50                                                                            
240,000    -    -      -       -     240,000    0.90  240,000 -          
7.52 -                                                                          
16.00                                                                           
       1,140,000  -    -                                               -        
(100,000)  -  1,040,000        1,040,000          
Weighte                                                                         
d       2.42       -    -      7.50    -     4.59             4.59    -         
Average                                                                         
Exercis                                                                         
e Price                                                                         
($)**                                                                           
** The weighted-average exercise price opening balance at December              
31, 2010 is not reflective of the two to one consolidation of shares            
For the year ended December 31, 2010:                                           
Exerci Opening    During the               Closin  Weighte  Vested &  Un        
se     Balance    Period                   g       d        Exercisab ve        
Price                                      Balanc  average  le        st        
Range                                      e       remaini            ed        
($)                                                ng                           
                                                  contrac                       
tual                          
                                                  life                          
                                                  (years)                       
                 G Exe  Expired  Forfeit                                        
r rci           ed                                             
                 a sed                                                          
                 n                                                              
                 t                                                              
e                                                              
                 d                                                              
1.05 - 2,261,400                           1,600,000  2.66  1,600,000 -         
2.50              - -    466,400  195,000                                       
2.60 - 200,000                             200,000    0.49  200,000   -         
3.75              - -    -        -                                             
3.76 - 480,000    -                        480,000    1.39  480,000   -         
8.00                -    -        -                                             
2,941,400                                                                 
                 - -    466,400  195,000  2,280,000        2,280,000 -          
Weight                                                           2.42           
ed     2.34       - -    1.76     1.05     2.42       -               -         
Averag                                                                          
e                                                                               
Exerci                                                                          
se                                                                              
Price                                                                           
($)                                                                             
For the six months ended June 30, 2010:                                         
Exercise Opening    During the       Closing    Weight  Vested &   Unv          
Price    Balance    Period           Balance    ed      Exercisab  est          
Range                                           averag  le         ed           
($)                                             e                               
                                               remain                           
ing                              
                                               contra                           
                                               ctual                            
                                               life                             
(years                           
                                               )                                
                   Gr  Ex  Expired                                              
                   an  er                                                       
te  ci                                                       
                   d   se                                                       
                       d                                                        
        2,261,400                   2,020,000  2.10    2,020,000  -             
1.05 -              -   -   241,400                                             
2.50                                                                            
        200,000                     200,000    1.00    200,000    -             
2.60 -              -   -   -                                                   
3.75                                                                            
        480,000    -                480,000    0.41    480,000    -             
3.76 -                  -   -                                                   
8.00                                                                            
2,941,400                                                 -             
                   -   -   241,400  2,700,000  3.51    2,700,000                
Weighted                                                           -            
Average  2.34       -   -   2.47     2.33               2.33                    
Exercise                                                                        
Price                                                                           
($)                                                                             
    The fair value at grant date is determined using a Black-Scholes option     
pricing model that takes into account the exercise price, the term of       
    the option, the impact of dilution, the share price at grant date and       
    expected price volatility of the underlying share, the expected dividend    
    yield and the risk free interest rate for the term of the option.           
The expected price volatility is based on the historic volatility (based    
    on the remaining life of the options), adjusted for any expected changes    
    to future volatility due to publicly available information.                 
    During the three and six month periods ended June 30, 2011, the Company     
recognized in the statement of comprehensive loss as an expense $nil        
    (three and six months ended June 30, 2010 $nil and $73,116 respectively)    
    representing the fair value at the date of grant of stock options           
    previously granted to employees, directors and officers under the           
Company`s Stock Option Plan. The weighted average fair value of stock       
    options issued was estimated at $1.87 per share option at the grant date    
    using the Black-Scholes option-pricing model. In addition, an amount of     
    $nil for the six month period ended June 30, 2011 (year ended December      
31, 2010 - $8,893) related to stock options issued to employees of the      
    Company`s subsidiary in the DRC was capitalized to exploration and          
    evaluation assets.                                                          
    These amounts were credited accordingly to contributed surplus in the       
consolidated statements of financial position.                              
    Replacement options                                                         
    In connection with the acquisition by the Company of all of the             
    outstanding shares of Diamond Core Resources Limited ("Diamond Core") on    
February 11, 2008, 617,710 (the "Replacement Options") stock options        
    were issued by the Company to employees of Diamond Core to substitute       
    15,133,190 stock options in Diamond Core.  Diamond Core was subsequently    
    disposed of by the Company.  As at June 30, 2011, there were 70,752         
Replacement Options outstanding (December 31, 2010 - 141,503).              
10   Related Party Transactions                                                 
a)   Key Management Remuneration                                                
The Company`s related parties include key management.  Key management           
includes executive directors and non-executive directors.  The remuneration     
of the key management of the Company as defined above, during the three and     
six months ended June 30, 2011 and 2010 was as follows:                         
                   Three months ended       Six months ended                    
June 30,    June 30,     June 30,   June 30, 2010            
                   2011        2010         2011                                
                   $           $            $          $                        
Salaries               46,630      91,693                  155,846              
134,375                             
                      46,630      91,693     134,375   155,846                  
b)   Other Related Parties                                                      
During the three and six month periods ended June 30, 2011, legal expenses of   
$37,163 and $37,163 (three and six month periods ended June 30, 2010 - $nil     
and $nil), incurred in connection with general corporate matters, were paid     
to a law firm of which a director of the Company is a partner . As at June      
30, 2011, $37,163 (December 31, 2010 - $nil) owing to this legal firm was       
included in accounts payable.                                                   
As at June 30, 2011, an amount of $16,667 was owed to one director of the       
Company representing consulting fees (December 31, 2010 - $102,311).  During    
the three and six month periods ended June 30, 2011, consulting fees of         
$25,000 and $50,000, respectively were incurred to the one director (three      
and six month periods ended June 30, 2010 - $58,330 and $83,333 to two          
directors).                                                                     
As at June 30, 2011, an amount of $16,667 (December 31, 2010 - $nil) in the     
form of advances of short term loans to the Company was due to a company        
owned by a director of the Company.                                             
As at June 30, 2011, an amount of $16,281 (December 31, 2010 - $3,719) was      
owed to Banro Corporation ("Banro").  Banro owns 17,716,994 common shares of    
the Company, representing a 35.65% interest in the Company.  During the year    
ended December 31, 2010, a drill rig was sold to Banro by the Company for       
gross proceeds of $154,964.                                                     
On May 27, 2011 the Company closed a non-brokered private placement of          
2,500,000 units of the Company at a price of $0.10 per unit for proceeds of     
$250,000.  The purchasers of the units under this private placement were        
directors and officers of the Company (see Note 8a).                            
All amounts due to related parties are unsecured, non-interest bearing and      
due on demand. All transactions are in the normal course of operations and      
are measured at the exchange value.                                             
Financial risk management objectives and policies                               
11   Fair value of financial assets and liabilities                             
a)   The consolidated statements of financial position carrying amounts for     
    cash and cash equivalents, prepaid expenses and other assets, accounts      
    payable and accrued liabilities and notes payable approximate fair value    
    due to their short-term nature.  Due to the use of subjective judgments     
and uncertainties in the determination of fair values these values          
    should not be interpreted as being realizable in an immediate settlement    
    of the financial instruments.                                               
The following presents the fair value and carrying value of the Company`s       
financial instruments:                                                          
                      Classification  Measurement 30-Jun-   31-Dec-             
                                                  11        10                  
                                                  $         $                   
Financial assets                                                              
  Cash and cash       Held-for-       Fair Value  339,952   126,931             
  equivalents         Trading                                                   
                                                                                

  Prepaid expenses    Loans and       Amortized                                 
  and other assets    receivables     cost                                      
                                                  34,410    21,713              

  Financial                                                                     
  liabilities                                                                   
  Accounts payable                                                              
and accrued                                                                   
  liabilities         Other           Amortized   594,645   834,176             
                      liabilities     cost                                      
  Notes payable       Other           Amortized             400,493             
liabilities     cost        -                             
  Taxes payable       Other           Amortized             6,127               
                      liabilities     cost        -                             
  Due to related      Other           Amortized   49,614    106,029             
parties             liabilities     cost                                      
    Fair value hierarchy                                                        
The following provides a description of financial instruments that are          
measured subsequent to initial recognition at fair value, grouped into Levels   
1 to 3 based on the degree to which the fair value is observable:               
*    Level 1 fair value measurements are those derived from quoted prices       
    (unadjusted) in active markets for identical assets or liabilities;         
*    Level 2 fair value measurements are those derived from inputs other than   
quoted prices included within Level 1 that are observable for the asset     
    or liability, either directly (i.e. as prices) or indirectly (i.e.          
    derived from prices); and                                                   
*    Level 3 fair value measurements are those derived from valuation           
techniques that include inputs for the asset or liability that are not      
    based on observable market data (unobservable inputs).                      
There were no transfers between Level 1 and 2 during the reporting period.      
The fair values of financial assets and liabilities carried at amortized cost   
are approximated by their carrying values.  Cash is ranked Level 1 as the       
market value is readily observable. The carrying value of cash approximates     
fair value as maturities are less than three months.  Notes payable is ranked   
level 2 as it is based on similar loans in the market.                          
b)   Risk Management Policies                                                   
    The Company is sensitive to changes in commodity prices and foreign-        
    exchange. The Company`s Board of Directors has overall responsibility       
    for the establishment and oversight of the Company`s risk management        
framework. Although the Company has the ability to address its price-       
    related exposures through the use of options, futures and forward           
    contacts, it does not generally enter into such arrangements.               
c)   Foreign Currency Risk                                                      
Foreign currency risk is the risk that a variation in exchange rates        
    between the Canadian dollar and United States dollar or other foreign       
    currencies will affect the Company`s operations and financial results. A    
    portion of the Company`s transactions are denominated in United States      
dollars, Congolese francs and South African rand. The Company is also       
    exposed to the impact of currency fluctuations on its monetary assets       
    and liabilities.  The Company`s functional currency is the Canadian         
    dollar. The majority of major expenditures are transacted in US dollars.    
The Company maintains the majority of its cash in Canadian dollars but      
    it does hold balances in US dollars.  Significant foreign exchange gains    
    or losses are reflected as a separate component of the consolidated         
    statement of comprehensive loss. The Company does not use derivative        
instruments to reduce its exposure to foreign currency risk.                
d)   Credit Risk                                                                
    Financial instruments which are potentially subject to credit risk for      
    the Company consist primarily of cash. Cash is maintained with several      
financial institutions of reputable credit in Canada, the DRC and South     
    Africa and may be redeemed upon demand.  It is therefore the Company`s      
    opinion that such credit risk is subject to normal industry risks and is    
    considered minimal.                                                         
e)   Liquidity Risk                                                             
    Liquidity risk is the risk that the Company will not be able to meet its    
    financial obligations as they become due. The Company attempts to ensure    
    that there is sufficient cash to meet its liabilities when they are due     
and manages this risk by regularly evaluating its liquid financial          
    resources to fund current and long-term obligations and to meet its         
    capital commitments in a cost-effective manner. The key to success in       
    managing liquidity is the degree of certainty in the cash flow              
projections. If future cash flows are fairly uncertain, the liquidity       
    risk increases. The Company`s liquidity requirements are met through a      
    variety of sources, including cash, existing credit facilities and          
    equity capital markets.  In light of market conditions, the Company         
initiated a series of measures to bring its spending in line with the       
    projected cash flows from its operations and available project specific     
    facilities in order to preserve its financial position and maintain its     
    liquidity position.                                                         
f)   Mineral Property Risk                                                      
    The Company`s operations in the DRC are exposed to various levels of        
    political risk and uncertainties, including political and economic          
    instability, government regulations relating to exploration and mining,     
military repression and civil disorder, all or any of which may have a      
    material adverse impact on the Company`s activities or may result in        
    impairment in or loss of part or all of the Company`s assets.               
g)   Market Risk                                                                
Market risk is the potential for financial loss from adverse changes in     
    underlying market factors, including foreign-exchange rates, commodity      
    prices, interest rates and stock based compensation costs.  The Company     
    manages the market risk associated with commodity prices by establishing    
and monitoring parameters that limit the types and degree of market risk    
    that may be undertaken.                                                     
h)   Interest rate risk                                                         
    Interest rate risk is the potential impact on any Company earnings due      
to changes in bank lending rates and short term deposit rates. The          
    Company is not exposed to significant interest rate risk other than cash    
    flow interest rate risk on its cash. The Company does not use derivative    
    instruments to reduce its exposure to interest rate risk. A fluctuation     
of interest rates of 1% would not affect significantly the fair value of    
    cash.                                                                       
i)   Title risk                                                                 
    Title to mineral properties involves certain inherent risks due to the      
difficulties of determining the validity of certain claims as well as       
    the potential for problems arising from the frequently ambiguous            
    conveyancing history characteristic of many mining properties.  Although    
    the Company has investigated title to all of its mineral properties for     
which it holds concessions or other mineral licenses, the Company cannot    
    give any assurance that title to such properties will not be challenged     
    or impugned and cannot be certain that it will have valid title to its      
    mineral properties.  The Company relies on title opinions by legal          
counsel who base such opinions on the laws of countries in which the        
    Company operates.                                                           
j)   Country risk                                                               
    The DRC is a developing country and as such, the Company`s exploration      
projects in the DRC could be adversely affected by uncertain political      
    or economic environments, war, civil or other disturbances, and a           
    changing fiscal regime and by DRC`s underdeveloped industrial and           
    economic infrastructure.                                                    

    The Company`s operations in the DRC may be effected by economic             
    pressures on the DRC. Any changes to regulations or shifts in political     
    attitudes are beyond the control of the Company and may adversely affect    
its business. Operations may be affected in varying degrees by factors      
    such as DRC government regulations with respect to foreign currency         
    conversion, production, price controls, export controls, income taxes or    
    reinvestment credits, expropriation of property, environmental              
legislation, land use, water use and mine safety.                           
    There can be no assurance that policies towards foreign investment and      
    profit repatriation will continue or that a change in economic              
    conditions will not result in a change in the policies of the DRC           
government or the imposition of more stringent foreign investment           
    restrictions. Such changes cannot be accurately predicted.                  
K    Capital Management                                                         
                                                                                
The Company manages its cash, common shares, warrants and stock options     
    as capital. The Company`s main objectives when managing its capital are:    
    to maintain a flexible capital structure which optimizes the cost of        
    capital at acceptable risk while providing  an appropriate return to its    
shareholders;                                                               
    -    to maintain a strong capital base so as to maintain investor,          
         creditor and market confidence and to sustain future development of    
         the business;                                                          

    -    to safeguard the Company`s ability to obtain financing; and            
                                                                                
    -    to maintain financial flexibility in order to have access to           
capital in the event of future acquisitions.                           
The Company manages its capital structure and makes adjustments to it in        
accordance with the objectives stated above, as well as responds to changes     
in economic conditions and the risk characteristics of the underlying assets.   
There were no significant changes to the Company`s approach to capital          
management during the period ended June 30, 2011.                               
Neither the Company nor any of its subsidiaries are subject to externally       
imposed capital requirements.                                                   
June 30, 2011           December 31, 2010               
                        $                       $                               
Cash and cash                        339,952               126,931              
equivalents                                                                     
Share capital            116,283,812             115,457,876                    
Deficit                        (119,752,905)     (119,405,686)                  
12.  Supplemental cash flow information                                         
During the periods indicated the Company undertook the following significant    
non-cash transactions:                                                          
                              Three months       Six months ended               
                              ended                                             
                        Note  June 30,  June     June     June 30,              
2011      30,      30,      2010                  
                                        2010     2011                           
                              $         $        $        $                     
Depreciation included in 5                                 55,447               
exploration and                -         27,014   2,289                         
evaluation assets                                                               
Stock-based compensation 9                                 57,568               
included in exploration        -         57,568   -                             
and evaluation assets                                                           
Interest paid                                              -                    
                              -         -        -                              
Taxes paid                                                 -                    
6,127     -        6,127                          
13.  Commitments and Contingencies                                              
The Company is committed to the payment of the surface fees and taxes.  For     
the year ended December 31, 2011, these fees and taxes are estimated to be      
$127,981 (US$ 132,000) compared to $109,409 (US$ 110,000) incurred in the       
year ended December 31, 2010. The surface fees and taxes are required to be     
paid annually under the DRC Mining Code in order to keep exploration permits    
in good standing.                                                               
Six of the exploration permits comprising part of the Company`s Tshikapa        
project in the DRC are held through an option agreement with Acacia SPRL.       
Acacia SPRL has advised the Company of its wish to modify the option            
agreement.  The Company continues its discussions with Acacia SPRL and is       
optimistic of reaching an agreement that is satisfactory for both parties.      
In addition to the above matters, the Company and its subsidiaries are also     
subject to routine legal proceedings and tax audits. The Company does not       
believe that the outcome of any of these matters, individually or in            
aggregate, would have a material adverse effect on its consolidated losses,     
cash flow or financial position.                                                
Labour disputes                                                                 
The Company is in dispute with two of its previous directors and officers.      
One of the individuals had applied in 2008 for a summary judgment against the   
Company in the Witwatersrand Local Division of the High Court of South Africa   
in respect of a dispute relating to a settlement agreement pertaining to his    
departure.  The application for summary judgment was dismissed and the          
Company was granted leave to defend the claim.  This individual has not taken   
further steps to progress that matter. However, in October 2010, almost two     
years after the original claim, the same former director and officer            
instituted fresh proceedings against the Company. He has repeated the claim     
made previously, but this time in a summons lodged before the North Gauteng     
High Court in South Africa.  This former director and officer is claiming he    
is owed payment of 1.2 million South African rand plus interest.  The other     
individual has referred two disputes to the Commission for Conciliation         
Mediation and Arbitration in Johannesburg, South Africa and an action to the    
High Court in that same jurisdiction.  He elected to withdraw an application    
for summary judgment.  The Company is defending all these actions.              
14   First Time Adoption of International Financial Reporting Standards         
IFRS 1, First Time Adoption of International Financial Reporting Standards,     
requires that comparative financial information be provided. As a result, the   
first date at which the Company has applied IFRS was January 1, 2010. IFRS 1    
requires first-time adopters to retrospectively apply all effective IFRS        
standards as of the reporting date, which for the Company will be December      
31, 2011. However, it also provides for certain optional exemptions and         
certain mandatory exceptions for first-time IFRS adoption. Prior to             
transition to IFRS, the Company prepared its financial statement in             
accordance with Canadian GAAP.                                                  
In preparing the Company`s opening IFRS consolidated statements of financial    
position, the Company has adjusted amounts reported previously in the           
financial statements prepared in accordance with previous Canadian GAAP. The    
IFRS 1 applicable exemptions and exceptions applied in the conversion from      
Canadian GAAP to IFRS are as follows:                                           
    a)   Share-based payment transactions                                       
         The Company has elected not to retrospectively apply IFRS 2 to         
equity instruments that were granted and that vest before the          
         transition date. As a result of applying this exemption, the           
         Company has applied the provision of IFRS 2 to all outstanding         
         equity instruments that were unvested prior to the date of             
transition to IFRS.                                                    
    b)   Deemed Cost of Exploration and Evaluation Assets                       
         The Company has elected not to retrospectively apply IFRS 36 to the    
         previous impairments that have been recorded by the Company.  Per      
IFRS 1, the Company has taken an election to deem all exploration      
         and evaluation assets at cost.                                         
    c)   Estimates                                                              
         The estimates previously made by the Company under Canadian GAAP       
were not revised for the application of IFRS except where necessary    
         to reflect any difference in accounting policy or where there was      
         objective evidence that those estimates were in error.  As a           
         result, the Company has not used hindsight to create or revise         
estimates.                                                             
IFRS employs a conceptual framework that is similar to Canadian GAAP. However   
significant differences exist in certain matters of recognition, measurement    
and disclosure. While the adoption has not changed the Company`s actual cash    
flows, it has resulted in changes to the Company`s consolidated statement of    
financial position and statement comprehensive loss. The statements of          
comprehensive loss have been changed to comply with IAS 1 Presentation of       
Financial Statements. The Canadian GAAP consolidated balance sheets as at       
January 1, 2010 and December 31, 2010, the consolidated statements of           
operations and other comprehensive loss for the three and six month periods     
ended June 30, 2010 as well as the consolidated statement of cash flows for     
the three and six month periods June 30, 2010 have been reconciled to IFRS,     
with a summary of the most significant changes in share-based payments as       
follows:                                                                        
    a)   Share Based Payments                                                   
         Under IFRS 2 Share Based Payments, each tranche of an award with       
different graded vesting is accounted for as a separate award and      
         the resulting fair value is amortized over the vesting period of       
         the respective tranches.  Under Canadian GAAP, the Company was         
         accounting for these as a single award. In addition, under IFRS 2,     
the Company is required to estimate the number of forfeitures          
         likely to occur on grant date and reflect this in the share-based      
         payment expense revising for actual experiences in subsequent          
         periods.  Under Canadian GAAP, forfeitures were recognized as they     
occurred.                                                              
                                                                                
         The impact of adjustments relates to share based payments on the       
         Company`s consolidated statement of financial position is as           
follows:                                                               
The Canadian GAAP consolidated balance sheet as at January 1, 2010 has been     
reconciled to IFRS as follows:                                                  
                                 January 1, 2010                                

                          Notes  Canadian GAAP Effect of   IFRS                 
                                               Transition                       
                                               to IFRS                          
$             $           $                    
Assets                                                                          
Current Assets                                                                  
Cash and cash equivalents                                                       
664,495       -           664,495              
Prepaid expenses and                                                            
other assets                      163,175       -           163,175             
Total Current Assets                                                            
827,670       -           827,670              
                                                                                
Non-Current Assets                                                              
Capital assets                                                                  
141,794       -           141,794              
Mineral properties and                                                          
deferred exploration              5,808,835     17,248      5,826,083           
expenditures                                                                    
Total Non-Current Assets                                                        
                                 5,950,629     17,248      5,967,877            
                                                                                
Total Assets                                                                    
6,778,299     17,248      6,795,547            
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Accounts payable and                                                            
accrued liabilities               1,027,172     -           1,027,172           
Accrued liabilities                                                             
377,884       -           377,884              
Total Current Liabilities                                                       
                                 1,405,056     -           1,405,056            
                                                                                
Non-current                                                                     
Future tax liability                                                            
                                 57,030        -           57,030               
                                                                                
Shareholders` Equity                                                            
Share capital                                                                   
                                 115,457,876   -           115,457,876          
Contributed surplus                                                             
7,700,518     73,715      7,774,233            
Deficit                                                                         
                                 (117,842,181) (56,467)    (117,898,648)        
Total Shareholders`                                                             
Equity                            5,316,213     17,248      5,333,461           
Total Liabilities and                                                           
Shareholders` Equity              6,778,299     17,248      6,795,547           
The Canadian GAAP consolidated balance sheet as at June 30, 2010 has been       
reconciled to IFRS as follows:                                                  
                                 June 30, 2010                                  
                                                                                
                           Notes Canadian GAAP  Effect    IFRS                  
of                              
                                                Transiti                        
                                                on to                           
                                                IFRS                            
$              $         $                     
Assets                                                                          
Current Assets                                                                  
Cash                                                                            
7,197          -         7,197                 
Prepaid expenses and other                                                      
assets                            126,569        -         126,569              
Total Current Assets                                                            
133,766        -         133,766               
                                                                                
Non-Current Assets                                                              
Property, plant and                                                             
equipment                         86,347         -         86,347               
Mineral properties and                                                          
deferred exploration              5,939,291      (739)     5,938,552            
expenditures                                                                    
Total Non-Current Assets                                                        
                                 6,025,638      (739)     6,024,899             
                                                                                
Total Assets                                                                    
6,159,404      (739)     6,158,665             
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Bank indebtedness                                                               
                                 7,686          -         7,686                 
Accounts payable and                                                            
accrued liabilities               873,413        -         873,413              
Due to related parties                                                          
                                 118,511        -         118,511               
Total Current Liabilities                                                       
999,610        -         999,610               
                                                                                
Non-current                                                                     
Future tax liability                                                            
57,030         -         57,030                
                                                                                
Shareholders` Equity                                                            
Capital stock                                                                   
115,457,876    -         115,457,876           
Contributed surplus                                                             
                                 7,872,578      (3,156)   7,869,422             
Deficit                                                                         
(118,227,690)  2,417     (118,225,273)         
Total Shareholders` Equity                                                      
                                 5,102,764      (739)     5,102,025             
Total Liabilities and                                                           
Shareholders` Equity              6,159,404      (739)     6,158,665            
The Canadian GAAP consolidated balance sheet as at December 31, 2010 has been   
reconciled to IFRS as follows:                                                  
                                 December 31, 2010                              

                           Notes Canadian GAAP  Effect of  IFRS                 
                                                Transition                      
                                                to IFRS                         
$              $          $                    
Assets                                                                          
Current Assets                                                                  
Cash                                                                            
126,931        -          126,931              
Prepaids expenses and                                                           
other current assets              21,713         -          21,713              
Total Current Assets                                                            
148,644        -          148,644              
                                                                                
Non-Current Assets                                                              
Capital assets                                                                  
4,100          -          4,100                
Mineral properties and                                                          
deferred exploration              5,075,041      (739)      5,074,302           
expenditures                                                                    
Total Non-Current Assets                                                        
                                 5,079,141      (739)      5,078,402            
                                                                                
Total Assets                                                                    
5,227,785      (739)      5,227,046            
                                                                                
Liabilities and                                                                 
Shareholders` Equity                                                            
Current Liabilities                                                             
Accounts payable and                                                            
accrued liabilities               834,176        -          834,176             
Note payable                                                                    
400,493        -          400,493              
Taxes payable                                                                   
                                 6,127          -          6,127                
Due to related parties                                                          
106,029        -          106,029              
Total Current Liabilities                                                       
                                 1,346,825      -          1,346,825            
                                                                                
Non-current                                                                     
Future income tax                                                               
liabilities                       15,789         -          15,789              
                                                                                
Shareholders` Equity                                                            
Capital stock                                                                   
                                 115,457,876    -          115,457,876          
Contributed surplus                                                             
7,815,398      (3,156)    7,812,242            
Deficit                                                                         
                                 (119,408,103)  2,417      (119,405,686)        
Total Shareholders` Equity                                                      
3,865,171      (739)      3,864,432            
Total Liabilities and                                                           
Shareholders` Equity              5,227,785      (739)      5,227,046           
The Canadian GAAP consolidated statements of operations and other               
comprehensive loss for the three and six month periods ended June 30, 2010      
have been reconciled to IFRS as follows:                                        
                                  Three Months Ended June 30, 2010              
                           Notes  Canadian GAAP Effect of   IFRS                
$             Transition  $                   
                                                to IFRS                         
                                                $                               
Expenses                                                                        
Professional fees and                                                           
consulting fees                    64,251        -           64,251             
General and administrative                                                      
                                  34,220        -           34,220              
Share based payments                                                            
                                  -             (58,884)    (58,884)            
Foreign exchange (gain)                                                         
loss                               323           -           323                
Loss from operations                               (58,884)                     
                                  (98,794)                  (39,910)            
                                                                                
Loss for the period                                                             
(98,794)      -           (39,910)            
                                                                                
Comprehensive loss for the                                                      
period                             (98,794)      -           (39,910)           

Loss per share, basic and          0.00                      0.00               
diluted                                          -                              
                                  Six Months Ended June 30, 2010                
Notes  Canadian      Effect of   IFRS                
                                  GAAP          Transition  $                   
                                  $             to IFRS                         
                                                $                               
Expenses                                                                        
Professional fees and                                                           
consulting fees                    144,593       -           144,593            
General and administrative                                                      
106,556       -           106,556             
Share based payments                                                            
                                  73,116        (58,884)    14,232              
Foreign exchange (gain)                                                         
loss                               2,360         -           2,360              
Loss from operations                               (58,884)                     
                                  (326,625)                 (267,741)           
                                                                                
Loss for the period                                                             
                                  (326,625)     -           (267,741)           
                                                                                
Comprehensive loss for the                                                      
period                             (326,625)     -           (267,741)          
                                                                                
Loss per share, basic and          0.00                      0.00               
diluted                                          -                              
The Canadian GAAP consolidated statements of operations and other               
comprehensive loss for the year ended December 31, 2010 have been reconciled    
to IFRS as follows:                                                             
                                  Year Ended December 31, 2010                  
Notes  Canadian      Effect of   IFRS                
                                  GAAP          Transition  $                   
                                  $             to IFRS                         
                                                $                               
Expenses                                                                        
Consulting, management and                                                      
professional fees                  447,319       -           447,319            
General and administrative                                                      
209,778       -           209,778             
Share based payments                                                            
                                  88,000        (58,884)    29,116              
Foreign exchange (loss)                                                         
gain unrealized                    3,356         -           3,356              
Impairment of mineral                                                           
properties and deferred            740,975       -           740,975            
exploration expenditures                                                        
Bad debt expense                                                                
                                  105,009       -           105,009             
Loss from operations                               (58,884)                     
                                  (1,594,437)               (1,535,553)         

Income tax recovery                                                             
                                  28,515        -           28,515              
                                                                                
Loss for the period                                                             
                                  (1,565,922)   -           (1,507,038)         
                                                                                
Comprehensive loss for the                                                      
period                             (1,565,922)   -           (1,507,038)        
                                                                                
Loss per share, basic and                                                       
diluted                            (0.02)        -           (0.02)             
The Canadian GAAP reconciliation to IFRS of the consolidated statements of      
cash flows for the three and six month periods June 30, 2010 is as follows:     
                                         Three months ended June 30,            
                                         2010                                   
Notes  Canadian   Effect    IFRS              
                                         GAAP       of        $                 
                                         $          Transiti                    
                                                    on to                       
IFRS                        
                                                    $                           
                                                                                
                                                                                
Cash flows from operating                                                       
activities                                                                      
Net loss for the period                                                         
                                         (98,794)   58,884    (39,910)          
Adjustments to reconcile loss to                                                
net cash used in operating                                                      
activities                                                                      
Share based payments                                                            
-          (58,884)  (58,884)          
                                                                                
Changes in non-cash working                                                     
capital                                                                         
Prepaid expenses and other assets                                               
                                         1,658      -         1,658             
Accounts payable and accrued                                                    
liabilities                               (27,339)   -         (27,339)         
Net cash flows from operating                                                   
activities                                (124,475)  -         (25,681)         
                                                                                
Cash flows from investing                                                       
activities                                                                      
Deferred Exploration expenditures                                               
                                         (34,949)   -         (34,949)          
Net cash used in investing                                                      
activities                                (34,949)   -         (34,949)         
                                                                                
Cash flows from financing                                                       
activities                                                                      
Due to related parties                                                          
                                         (35,583)   -         (35,583)          
Net cash (used in) / from                                                       
financing activities                      (35,583)   -         (35,583)         

Net increase (decrease) in cash                                                 
during the period                         (195,007)  -         (96,213)         
Cash, beginning of the period                                                   
202,204    -         664,495           
Cash, end of the period                                                         
                                         7,197      -         568,282           
                                         Six months ended June 30, 2010         
Notes  Canadian   Effect    IFRS              
                                         GAAP       of        $                 
                                         $          Transiti                    
                                                    on to                       
IFRS                        
                                                    $                           
                                                                                
                                                                                
Cash flows from operating                                                       
activities                                                                      
Net loss for the period                                                         
                                         (385,509)  58,884    (326,625)         
Adjustments to reconcile loss to                                                
net cash used in operating                                                      
activities                                                                      
Share based payments                                                            
132,000    (58,884)  73,116            
                                                                                
                                         (253,509)  -         (253,509)         
Changes in non-cash working                                                     
capital                                                        -                
Prepaid expenses and other assets                                               
                                         36,606     -         36,606            
Accounts payable and accrued                                                    
liabilities                               (146,073)  -         (146,073)        
Net cash flows from operating                                                   
activities                                (362,976)  -         (362,976)        
                                                                                
Cash flows from investing                                                       
activities                                                                      
Deferred Exploration expenditures                                               
                                         (34,949)   -         (34,949)          
Net cash used in investing                                                      
activities                                (34,949)   -         (34,949)         
                                                                                
Cash flows from financing                                                       
activities                                                                      
Due to related parties                                                          
                                         (259,373)  -         (259,373)         
Net cash (used in) / from                                                       
financing activities                      (259,373)  -         (259,373)        
                                                                                
Net increase (decrease) in cash                                                 
during the period                         (657,298)  -         (657,298)        
Cash, beginning of the period                                                   
                                         664,495    -         664,495           
Cash, end of the period                                                         
                                         7,197      -         7,197             
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
cash flows for the year ended December 31, 2010 is as follows:                  
                                   Year ended December 31, 2010                 
                            Notes  Canadian     Effect    IFRS                  
GAAP         of        $                     
                                   $            Transiti                        
                                                on to                           
                                                IFRS                            
$                               
                                                                                
                                                                                
Cash flows from operating                                                       
activities                                                                      
Net loss for the period                                                         
                                   (1,565,922)  58,884    (1,507,038)           
Adjustments to reconcile                                                        
loss to net cash used in                                                        
operating activities                                                            
Impairment of properties                                                        
                                   740,975      -         740,975               
Share based payments                                                            
                                   88,000       (58,884)  29,116                
Accrued interest expense                                                        
                                   493          -         493                   
Bad debt expense                                                                
                                   105,009      -         105,009               
Provision for taxes                                                             
                                   (28,515)     -         (28,515)              
Changes in non-cash working                                                     
capital                                                    -                    
Prepaid expenses and other                                                      
current assets                      36,453       -         36,453               
Accounts payables and                                                           
accrued liabilities                 (192,996)    -         (192,996)            
Taxes payable                                                                   
                                   (6,598)      -         (6,598)               
Net cash flows from                                                             
operating activities                (823,101)    -         (823,101)            
                                                                                
Cash flows from investing                                                       
activities                                                                      
Proceeds from disposal of                                                       
capital asset                       64,794       -         64,794               
Expenditures on exploration                                                     
and evaluation                      (338,757)    -         (338,757)            
Funds received from Rio                                                         
Tinto                               431,355      -         431,355              
Net cash used in investing                                                      
activities                          157,392      -         157,392              
                                                                                
Cash flows from financing                                                       
activities                                                                      
Due to related parties                                                          
                                   (271,855)    -         (271,855)             
Notes payable                                                                   
                                   400,000      -         400,000               
Net cash (used in) / from                                                       
financing activities                128,145      -         128,145              
                                                                                
Effect of foreign exchange                                                      
on cash held in foreign                          -         -                    
currency                                                                        
Net increase (decrease) in                                                      
cash during the period              (537,564)    -         (537,564)            
Cash, beginning of the                                                          
period                              664,495      -         664,495              
Cash, end of the period                                                         
                                   126,931      -         126,931               
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
changes in equity as at January 1, 2010 is as follows:                          
                        January 1, 2010                                         
                  Notes Canadian GAAP  Effect of  IFRS                          
$              Transition $                             
                                       to IFRS                                  
                                       $                                        
Common Shares                                                                   
Amount                   115,457,876    -          $115,457,876                 
Contributed                                        7,774,233                    
Surplus                  7,700,518      73,715                                  
Deficit                                            (117,898,648)                
(117,842,181)  (56,467)                                 
Total                                                                           
Shareholder`s            5,316,213      17,248     5,333,461                    
Equity                                                                          
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
changes in equity for the six months ended June 30, 2010 is as follows:         
                        June 30, 2010                                           
                  Notes Canadian GAAP   Effect of  IFRS                         
$               Transition $                            
                                        to IFRS                                 
                                        $                                       
Common Shares            115,457,876                                            
Amount                                   -          $115,457,876                
Contributed                                         7,869,422                   
Surplus                  7,872,578       (3,156)                                
Deficit                                             (118,225,273)               
(118,227,690)   2,417                                   
Total                                               5,102,025                   
Shareholder`s            5,102,764       (739)                                  
Equity                                                                          
The Canadian GAAP reconciliation to IFRS of the consolidated statement of       
changes in equity for the year ended December 31, 2010 is as follows:           
                        December 31, 2010                                       
                  Notes Canadian GAAP   Effect of  IFRS                         
$               Transition $                            
                                        to IFRS                                 
                                        $                                       
Common Shares            115,457,876                                            
Amount                                   -          $115,457,876                
Contributed                                         7,812,242                   
Surplus                  7,815,398       (3,156)                                
Deficit                                             (119,405,686)               
(119,408,103)   2,417                                   
Total                                               3,864,432                   
Shareholder`s            3,865,171       (739)                                  
Equity                                                                          
Johannesburg                                                                    
18 August 2011                                                                  
Sponsor                                                                         
Arcay Moela Sponsors (Proprietary) Limited                                      
Date: 18/08/2011 17:44:00 Supplied by www.sharenet.co.za                     
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