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## 9. Exploration and Evaluation Assets (Continued) 

## (g) Other properties (Continued) 

## iii. Tam, British Columbia (Continued) 

During the year ended December 31, 2012, a $25,000 advance royalty was received and the net amount of $15,476 after cost recovery was included in the statement of income. 

## iv. Nepisiguit/Stewart, New Brunswick 

The Company owns 100% of the properties located in the Bathurst Mining Camp of New Brunswick, subject to a 2.75% NSR retained by optionor. The NSR is subject to a buy-down to 1% NSR for $1.5 million at any time. In 2010, the Company entered into an option agreement with Stratabound providing Stratabound the right to earn an initial 60% interest in the Company’s Nepisiguit and Stewart properties. Under the terms of the option, Stratabound has the right to earn an initial 60% participating interest in the properties over a five- year period by issuing to the Company 400,000 Stratabound shares and completing $1,500,000 in eligible exploration expenditures. Upon vesting its 60% interest, Stratabound may then, within 60 days, elect to increase its interest to 65% by incurring an additional $1,000,000 in eligible expenditures over a two-year period and issuing an additional 100,000 Stratabound shares to the Company. 

Stratabound is the operator during the term of the option, and will be the initial operator pursuant to any joint venture agreement entered into by the parties thereafter. 

During the year ended December 31, 2012, 60,000 (2011 - 150,000) common shares of Stratabound were issued to the Company and are included in investment in securities. 

## v. Houghton Lake, Ontario 

In November 2012, the Company acquired several claims, collectively named the “Houghton Lake Property” (“Houghton Lake”) adjacent to the Company’s Sabin Property. The claims were acquired by the Company together with a syndicate of private individuals, some of whom are related parties. Under this structure, the Company owns 40% of Houghton Lake and will manage all future work programs. 

The staking and acquisition costs totalled $65,000, of which $50,000 was funded by the syndicate. 

## (h) Properties written off 

During the years ended December 31, 2012 and 2011, in an effort to focus its resources on key properties the Company conducted an assessment of all its mineral properties by reviewing facts and circumstances that would impair carrying values on the statements of financial position. The write-down criteria used in the assessment included: 1) mineral property claims had expired and 2) little or no spending had been incurred on the claims recently and no substantive expenditures were budgeted or planned for the exploration of these claims. 

The properties written down in 2012 were: 

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