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## 9. Exploration and Evaluation Assets (Continued) 

Expenditures incurred on mineral properties as at December 31, 2011 were as follows: 

<img src='content_image/195005.jpg'>

## (a) Baffin Island Properties, Nunavut 

The Baffin Island Properties consist of two separate properties named Qimmiq and Bravo Lake (collectively, the “Baffin Properties”). The Company owns 100% of the Qimmiq property, subject to an underlying agreement with Nunavut Tunngavik Inc. and certain future considerations to BHP Billiton. The Company owns 100% of the Bravo Lake property subject to certain future considerations to Xstrata Nickel, a business unit of Xstrata Canada Corporation. 

In 2009, the Company entered into a Farm-in and Joint Venture Agreement (the “Agreement”) with AngloGold Ashanti Limited’s subsidiary, AngloGold Ashanti Holdings Plc (“AngloGold”), related to the Baffin Properties. 

Pursuant to the Agreement, AngloGold may earn a 51% participating interest in the Baffin Properties by funding $20 million by December 31, 2014, with an additional requirement to fund $5.5 million of the $20 million in exploration expenditures before December 31, 2010. 

In March 2012, AngloGold decided not to put forward a 2012 exploration program on Baffin Island and has withdrawn from the Agreement. 

For the year ended December 31, 2012, total recoveries on the Baffin Properties from AngloGold amounted to $537,369 (2011 - $2,957,403). The recoveries included AngloGold’s final settlement for the joint venture program as it withdrew from its Agreement with the Company and discontinued exploration program on Baffin Island in March 2012. The Company now retains 100% interest of the property. 

