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## NEW OROPERU RESOURCES INC. 

## Notes to Consolidated Financial Statements 

(Expressed in US dollars) 

Years ended December 31, 2012 and 2011 

## 7. INCOME TAXES (Continued) 

Effective January 1,2012, the Canadian federal corporate tax rate decreased from 16.5% to 15.0% and the British Columbia provincial tax remained consistent at 10.0%. The overall reduction in tax rates has resulted in a decrease in the Company’s statutory tax rate from 26.5% to 25.0%. 

The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts: 

<img src='content_image/270916.jpg'>

The reconciliation of income tax provision computed at the Canadian statutory tax rate of 25.0% (2011– 26.5%) to the reported income tax provision is as follows: 

<img src='content_image/270917.jpg'>

## 8. RELATED PARTY TRANSACTION S 

Key management personnel compensation consists of the Chief Executive Officer and Chief Financial Officer  and Directors of the Company . Aggregate compensation consists of the following: 

<img src='content_image/270918.jpg'>

