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## 5. Cash and Cash Equivalents 

As at December 31, 2012, the cash balance includes only Commander’s accounts while the balance at December 31, 2011 included Maritime’s cash of $134,402. As at December 31, 2012, there was no (2011 - $309,940) remaining balance of exploration funds raised through the issuance of flow-through shares, which were required to be spent on mineral exploration related activities in Canada only. 

## 6. Investment in Securities 

The Company had fair market valued investment in securities as follows: 

<img src='content_image/268408.jpg'>

During the year ended December 31, 2012, the Company received the following shares on properties: 

i. 1 million shares from Aston Bay Ventures Ltd. (“Aston Bay”) as part of the $15 million Option Agreement with Aston Bay signed in 2011 for the Storm property (Note 9(c)). 

$_{ii.}$ 60,000 common shares of Stratabound Minerals Corp. (“Stratabound”) under the terms of the option agreements for the Nepisiguit and Stewart properties (Note 9(g)(iv)). 

The Company holds less than 10% of the outstanding common shares of each investment, except for its investment in Aston Bay, of which the Company owns more than 10% of the common shares but less than 20% of the total common shares outstanding. 

During the year ended December 31, 2012, the Company reclassified investments impairment loss on securities of $471,486 (2011 - $Nil) to the statement of income. 

## 7. Capital Management 

The Company defines its capital as all components of equity. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. 

The properties in which the Company currently has an interest are in the exploration stage; as such, the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company's approach to capital management during the year ended December 31, 2012. The Company is not subject to externally imposed capital requirements. 

