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Future income tax assets and liabilities have been calculated using the following enacted corporate income tax rates: Canada at 25% (2009 – 26%) and Malaysia at 25% (2009 – 20%). Significant components of future tax assets and liabilities, after applying enacted corporate income tax rates, are as follows: 

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At June 30, 2011, the Company’s losses for Malaysian tax purposes are approxim ately $700,000 (Malaysian ringgit 2,022,000), that may be carried forward to apply against future income for Malaysian tax purposes. These losses do not expire. 

At June 30, 2011, the Company has non-capital losses available for carry-forward for tax purposes that are available to reduce taxable income of future years in Canada of $11,377,400 (CAD10,973,500). The losses expire as follows: 

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The future benefit of future income tax assets has not been recorded in these consolidated financial statements to the extent that the Company estimates that these assets, more likely than not, will not be realized. 

## 21. Capital Management 

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue so that it can continue to provide returns for shareholders, and to have sufficient funds on hand to fund its future business acquisition and its gold production at Selinsing Gold Mine, to pursue the exploration and development of its mineral property interests, and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. 

The Company includes the c omponents of shareholders’ equity and credit facilities as capital. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue equity, issue new debt or acquire or dispose of assets. 

