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## Buffalo Reef Prospect 

Through Damar, the Company holds 100% of the Buffalo Reef Prospect consisting of two contiguous tenements approximately 2,050 acres in size in Pahang State of Malaysia and extending the total contiguous and continuous land position northward from and including the Selinsing Gold Mine Project for approximately 4.2 kilometres along the gold trend. 

As part of the due diligence program prior to the closing of the acquisition of Damar, the Company commissioned the preparation of a NI 43-101 report on the Damar Buffalo Reef Prospect. The report concluded there was a historic resource which was not NI 43-101 compliant. 

Prior to fiscal 2010, the Company completed two drilling programs in 2008 and 2009 for 11,871 meters of reverse circulation drilling (“RC drilling”) with 1,400 meters of diamond drilling pending at the South, Central and Northern Zone of Buffalo Reef. The assay results were announced by the Company through a series of news releases with a positive outlook confirming historic drill results (refer to www.sedar.com). These adjacent mineral exploration programs, if successful, are expected to result in an increase in economic benefit for the planned mine development at Selinsing by adding potential resources within economic haulage distance of the Selinsing Gold Project. 

The diamond drilling work included in Phase I program was not commenced during fiscal year 2010 due to financial constraints caused by non-delivery of a $10 million credit facility during the period of economic downturn in 2008. On September 22, 2010, upon completion of the $13 million financing, the Company has initiated a drill program including 33 drill holes comprising 2,500m RC drilling and 3,200m diamond drilling, budgeted at $0.8 million. The drill program is an extension to the previous 11,871m of shallow RC drilling programs completed in 2008. It is aimed to convert the inferred resources into measured and indicated, and to update the JORC Code compliant gold resource to NI 43-101 standards. Metallurgical and recovery test work will also be performed on the Buffalo Reef ore as part of the ongoing development program. 

## 1.3 Selected Annual Financial Information 

The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles, and are expressed in Canadian dollars except common shares outstanding. 

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## 1.4 Results of Operations 

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