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## COMMANDER RESOURCES LTD. 

(An Exploration Stage Company) Notes to Financial Statements For the Years Ended December 31, 2012 and 2011 (Expressed in Canadian dollars) 

## 9. Exploration and Evaluation Assets (Continued) 

## (b) Glenmorangie, Yukon 

For the year ended December 31, 2012, the Company issued 150,000 (2011 - 150,000) common shares and paid $15,000 (2011 - $12,000) cash for the Glenmorangie property to meet the second year commitment under the option agreement negotiated in June 2011. The option agreement allows the Company to earn a 100% interest in the property through the staged issue of 840,000 shares, staged cash payments of $147,000 and total exploration expenditure of $500,000 over four years according to the following schedule: 

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## (c) Storm Property, Nunavut 

In November 2011, the Company entered into an option agreement with Aston Bay, which allowed Aston Bay to earn an initial 50.1% interest in the Storm Property. In July 2012, the option agreement was amended to provide Aston Bay more flexibility with respect to the timing and size of their initial private offering. 

Under the amended agreement, Aston Bay is required to spend $6 million over 4 years, with a minimum of $1 million in each of the first 2 years, and complete a public listing by March 31, 2013. Aston Bay will issue 1 million shares to Commander by August 31, 2012 and an additional 0.5 million shares by December 31, 2015. In the original agreement Aston Bay was required to deliver 1 million shares by December 31, 2014. These issuances are in addition to the 2 million shares that were received by Commander upon signing the Option Agreement. 

The Company received the second cash payment of $100,000 and one million common shares to hold a total of 3 million shares under the terms of the amended option agreement during the year ended December 31, 2012. 

## (d) Omineca Properties, British Columbia 

The Company owns a 100% interest in the properties of Abe, Pal, Aten, Mate and Tut (together called the “Omineca Properties”) located within the Quesnel Trough of British Columbia. The vendor of the property retains a 1% net smelter return royalty (“NSR”) in the Abe and Pal properties and will participate in certain cash or share considerations received from the future sale or option of the properties to a third party. 

## (e) Stump Lake, British Columbia 

In June 2011, the Company entered into a Letter of Intent (the “Agreement”) to acquire a package of claims on a newly discovered epigenetic gold prospect in southern British Columbia. The package of claims was held by The Marlow Prospecting Syndicate of Kamloops (“Marlow”) and was increased by additional staking of adjacent claims by Commander. 

Under the terms of the Agreement, the Company may earn a 100% interest in the property over a five-year period by making total cash payments of $625,000, issuing 2 million shares to Marlow and completing $3 million in exploration work. 

The property was written off during the year ended December 31, 2012 as the Company decided not to incur further expenditures on the Stump Lake gold property and terminated the Agreement with Marlow. 

