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Management’s Responsibility for Financial Reporting

The accompanying unaudited interim consolidated financial statements of Frontier Pacific Mining Corporation (the “Company”) have been prepared by and are the responsibility of the Company’s management. The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in Canada and where appropriate, reflect management’s best estimates and judgements based on currently available information.

Management has developed and is maintaining a system of internal controls to obtain reasonable assurance that the Company’s assets are safeguarded, transactions are authorized and financial information is reliable.

The Company’s independent auditors, PricewaterhouseCoopers LLP, who are appointed by the shareholders, conduct an annual audit in accordance with Canadian generally accepted auditing standards.

The Audit Committee of the Board of Directors meets periodically with management to review the interim consolidated financial statements and related financial reporting matters prior to approval of the interim consolidated financial statements.


*“Mohan R. Vulimiri”*		*“Peter F. Tegart”*


M. Vulimiri, Chief Financial Officer and Director		P. Tegart, Chief Executive Officer and Director

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Interim Consolidated Balance Sheet
As at June 30, 2007
Unaudited — Prepared by Management
Canadian Funds


	June 30,			December 31,
	2007			2006
	(Unaudited)			(Audited)

ASSETS
Current
Cash and cash equivalents	$	16,760,078		$	13,757,740
Short term investments (Note 6)		23,000			23,000
Amounts receivable		131,132			22,387
Due from related party (Note 9)		367,936			9,190
Marketable securities (Notes 3 and 5)		1,680,000			400,000
Prepaid expenses		138,907			87,216

		19,101,053			14,299,533

Property and equipment, net (Note 4)		164,898			125,469
Mineral interests (Note 7)		22,498,132			19,157,322
Reclamation bond		7,847			7,847

	$	41,771,930		$	33,590,171


LIABILITIES

Current
Accounts payable and accrued liabilities	$	682,102		$	443,302
Due to related parties (Note 9)		—			31,500

		682,102			474,802


SHAREHOLDERS’ EQUITY

Share capital (Note 8)		55,968,544			48,560,505
Contributed surplus — option compensation (Note 8)		999,167			756,548
Contributed surplus (Note 8)		319,247			319,247
Accumulated other comprehensive income (Note 3)		1,280,000			—
Deficit		(17,477,130	)		(16,520,931	)

		41,089,828			33,115,369

	$	41,771,930		$	33,590,171

Commitments (Note 7, Note 10)

ON BEHALF OF THE BOARD:


*“Peter F. Tegart”,* Director		*“G. Ross McDonald”,* Director

— See Accompanying Notes —

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Interim Consolidated Statement of Operations and
Comprehensive Loss
For the Six Month Period Ended June 30, 2007
Unaudited — Prepared by Management
Canadian Funds


	Three			Three
	Months			Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006

General and Administrative Expenses
Salaries and benefits	$	198,694		$	144,776		$	397,927		$	304,163
Stock-based compensation		138,652			55,803			242,619			110,992
Travel and promotion (See Note 7a)		(161,581	)		43,797			185,100			76,088
Office, telephone and sundry		61,028			62,087			165,378			106,218
Accounting and audit		13,150			32,307			37,294			44,811
Management fees		50,000			18,000			60,000			27,000
Legal fees		63,441			17,760			78,286			25,859
Shareholder information		18,949			14,614			25,051			18,118
Regulatory compliance		10,531			15,385			29,854			21,590
Amortization		11,821			6,321			21,090			8,737
Insurance		11,699			7,083			21,359			12,034
Consulting fees		—			—			3,623			—
Property tax		—			4,161			—			4,161
Interest and bank fees		(45	)		765			915			2,691


		416,339			442,408			1,268,496			808,743

(Income) and other expenses
Interest income		(146,511	)		(140,997	)		(279,424	)		(160,577	)
Foreign exchange (gain) loss		(89,717	)		42,728			(80,574	)		38,229
Expense exploration costs (See Note 7c)		—			—			47,701			—


		(236,228	)		(98,269	)		(312,297	)		(122,348	)


Loss for the period		180,111			344,139			956,199			686,395

Other Comprehensive Loss
Unrealized loss on marketable securities		1,040,000			—			1,140,000			—

Total Comprehensive Loss for the Period	$	1,220,111		$	344,139		$	2,096,199		$	686,395


Weighted average number of shares		138,420,871			119,544,248			135,137,729			117,523,324


Loss per share	$	0.00		$	0.00		$	0.01		$	0.01

— See Accompanying Notes —

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Interim Consolidated Statements of Deficit and Accumulated
Other Comprehensive Income
For the Six Month Period Ended June 30, 2007
Unaudited — Prepared by Management

Canadian Funds


	Three			Three
	Months			Months		Six Months			Six Months
	Ended			Ended		Ended			Ended
	June 30,			June 30,		June 30,			June 30,
	2007			2006		2007			2006

Interim Consolidated Statement of Deficit
Balance, Beginning of period	$	17,297,019		$	14,093,060	$	16,520,931		$	13,750,804
Net loss for the period		180,111			344,139		956,199			686,395

Balance, End of period	$	17,477,130		$	14,437,199	$	17,477,130		$	14,437,199


Interim Consolidated Statement of Accumulated Other Comprehensive Income
Balance, Beginning of period	$	2,320,000		$	—	$	—		$	—
Adjustment to opening balance (see Note 3a)		—			—		2,420,000			—
Unrealized loss on marketable securities		(1,040,000	)		—		(1,140,000	)		—

Balance, End of period	$	1,280,000		$	—	$	1,280,000		$	—

— See Accompanying Notes —

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Interim Consolidated Statements of Cash Flows
For the Six Month Period Ended June 30, 2007
Unaudited — Prepared by Management

Canadian Funds


	Three			Three			Six			Six
	Months			Months			Months			Months
	Ended			Ended			Ended			Ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006

Cash Resources Provided By (Used In)

Operating Activities
Loss for the period	$	(180,111	)	$	(344,139	)	$	(956,199	)	$	(686,395	)

Items not affecting cash
Amortization		11,821			(20,695	)		21,090			(18,278	)
Stock based compensation		138,652			55,803			242,619			110,992

		(29,638	)		(309,031	)		(692,490	)		(593,681	)
Changes in non-cash working capital
Accounts receivable		617			(49,997	)		(104,144	)		(29,612	)
Prepaid expenses		(55,026	)		(10,208	)		(51,691	)		(9,580	)
Accounts payable and accrued liabilities		(244,700	)		94,730			(208,959	)		13,182
Due from related parties		(346,427	)		5,575			(363,346	)		5,094
Due to related parties		—			—			—			(74,174	)

		(675,174	)		(268,931	)		(1,420,630	)		(688,771	)


Investing Activities
Mineral interests expenditures		(1,732,238	)		(669,170	)		(2,693,554	)		(899,791	)
Purchase of marketable securities		—			(250,000	)		—			(250,000	)
Proceeds on disposition of short term investments		—			2,552,881			—			3,153,284
Purchase of equipment		(49,442	)		(2,994	)		(60,517	)		(24,728	)

		(1,781,680	)		1,630,717			(2,754,071	)		1,978,765


Financing Activities

Issuance of share capital		6,359,794			13,988,102			7,177,039			14,243,027


Net Increase (Decrease) in Cash		3,902,940			15,349,888			3,002,338			15,533,021
Cash position — Beginning of Period		12,857,138			262,140			13,757,740			79,007


Cash position — End of Period	$	16,760,078		$	15,612,028		$	16,760,078		$	15,612,028


Supplemental schedule of non cash investing and financial activities;

Stock based compensation	$	138,652		$	55,803		$	242,619		$	110,992
Shares issued for mineral properties	$	231,000		$	160,000		$	231,000		$	160,000
Accrued mineral expenditure costs	$	416,257		$	—		$	416,257		$	—

— See Accompanying Notes —

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Notes to Interim Consolidated Financial Statements
For the six month period ended June 30, 2007
Unaudited — Prepared by Management

Canadian Funds

1.		Nature of Operations

		Frontier Pacific Mining Corporation and its subsidiaries (collectively the “Company”) is an exploration stage company engaged in the acquisition, exploration and development of mineral properties.

2.		Significant Accounting Policies

	(a)		Basis of Presentation

			The accompanying unaudited interim consolidated financial statements are prepared by management in accordance with generally accepted accounting principles (“GAAP”) in Canada with respect to the preparation of interim financial statements. Accordingly, they do not include all the information and disclosures required by Canadian GAAP in preparation of annual financial statements. The accounting policies used in the preparation of the accompanying unaudited interim financial statements are the same as those described in the annual audited financial statements and the notes thereto for the year ended December 31, 2006, except as disclosed in Note 3.

			In the opinion of management of the Company, all adjustments considered necessary for fair presentation have been included in these interim financial statements. The interim financial statements should be read in conjunction with the Company’s audited financial statements including the notes thereto for the year ended December 31, 2006, except as disclosed in Note 3.

	(b)		Management Estimates

			The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported years. Actual results could differ from those estimates.

3.		Change in Accounting Policies

		Effective January 1, 2007, the Company adopted the following new accounting standards issued by the Canadian Institute of Chartered Accountants (“CICA”) relating to financial instruments. These new standards have been adopted on a prospective basis with no restatement to prior period financial statements.

	(a)		Financial Instruments — Recognition and Measurement (Section 3855)

			This standard sets out criteria for the recognition and measurement of financial instruments for fiscal years beginning on or after October 1, 2006. This standard requires all financial instruments within its scope, including derivatives, to be included on a Company’s balance sheet and measured either at fair value or, in certain circumstances when fair value may not be considered most relevant, at cost or amortized to cost. Changes in fair value are to be recognized in the statements of operations and comprehensive income.

			All financial assets and liabilities are recognized when the Company becomes a party to the contract creating the item. As such, any of the Company’s outstanding financial assets and liabilities at the effective date of adoption are recognized and measured in accordance with the

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Notes to Interim Consolidated Financial Statements
For the six month period ended June 30, 2007
Unaudited — Prepared by Management

Canadian Funds

Change in Accounting Policies — continued

	(a)		Financial Instruments — Recognition and Measurement (Section 3855) — continued

			new requirements as if these requirements had always been in effect. Any changes to the fair value of assets and liabilities prior to January 1, 2007 are recognized by adjusting opening deficit or opening accumulated other comprehensive income.

			All financial instruments are classified into one of the following five categories: held for trading, held-to-maturity, loans and receivables, available-for-sale financial assets, or other financial liabilities. Initial and subsequent measurement and recognition of changes in the value of financial instruments depends on their initial classification:

	(i)		Held-to-maturity investments, loans and receivables, and other financial liabilities are initially measured at fair value and subsequently measured at amortized cost. Amortization of premiums or discounts and losses due to impairment are included in current period net earnings.

	(ii)		Available-for-sale financial assets are measured at fair value. Revaluation gains and losses are included in other comprehensive income until the asset is removed from the balance sheet.

	(iii)		Held for trading financial instruments are measured at fair value. All gains and losses are included in net earnings in the period in which they arise.

	(iv)		All derivative financial instruments are classified as held for trading financial instruments and are measured at fair value, even when they are part of a hedging relationship. All gains and losses are included in net earnings in the period they arise.

			In accordance with this new standard, the Company has classified its financial instruments as follows:

			Marketable securities and investments are classified as available-for-sale securities. Such securities are measured at fair market value in the consolidated financial statements with unrealized gains or losses recorded in comprehensive income (loss). At the time securities are sold or otherwise disposed of, gains or losses are included in net earnings (loss).

	(b)		Hedging (Section 3865)

			This new standard specifies the circumstances under which hedge accounting is permissible and how hedge accounting may be performed. The Company currently does not have any hedges.

	(c)		Comprehensive Income (Section 1530)

			Comprehensive income is the change in shareholders’ equity during a period from transactions and other events from non-owner sources. This standard requires certain gains and losses that would otherwise be recorded as part of net earnings to be presented in other

Change in Accounting Policies — continued

	(c)		Comprehensive Income (Section 1530) — continued

			“comprehensive income” until it is considered appropriate to recognize into net earnings. This standard requires the presentation of comprehensive income, and its components, in a separate financial statement that is displayed with the same prominence as the other financial statements.

			Accordingly, the Company now reports a consolidated statement of comprehensive income (loss) and included the account “accumulated other comprehensive income” in the shareholders’ equity section of the consolidated balance sheet.

Property and Equipment


						June 30, 2007
			Accumulated			Net Book
	Cost		Amortization			Value

Land	$	78,811	$	—		$	78,811
Machinery		55,051		(53,677	)		1,374
Computer equipment		105,893		(40,218	)		65,675
Furniture and fixtures		313,560		(294,522	)		19,038

	$	553,315	$	(388,417	)	$	164,898


						December 31, 2006
			Accumulated			Net Book
	Cost		Amortization			Value

Land	$	78,811	$	—		$	78,811
Machinery		55,051		(53,677	)		1,374
Computer equipment		53,226		(25,605	)		27,621
Furniture and fixtures		306,391		(288,728	)		17,663

	$	493,479	$	(368,010	)	$	125,469

5.		Marketable Securities

		As at January 1, 2007 the Company held marketable securities with a quoted market value of $2,820,000. As at June 30, 2007 the quoted market value of these securities was $1,680,000 the decrease in value of $1,140,000 has been recorded in the statement of operations and comprehensive loss.

June 30,

December

June 30,

2007

31,2006

Number of

2007 Book

Market

Book

Market

Owned

Value

value

Value

Solex

Resources Inc.

2,000,000

400,000

1,680,000

400,000

2,820,000

Solex Resources Inc. (“Solex”) and the Company are companies with a common director.

6.		Short Term Investments

		Short-term investments consist of as at June 30, 2007:


	Value		Maturity Date

GIC	$	23,000	July 15, 2007

This consists of two $11,500 GICs, which the Company has provided as security to the Company’s two corporate MasterCard accounts. These deposits bear interest at approximately 2.35% per annum. The Company has cancelled these corporate MasterCard accounts effective July 15, 2007.

7.		Mineral Interests

		Mineral interest expenditures for the six month period ended June 30, 2007 are as follows:


	Perama		Macusani			Total

Balance December 31, 2006	$	16,337,861	$	2,819,461		$	19,157,322

Activity 2007;
Acquisition costs:		45,343		231,000			276,343
Exploration costs:
Office expenditures		—		22,278			22,278
Project management		85,642		22,921			108,563
Design engineering		33,051		—			33,051
Geological consulting		—		251,690			251,690
Geophysical consulting		—		10,643			10,643
Survey, evaluation, mapping		—		90,232			90,232
Drilling		—		1,283,352			1,283,352
Assays		22,824		224,570			247,394
Field supplies and equipment		—		1,491			1,491
Camp		—		293,541			293,541
Gov’t licenses and permits		—		153,019			153,019
Travel expenditures		—		23,381			23,381
Bank charges and fees		—		6,989			6,989
Legal expenses		—		3,885			3,885
Community relations		—		7,384			7,384
Accounting and audit		—		6,944			6,944
IGV Sales Tax		—		226,968			226,968
Permitting		655,920		—			655,920

Total activity 2007		842,780		2,860,288			3,703,068
Joint venture recoveries		—		(362,258	)		(362,258	)

Balance June 30, 2007	$	17,180,641	$	5,317,491		$	22,498,132

Mineral Interests — continued

Mineral interest expenditures as at December 31, 2006:


	Perama			Macusani		Dixie Creek			Total

Acquisition costs:	$	16,419,325		$	276,588	$	319,910		$	17,015,823
Exploration costs:
Office, supplies and services		—			1,315		—			1,315
Project Management expenditures		121,918			100,310		—			222,228
Design Engineering Consultants		84,039			—		—			84,039
Geological and engineering		—			420,297		13,027			433,324
Geophysical consulting		—			378,906		—			378,906
Survey, Evaluation and Mapping		—			87,514		—			87,514
Drilling		—			387,801		728,173			1,115,974
Assaying		—			67,090		4,980			72,070
Field supplies and equipment		—			140,938		—			140,938
Camp, Exploration, Support		—			233,679		2,980			236,659
Gov’t Fees, Licenses & Permits		—			418,196		6,103			424,299
Travel expenditures		7,859			69,045		5,088			81,992
Bank charges, fees and fx		—			9,785		—			9,785
Legal Expense		—			25,276		—			25,276
Community Relations		—			39,094		—			39,094
Accounting & audit		—			11,674		—			11,674
Tax Recoveries		(295,280	)		151,953		—			(143,327	)

		16,337,861			2,819,461		1,080,261			20,237,583
Write off mineral interest costs							(1,080,261	)		(1,080,261	)

Project costs December 31, 2006	$	16,337,861		$	2,819,461	$	—		$	19,157,322

Mineral Interests — continued

	a)		Perama Hill Gold Project, Greece

			On December 16, 2004 the Company acquired 100% of the outstanding shares of Thracean Gold Mining S.A. (“TGM”), a company incorporated in Greece that holds a 100% interest in the Perama Hill Gold Project.

			The purchase price for the shares of TGM was US$12,000,000 (CDN$14,814,895). In addition the Company incurred property investigation costs in the amount of CDN $560,198 and CDN $157,108 which were included in the acquisition costs.

			In addition, the Company agreed, on March 12, 2004, to reimburse the Sellers for the actual reasonable costs incurred by the Sellers in connection with the operation of TGM from March 12, 2004 to December 16, 2004. These amounted to CDN $1,033,578 and are considered part of the purchase price.

			Total acquisition costs for TGM recorded in the Company’s accounts are CDN $16,565,779.

			The Company also agreed to pay the following additional contingent payments:

			A cash payment of US$3,000,000 upon commencement of commercial production from the Project; and

			A 2.5% net smelter return royalty payable on all ores, minerals, metals, materials or other products produced from the Project.

			The cash payment of US$3,000,000 is a contingent consideration and is not reflected in the financial statements until the condition has been met.

			By agreement dated April 10, 1997, TGM was granted an option in certain mineral exploration licenses (MEL’s) located adjacent to the Perama Hill Gold Project. The option payments were suspended April 11, 2002 pending approval by the regional government to renew the MEL’s. In the event that the MEL’s are renewed TGM can maintain its option by paying the remaining balance due of €608,950 to the vendor as follows;


	Amount in
	Euros

Upon the approval of the License of Environmental Impact Study (EIS) by the Ministries of Research, Development and the Environment	€	121,790
Upon final approval of the EIS		121,790
Upon the issuance of the Construction License by the Ministry of Development		121,790
Upon the issuance of the Intervention License according to the Forest Protection Legislation		121,790
Upon issuance of the Operational Licenses by the Ministry of Development		60,895
Upon commencement of the operation of the project		60,895

	€	608,950

Mineral Interests — continued

	a)		Perama Hill Gold Project, Greece — continued

			The property title was transferred to TGM as part of the agreement but the vendor has the right to regain it should TGM not satisfy its part(s) of the agreement.

			The permitting status for the development of the Perama Hill Gold Project is presently awaiting approval of the ETR (Environmental Terms of Reference) by the Joint Ministerial Council made up of five ministers within the National Greek government. The ETR, drafted by the Ministry of Environment and agreed to by the Company, is awaiting the Joint Ministerial Resolution (JMR) which effectively approves the Environmental Impact Statement (EIS), allowing the Company to proceed with development of the project.

			The Company has begun effective January 1, 2007, to capitalize the cost associated with obtaining the various permits required to commence construction and operate the mine. The costs incurred in the first quarter 2007 $229,571 were included in the Company’s operating expenses under the heading Travel and Promotion. These permitting costs have now been included as part of the Mining Interest costs under the heading Permitting.

			Management has instituted a program to assess the geological, environmental and political factors relating to the Perama Hill Gold Project and to review, on a quarterly basis, any potential for impairment.

	b)		Macusani Project, Peru

			On April 19, 2005 the Company entered into an option management agreement with Solex Resources Inc. (“Solex) to acquire an undivided 50% interest in a uranium property near Puno, Peru, consisting of 55 mineral concessions covering an area of approximately 35,000 hectares. Subsequently an additional 11,000 hectares were acquired and made subject to the original agreement.

			The Company must, at its option, make a cash payment of USD $50,000 (paid), and issue shares and incur minimum exploration expenditures as follows:


	Exploration costs
	(USD)			Common Shares

On date of the agreement	$	—			200,000	(issued)
On or before April 19, 2006		400,000	(complete)		250,000	(issued)
On or before April 19, 2007		350,000	(complete)		300,000	(issued)
On or before April 19, 2008		500,000	(complete)		350,000
On or before April 19, 2009		900,000	(complete)		400,000
On or before April 19, 2010		1,850,000	(complete)		—

	$	4,000,000			1,500,000

In addition, the Company subscribed for $150,000 in units of the Optionor at a price of $0.15 per unit. Each unit is comprised of one common share of Solex and one warrant to purchase an additional Solex common share at a price of $0.25 for the first year and $0.35 for the second year. The initial purchase of Solex units was completed in April 2005 and the warrants were

Frontier Pacific Mining Corporation
(An Exploration Stage Company)
Notes to Interim Consolidated Financial Statements
For the six month period ended June 30, 2007
Unaudited — Prepared by Management
Canadian Funds

Mineral Interests — continued

	b)		Macusani Project, Peru — continued

			exercised at $0.25 in April 2006. The investment is included on the balance sheet under Marketable Securities (Note 5).

	c)		Dixie Creek Property, Nevada, USA

			On December 31, 2006 the Company abandoned it’s interest and wrote off acquisition and exploration costs of $1,080,261.

			Property expenditures incurred in the three month period ended March 31, 2007 in the amount of $47,701 were expensed in the first quarter 2007.

Share Capital and Contributed Surplus

	a)		Share Capital

			As at June 30, 2007 the Company’s share capital consists of the following:

			Authorized unlimited common shares without par value.


					Contributed
					Surplus
	Number of				Stock		Contributed
Issued and fully paid:	Shares		Amount		Options		Surplus

Balance — December 31, 2006		131,641,170	$	48,560,505	$	756,548	$	319,247
Warrants exercised		18,375,984		7,177,039		—		—
Shares issued for mineral properties		300,000		231,000		—		—
Stock based compensation		—		—		242,619		—

Balance — June 30, 2007		150,317,154	$	55,968,544	$	999,167	$	319,247

	b)		Share Purchase of Warrants

			As at June 30, 2007 the following share purchase warrants were outstanding:


December 31,		Issued in the		Exercised in the		Expired in the		Balance June 30,
2006		period		period		period		2007

	30,888,484		—		18,375,984		12,500		12,500,000

Details as follows:

Share Capital and Contributed Surplus — continued

Share Purchase of Warrants — continued

Exercise

Expiry

Price

Date

12,500,000

0.40

July 15, 2007

			On July 15, 2007 12,500,000 warrants were exercised for aggregate gross proceeds of $5,000,000.

	c)		Stock options

			The Company adopted a rolling stock option plan whereby directors may, from time to time, authorize the issuance of options to directors, officers, employees and consultants of the Company and its subsidiaries to a maximum of 10% of the issued and outstanding common shares of the Company at the time of the grant, with a maximum of 2% of the Company’s issued and outstanding shares reserved for any one consultant or employee conducting investor relations activities on a yearly basis. Options vest 16.67% on granting and every 90 days thereafter until fully vested. Performance vested options have a term of five years and vest on attaining specified milestones. See the table following:

			As at June 30, 2007 the following stock options were outstanding:


Balance December		Issued in the		Exercised in the		Cancelled in the		Balance June 30,
31, 2006		period		period		period		2007

	7,145,000		253,000		—		—		7,398,000

Details as follows:


Number of Shares		Price		Expiry Date

	350,000	$	0.20	September 6, 2007
	150,000	$	0.20	October 28, 2007
	200,000	$	0.20	February 6, 2008
	50,000	$	0.23	March 21,2008
	250,000	$	0.55	March 1, 2009
	53,000	$	0.73	March 22, 2009
	200,000	$	0.41	January 27, 2010
	3,820,000	$	0.25	October 25, 2010
	2,125,000	$	0.38	August 4, 2011
	200,000	$	0.85	March 22, 2012

	7,398,000

As at June 30, 2007 5,021,170 stock options are fully vested.

			The fair value of options granted is estimated using the Black-Scholes option-pricing model with the following assumptions:

			Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value

Share Capital and Contributed Surplus — continued

Stock options — continued

estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s stock options.


	2007			2006			2005

Expected dividend yield		0.0	%		0.0	%		0.0	%
Stock Price Volatility		74	%		99	%		91	%
Risk free interest rate		3.80	%		3.80	%		2.50% - 3.80	%
Expected life of options	5 - 2 years			5 years			5 years

Related Party Balances and Transactions

Except as disclosed elsewhere in these financial statements, related party transactions are as follows:


	Paid/Accrued to:	June 30, 2007		December 31, 2006


Management wages and fees	Directors and officers	$	229,000	$	341,000
	Directors		—		188,929
Exploration costs	Company with a common director	$	—	$	169,788


	Received/Accrued from:	June 30, 2007		December 31, 2006

Office rent and services	Company with a common director	$	31,260	$	61,260
Recovery of Exploration costs	Company with a common director	$	362,258	$	—

Amounts due to related parties are $NIL (2006 — $31,500). Prior year amounts were bonuses and fees payable to employees.

Amounts due from related parties of $367,936 (2006 — $9,190) were for exploration cost sharing of $362,258 (2006 $Nil) and office service costs and travel advances $5,678 (2006 $9,190) from officers of the Company. Prior year amounts were office service costs and a travel advance to an officer of the Company. The exploration cost sharing agreement calls for payment within thirty days of receipt of invoice. The remaining balances bear no interest and have no specific terms of repayment.

Related Party Balances and Transactions — continued

The above transactions occurring in the normal course of operations, are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

10.		Commitments

		The Company has the following office lease obligations as at June 30, 2007:

Location

Commitment

Expiry Date

Vancouver

Office lease

130,732

August 31, 2011

Greece:

Office lease

8,433

November 13, 2007

Office lease

15,930

July 25, 2009

Office lease

16,214

September 14, 2009

171,309

11.		Segmented Information

		Details are as follows:


	Canada		Greece		Peru			USA		Total

Period Ended June 30, 2007
Loss (income) for the period	$	589,592	$	426,215	$	(63,230	)	$	3,622	$	956,199
Total assets	$	18,832,664	$	17,435,179	$	5,438,311		$	65,976	$	41,771,930

Year Ended December 31, 2006
Loss (income) for the year	$	2,118,041	$	614,288	$	(4,071	)	$	41,870	$	2,770,128
Total assets	$	13,973,740	$	16,558,452	$	2,988,381		$	69,598	$	33,590,171

***