Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates, and such differences may be material to the financial statements.

From time to time our cash balances, held at a major financial institution, exceed the federally insured limits of $250,000. Our management believes that the financial institution is financially sound and the risk of loss is low.

We use the established three-level valuation hierarchy for valuing and disclosing our financial instruments at fair value. The three levels are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the balance sheets for cash, receivables, and current liabilities are at cost which approximates their fair value due to their short-term nature.

As part of our August 2010 settlement with Queenstake Resources we obtained 2,000,000 shares of common stock of Queenstake's parent company, Yukon Nevada Gold Corp. ("YNG"). On October 9, 2012, Yukon Nevada Gold Corp. commenced trading on the Toronto Stock Exchange under the name Veris Gold Corp. with the symbol VG. On that same date, Veris Gold Corp. instituted a 10 for 1 reverse split of its common shares. All numbers for Veris Gold Corp./Yukon Nevada Gold Corp. in these financial statements are based on a post reverse price and quantity. In these financial statements Yukon Nevada Gold Corp./Veris Gold Corp. will be referred to as Veris Gold and or VG.

At December 31, 2014, we had sold all the shares of VG. Since the securities were classified as available for sale, we recognized realized gains/losses and declines in value of the securities deemed to be other than temporary in earnings. Unrealized gains/losses were recognized as a component of other comprehensive income. During the year ended December 31, 2013, we recognized an unrealized gain of $263,189 on our VG common stock holding, and a $283,266 loss on the sale of our entire investment in VG, resulting in $0 remaining unrealized gains/losses in accumulated other comprehensive income/loss at December 31, 2013.

For the statement of cash flows, any liquid investments with a maturity of three months or less at the time of acquisition are considered to be cash equivalents.

Property and equipment are recorded at cost. Maintenance and repair costs are charged to expense as incurred, and renewals and improvements that extend the useful life of assets are capitalized. Depreciation on property and equipment is computed using the straight-line method over the assets' estimated useful lives as follows:

At December 31, 2014 and 2013, our only property or equipment is the Gold Bar Mill located near Eureka, Nevada. The Mill has been idle since acquisition; therefore, no depreciation expense has been recognized.

We periodically review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment losses are recognized when the estimated future cash flows are less than the carrying amount of the asset calculated on discounted cash flow basis.

For the year ended December 31, 20014 we did not recognize any impairment charges. During 2013, we determined that the value of the Mill was less than the carrying amount of the Mill reflected in our Balance Sheet. As a result of unsuccessful attempts to sell the mill and based on valuation assessments from outside sources, the carrying amount of the Mill was reduced from acquisition cost of $3,980,000 to $350,000, and we recognized an impairment loss during 2013 of $3,630,000.

We measure stock-based compensation cost relative to the estimated fair value of the awards on the grant date using a Black Scholes options pricing model. We recognize the cost as the awards vest.

The computation of basic earnings (loss) per common share is based on the weighted average number of shares outstanding during each year.

The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents as detailed in the following chart. In 2014 and 2013 the inclusion of these shares would have resulted in a weighted average shares fully diluted number that was anti-dilutive and as such they are excluded.

	2014		2013

Basic shares outstanding		23,366,328		23,366,328
Series B preferred stock		40,000		40,000
Total		23,406,328		23,406,328

Income taxes are accounted for under the liability method. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statements and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized or the liability settled.

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax law and rates on the date of enactment.

There are no recent accounting pronouncements that are expected to have a material impact on our financial position, results of operations or cash flows.