Financial Statements

TRS.TSX Venture Audited Financial Statements | February 29, 2004

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Auditors' Report

Balance Sheets

Statements of Operations and Deficit

Statements of Cash Flows

Notes to the Financial Statements

Management Discussion

AUDITORS' REPORT

To the Shareholders of Tres-Or Resources Ltd.

We have audited the balance sheets of Tres-Or Resources Ltd. as at February 29, 2004 and February 28, 2003 and the statements of operations and deficit and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at February 29, 2004 and February 28, 2003 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles.

"DAVIDSON & COMPANY"

Vancouver Canada
Chartered Accountants
June 29, 2004

A Member of SC INTERNATIONAL
1200 - 609 Granville Street, P.O. Box 10372, Pacific Centre, Vancouver, BC, Canada, V7Y 1G6
Telephone (604) 687-0947 Fax (604) 687-6172

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Balance Sheets

AS AT FEBRUARY 29 2004

 

 

 

February 29,

2004

 

February 28,

2003

 

 

 

ASSETS

 

 

 

 

 

Current

 

 

      Cash and cash equivalents

$         480,939

$         254,852

      Restricted cash (Note 12)

        1,046,777

                   -   

      Marketable securities (Note 3)

             51,400

             50,500

      Receivables

           156,069

           103,591

      Exploration advances

           130,000

                   -   

 

 

 

 

        1,865,185

           408,943

 

 

 

Equipment (Note 4)

               1,685

               1,002

Mineral properties (Note 5)

           891,650

           895,650
Deferred exploration costs (Note 6)

        1,795,343

           808,176

 

 

 

 

$      4,553,863

$      2,113,771

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

Current

 

 

      Accounts payable and accrued liabilities

$         290,349

$         209,161

      Due to related parties (Note 7)

             11,830

             41,857

 

 

 

 

           302,179

           251,018

 

 

 

Shareholders' equity

 

 

      Capital stock (Note 8)

        8,098,026

        6,063,361

      Subscriptions receivable (Note 14)

           (79,500)

           (89,500)

      Contributed surplus (Note 8)

           332,382

             34,316

      Deficit

      (4,099,224)

      (4,145,424)

 

 

 

 

        4,251,684

        1,862,753

 

 

 

 

$      4,553,863

$      2,113,771

Nature and continuance of operations (Note 1)
Contingencies (Note 13)
Subsequent events (Note 14)

 

On behalf of the Board:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“N. Reid Toreson”

Director

“Laura Lee Duffett”

Director

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

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Statements of Operations and Deficit

YEAR ENDED FEBRUARY 29

 

 

Year Ended

February 29,

2004

 

Year Ended

February 28,

2003

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

      Amortization

$                473

$                430

      Consulting fees

           141,832

             52,751

      Expense recovery

           (64,795)

           (43,939)

      Management fees

             42,500

             20,000

      Office and miscellaneous

             36,539

             29,648

      Professional fees

             94,754

             67,541

      Stock-based compensation (Note 8)

           176,435

             34,316

      Telephone

               4,441

               4,127

      Transfer agent and regulatory fees

             34,692

             26,192

      Travel and promotion

             36,131

             47,242

 

 

 

 

         (503,002)

         (238,308)

 

 

 

 

 

 

OTHER ITEMS

 

 

      Gain on extinguishment of debt

             18,280

                   -   

      Interest income

               1,825

                   -   

      Write-up (write-down) of marketable securities (Note 3)

                  900

           (42,500)

      Write-off of mineral properties (Note 5)

                   -   

         (157,375)

      Write-off of deferred exploration costs (Note 6)

                   -   

         (394,825)

 

 

 

 

             21,005

         (594,700)

 

 

 

 

 

 

Loss before income taxes

         (481,997)

         (833,008)

 

 

 

Income tax recovery (Note 12)

           528,197

           238,046

 

 

 

Net income (loss) for the year

             46,200

         (594,962)

 

 

 

Deficit, beginning of year

      (4,145,424)

      (3,550,462)

 

 

 

Deficit, end of year

$    (4,099,224)

$    (4,145,424)

 

 

 

Basic and diluted earnings (loss) per common share

$              0.00

$            (0.04)

 

 

 

Weighted average number of common shares outstanding

      21,041,871

      16,343,024

 

The accompanying notes are an integral part of these financial statements.

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Statements of Cash Flows

YEAR ENDED FEBRUARY 29

 

 

Year Ended

February 29,

2004

 

Year Ended

February 28,

2003

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

      Income (loss) for the year

$           46,200

$        (594,962)

      Items not affecting cash:

 

 

            Amortization

                  473

                  430

            Gain on extinguishment of debt

            (18,280)

                    -   

            Income tax recovery

          (528,197)

          (238,046)

            Stock-based compensation

           176,435

             34,316

            Write-down (write-up) of marketable securities

                 (900)

             42,500

            Write-off of mineral properties

                    -   

           157,375

            Write-off of deferred exploration costs

                    -   

           394,825

 

 

 

      Changes in non-cash working capital items:

 

 

            Increase in receivables

            (72,535)

            (82,222)

            Increase in accounts payable and accrued liabilities

           156,968

             89,131

            Increase (decrease) to related parties

            (22,027)

             32,220

 

 

 

      Net cash used in operating activities

          (261,863)

          (164,433)

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

      Issuance of capital stock

        2,763,901

           818,414

      Decrease in subscriptions receivable

             10,000

               8,500

      Share issue costs

          (237,301)

                    -   

      Proceeds from sale of acquired capital stock

             91,700

                    -   

      Capital stock acquired and cancelled

              (4,250)

                    -   

 

 

 

      Net cash provided by financing activities

        2,624,050

           826,914

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

      Exploration advances

          (130,000)

                    -   

      Mineral properties