The Company is an active junior mineral resource exploration company focused on the acquisition, exploration and development of precious metals, base metals and diamond projects.  Properties which the Company currently owns or which it is currently evaluating for acquisition are located in the traditional mining areas of Ontario, Canada. 

The recoverability of the amounts comprising mineral properties and deferred exploration costs is dependent upon the confirmation of economically recoverable reserves, the ability of the Company to obtain the necessary financing to successfully complete its exploration and development and upon future profitable production and royalties. 

Risks: 

The success of the Company’s business is subject to a number of factors including but not limited to those risks normally encountered in the mining industry such as exploration uncertainty, lack of operating cash flow, increasing environmental regulation, continued industry and public acceptance, regulatory compliance, potential liability claims, general markets and economic conditions, competition with Companies having greater resources, and further capital requirements and the uncertainty of obtaining required financing.

REVIEW OF OPERATIONS - MINERAL PROPERTIES

Mann Platinum/Palladium Project, Ontario, Canada 

The Mann property consists of 19 contiguous claim units (304 hectares) covering part of a large mafic/ultramafic complex located approximately 47 kilometres northeast of Timmins, Ontario. The property is situated within the Mann complex, a mafic/ultramafic layered intrusion which hosts Platinum Group Elements (PGE) and copper-nickel sulphide mineralization.  Broadlands Resources Ltd. is earning up to 50% interest in the property as per an Agreement executed on November 9, 2000. 

Phase I exploration is complete and included geological studies and the re-logging and sampling of approximately 1,155 metres of historic drill core, most of which had not been tested.  One hundred-four (104) samples were taken.  The majority of the samples anomalous in PGE’s in drill core are in clinopyroxenite.  Thirty-one (31) 0.2 to 1.2 metre long samples were taken in clinopyroxenite of which twenty-four (24) are anomalous in PGE’s, up to 942 ppb PGE’s plus gold.  

Whole rock analyses, thin section and microprobe studies to date indicate that platinum group metals (PGM) and native gold occur in discrete grains, approximately one to five microns in size.  The PGM are typically anhedral, and occur in clusters of two to ten grains and comprise a complex suite of Pt, Pd, Te, Sb, Cu, Mn bearing minerals.  The PGM are generally enclosed in chlorite close to contacts with secondary clinopyroxene or within secondary clinopyroxene and occur in proximity to sulphides but rarely in contact with sulphides.  The sulphides consists of bornite, chalcopyrite, digenite and cobaltian pentlandite.  

Phase I geophysical surveys include 21 kilometres of Total Field Magnetics and 7.5 kilometres of Induced Polarization (IP) surveys.  This geophysical data will assist in further definition of priority drill targets.  Broadlands Resources Ltd. engaged a drill to mobilize to the site May 27, 2001.  Phase II exploration includes a minimum of 1,000 metres of diamond drill testing of mineralized showings and geophysical targets. 

In addition, 20 drill core samples were taken by Ontario Geological Survey personnel.  Results from these samples will be reported when received.  This information will be correlated with thin section studies to better determine the controls on the PGM mineralization within the clinopyroxenite horizon before further drilling is undertaken.  Information to date implies that the platinum-palladium bearing clinopyroxenite horizon is a distinct cumulative horizon within the Mann layered ultramafic complex and therefore should have good lateral and width continuity throughout the Mann layered ultramafic. 

Shallow River, Shallow River East and Botany Base Metal Project, Ontario, Canada

The Company completed 300 metres of exploration drilling on the Botany  project to test a 1.6 kilometres long geobotanical anomaly identified in earlier work programs by John Mansville.  Drilling intersected massive to intermediate volcanics and gabbroand no significant base metal mineralization was identified.   Earlier exploration programs carried out by the Company on the Shallow River Project identified a rhyolite porphyry unit which may be indicative of a semi-conformable alteration zone related to a volcanogenic massive sulphide (VMS) alteration system.  The prospective zinc-bearing felsic volcanic horizon has been identified over eight kilometres of property length and remains open along strike.The properties are located approximately 65 kilometres northwest of Kirkland Lake, Ontario, and cover largely under-explored southeast trending package of felsic volcanic, mafic volcanic and sedimentary rocks.   

Further work including mapping, prospecting and sampling is recommended to evaluate the base metal potential of the Shallow River, Shallow River East and Botany properties.  The Company is pursuing joint venture participation in the project.

Temagami Diamond Claim Project, Ontario, Canada 

On February 15, 2001, the Company acquired 100% undivided interest in 783 mining claim units (the “Temagami Diamond Claims) in Hartle, Askin, Law, Milne, Flett, Gooderham and Kenny Townships, located east of Marten River at the southern end of the Lake Timiskaming Structural Zone near Sudbury, Ontario.  The purchase price for the claims  is a cash payment of $190,000 (paid) and the issuance of 180,000 common shares of the Company (issued).   

On March 26, 2001, the Company purchased a 100% undivided interest in an additional  99 claim units in Milne Township, adjoining the Company’s 783 Temagami Diamond claims.  The purchase price for the claims payable by the Company to the Vendors is a cash payment of $24,750 (paid) and the issuance of 100,000 shares common shares of the Company (issued). The claims are considered prospective for diamonds. 

The diamond potential of the region has been corroborated by the Ontario Geological Survey’s Open File Report 6043, released on April 18^th, 2001.  This OGS Open File entitled “Regional modern alluvium sampling survey of the Temagami-Marten River area, northeastern Ontario” reports the occurrence of numerous kimberlite indicator minerals (KIMs) both on and down-ice of Tres-Or’s Temagami Diamond Claims.  Included among these indicator minerals are G10 Cr-pyrope garnets and Cr- and Mg-rich chromites that are compositionally similar to most such minerals included in diamonds. 

On May 9, 2001, the Company engaged Dr. Harrison Cookenboo, Ph.D., P.Geo. of Meridian Geoscience Ltd. to assist in the evaluation of the project and to provide recommendations for future exploration activities.  Dr. Cookenboo is interpreting proprietary data possessed by, or collected by the Company in conjunction with recently released KIM data published by the OGS.  To date, numerous kimberlite indicator minerals have been collected both on and immediately down-ice of the Company’s claims.  Included among these indicator minerals are sub-calcic G10 Cr-pyrope garnets, eclogitic garnets and Cr- and Mg-rich chromites that are compositionally similar to most such minerals included in diamonds.  Tres-Or is continuing with check sampling and scientific investigations on the Company’s 100% owned 900 claim units. 

CORPORATE, FINANCE AND INVESTOR RELATIONS ACTIVITIES

The Company has working capital of approximately $101,150 and continues to review and reduce expenditures relating to consulting and professional fees as well as office related and general administrative costs.  The Company has recovered expenses related to the acquisition and exploration of the Mann Project by optioning 50% interest in the property to Broadlands Resources Ltd. in a Letter Agreement approved by the Exchange February 8, 2001.  The Company continues with initial sampling and scientific investigations on the Temagami Diamond Claims.  The most recent information and proprietary data is being presented to several companies active or interested in acquiring diamond exploration projects.  The goal is to secure an Option/Joint Venture agreement or obtain additional funding for continued advancement of its properties. 

During the period, the Company completed a non-brokered private placement of 500,000 units of the Company at $0.20 per unit.  Each unit consists of one common share and one non-transferable share purchase warrant.  Each share purchase warrant can be exercised to acquire one common share of the Company for a period of one year at an exercise price of $0.45 per share.  Proceeds from the financing will be used for general working capital, and for the acquisition and exploration of the Temagami Diamond Claims, located in the Sudbury Mining Division of Ontario. 

During the period, the Company announced that 535,000 warrants at a price of $0.22 per share were exercised for net proceeds of $117,800.  On March 29, 2001, 200,000 warrants at a price of $0.15 per share, purchased through agreements dated March 31, 2000 were exercised for net proceeds of $30,000.  The proceeds from the exercise of the warrants are to be used for general working capital and for the acquisition and exploration of the Temagami Diamond Claim project.

On July 5, 2001, the Company completed a non-brokered private placement of 723,500 units of the Company at $0.25 per unit.  The number of units was increased from 600,000 units announced on May 9, 2001 to 723,500 (323,500 being flow-through units).  Each unit consists of one common share and one non-transferable share purchase warrant.  Each warrant entitles the holder to acquire one common share of the Company exercisable to acquire one common share for a period of one year at an exercise price of $0.50 per share. 

Liquidity and solvency:

The financial statements presented in Schedule A, have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.  The continuing operations of the company are dependent upon its ability to raise adequate financing, secure substantial option or joint venture partnerships and to advance project opportunities to viable operations in the future.

ANNUAL GENERAL MEETING

The annual general meeting of Tres-Or Resources Ltd. was held on Wednesday, July 18, 2001 at Suite 1525,  625 Howe Street, Vancouver, British Columbia.  All resolutions presented to Members by proxy were approved.