GEE-TEN VENTURES INC.
CONSOLIDATED BALANCE SHEET
AUGUST 31, 2005
(With comparative audited figures for May 31, 2005)
(Unaudited)
(PREPARED BY MANAGEMENT)
| Aug 31, 2005 | May 31, 2005 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 8,186 | $ | 29,705 | |||
| Goods and Services Tax recoverable | 26,341 | 22,145 | |||||
| Prepaid expenses and deposits | - | 7,600 | |||||
| 34,527 | 59,450 | ||||||
| Due from related parties | 10,000 | 10,000 | |||||
| Property, plant and equipment (net) | 9,442 | 7,260 | |||||
| Mineral Properties | 195,214 | 195,214 | |||||
| Deferred Exploration | 210,259 | 203,824 | |||||
| $ | 459,442 | $ | 475,748 | ||||
| LIABILITIES | |||||||
| Current Liabilities | |||||||
| Accrued liabilities and accounts payable | $ | 163,169 | $ | 237,201 | |||
| Due to related parties | 18,524 | 32,233 | |||||
| 181,693 | 269,434 | ||||||
| SHAREHOLDERS' EQUITY | |||||||
| Share Capital | 4,519,075 | 4,089,216 | |||||
| Share subscriptions | 50,000 | 60,790 | |||||
| Contributed surplus | 412,824 | 412,824 | |||||
| Retained earnings (deficit) | (4,704,150 | ) | (4,356,516 | ) | |||
| 277,749 | 206,314 | ||||||
| $ | 459,442 | $ | 475,748 | ||||
See accompanying notes to unaudited financial statements.
1
GEE-TEN VENTURES INC.
CONSOLIDATED STATEMENT OF LOSS AND DEFICIT
FOR THE THREE MONTHS ENDED AUGUST 31, 2005
(With comparative unaudited figures for the three months ended August 31, 2004)
(Unaudited)
(PREPARED BY MANAGEMENT)
| 2005 | 2004 | ||||||
| EXPENSES: | |||||||
| Amortization | $ | 519 | $ | 1,893 | |||
| Bank charges and interest | 1,701 | 216 | |||||
| Consulting | 48,602 | - | |||||
| Director's fees | 4,661 | - | |||||
| Management fees | 7,500 | 7,500 | |||||
| New business search/evaluation | 87,242 | 48,735 | |||||
| Office & telephone | 14,118 | 9,384 | |||||
| Professional fees | 45,131 | 22,537 | |||||
| Promotion, travel and investor relations | 130,871 | 3,057 | |||||
| Regulatory fees | 2,890 | 3,908 | |||||
| Rent | 3,915 | 6,545 | |||||
| Transfer agent | 484 | 1,450 | |||||
| 347,634 | 105,225 | ||||||
| Net loss for the period | 347,634 | 105,225 | |||||
| DEFICIT, BEGINNING OF PERIOD | 4,356,516 | 3,187,931 | |||||
| DEFICIT AT END OF PERIOD | $ | 4,704,150 | $ | 3,293,156 | |||
| BASIC & DILUTED LOSS PER SHARE | $ | 0.02 | $ | 0.01 | |||
See accompanying notes to unaudited financial statements.
2
GEE-TEN VENTURES INC.
CONSOLIDATED STATEMENT OF DEFERRED EXPLORATION
FOR THE THREE MONTHS ENDED AUGUST 31, 2005
(With comparative unaudited figures for the three months ended AUGUST 31, 2004)
(Unaudited)
(PREPARED BY MANAGEMENT)
| 2005 | 2004 | ||||||
Exploration | |||||||
| Claim Maintenance Fee | $ | 6,435 | $ | 6,935 | |||
| Deferred exploration for the period | 6,435 | 6,935 | |||||
| Deferred exploration, beginning of period | 203,824 | 131,399 | |||||
| Deferred exploration, end of period | $ | 210,259 | $ | 138,334 | |||
See accompanying notes to unaudited financial statements.
3
GEE-TEN VENTURES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED AUGUST 31, 2005
(With comparative unaudited figures for the three months ended AUGUST 31, 2004)
(Unaudited and prepared by management)
| 2005 | 2004 | ||||||
| Cash provided by (used in): | |||||||
| OPERATING ACTIVITIES: | |||||||
| Loss for the period | $ | (347,634 | ) | $ | (105,225 | ) | |
| Changes in non-cash operating working capital: | |||||||
| Goods and services tax receivable | (4,196 | ) | (2,085 | ) | |||
| Prepaid expenses and deposits | 7,600 | (36,140 | ) | ||||
| Accounts payable and due to related parties | (87,741 | ) | 1,316 | ||||
| (431,971 | ) | (142,134 | ) | ||||
| Add non-cash items | |||||||
| Amortization | 519 | 1,893 | |||||
| (431,452 | ) | (140,241 | ) | ||||
| INVESTING ACTIVITIES: | |||||||
| Deferred exploration costs | (6,435 | ) | (6,935 | ) | |||
| Property. Plant & equipment | (2,701 | ) | - | ||||
| (9,136 | ) | (6,935 | ) | ||||
| FINANCING ACTIVITIES | |||||||
| Shares issued pursuant to: | |||||||
| Exercise of warrants | - | 9,500 | |||||
| Exercise of options | 45,000 | - | |||||
| Private placement | 384,859 | - | |||||
| Share subscriptions | (10,790 | ) | 100,000 | ||||
| 419,069 | 109,500 | ||||||
| INCREASE (DECREASE) IN CASH | (21,519 | ) | (37,676 | ) | |||
| CASH, BEGINNING OF PERIOD | 29,705 | 69,278 | |||||
| CASH AT END OF PERIOD | $ | 8,186 | $ | 31,602 | |||
See accompanying notes to unaudited financial statements.
4
GEE-TEN VENTURES INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED AUGUST 31, 2005 AND 2004
(Unaudited)
(PREPARED BY MANAGEMENT)
1. Significant Accounting Policies:
These interim consolidated financial statements of Gee-Ten Ventures Inc. (the “Company”) have been prepared by management, and have not been audited or reviewed by an independent public accountant. These interim consolidated financial statements do not include all disclosures required by Canadian generally accepted accounting principles for annual financial statements, and accordingly, these interim consolidated financial statements should be read in conjunction with the Company’s most recent annual consolidated financial statements. These interim consolidated financial statements follow the same accounting policies and methods of application as the Company’s audited annual consolidated financial statements as at and for the year ended May 31, 2005.
2. Share Capital:
(a)
| Number of shares | Amount | ||||||
| Balance May 31, 2005 | 16,899,475 | $ | 4,089,216 | ||||
| Issued for private placement | 2,109,000 | 384,859 | |||||
| Issued on exercise of options | 225,000 | 45,000 | |||||
| Balance, August 31, 2005 | 19,233,475 | $ | 4,519,075 | ||||
(b) The following table summarizes the stock options outstanding and exercisable at August 31, 2005:
EXERCISE | NUMBER | EXPIRY | NUMBER | |
PRICE | OUTSTANDING | DATE | EXERCISABLE | |
| $ | 0.40 | 250,000 | December 8, 2005 | 250,000 |
| $ | 0.25 | 150,000 | October 7, 2006 | 150,000 |
| $ | 0.40 | 150,000 | November 2, 2006 | 150,000 |
| $ | 0.20 | 1,325,000 | March 14, 2007 | 1,325,000 |
| 1,875,000 | 1,875,000 | |||
(c) The following warrants were outstanding at August 31, 2005. Each warrant entitles the holder to purchase one common share of the Company.
EXERCISE | EXPIRY | ||
NUMBER | PRICE | DATE | |
| 500,000 | $ | 0.50 | May 7, 2006 |
| 450,000 | $ | 0.45 | October 13, 2006 |
| 720,000 | $ | 0.45 | December 30, 2006 |
| 2,109,000 | $ | 0.30 | June 8, 2007 |
5
