| MAVERICK MINERALS CORPORATION |
| (An Exploration Stage Company) |
| Consolidated Balance Sheets |
| Unaudited |
| (Expressed in U.S. Dollars) |
| September 30 | December 31 | |||||
| 2007 | 2006 | |||||
| Current Assets | ||||||
| Cash | $ | 15 | $ | 29 | ||
| Prepaid expenses | - | 3,186 | ||||
| TOTAL ASSETS | $ | 15 | $ | 3,215 | ||
| Current Liabilities | ||||||
| Accounts payable (Note 5) | $ | 112,342 | $ | 35,970 | ||
| Accrued liabilities | 4,730 | 84,480 | ||||
| Loans payable (Note 4) | 1,143,540 | 1,039,040 | ||||
| TOTAL LIABILITIES | 1,260,612 | 1,159,490 | ||||
| Capital Deficit | ||||||
| Capital Stock | ||||||
| Authorized: | ||||||
| 100,000,000 common shares at $0.001 par value | ||||||
| Issued and fully paid 27,407,208 (2006 - 27,407,208) common shares | ||||||
| Par value | 27,407 | 27,407 | ||||
| Share subscription receivable | (600 | ) | (600 | ) | ||
| Additional paid-in capital | 536,204 | 536,204 | ||||
| Deficit, accumulated during the exploration stage | (1,824,481 | ) | (1,720,159 | ) | ||
| Accumulated other comprehensive income | 873 | 873 | ||||
| TOTAL CAPITAL DEFICIT | (1,260,597 | ) | (1,156,275 | ) | ||
| TOTAL LIABILITIES AND CAPITAL DEFICIT | $ | 15 | $ | 3,215 |
The accompanying notes are an integral part of these financial statements
- F-1 -
MAVERICK MINERALS CORPORATION
(An Exploration Stage
Company)
Consolidated Statements of Operations and Comprehensive
Income (Loss)
Unaudited
(Expressed in U.S. Dollars)
| Cumulative From | |||||||||||||||
| Date of Inception | |||||||||||||||
| (April 21, 2003) | Three Month Period Ended | Nine Month Period Ended | |||||||||||||
| to September 30 | September 30 | September 30 | |||||||||||||
| 2007 | 2007 | 2006 | 2007 | 2006 | |||||||||||
| General and administration expenses | |||||||||||||||
| Audit fees | $ | 151,429 | $ | 9,024 | $ | (380 | ) | $ | 9,024 | $ | (380 | ) | |||
| Freight | 7,601 | - | - | - | - | ||||||||||
| Insurance | 186,297 | - | - | - | - | ||||||||||
| Accounting, legal, engineering & consulting, | |||||||||||||||
| investor relations | 186,496 | 4,410 | 710 | 18,327 | 12,536 | ||||||||||
| Management fees and stock based compensation (Notes 5 and 7) | 711,018 | 22,500 | 22,500 | 67,500 | 78,901 | ||||||||||
| Office | 55,501 | 183 | 225 | 932 | 1,298 | ||||||||||
| Telephone and utilities | 83,059 | - | - | - | - | ||||||||||
| Transfer agent fees | 7,075 | - | - | 435 | |||||||||||
| Travel | 174,962 | 1,089 | 2,876 | 8,538 | 20,764 | ||||||||||
| Wages and benefits | 86,588 | - | - | - | - | ||||||||||
| Gain on disposal of assets | (795,231 | ) | - | - | - | - | |||||||||
| Loss from continuing operations before other income | (854,796 | ) | (37,206 | ) | (25,931 | ) | (104,322 | ) | (113,554 | ) | |||||
| Other income (expenses) | |||||||||||||||
| Interest expense | (49,357 | ) | - | - | - | (21,000 | ) | ||||||||
| Loss on settlement of loan payable (Note 6) | (71,600 | ) | - | - | - | - | |||||||||
| Gain on liabilities write-off | 300,973 | - | - | - | - | ||||||||||
| (674,780 | ) | - | - | - | (21,000 | ) | |||||||||
| Loss from continuing operations | (674,780 | ) | (37,206 | ) | (25,931 | ) | (104,322 | ) | (134,554 | ) | |||||
| Income (loss) from discontinued operations (Note 3) | (1,149,701 | ) | - | 138,764 | - | 138,764 | |||||||||
| Income (loss) for the period | (1,824,481 | ) | (37,206 | ) | 112,833 | (104,322 | ) | 4,210 | |||||||
| Other Comprehensive Income | |||||||||||||||
| Foreign currency translation adjustments | 873 | - | - | - | - | ||||||||||
| Comprehensive Income (loss) | $ | (1,823,608 | ) | $ | (37,206 | ) | $ | 112,833 | $ | (104,322 | ) | $ | 4,210 | ||
| Income (loss) per share - basic and diluted | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | |||||
| Weighted average shares outstanding | 27,407,208 | 27,347,308 | 27,407,208 | 27,347,308 | |||||||||||
The accompanying notes are an integral part of these financial statements
- F-2 -
MAVERICK MINERALS CORPORATION
(An Exploration Stage
Company)
Consolidated Statements of Cash Flows
Unaudited
(Expressed
in U.S. Dollars)
| Cumulative From | |||||||||
| Date of Inception | |||||||||
| (April 21, 2003) | Nine month period ended | ||||||||
| to September 30 | September 30 | ||||||||
| 2007 | 2007 | 2006 | |||||||
| Operating Activities | |||||||||
| Net income (loss) for the period | $ | (1,824,481 | ) | $ | (104,322 | ) | $ | 4,210 | |
| Adjustments to reconcile net loss for the period | |||||||||
| to cash flows used in operating activities | |||||||||
| Impairment of investment in oil and gas leases | 419,959 | - | - | ||||||
| Gain on disposal of assets | (933,995 | ) | - | (138,764 | ) | ||||
| Gain on liabilities write-off | (300,973 | ) | - | - | |||||
| Stock based compensation | 196,559 | - | 11,401 | ||||||
| Depreciation | 277,578 | - | - | ||||||
| Shares issued for services | 105,000 | - | - | ||||||
| Loss on settlement of loan payable | 71,600 | - | - | ||||||
| Changes in non-cash working capital items | |||||||||
| Prepaid expenses | - | 3,186 | - | ||||||
| Accounts payable | 1,572,701 | 76,372 | (5,253 | ) | |||||
| Accrued liabilities | 4,730 | (79,750 | ) | (2,290 | ) | ||||
| Cash used in operating activities | (411,322 | ) | (104,514 | ) | (130,696 | ) | |||
| Investing Activities | |||||||||
| Investment in oil and gas leases | (474,959 | ) | - | (55,000 | ) | ||||
| Purchase of property and equipment | (311,367 | ) | - | - | |||||
| Cash used in investing activities | (786,326 | ) | - | (55,000 | ) | ||||
| Financing Activities | |||||||||
| Shares issued for cash | 53,250 | - | - | ||||||
| Proceeds from loans payable | 1,143,540 | 104,500 | 185,540 | ||||||
| Cash provided by financing activities | 1,196,790 | 104,500 | 185,540 | ||||||
| Decrease in Cash during the period | (858 | ) | (14 | ) | (156 | ) | |||
| Effect of cumulative currency translation | 873 | ||||||||
| Cash, beginning of the period | - | 29 | 196 | ||||||
| Cash, end of the period | $ | 15 | $ | 15 | $ | 40 | |||
| Supplemental Cash Flow information | |||||||||
| Interest paid | $ | 56,000 | $ | - | $ | 21,000 | |||
| Non-cash investing and financing activities: | |||||||||
| Impairment in oil and gas leases | 419,959 | - | - | ||||||
| Investment in oil and gas leases in exchange | |||||||||
| for notes payable to Veneto | 1,400,000 | - | - | ||||||
| Transfer of leases in settlement of notes payable | 1,400,000 | - | 1,400,000 | ||||||
| Assignment of accounts payable from transfer of leases | 193,764 | - | 193,764 | ||||||
| Settlement of loan payable (Note 6) | 53,700 | - | - | ||||||
| Forgiveness of related party balances payable (Note 5) | 1,027,791 | - | - | ||||||
The accompanying notes are an integral part of these financial statements
- F-3 -
| MAVERICK MINERALS CORPORATION |
| (An Exploration Stage Company) |
| Statement of Changes in Capital Deficit |
| For the Period From date of inception on April 21, 2003 to September 30, 2007 |
| (Expressed in U.S. Dollars) |
| Unaudited |
| Number of | Par Value | Additional | Share | Accumulated | Other | Total | |||||||||||||||
| Common | @$0.001 | Paid-in | Subscription | Deficit | Comprehensive | Capital | |||||||||||||||
| Shares | Per Share | Capital | Receivable | Loss | Deficit | ||||||||||||||||
| Balance, April 21, 2003 | 100 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| Adjustment for the issuance of | |||||||||||||||||||||
| common stock on recapitalization | 37,580,400 | 37,580 | (37,580 | ) | - | - | - | - | |||||||||||||
| 37,580,500 | 37,580 | (37,580 | ) | - | - | - | - | ||||||||||||||
| Adjustment to capital deficit of the | |||||||||||||||||||||
| Company at the recapitalization date | 4,176,026 | 4,176 | (949,065 | ) | - | - | - | (944,889 | ) | ||||||||||||
| 41,756,526 | 41,756 | (986,645 | ) | - | - | - | (944,889 | ) | |||||||||||||
| Shares issued for management services (Note 6) | 1,500,000 | 1,500 | 103,500 | - | - | - | 105,000 | ||||||||||||||
| Currency translation adjustment | - | - | - | - | - | 873 | 873 | ||||||||||||||
| Net loss for the period | - | - | - | - | (626,985 | ) | - | (626,985 | ) | ||||||||||||
| Balance, December 31, 2003 | 43,256,526 | 43,256 | (883,145 | ) | - | (626,985 | ) | 873 | (1,466,001 | ) | |||||||||||
| Shares issued for cash (Note 6) | 10,000,000 | 10,000 | 15,000 | - | - | - | 25,000 | ||||||||||||||
| Shares subscribed but unissued | - | 27,500 | - | - | - | - | 27,500 | ||||||||||||||
| Forgiveness of related party balances payable | - | - | 1,027,791 | - | - | - | 1,027,791 | ||||||||||||||
| Net income for the year | - | - | - | - | 71,698 | - | 71,698 | ||||||||||||||
| Balance, December 31, 2004 | 53,256,526 | 80,756 | 159,646 | - | (555,287 | ) | 873 | (314,012 | ) | ||||||||||||
| Shares subscribed but unissued | - | (27,500 | ) | - | - | - | - | (27,500 | ) | ||||||||||||
| Shares issued for cash (Note 6) | 27,500,000 | 27,500 | - | - | - | - | 27,500 | ||||||||||||||
| Cancellation of shares (Note 6) | (54,379,318 | ) | (54,379 | ) | 54,379 | - | - | - | - | ||||||||||||
| Compensation expense on share cancellation (Note 6) | - | - | 44,720 | - | - | - | 44,720 | ||||||||||||||
| Shares issued for loan payable settlement (Note 6) | 895,000 | 895 | 124,405 | - | - | - | 125,300 | ||||||||||||||
| Shares issued for cash (Note 6) | 75,000 | 75 | 675 | - | - | - | 750 | ||||||||||||||
| Stock based compensation | - | - | 140,438 | - | - | - | 140,438 | ||||||||||||||
| Net loss for the year | - | - | - | - | (1,036,098 | ) | - | (1,036,098 | ) | ||||||||||||
| Balance, December 31, 2005 | 27,347,208 | 27,347 | 524,263 | - | (1,591,385 | ) | 873 | (1,038,902 | ) | ||||||||||||
| Shares issued for cash (Note 6) | 60,000 | 60 | 540 | (600 | ) | - | - | - | |||||||||||||
| Stock based compensation (Note 7) | - | - | 11,401 | - | - | - | 11,401 | ||||||||||||||
| Net loss for the year | - | - | - | - | (128,774 | ) | - | (128,774 | ) | ||||||||||||
| Balance, December 31, 2006 | 27,407,208 | 27,407 | 536,204 | (600 | ) | (1,720,159 | ) | 873 | (1,156,275 | ) | |||||||||||
| Net loss for the period | - | - | - | - | (104,322 | ) | - | (104,322 | ) | ||||||||||||
| Balance, September 30, 2007 | 27,407,208 | $ | 27,407 | $ | 536,204 | $ | (600 | ) | $ | (1,824,481 | ) | $ | 873 | $ | (1,260,597 | ) |
The accompanying notes are an integral part of these financial statements
- F-4 -