As at September 30, 2012, the Company had cash of $1,386,676 compared to cash and cash equivalents of $9,517,110 atSeptember 30, 2011. The Company’s working capital at September 30, 2012 was a deficit of $12,433,407 compared to positiveworking capital of $6,028,969 at September 30, 2011.Working capital is defined as current assets minus current liabilities. Working capital calculations or changes are not measures offinancial performance, nor do they have standardized meanings, under IFRS. Readers are cautioned that this calculation may differamong companies and analysts and therefore may not be directly comparable.The working capital deficit at September 30, 2012 arose as a result of the Company’s loan facility with LCLP (for up to $13 million)and under which $11,666,706 was outstanding. In October 2012, the Company closed a financing whereby 2,500,000 commonshares were issued at $9.50 per common share for gross proceeds of $23,750,000. This enabled the Company to repay the amountthen owing on the LCLP loan in full ($12.4 million) and to continue with its development plans for Taca Taca as the Company workson completion of a PEA.The Company has budgeted for expenditures in the amount of approximately $3.6 million for the three months ended December 2012which consists of work on the Company’s PEA on Taca Taca and also its share of expenditures required to maintain the Francisco Iand Il concessions (each held as to a 50% interest) in good-standing. Following completion of these items, the Company expects toincur monthly expenditures in the range of $200,000 to $450,000 throughout 2013. Accordingly, following the completion of theOctober 2012 financing, the Company believes that it has sufficient funds to complete the currently planned programs and continue tohold Taca Taca in good-standing through 2013.