RE: RE: 10Q... BROKEDouglas Lake Minerals Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
(Expressed in U.S. dollars)
(unaudited)
2770536.2 7
1. Nature of Operations and Continuance of Business
The Company was incorporated in the State of Nevada on January 5, 2004.The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accountingand Reporting for Development Stage Companies”. The Company’s principal business is the acquisition and exploration of mineralresources located in Tanzania, Africa. The Company has not presently determined whether its properties contain mineral reserves that areeconomically recoverable. To date, the Company has not incurred anyasset retirement obligations.
These consolidated financial statements have been prepared on a goingconcern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business.The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generateearnings in the immediate or foreseeable future. The continuation of the
Company as a going concern is dependent upon the continued financialsupport from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine theexistence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of theCompany’s interests in the underlying properties, and the attainment of profitable operations.
As at November 30, 2008, the Company has aworking capital deficit of $653,100 and has accumulated losses of
$26,906,532 since inception. These factors raise substantial doubtregarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments to therecoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company’s plans for the next twelve months are to focus on theexploration of its mineral properties in Tanzania and estimates thatcash requirements of approximately $2,600,000 will be required forexploration and administration costs and to fund working capital. Therecan be no assurance that the Company will be able to raise sufficient funds to pay the expected expenses for the next twelve months.