MD&A. page 8

Mineral Property

As of April 30, 2012, the Company has incurred approximately $76.6 million qualifying expenditures (“QE”) at Schaft Creek under the terms of the Option Agreement with Teck. Teck has an earn-back right under the terms of the option which is based on the qualifying expenditures incurred by Copper Fox. Should Teck elect to exercise its earn-back option it will be required to solely fund subsequent property expenditures to the extent of 100%, 300% or 400% to earn 20%, 40% or 75% of the Copper Fox interest. Also, in the event Teck elects to earn 75% interest, it is responsible for arranging project financing including that of Copper Fox. A comparison and detail of these expenditures related to the Schaft Creek property for 2012, 2011 is as follows:

Expenditures Nov 1, 2011 to Apr 30, 2012 _____ _Expenditures Nov 1, 2010 to Oct 31, 2011

Drilling Program/camp activities_$2,178,687 _______________$11,404,933

Environmental Program ______$362,026 __________________$860,951

Feasibility Study ____________$1,534,311 ________________$1,998,185

Social License ______________$48,169 __________________$211,995

Geology, Engineering, Metallurgy $507,682 _________________$450,692

Testing, Assaying, Mapping, Etc. $268,400 _________________$603,903

Miscellaneous ______________$159,971 _________________$272,547

Capital Compensation _________- _______________________$586,924

Total_____________________$5,059,246 ________________$16,390,130

Related Party Transactions

During the three and six months ended April 30, 2012 directors and officers of the Company incurred $192,238 (2011 -$162,500) and $369,420 (2011 - $359,650) for management and technical services on behalf of the Company. At April 30, 2012 $33.745 (2011 – $27,250) is included in accounts payable.

In addition, $95,358 (2011 - $71,559) and $203,971 (2011 – 195,586) of legal fees were paid during the three and six months ended April 30, 2012 to a law firm of which one of the Company’s Directors is a partner. At April 30, 2012 $95,358 (2011 – $124,027) is included in accounts payable.