NOTE 3 – MARKETABLE SECURITIES

The Company has investments in marketable securities which have been classified as available for sale.

2011 $

Champion Minerals Inc., at fair market value 3,822,000

Uracan Resources Ltd., at fair market value 53,375

Diadem Resources Ltd., at fair market value 816

Bonaventure Enterprises Inc., at fair market value 1,000

Nebu Minerals Ltd., at fair market value 21,875

RT Minerals Inc., at fair market value 56,250

Argex Silver Capital Inc., at fair market value 4,320,000

St-George Platinum and Base Metals Inc., at fair market value 360,000 -

TOTAL $8,635,316

The difference between the fair value and the cost of marketable securities has been recorded in accumulated other comprehensive income (net of taxes).



The Company has received 50% of the 1,000,000 common shares of Champion Minerals Inc. pursuant to an option agreement to sell 65% of its 50% interest in 15 iron properties which are part of the Mt. Reed/Mt. Wright properties. During the first quarter 2010, the Company received 950,000 shares and has a balance of 1,400,000 shares as at January 31, 2011.

The quoted market price of Champion Minerals Inc. was $2.73 as at January 31, 2011 (2010 - $0.83). Champion has earned and purchased an 82.5% interest in these properties. Fancamp retains a 17.5% working interest and 1.5% NSR.



Argex Silver Capital Inc.

The Company received 1,500,000 redeemable face value fully paid non-assessable shares of 7013833 Canada Inc., pursuant to an option agreement to sell its 100% interest in the Lac La Blache property.

The preferred shares are secured by the property and will pay a 5% annual dividend.

The Company received a further 50% of 1,500,000 redeemable face value fully paid non-assessable shares of 7013833 Canada Inc., pursuant to an option agreement to sell its 50% interest in the Hanna/Consolidated Morrison properties. The preferred shares are secured by the property and will pay a 5% annual dividend.

On February 23, 2009, Argex Silver Capital Inc. (“Argex”) entered into an acquisition agreement to acquire all of the assets of 7013833 Canada Inc. As per this agreement and the subsequent qualifying transaction, the preferred shares have a redeemable face value of $1.00 per preferred share. The qualifying transaction was filed by Argex on May 11, 2009 whereby the total redeemable face value of the preferred shares will be convertible into common shares of Argex at the fair value price of Argex.

On October 30, 2009, Argex Silver Capital Inc. completed its qualifying transaction by way of acquisition of the assets of 7013833 Canada Inc. As a result, the Company has received 9,000,000 common shares of Argex Silver Capital Inc. in exchange for its 2,250,000 preferred shares of 7013833 Canada Inc. The common shares are subject to an escrow agreement expiring October 30, 2013.

The quoted market price of the shares of Argex was $0.48 as at January 31, 2011.

NOTE 4 – INVESTMENT IN THE MAGPIE MINES INC. (“THE MAGPIE”)

During the fiscal year 2008, the Company received 50% of the 54,921,962 common shares of The Magpie Mines Inc. in consideration for its 50% ownership interest in the Magpie property. The Company recorded the cost of 27,460,981 common shares of The Magpie Mines Inc. at $10,446 as the cost incurred on the Magpie property. The Company’s original 50% equity stake has been and may be further diluted based on share capital financings that were carried out in The Magpie for ongoing funding of Magpie property. In 2009, the equity loss recorded was $5,425 and in 2010 the equity loss recordedwas $9,635. The Company currently holds 48.64% of The Magpie Mines Inc.