Testata elettronica Vega

Year ended December 31, 2011For the year ended December 31, 2011, the Corporation had a net loss of $5,392,433 or $0.03 per share compared toa net loss of $6,164,028 or $0.05 per share with the corresponding period in 2010.A significant component of the current year’s loss was related to stock-based compensation expense of $3,113,349(2010 – $nil) as a result of options granted in 2011.Management fees, consulting and salaries for the year were $1,016,187 (2010 – $292,590). The increase resultedfrom changes in the allocation of project expenditures.Investor relation expenses increased during the year to $347,723 (2010 - $208,223). The change was the result ofincreases in investor relations spending and business activities related to the start up of the Copperstone project.This also increased legal and accounting expenses during the year to $197,666 (2010 - $134,928).The loss on sale of marketable securities related to the sale of the Balmoral shares. In November 2010 theCorporation signed a definitive agreement with Balmoral Resources Ltd. (“Balmoral”) for the sale of theCorporation’s eastern Canadian exploration properties. In consideration for the properties, Balmoral made a onetimecash payment to Bonanza of $3.7 million dollars and issued 4.5 million common shares of Balmoral to theCorporation valued at $1.15 per share or $5,175,000 in total on that date. On September 13, 2011, these shares weresold at $1.10 per share, resulting in a realized loss of $225,000. A commission of $49,510 was paid for the saleresulting in a total loss of $274,510.Exploration expenses for the year were $272,275 (2010 – $283,594) primarily related to all costs associated withmaintaining the Corporation’s exploration offices in Reno, Nevada.Business development costs decreased in the year to $167,681 compared to $257,916 in 2010. The decrease wasdue to the Copperstone project nearing production and a reduction in the requirements for business developmentservices.Interest income increased by $67,150 compared to 2010. The increase in interest income relates to a higher cashbalances on hand during the year relating to financing.Other income of $33,174 during 2011 relates to adjustment of credits for mineral properties disposed in the prioryear.In 2010, there was a mineral property write down of $3,724,821 relating to the impairment of several explorationprojects. The Corporation assessed all mineral property, plant and equipment at December 31, 2011 and noindications of impairment or recovery existed.LIQUIDITY AND CAPITAL RESOURCESAs at December 31, 2011, the Corporation had cash and cash equivalents of $1,822,511 and a working capitaldeficiency of $1,265,503 compared with a working capital position of $7,979,474 as at December 31, 2010. Currentyear change in working capital was the result of successful financing of $23,526,019 net proceeds by issuance ofcommon shares. Use of funds for operating activities in the period totalled $2,983,135 (December 31, 2010 –$905,254). Use of funding for exploration expenditures at Copperstone and other properties and towards theprocessing plant and development of the Copperstone mine totalled $25,085,629 (2010 – $2,853,338).Subsequent to December 31, 2011, the Corporation completed a USD $6 million gold prepayment facility whichremoved the Corporation’s working capital deficiency. The Corporation has sufficient funding to meet its operatingand capital expenditure requirements through to production without raising additional capital as of March 28, 2012.- 7 -