Overview

As a natural resource exploration company, our focus is to acquire, explore and develop natural resource properties which may host mineral reserves which may be economical to extract commercially. With this in mind, we have identified and secured interests in mining claims with respect to properties in Nevada. Current cash on hand is sufficient to fund planned operations for 2022 after payment of accounts payable outstanding at December 31, 2021. Our officers and directors and advisors, attorneys and consultants will continue to be utilized to support all operations.





Plan of Operation

During the twelve-month period ending December 31, 2021, we continued our evaluation work on our Vernal project, Windy Peak project and Rainbow Mountain project. Our funds are sufficient to meet all planned activities as outlined below. The Company expects the short and long-term funding of our operations going forward to be financed through existing funds.









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We do not anticipate a change to our company staffing levels. We remain focused on keeping the staff compliment, which currently consists of our three directors. Our staffing in no way hinders our operations, as outsourcing of legal, accounting, and other operational duties is the most cost effective and efficient manner of conducting the business of the Company.

We do not anticipate any equipment purchases in the twelve months ending December 31, 2022.





Results of Operations

The Twelve Months Ended December 31, 2021 compared to the Twelve Months Ended December 31, 2020

During the years ended December 31, 2021 and 2020, we had revenues of $1,737,707 and $2,468,078, respectively, resulting from the Moss royalty. We are currently exploring and developing our properties and are actively reviewing new projects.

Net income for the year ended December 31, 2021 was $152,340 compared to net income of $2,027,293 for the year ended December 31, 2020, for an approximate $1,875,000 decrease in net income. The decrease in the net income is primarily due to the $730,000 decrease of royalty revenue received from the Moss Mine, as a result of fluctuations in Moss Mine's gold/silver production. In addition, due to a change in the deferred income tax valuation allowance, the Company recognized an income tax benefit of $1,165,000 in 2020. This was offset by an approximate $161,000 decrease in stock based compensation expense and a $300,000 charge due to the impairment of the royalty asset in 2020.

For the years ended December 31, 2021 and 2020, mineral and exploration expenses were $505,788 and $271,062, respectively, for an approximate $235,000 increase. The increase is primarily due to an increase of $281,000 expenditures on the Windy Peak project, offset by a decrease of $43,000 expenditures on the Rainbow Mountain project.

For the years ended December 31, 2021 and 2020, general and administrative expenses were $220,939 and $203,808, respectively, for an approximate $17,000 increase, primarily due to an increase in state income taxes.

For the years ended December 31, 2021 and 2020, other income (expense) was $(107,277) and ($236,574), respectively. The change in other income (expense) is due to the $300,000 impairment of a royalty interest in 2020, offset by an approximated $164,000 increase in unrealized holding losses on marketable securities.

Liquidity and Capital Resources

We had total assets of $3,787,437 at December 31, 2021 consisting primarily of $1,417,275 of cash and $116,106 of marketable securities. We had total liabilities of $176,636 at December 31, 2021, consisting primarily of accounts payable and accrued expenses.

We anticipate that we will incur the following during the year ended December 31, 2022:





    ·   $1,000,000 for operating expenses, including working capital and general,
        legal, accounting and administrative expenses associated with reporting
        requirements under the Securities Exchange Act of 1934 and compliance with
        Canadian regulatory authorities.

Cash provided by operations was $293,234 and $873,482 for the years ended December 31, 2021 and 2020, respectively. The $580,000 decrease in cash provided by operations was primarily due to the decrease in royalty revenue, offset by the change in the deferred tax asset account.

There were no cash provided by (used in) investing activities for the years ended December 31, 2021 and 2020.











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Financing activities during the years ended December 31, 2021 and 2020 generated cash of $0 and $22,400, respectively, from the exercise of stock options and warrants.

Management estimates that the Company will not need additional funding for the next twelve months.

We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

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