The following is a summary of significant events and project updates for the month ending December 31, 2009

Projects update

Mariana (Argentina)

 Project Update

The Mariana property, a lithium-boron salar, is accessible year-round by paved and dirt roads.  Historical sampling has reported significant lithium, boron and potash levels in brines and sediments within the main body of the salar.

 Salars, or salt lakes, contain minerals dissolved in brines; some include buried layers of evaporite minerals.  Salars host some of the largest known lithium and boron resources in the world.  Lithium with economical grades can be produced directly from salars without the need for the costly and time-consuming process of mine construction.

The Mariana project consists of several contiguous mineral claims over 120 square kilometres covering the entire salar, which extends over 12 kilometres north-south and 10.5 kilometres east-west.

 The Company's personnel recently completed a reconnaissance visit to the property in order to confirm historic data.  Four of seven water samples collected in the shallow subsurface over approximately three kilometres returned values from 188 to 283 milligrams per litre lithium and 423 to 698 milligrams per litre boron.

This confirms that there are some brines present with concentrations similar to those found at producing salars in North and South America.

The term, milligrams per litre, is approximately equal to parts per million when the density of the brine is similar to fresh water.

 The Company's President Gary Schellenberg, stated: "We are very encouraged by the positive press surrounding lithium and rare metals due to new sources of demand from technologies such as rapid-charging batteries and electric vehicles. The Mariana project acquisition is aligned with International Lithium's and the Company's overall philosophy of acquisition of lithium and rare metals projects of merit around the world. Our preliminary evaluation suggests the Mariana project has attractive potash and boron potential, which is also characteristic of some major brine producers."

 On August 21, 2009, the Company and its wholly owned subsidiary, International Lithium Corporation contracted Geos Mining Mineral Consultants of Sydney, Australia, as advisers for the exploration and development program on the Mariana project in Argentina.  The first-phase exploration and development program will commence at the end of August with planned completion in late October, 2009.  Upon completion of this phase of the program, an National Instrument 43-101 report will be prepared, enabling the Company to initiate the previously announced spin-off of International Lithium.

 Geos Mining is an Australian geological consultancy company specializing in the preparation of commodity resource estimations, which are recognized by stock exchanges around the world.  Geos Mining is one of the few geological consulting companies in the world with experience in lithium resource calculations from brines.

Blackstairs (Ireland)

Project Update

On August 17, 2009, the Company announced that it received eight government licences to explore the lithium properties in Carlow and Wicklow counties known as the Blackstairs property in Ireland.  The areas covered by the licences total 292 square kilometres and are located in counties Carlow and Wicklow.  Access to the licence area is by a network of good roads across a rural farming area.

The receipt of the licences initiates the Blackstairs lithium-tantalum project which will focus on evaluation of the approximately 19 pegmatites that make up the Leinster pegmatite belt for lithium, tantalum and related rare elements. Lithium was first located in this area during base metal exploration in the 1970s, with at least three of the pegmatites drilled. Lithium occurs as both spodumene and lepidotlite with the latter mineral found more in the northern part of the belt. Since the lithium exploration in the 1970s attention of subsequent explorers has focused on tantalum, particularly in the southern half of the belt. In addition, anomalous values in niobium, tin and cesium have been reported. TNR plans an exploration program to confirm earlier drilling results, systematically evaluate all the pegmatite bodies for the full suite of potential minerals and follow up results and recommendations from earlier reconnaissance programs. An experienced geological team source from Ireland and Canada will apply pegmatite exploration methods proven in Canada to re-evaluate the Leinster pegmatite belt in Ireland.

Fish Lake Valley (Nevada)

Project Update

The Company believes Fish Lake Valley has geological features similar to those which have acted as a trap for lithium brines in Clayton Valley.  Chemetall-Foote Corp's Silver Peak operation, located in Clayton Valley 34 kilometres east of the property, is the only lithium brine producer in North America and has been in production since 1966.

United States Geological Survey sampling at Fish Lake Valley in 1976 found lithium brines on surface.  One of these samples, located on the Company's property, contained 200 parts per million lithium.  This falls within the range of concentrations reported to be used for production ponds at Chemetall-Foote's plant in Clayton Valley.  To date, Chemetall-Foote's Silver Peak operation is estimated to have produced 234,000 tonnes of lithium carbonate at a rate of approximately 5,700 tonnes per year.

The presence of lithium-bearing surface brines shows that modern Fish Lake Valley has geological and climatic conditions where lithium brine can form.  At Clayton Valley drilling conducted by the United States Geological Survey and Chemetall-Foote has shown that as climatic conditions went through cycles, successive layers of lithium-bearing evaporate were deposited.

During 1979, the United States Geological Survey conducted drilling operations in Fish Lake Valley as part of a lithium study.  One of those holes, located on the Company's property, returned 21 parts per million lithium in water at 16.8 metres depth.  This level of lithium in water is anomalous and similar to those found in Clayton Valley in proximity to subsurface brines.

Mud Lake (Nevada)

Project Update

The Mud Lake property consists of 20 placer claims covering 1,300 hectares in Nye County, Nevada and is readily accessible year round.  The Ralston basin, which contains Mud Lake, appears to have similar geological features that provided both a source and trap for lithium brines found in Clayton Valley, which is located 47 kilometres west from the property.  Chemetall-Foote Corp.'s Silver Peak operation, located in Clayton Valley, is the only lithium brine producer in North America and has been in operation since 1966.

The Ralston basin drainage area covers 8,262 square kilometres and contains centres of volcanic activity of the style that can form lithium sources for subsequent accumulation in a low point of the valley at Mud Lake. The Company intends to explore the property to determine if lithium evaporates and brine deposits have formed at depth similar to those found at Clayton Valley.  In 1979, the U.S. Department of Energy, through the U.S. Geological Survey, conducted a regional lithium project which included sampling, gravity and seismic surveys on the Company's property. The Company staffs are developing an integrated regional lithium exploration approach using geochemical and basin modeling with gravity, electromagnetic and geochemical fieldwork to build drilling targets.  The Company's exploration team has extensive geochemical, GIS modeling and targeting experience on four continents.

 Gary Schellenberg, president of the Company, stated: "The Mud Lake property acquisition further exemplifies our overall strategy to acquire lithium and rare metal projects of merit worldwide.  The Company is now well positioned in Nevada with the Mud Lake and its Fish Lake Valley properties, which are located 34 kilometres west of Chemetall-Foote Corp.'s Silver Peak operation in Clayton Valley."

Forgan Lake (Ontario)

 Project Update

On March 18, 2009, the Company announced that it staked the Forgan Lake property.  This property hosts lithium and rare earth elements ("REE").  Given the rapid penetration of high-powered portable devices, efficient hybrid motor vehicles, and the increasing prominence of lithium ion batteries as green energy alternatives in our daily lives, lithium is emerging as the highly sought-after commodity of the 21st century.

 The Forgan Lake project consists of 16 contiguous claims located east of Forgan Lake within the Thunder Bay district of Ontario. The project area, which hosts four previously drilled spodumene-bearing pegmatites, is part of the Georgia Lake pegmatite field, an area of considerable lithium and REE exploration since its discovery in the mid-1950s.

The four pegmatites, known as the No. 1, No. 2, No. 3 and No. 4, were part of a drilling campaign carried out in 1955 by Lun-Echo Gold Mines Limited.  Of the 39 diamond drill holes, 33 holes were drilled on the Company's Forgan Lake property.  Pegmatite is a coarse-grained igneous rock that can potentially host economic amounts of lithium amongst valuable REE such as tantalum, beryllium, niobium and more.  The No. 1 pegmatite has been traced on surface for about 274.3 metres at an average width of 9.1 m.  It contains 30 per cent medium to coarse-grained spodumene and sporadic black columbite ((Fe, Mn)2(Nb,Ta)2O6) crystals up to 3.8 centimetres long.  Channel samples to note include: three samples averaging 2.57 per cent Li2O over 6.4 m width; two samples, 24.4 m southwest of the first three, averaged 4.23 per cent Li2O over 7.5 m width; and two samples 68.6 m farther southwest averaging 1.98 per cent Li2O over 7.6 m width.  The No. 2 pegmatite, which is similar in composition to No. 1, has been traced in outcrop for 45.7 m with an exposed width of 13.7 m.

The No. 3 pegmatite, located northwest of the No. 1 pegmatite, has been traced from Lucky Lake, a small body of water in the northeastern corner of the property, to southwest for 320.0 m with an averaged exposed width of 6.1 m.  The No. 3 pegmatite contains approximately 25% spodumene.  Lun-Echo explored this pegmatite with 10 diamond holes, totaling 832.1 m, at intervals of 30.5 to 61.0 m.  The best intersection contained a 1.52 m section averaging 1.78 per cent Li2O.

 The No. 4 pegmatite has been traced on surface for approximately 243.8 m with an average surface width of 4.6 m.  The pegmatite contains 10% to 15% fine- to medium-grained spodumene.

 In addition to historic drill confirmations, all identified pegmatites have not been delineated at Forgan Lake and thus the full extents of the deposits remain open.

Furthermore, the potential for other REE anomalies remains promising, as historic work by Lun-Echo Gold Mines Ltd. analyzed drill core exclusively for Li2O.  Columbite has been noted in at least two of the four pegmatites on the Forgan Lake property is further indication that an assessment of REE occurrences could also significantly increase the value of the Forgan Lake property.

On July 27, 2009, the Company announced that exploration work had commenced on the Forgan Lake property.  The exploration program will focus on sampling of the known pegmatite occurrences and obtaining historic grade confirmation of both lithium and other rare metals.  The exploration program is being directed by Dr. Fred Breaks, a special adviser to the Company.

 Forgan Lake has four previously explored spodumene-bearing pegmatites yielding positive results such as 4.23% Li2O over 7.5 metres and two samples 68.6 metres farther southwest averaging 1.98% Li2O over 7.6 metres.

All identified pegmatites have not been fully delineated at Forgan Lake and, thus, the extent of the deposits remain open.  All identified historic work performed by Lun-Echo Gold Mines Ltd. analyzed drill core exclusively for Li2O.

Mavis Lake (Ontario)

Project Update

The property is accessible by an all-weather road.  Mavis Lake encompasses nine identified lithium and tantalum bearing pegmatites within a 512-hectare claim block.  An Ontario Hydro major transmission line passes approximately one kilometre south of the property. Lithium continues to be the rare metal of the 21st century, with increasing worldwide demand for lithium as a raw material for high-tech devices and energy-efficient batteries and vehicles.

 The Mavis Lake project covers the eastern extent of the Mavis Lake pegmatite group, an east-trending concentration of rare-element-bearing pegmatites and related metasomatic zones. The nine known pegmatites on the property, named from Pegmatite 11 to Pegmatite 19 (inclusive), represent a mix of albite-spodumene-type pegmatites and albite-type pegmatites.

 A variety of channel and grab samples collected by Frederick Breaks (1989) from albite-type pegmatites on the property have returned highly anomalous lithium oxide (Li2O) and tantalum values.  Results of selected samples from this pegmatite type from the Mavis Lake property are found in the table.

                         BREAKS COLLECTION TABLE

 Pegmatite No.    Sample no.     Li2O                    Ta (ppm)  Sample type

 Pegmatite 13            244     2,320 ppm over 1.3 m    170       Channel cut

 Pegmatite 14            245     2,50 ppm over 0.63 m    70        Channel cut

 Pegmatite 15            246     1,980 ppm over 1.7 m    150       Channel cut

Pegmatite 19            247     225  ppm                280       Grab sample

(Frederick Breaks, PhD thesis 1989, p.306)

The albite-spodumene-type pegmatites (nos. 11, 12, 17 and 18) typically contain the highest spodumene content of any pegmatite type, particularly a grab sample of the pegmatite 18 which contains 53 per cent volume spodumene (Breaks, PhD thesis 1989, p. 104) is approximately equivalent to 4.3 per cent Li2O.

 Tantalum-bearing minerals, both in albite and albite-spodumene pegmatites, on the Mavis Lake property have been identified by microprobe analyses as manganese-tantalite, manganese-columbite and wodginite group (2003 Ontario Geological Survey MRD 127). Additional mineralization to note is the presence of the tungsten, scheelite, in vein systems proximal to pegmatites 13, 14 and 16, as well as beryl in pegmatites 13, 14 and 15 (Breaks, 1989).

 Tantalum is used commonly in high-tech applications as portable capacitors and industrial grade glass found in high-end camera lenses and precision medical equipment.  Furthermore tantalum carbide is one of the hardest materials known and is frequently manufactured into high-speed machine tools.

The Company's special adviser on lithium and rare metals, Frederick Breaks comments, "The Mavis Lake property has lithium and tantalum mineralization that has not witnessed exploration since the early 1980s with high spodumene contents occurring in pegmatite 18, the largest on the property with an apparent width up to 18 metres and a minimum strike length of 215 metres." Mr. Breaks continues: "Tantalum minerals are also widespread and, in particular, the presence of wodginite, which is the chief ore mineral for tantalum at the world-famous Tanco pegmatite in southeastern Manitoba, magnifies the exploration potential for this metal."

On July 27, 2009, the Company announced that exploration work had commenced on the Mavis Lake property.  The exploration program will focus on sampling of the known pegmatite occurrences and obtaining historic grade confirmation of both lithium and other rare metals.  The exploration program is being directed by Dr. Fred Breaks, a special adviser to the Company.

 Niemi Lake (Ontario)

Project Update

On March 18, 2009, the Company announced that it staked the Niemi Lake property.  This property hosts lithium and rare earth elements ("REE").  Given the rapid penetration of high-powered portable devices, efficient hybrid motor vehicles, and the increasing prominence of lithium ion batteries as green energy alternatives in our daily lives, lithium is emerging as the highly sought-after commodity of the 21st century.

 The Niemi lithium property consists of four contiguous claims located 27 kilometres southeast of the Forgan Lake property. Drilling and surface mapping in the 1950s by Lun-Echo Gold Mines Ltd. traced the pegmatite for a length of 128 m striking parallel to the metasediments. T he pegmatite was estimated to be up to 9.3 m thick and 30.5 m wide. In 1955, Lun-Echo Gold Mines investigated the property with a 35 vertical X-ray diamond drill hole program totaling 405.4 m.  The drilling results include 1.02 per cent and 2.0 per cent Li2O over 4.72 m and 1.52 m, respectively.  Lun-Echo analyzed only for Li2O.  The Georgia Lake pegmatite field is approximately 32 kilometres by 105 km, hosting over 38 known REE occurrences and 10 known spodumene pegmatite deposits. There are other very significant spodumene-bearing pegmatite deposits, such as Georgia Lake, Point, Jackpot and Salo, which occur within three km of the Niemi occurrence.

On July 27, 2009, the Company announced that exploration work had commenced on the Niemi Lake property.  The exploration program will focus on sampling of the known pegmatite occurrences and obtaining historic grade confirmation of both lithium and other rare metals.  The exploration program is being directed by Dr. Fred Breaks, a special adviser to the Company.

Moose Project (Northwest Territories)

 Project Update

 The Moose 2 project lies in an area known for lithium, tantalum and niobium, with minor tin and beryllium mineralization associated with zoned pegmatite dikes, and was a minor producer between 1947 and 1954. The Moose 2 pegmatite is one of the better-known rock units of the Hearne Channel/Buckham Lake area, which is noted for high lithium content and well-developed internal structure. Within eight kilometres of the Moose 2 project there are four other significant occurrences of spodumene and columbite-tantalite-bearing pegmatites -- Best Bet, the Moose 1, Big Hill No. 2 and Blatchford Lake.

 The Moose 2 pegmatite is a zoned pegmatite, and occurs as a series of exposures up to 24.4 metres wide over a 426.7-metre strike length. These dikes consist of two distinct zones:

1.  Lithium-bearing zones;

 2.  Tantalum-niobium-bearing zones.

 Within the lithium-bearing zones, the lithium mineralization is associated with both spodumene and amblygonite-quartz-bearing zones. Spodumene from spodumene and amblygonite-quartz-bearing zones is reported to assay 7.44 per cent and 8.6 per cent Li2O, respectively (Groves, 1978). The tantalum-niobium mineralization also occurs in two distinct zones -- feldspar-rich zones with platy columbite-tantalite and fine-grained muscovite-quartz-feldspar border zones. Sampling of an ore pile of this material has returned grades averaging 0.104 per cent Ta2O5 (Mosher, 1969). The zonation of the pegmatite could allow for the mining and processing of three separate concentrates -- a spodumene concentrate, an amblygonite concentrate and a columbite-tantalite-cassiterite concentrate (Groves, 1978). The Moose 2 location, only 115 km east-southeast of Yellowknife, on the shore of Great Slave Lake, allows relatively easy access to the property by barge in summer and on ice roads in winter.

 Significant potential exists for expansion of tonnage. The property has seen a very limited amount of drilling and the deposit remains open at depth and along strike. In addition to confirming and expanding historical resources, the Company aims to further explore the property for other lithium- and tantalum-enriched pegmatite dikes yet to be discovered.

On July 30, 2009, the Company signed a property option agreement with G & S Trading Inc. to acquire a 75% interest in the 4,086 acre Maximoose lithium property located 115 kilometres east-southeast of Yellowknife, Northwest Territories.  The property has relatively easy access by barge in the summer and on ice roads in winter.  Within eight kilometres of the property are four other significant occurrences of lithium and/or rare earth elements -- Best Bet, the Moose 1, Big Hill No. 2 and Blatchford Lake - while within 25 kilometres is the Avalon Rare Metals Thor Lake deposit.  The zonation of the Moose project pegmatite could allow for the mining and processing of three separate concentrates: a spodumene concentrate, an amblygonite concentrate and a columbite-tantalite-cassiterite concentrate (Groves, 1978).  The property was a minor producer between 1947 and 1954, has seen a very limited amount of drilling with the deposit remaining open at depth and along strike.

On August 11, 2009, the Company contracted Aurora Geosciences of Yellowknife to prepare a National Instrument 43-101 compliant report on the project.  A key component to the work program to be performed will be the resampling of known showings and the confirmation of historical grades.  Compilation of all the historical data combined with the grade confirmation will enable the Company to formulate a plan to further develop the project.

 The Company expects to be in receipt of the completed report by mid-September, 2009.  This report will be required as part of the Company's planned submission to publicly list its 100% owned subsidiary, International Lithium Corporation.

Other Events and Transactions

 Promissory note payable

 On October 28, 2008, the Company signed a promissory note whereby the Company was obligated to pay a supplier (the "Lender"), or its assignee, the principal sum of $388,068 (US$299,829) in relation to unpaid invoices for exploration services, together with accrued interest of $21,932.

 The entire outstanding principal balance, (together with accrued interest), was due and payable in full by the Company on January 31, 2009 (not paid).  Interest accrued at a rate of 18% per annum, and was payable monthly, on the last day of each month, until April 30, 2009.

 On May 1, 2009, the Company settled the promissory note payable for $420,000 (including $10,000 financing costs) through the issuance of a convertible secured debenture. 

 Convertible debentures

On February 19, 2009, the Company completed a $600,000 financing by issuing convertible debentures.  During the fiscal year ended December 31, 2008, the Company had received $150,000 as a subscription for one of these convertible debentures.  The debentures have a term of one year and bear interest, payable quarterly, at 9% per year, compounded semi-annually.  The debentures are convertible by the holders at any time during the term into units at $0.05 per unit.  Each unit is comprised of one common share and one common share purchase warrant entitling the holder to acquire an additional common share at $0.10 per share for a period of 2 years.  Quarterly interest payments may also be made in units, at the election of the holder. 

 The Company calculated the value of the equity component of the convertible debenture and deemed it to be immaterial for segregation between debt and equity on the balance sheet.

 The Company incurred $3,850 in regulatory and filing fees which were expensed as financing costs for the convertible debentures.

As of June 30, 2009, the Company has accrued $20,709 interest payable on the February 19, 2009 convertible debentures.

 Controlling shareholder update

 On February 25, 2009, the Company announced that Kirill Klip acquired a $150,000 convertible debenture in the February 19, 2009 financing.  Assuming conversion of the $150,000 principal amount debenture and exercise of the associated warrants, Mr. Klip will acquire an additional 6,000,000 common shares of the Company and own, or exercise control or direction over 22,175,500 common shares.  Assuming conversion of the $150,000 principal amount debenture and exercise of the associated warrants, the Company would have had 85,486,983 common shares outstanding, of which Mr. Klip will exercise control or direction a 25.94% interest.

 Repriced stock options

On March 26, 2009, the Company received regulatory approval to reduce the exercise prices of 4,050,000 incentive stock options (with exercise prices from $0.20 to $0.35) to $0.10 per share.

 New Subsidiary

On March 26, 2009, the Company incorporated a new wholly-owned subsidiary named International Lithium Corp. under the laws of the Province of British Columbia, Canada.

 Appointment to Advisory Board

 On April 1, 2009, the Company announced that appointment of Dr. Frederick W. Breaks to the advisory board.  Dr. Breaks is a Ph.D and professional geoscientist who is well known as a lithium and rare earth elements (REE) expert in Canada.  A proven explorer, he discovered two significant lithium-rich deposits: Avalon Venture Ltd's Big Whopper pegmatite near Kenora, Ontario and Houston Lake Mining Inc's Pakeagama Lake pegmatite in the North Spirit Lake area of Northwestern Ontario.  His ability to create genetic and exploration models of lithium-rich pegmatite deposits was developed during his career at Ontario Geological Survey where he authored and co-authored over 120 peer-reviewed scientific papers.

 President Gary Schellenberg comments, "We are pleased to welcome Dr. Breaks as an advisor to our Company.  I am confident he will play a pivotal role in the Company's worldwide search for lithium and REE projects from a technical standpoint and through his network of industry contacts.

 Warrant exercise price amendment

On April 3, 2009, the TSX Venture Exchange consented to the reduction in the exercise price of 7,250,000 warrants with an exercise price of $0.50 to $0.10 which had a May 15, 2009 expiry date.  If the closing price of the Company's shares is $0.125 or greater for a period of 10 consecutive trading days, then the warrant holders will have 30 days to exercise their warrants, otherwise, the warrants will expire on the 31^st day.

 Proposed transfer of properties to subsidiary

 On April 27, 2009, the Company announced that it intends to transfer all of its lithium and rare metals projects into its new wholly owned subsidiary, International Lithium Corporation ("International").  The Company will distribute up to 75% of the securities of International to the Company's shareholders.  The Company also intends to apply to list the shares of International on the TSX Venture Exchange.

 It is anticipated that this spin-out transaction will be completed pursuant to a plan of arrangement and will be subject to exchange, regulatory, court and shareholder approval, by not less than two-thirds of the votes cast at a special meeting of the Company's shareholders which will be called to approve the spin-out transaction.  Full details of the proposed spin-out transaction will be included in the information circular to be sent to Company shareholders in connection with the special meeting to be held in fall 2009, but it is anticipated that Company shareholders of record will be entitled to receive one common share and one full share purchase warrant of International for every four shares of the Company held as of the as-yet-determined record date.  The warrant will be exercisable at a price equal to a 50% premium to the Company's listing price for a two-year period.  In conjunction with the listing of the shares of International, the Company intends to complete an equity financing on terms to be determined, subject to regulatory approval.

Convertible debenture

On May 1, 2009, the Company settled the promissory note payable for $420,000 (including $10,000 in financing costs) through the issuance of a convertible secured debenture.  The debenture has a term of one year and bears interest, payable monthly, at 9% per year, compounded semi-annually (9.2% per year).  The debenture is convertible by its holder at any time during the term into units at $0.105 per unit.  Each unit comprises one common share.  Monthly interest payments may also be made in units, at the election of the holder.  The debenture will be secured by a general security agreement and its holder has the right to roll its debenture into any other debt or equity financing carried out by the Company during the term.

 Exercised warrants

 On May 12, 2009, the Company received $69,000 from the exercise of 690,000 warrants at $0.10 per share with a May 15, 2009 expiry date.  Capital stock and contributed surplus were each adjusted by $12,118 for the fair market value previously recorded on these exercised warrants.

On May 13, 2009, the Company received $110,000 from the exercise of 1,100,000 warrants at $0.10 per share with a May 15, 2009 expiry date.  Capital stock and contributed surplus were each adjusted by $19,318 for the fair market value previously recorded on these exercised warrants.

On May 15, 2009, the Company received $34,303 from the exercise of 343,033 warrants at $0.10 per share with a May 15, 2009 expiry date.  Capital stock and contributed surplus were each adjusted by $6,025 for the fair market value previously recorded on these exercised warrants.

Expired warrants

On May 15, 2009, 5,116,967 warrants exercisable at $0.10 per share expired unexercised.

On May 15, 2009, 260,061 warrants exercisable at $0.50 per share expired unexercised.

 On May 15, 2009, 1,287,819 warrants exercisable at $0.25 per share expired unexercised.

 On June 1, 2009, 750,000 warrants exercisable at $0.25 per share expired unexercised.

Expired stock options

 On May 17, 2009, 1,600,000 stock options exercisable at $0.20 per share expired unexercised.

 Shares for debt settlement

 On May 19, 2009, the Company settled $438,943 of debt by issuing 4,389,426 units at $0.10 per unit after receiving regulatory approval.  Each unit for non-related party debt consisted of one share and one-half common share purchase warrant.  The non-related party debt of $46,356 resulted in the issuance of 231,779 whole share purchase warrants.  Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.15 for a period of one year.  Each unit for related party debt consisted of only one share.

 Annual general meeting

On June 2, 2009, the Company held its Annual General Meeting.  All proposed resolutions were passed.

Exercised stock options

On June 9, 2009, the Company received $5,000 from the exercise of 50,000 options at $0.10 per share with a November 1, 2012 expiry date.  Capital stock and contributed surplus were each adjusted by $13,454 for stock-based compensation previously recorded on these exercised stock options.

On June 24, 2009, the Company received $50,000 from the exercise of 500,000 options at $0.10 per share with an April 9, 2013 expiry date.  Capital stock and contributed surplus were each adjusted by $146,530 for stock-based compensation previously recorded on these exercised stock options.