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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 1.      The Company and Significant Accounting Policies:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Gold Reserve Inc. ("Gold Reserve", the "Company", "we", "us", or "our")</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> is engaged in the business of acquiring, exploring and developing mining projects. We are an exploration stage company incorporated in 1998 under the laws of the Yukon Territory, Canada and continued to Alberta, Canada in September 2014. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Gold Reserve Inc. is the successor issuer to Gold Reserve Corporation which was incorporated in 1956. A significant portion of our activities relate to enforcement and collection efforts associated with the September 2014 Award in connection with Venezuela's seizure of our mining project known as the Brisas Project, the execution of the August 2016 Settlement Agreement and more recently the November 4, 2016 amended Settlement Agreement (the "Settlement Agreement") with Venezuela in regards to the payment of the Award and the acquisition of our Mining Data (See Note 3, Arbitral Award Settlement and Associated Mining Data Sale).</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Basis of Presentation and Principles of Consolidation</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include the accounts of the Company, Gold Reserve Corporation, two Barbadian subsidiaries formed to hold our interest in and operate the Mixed Company as defined herein (See Note 8, Mixed Company) and several dormant subsidiaries domiciled in Venezuela, Canada and Barbados which were previously formed to hold our interest in our foreign subsidiaries or for future transactions. The Mixed Company is beneficially owned 55% by Venezuela and 45% by Gold Reserve. All subsidiaries are wholly owned. All intercompany accounts and transactions have been eliminated on consolidation. Our policy is to consolidate those subsidiaries where control exists. We have only one operating segment, the exploration and development of mineral properties. As these unaudited interim consolidated financial statements do not contain all of the disclosures required by U.S. GAAP for annual financial statements, they should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 40-F for the year ended December 31, 2016.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Cash and Cash Equivalents</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We consider short-term, highly liquid investments purchased with an original maturity of three months or less to be cash equivalents for purposes of reporting cash equivalents and cash flows. The cost of these investments approximates fair value.  We manage the exposure of our cash and cash equivalents to credit risk by diversifying our holdings into major Canadian and U.S. financial institutions.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Exploration and Development Costs</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Mineral property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Mineral properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Property, Plant and Equipment</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Included in property, plant and equipment is certain equipment, the carrying value of which has been adjusted, as a result of impairment tests, to its estimated fair value of $11.7 million and it is not being depreciated as it is not yet available for its intended use. The ultimate recoverable value of this equipment may be different than management's current estimate. We have additional property, plant and equipment which are recorded at cost less impairment charges and accumulated depreciation. Replacement costs and major improvements are capitalized. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired or sold are removed from the accounts and any resulting gain or loss is reflected in operations. Furniture and office equipment is depreciated using the straight-line method over 5 to 10 years. The remaining property, plant and equipment are fully depreciated.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Impairment of Long Lived Assets</font></i></b><b><i><font lang="EN-US" style="font-family:Times New Roman Bold,serif;font-size:10.0pt;">.</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the expected future net cash flows to be generated from the use or eventual disposition of a long-lived asset (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on a determination of the asset's fair value. Fair value is generally determined by discounting estimated cash flows based on market participant expectations of those future cash flows, or applying a market approach that uses market prices and other relevant information generated by market transactions involving comparable assets.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Foreign Currency. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The U.S. dollar is our (and our foreign subsidiaries') functional currency. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Non-monetary assets and liabilities are translated at historical rates and revenue and expense items are translated at average exchange rates during the reporting period, except for depreciation which is translated at historical rates. Translation gains and losses are included in the statement of operations.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Stock Based Compensation</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We maintain the 2012 Equity Incentive Plan (the "2012 Plan") which provides for the grant of stock options to purchase our Class A common shares. We use the fair value method of accounting for stock options. The fair value of options granted to employees is computed using the Black-Scholes method as described in Note 10 and is expensed over the vesting period of the option. For non-employees, the fair value of stock based compensation is recorded as an expense over the vesting period or upon completion of performance. Consideration paid for shares on exercise of share options, in addition to the fair value attributable to stock options granted, is credited to capital stock. We also maintain the Gold Reserve Director and Employee Retention Plan (the "Retention Plan"). Each Unit (each, a "Retention Unit") granted under the Retention Plan to a participant entitles such person to receive a cash payment equal to the fair market value of one Class A common Share (1) on the date the Retention Unit was granted or (2) on the date any such participant becomes entitled to payment, whichever is greater. We will not accrue a liability for these Retention Units until and unless events required for vesting of the units occur.  Stock options and Retention Units granted under the respective plans become fully vested and exercisable upon a change of control.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Income Taxes</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We use the liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the differences between the tax basis of assets and liabilities and those amounts reported in the financial statements. The deferred tax assets or liabilities are calculated using the enacted tax rates expected to apply in the periods in which the differences are expected to be settled. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Use of Estimates</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Net Loss Per Share</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Net loss per share is computed by dividing net loss by the combined weighted average number of Class A common shares and equity units outstanding during each year. In periods in which a loss is incurred, the effect of potential issuances of shares under options and convertible notes would be anti-dilutive, and therefore basic and diluted losses per share are the same.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible Notes</font></i></b><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> Convertible notes are initially recorded at estimated fair value and subsequently measured at amortized cost. The fair value is allocated between the equity and debt component parts based on their respective fair values at the time of issuance and recorded net of transaction costs. The equity portion of the convertible notes is estimated using the residual value method. The fair value of the debt component is accreted to the face value of the convertible notes using the effective interest rate method over the contractual life of the convertible notes, with the resulting charge recorded as interest expense.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Investments. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">We determine the appropriate classification of investments in equity securities at acquisition and reevaluate such classifications at each reporting date. Investments in incorporated entities in which the Company has the ability to exercise significant influence over the investee and the Company's ownership is between 20% and 50% are accounted for by the equity method.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Financial Instruments. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable equity securities are classified as available for sale with any unrealized gain or loss recorded in other comprehensive income. If a decline in fair value of a security is determined to be other than temporary, an impairment loss is recognized. Cash and cash equivalents, deposits and advances are accounted for at cost which approximates fair value. Accounts payable, convertible notes and interest notes are recorded at amortized cost. Amortized cost of accounts payable approximates fair value.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Contingent Value Rights.</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> Contingent value rights ("CVRs") are obligations arising from the disposition of a portion of the rights to future proceeds of the Award against Venezuela and/or the sale of the Brisas Project technical mining data (the "Mining Data") that we compiled.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 2.      New Accounting Policies:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Adopted in the year</font></u></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation. The objective of this update is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update was effective for us January 1, 2017 and did not have an impact on our financial statements.</font></p> <p style="margin:0in;margin-bottom:6.0pt;page-break-after:avoid;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Recently issued accounting pronouncements</font></u></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In January 2017, the FASB issued ASU 2017-01, Business Combinations. This update clarifies the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective for us commencing with the annual period beginning after December 15, 2017 and interim periods within that annual period. We are still in the process of evaluating the impact of this standard.</font></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash. This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective for us commencing with the annual period beginning after December 15, 2017 and interim periods within that annual period. We are still in the process of evaluating the impact of this standard.</font></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update is intended to reduce the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for us commencing with the annual period beginning after December 15, 2017 and interim periods within that annual period. We are still in the process of evaluating the impact of this standard.</font></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In February 2016, the FASB issued ASU 2016-02, Leases. This update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This update is effective for us commencing with the annual period beginning after December 15, 2018, including interim periods within that year. We are still in the process of evaluating the impact of this standard.</font></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This update is effective for us commencing with the annual period beginning after December 15, 2017. We do not expect the adoption of this standard will have a significant impact on our financial statements.</font></p> <p style="margin:0in;margin-bottom:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In May 2014, the FASB issued ASU 2014-09, Revenue from contracts with customers. This standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services.  This update is effective for us commencing with the annual period beginning after December 15, 2017. As we currently do not generate revenue from operations we do not expect the adoption of this standard will have a significant impact on our financial statements.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 3.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">      </font><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Arbitral Award Settlement and Associated Mining Data Sale:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In October 2009, we initiated a claim (the "Brisas Arbitration") under the additional facility rules of the International Centre for the Settlement of Investment Disputes ("ICSID") of the World Bank to obtain compensation for the losses caused by the actions of Venezuela that terminated the Brisas Project. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In September 2014, the ICSID Tribunal granted us an Arbitral Award (the “Award”) totaling (i) $713 million in damages, plus (ii) pre-award interest from April 2008 through the date of the Award based on the U.S. Government Treasury Bill Rate, compounded annually totaling, as of the date of the Award, approximately $22.3 million and (iii) $5 million for legal costs and expenses, for a total, as of September 22, 2014, of $740.3 million. The Award (less legal costs and expenses) accrues post-award interest at a rate of LIBOR plus 2%, compounded annually. Since the Award was issued, we have diligently pursued enforcement and collection of the Award in France, England, Luxembourg and the United States.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In July 2016, we signed a settlement agreement with Venezuela which contemplated payment of the Award including interest of approximately $770 million in respect of the Brisas project and acquisition of our mining data by Venezuela for $240 million. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In early November 2016, and again in early December 2016, the parties executed addendums to the Settlement Agreement whereby the parties agreed to revise the payment schedule under which Venezuela would make payments related to the Award and Mining Data. The contemplated payments for the Award and Mining Data continue to be contingent upon Venezuela obtaining the necessary financing, which has not occurred and, as a result, as of the date of this report no payments have been made by Venezuela. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">As of April 30, 2017, the amount owed by Venezuela to the Company, pursuant to the Award (and exclusive of any payments contemplated for the Mining Data), was approximately $802 million (including post-award interest).</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">At the passing of the last agreed upon payment date, the board of directors chose to not formally terminate the Settlement Agreement as a result of the delay in the initial agreed upon payment(s), but instead instructed management to continue all efforts to work with Venezuela to complete the terms of the Settlement Agreement. Management has recently proposed and Venezuela is currently considering a third addendum to the Settlement Agreement, whereby the parties would agree, among other things, to revise the previously proposed payment schedule.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In October 2014 and January 2015, respectively, Venezuela filed annulment applications before the Paris Court of Appeal (the "Court") regarding the Award and the December 15, 2014 arbitral decision dismissing its request for rectification. During the same period, the Company applied to the Court for exequatur of the Award, which entails recognition and enforcement of the Award in France. The Court issued the exequatur on January 29, 2015 declaring the Award to be recognized and enforceable in France. On February 7, 2017, the Court rejected all of Venezuela's previous annulment arguments and issued a judgment dismissing the applications filed by Venezuela pending before the French courts in relation to the Award. In addition to the Award remaining enforceable in France, the Court ordered Venezuela to pay an amount of €150,000 for our legal fees and costs. Venezuela can consider appealing the judgment before the French Cour de cassation, which is the court of final resort in the French judicial system.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Obligations related to the collection of the Award</font></u></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">We have outstanding CVRs which entitle each holder that participated in the note restructuring completed in 2012 to receive, net of certain deductions (including income tax calculation and the payment of our then current obligations), a pro rata portion of a maximum aggregate amount of 5.468% calculated on the proceeds actually received by us with respect to the </font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Award</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> and/or the disposition of the Mining Data related to the development of the Brisas Project. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Board of Directors (the "Board") approved a Bonus Pool Plan (the "Bonus Plan") in May 2012, which is intended to compensate the participants, including executive officers, employees, directors and consultants, for their past and future contributions including their past efforts related to the development of the Brisas Project, execution of the Brisas Arbitration and the collection of an award and/or sale of the Mining Data. The bonus pool under the Bonus Plan is comprised of the gross proceeds collected or the fair value of any consideration realized (calculated  on substantially the same terms as the CVR) related to such transactions less applicable taxes multiplied by 1% of the first $200 million and 5% thereafter. The Bonus Plan is administered by a committee of independent directors who selected the individual participants in the Bonus Plan and fixed the relative percentage of the total pool to be distributed to each participant. Participation in the Bonus Plan by existing participants is fully vested, subject to voluntary termination of employment or termination for cause.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Company maintains the Gold Reserve Director and Employee Retention Plan (See Note 10). Each unit (the "Retention Units") granted to a participant entitles such person to receive a cash payment equal to the fair market value of one Gold Reserve Class A common share: (1) on the date the unit was granted or (2) on the date any such participant becomes entitled to payment, whichever is greater. Units previously granted under the plan become fully vested upon: (1) collection of Award proceeds from the ICSID arbitration process and/or sale of mining data totaling at least $200 million and we agree to distribute a substantial majority of the proceeds to our shareholders or, (2) the event of a change of control. We currently do not accrue a liability for the Bonus or Retention Plan as events required for payment under the Plans have not yet occurred. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Upon payment of the Award or receipt of proceeds from the disposition of the Mining Data, subject to certain limitations, we are obligated to make an offer to existing holders to redeem the 2018 Notes at a price equal to 120% of the principal amount of 2018 Notes then outstanding.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Our current plan is to distribute to our shareholders, in the most cost efficient manner, a substantial majority of any net proceeds, subject to applicable regulatory requirements regarding capital and reserves for operating expenses, accounts payable and income taxes, and any obligations arising as a result of the collection of the </font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Award</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> and/or sale of the Mining Data. Such obligations include payments pursuant to the terms of the Convertible Notes (if not otherwise converted), Interest Notes, CVRs, Bonus Plan and Retention Plan (all as defined herein), contingent legal fees of approximately $1.8 million which will become payable upon the collection of the Award or undertakings made to a court of law.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman Bold,serif;font-size:12.0pt;">Note 4.      Cash and Cash Equivalents:</font></b></p> <div align="left"><table border="1" cellpadding="0" cellspacing="0" width="96%" style="border:none;border-collapse:collapse;margin-left:9.0pt;"> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31,</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31,</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2017</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2016</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Bank deposits</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">4,400,423</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">1,122,542</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Money market funds</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">29,639,539</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">34,624,507</font></p> </td> </tr> <tr style="height:13.95pt;page-break-inside:avoid;"> <td valign="bottom" width="42%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Total</font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="12%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">34,039,962</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">35,747,049</font></p> </td> </tr> </table></div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 5.      Marketable Securities:                          </font></b></p> <div align="left"><table border="1" cellpadding="0" cellspacing="0" width="96%" style="border:none;border-collapse:collapse;margin-left:9.0pt;"> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;line-height:12.0pt;">       </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31,</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31,</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2017</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2016</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Fair value at beginning of year</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">180,986</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Dispositions, at cost</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(96)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Realized gain</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(60)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Impairment loss</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(13,769)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Increase (decrease) in market value</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(89,366)</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">374,155</font></p> </td> </tr> <tr style="height:13.95pt;"> <td valign="bottom" width="42%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value at balance sheet date</font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="12%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> </tr> </table></div> <p style="margin:0in;margin-bottom:.0001pt;margin-right:27.9pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> <p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Company's marketable securities are classified as available-for-sale and are recorded at quoted market value with gains and losses recorded within other comprehensive income until realized or impaired. Realized gains and losses are based on the average cost of the shares held at the date of disposition. As of March 31, 2017 and December 31, 2016, marketable securities had a cost basis of $98,043.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 6.      Fair Value Measurements:</font></b></p> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Accounting Standards Codification ("ASC") 820</font><font lang="EN-CA" style="font-family:Times New Roman,serif;font-size:10.0pt;"> establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability and Level 3 inputs are unobservable inputs for the asset or liability that reflect the entity's own assumptions. The most observable level 2 inputs used for the convertible notes include the volume weighted average trading price of our common stock and the most recent observable trading history of the 2022 Notes (as defined in Note 11).</font></p> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:7.5pt;">  </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" width="619" style="border-collapse:collapse;width:539.999939pt;"> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value</font></p> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31, 2017</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 1</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 2</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable securities</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:6.75pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible notes and interest notes</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">53,121,880</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:4.25pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">53,121,880</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="17%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="18%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value</font></p> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31, 2016</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 1</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 2</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable securities</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:6.75pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible notes and interest notes</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">77,164,724</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:4.25pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">77,164,724</font></p> </td> </tr> </table></div> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-CA" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 7.      Property, Plant and Equipment:</font></b></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" width="576" style="border-collapse:collapse;margin-left:23.4pt;width:507.599976pt;"> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">          </font></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Accumulated</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Cost</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Depreciation</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Net</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31, 2017</font></b></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Machinery and equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Furniture and office equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">522,672</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(502,067)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">20,605</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Leasehold improvements</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">41,190</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(41,190)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Mineral property</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,591,396</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(543,257)</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,048,139</font></p> </td> </tr> <tr style="height:.1in;"> <td valign="top" width="34%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="7%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="16%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="6%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="6%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Accumulated</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Cost</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Depreciation</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Net</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31, 2016</font></b></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Machinery and equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Furniture and office equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">519,832</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(500,870)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">18,962</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Leasehold improvements</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">41,190</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(41,190)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Mineral property</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,588,556</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(542,060)</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,046,496</font></p> </td> </tr> </table></div> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">On March 1, 2016, we completed the acquisition of certain wholly-owned mining claims known as the LMS Gold Project (the "Property"), together with certain personal property for $350,000, pursuant to a Purchase and Sale Agreement with Raven Gold Alaska Inc. ("Raven"), a wholly-owned subsidiary of Corvus Gold Inc. which was recorded as mineral property.  </font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Raven retains a royalty interest with respect to (i) precious metals produced and recovered from the Property equal to 3% of net smelter returns on such metals (the "Precious Metals Royalty") and (ii)  base metals produced and recovered from the Property equal to 1% of  net smelter returns on such metals, provided that we have the option, for a period of 20 years from the date of closing of the acquisition, to buy back a one-third interest <br /> (i.e. 1%) in the Precious Metals Royalty at a price of $4 million.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Machinery and equipment consists of infrastructure and milling equipment intended for use on the Brisas Project. We continually evaluate our equipment to determine whether events or changes in circumstances have occurred that may indicate impairment has occurred. We review comparable market data for evidence that fair value less cost to sell is in excess of the carrying amount.  In December 2016, based on market valuations for mining equipment which included the review of transactions involving comparable assets, we recorded a write-down of $0.6 million to an estimated fair value. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 8.      Mixed Company:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In August 2016, we executed an agreement ("Mixed Company Agreement") with Venezuela for the formation of a jointly owned company ("Mixed Company") and in October 2016, together with Venezuela, we established Empresa Mixta Ecosocialista Siembra Minera, S.A. ("Siembra Minera"), the entity whose mission is to develop the Brisas Cristinas Project.</font></p> <p style="margin:0in;margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Siembra Minera</font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> is beneficially owned 55% by Corporacion Venezolana De Mineria, S.A., a Venezuelan government corporation, and 45% by Gold Reserve and the parties will retain their respective interest in </font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Siembra Minera</font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> in the event the agreed upon payments, pursuant to the Settlement Agreement, are not made by Venezuela. </font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Siembra Minera</font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> holds the gold, copper, silver and other strategic mineral rights within Bolivar State, including the Brisas Cristinas Project, (each having a 40 year term comprised of 20 years with two 10 year extensions) and will, among other things be authorized, via Presidential Decrees and Ministerial and Central Bank resolutions, to carry-on it's business, pay a net smelter return royalty to Venezuela on the sale of gold, copper, silver and any other strategic minerals over the life of the project and provide net profits participation based on the sales price of gold per ounce. The Mixed Company has not recorded any expense to date as its initial costs have been borne by the Company and Venezuela.  During the three months ended March 31, 2017 the Company incurred $0.2 million related to the Mixed Company.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 9.      KSOP Plan:</font></b></p> <p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The KSOP Plan, adopted in 1990 for retirement benefits of employees, is comprised of two parts, (1) a salary reduction component, and a 401(k) which includes provisions for discretionary contributions by us, and (2) an employee share ownership component, or ESOP. Allocation of Class A common shares or cash to participants' accounts, subject to certain limitations, is at the discretion of the Board. There have been no Class A common shares allocated to the KSOP Plan since 2011. Cash contributions for plan year 2016 were approximately $163,000. As of March 31, 2017, no contributions by the Company had been made for plan year 2017.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;margin-top:12.0pt;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 10.    Stock Based Compensation Plans:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Equity Incentive Plans</font></u></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">On June 27, 2012, the shareholders approved the 2012 Equity Incentive Plan (the "2012 Plan") to replace our previous equity incentive plans. In 2014, the Board amended and restated the 2012 Plan changing the maximum number of Class A common shares issuable under options granted under the 2012 Plan from a "rolling" 10% of the outstanding Class A common shares to a fixed number of 7,550,000 Class A common shares. On September 19, 2016, the Board approved an amendment and restatement of the 2012 Plan to increase the maximum number of shares issuable thereunder to 8,750,000, representing less than 10% of the issued and outstanding Class A Common Shares of the Company at such date. Such amendment was approved by the TSX Venture Exchange ("TSXV") on October 6, 2016.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">As of March 31, 2017, there were 1,710,000 options available for grant. Grants are made for terms of up to ten years with vesting periods as required by the TSXV and as may be determined by a committee of the Board established pursuant to the 2012 Plan.</font></p> <p style="margin-bottom:6.0pt;margin-left:.2in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.3in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Stock option transactions for the three months ended March 31, 2017 and 2016 are as follows:</font></p> <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" width="548" style="border-collapse:collapse;margin-left:5.4pt;width:486.900024pt;"> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="2" valign="top" width="30%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2017</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="2" valign="bottom" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2016</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr style="height:37.75pt;"> <td valign="top" width="31%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Shares</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="top" width="5%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Shares</font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="top" width="5%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options outstanding - beginning of period</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,357,000</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.84</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,643,500</font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.43</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options granted</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,152,500</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3.16</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options exercised</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(137,500)</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.89</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(2,273,000)</font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.82</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options expired</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(1,469,500)</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.89</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options outstanding - end of period</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">6,902,500</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 3.07</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,370,500</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.85</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options exercisable - end of period</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,877,502</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 3.05</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,345,500</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.84</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> </table></div> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;">The following table relates to stock options at March 31, 2017:</font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <div align="left"><table border="0" cellpadding="0" cellspacing="0" width="642" style="border-collapse:collapse;margin-left:5.4pt;width:589.499939pt;"> <tr style="page-break-inside:avoid;"> <td valign="bottom" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="4" valign="bottom" width="42%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.75pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Outstanding Options</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="4" valign="bottom" width="42%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.75pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Exercisable Options</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Exercise Price</font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Number </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.95pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Aggregate Intrinsic Value</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.4pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Remaining Contractual Term (Years)</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Number </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Aggregate Intrinsic Value</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.4pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Remaining Contractual Term (Years)</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">875,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4.19</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">875,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4.19</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">250,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.20</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">250,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.20</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,027,500</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.88</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4,002,502</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.88</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">125,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.81</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">125,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.81</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">100,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.96</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">100,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.96</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">215,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.25</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">215,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.25</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">310,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">7.32</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">310,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">7.32</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92 - $4.02</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">6,902,500</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.07</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">8.58</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:18.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,877,502</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.05</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">8.35</font></p> </td> </tr> </table></div> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">During the three months ended March 31, 2017 and 2016, the Company granted 5,152,500 and NIL stock options, respectively. In the first quarter of 2017 and 2016 approximately 0.1 million and 2.3 million outstanding options were exercised, respectively for net proceeds to the Company of approximately $0.4 million and $4.1 million, respectively. The Company recorded non-cash compensation expense during the three months ended March 31, 2017 and 2016 of $4,416,820 and $8,180, respectively for stock options granted in 2017 and prior periods. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The weighted average fair value of the options granted in the first three months of 2017 was calculated at $1.05. The fair value of options granted was determined using the Black-Scholes model based on the following weighted average assumptions:</font></p> <div align="left"><table border="1" cellpadding="0" cellspacing="0" style="border:none;border-collapse:collapse;margin-left:.5in;width:408.599976pt;"> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">2017</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Risk free interest rate</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">1.22%</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Expected term</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">2 years</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Expected volatility</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">59%</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Dividend yield</font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">nil</font></p> </td> </tr> </table></div> <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The risk free interest rate is based on the US Treasury rate on the date of grant for a period equal to the expected term of the option. The expected term is based on historical exercise experience and projected post-vesting behavior. The expected volatility is based on historical volatility of the Company's stock over a period equal to the expected term of the option.</font></p> <p style="margin:0in;margin-bottom:8.0pt;page-break-after:avoid;"><u><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Retention Plan and Change of Control Agreements</font></u></p> <p style="margin:0in;margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The Company maintains the Gold Reserve Director and Employee Retention Plan.  Each unit (the "Retention Units") granted to a participant entitles such person to receive a cash payment equal to the fair market value of one Gold Reserve Class A common share: (1) on the date the unit was granted or (2) on the date any such participant becomes entitled to payment, whichever is greater. Units previously granted under the plan become fully vested upon: (1) collection of Award proceeds from the ICSID arbitration process and/or sale of mining data totaling at least $200 million and we agree to distribute a substantial majority of the proceeds to its shareholders or, (2) the event of a change of control.  A “Change of Control”, as it relates to the Retention Plan, means one or more of the following: the acquisition by any individual, entity or group, of beneficial ownership of the Company of 25 percent of the voting power of the outstanding Common Shares; a change in the composition of the Board that causes less than a majority of the current directors of the Board to be members of the incoming board; solicitation of proxies or consents by or on behalf of a person other than the board; reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company; liquidation or dissolution of the Company; or any other event the Board reasonably determines constitutes a Change of Control. As of March 31, 2017 an aggregate of 1,457,500 unvested units have been granted to directors and executive officers of the Company and 315,000 unvested units have been granted to other employees.  The Company currently does not accrue a liability for these units as events required for vesting of the units have not yet occurred. The minimum value of these units, based on the grant date value of the Class A common shares, was approximately $7.8 million. The Company also maintains change of control agreements with certain officers and employees. As of March 31, 2017, the amount payable under these agreements in the event of a change of control, including unvested retention units, was approximately $14.2 million.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 11.    Convertible Notes and Interest Notes:</font></b></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The amount recorded as Convertible Notes and Interest Notes in the consolidated balance sheet as of March 31, 2017 is comprised of approximately $37.9 million carrying value of 11% Senior Secured Convertible Notes due December 31, 2018 (the "2018 Convertible Notes"), approximately $1.0 million of 2022 Convertible Notes (as defined herein) and approximately $7.7 million of Interest Notes (as defined herein). The carrying value of the 2018 Convertible Notes is being accreted to face value using the effective interest rate method over the expected life of the 2018 Convertible Notes with the resulting charge recorded as interest expense.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The 2018 Convertible Notes bear interest at a rate of 11% per year which is accrued quarterly and is payable in the form of new 11% Senior Secured Interest Notes due December 31, 2018 (the "Interest Notes" and, together with the 2018 Convertible Notes, the “2018 Notes”) and payable in cash at maturity.  Interest on the Interest Notes is also payable in additional Interest Notes. The 2018 Convertible Notes are convertible, at the option of the holder, into 333.3333 Class A common shares per $1,000 principal amount (equivalent to a conversion price of $3.00 per common share) at any time upon prior written notice to us. The Interest Notes are not convertible into our Class A common shares or any other security. We also have outstanding $1.0 million aggregate principal amount of 5.50% Senior Subordinated Convertible Notes due June 15, 2022 (the “2022 Convertible Notes” and, together with the 2018 Convertible Notes, the “Convertible Notes”) issued in May 2007 with a maturity date of June 15, 2022. The 2022 Convertible Notes</font><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> bear interest at a rate of 5.50% per year, payable semiannually in arrears on June 15 and December 15 </font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">and, subject to certain conditions we may redeem, repurchase or convert the 2022 Convertible Notes into our Class A common shares at a conversion price of $7.54 per common share.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The 2018 Notes are secured by substantially all of our assets and are subject to certain terms including: (1) the Award and the Mining Data, or any payments made thereon,  may not be pledged without consent of holders comprising at least 75% in aggregate principal amount of outstanding 2018 Notes; (2) subject to certain exceptions, we may not incur any additional indebtedness without consent of holders comprising at least 75% in aggregate principal amount of the outstanding 2018 Notes; (3) to the extent the 2018 Notes remain outstanding, each holder of the Secured Notes will have the right to participate, on a pro-rata basis based on the amount of equity it holds, including Class A common shares issuable upon conversion of convertible securities, in any future equity (or equity-linked) or debt financing;</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;"> </font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">(4) the 2018 Notes shall be redeemable on a pro-rata basis, by us at the note holders' option, for an amount of cash equal to 120% of the outstanding principal balance upon (a) the issuance of a final Arbitration Award, with respect to which enforcement has not been stayed and no annulment proceeding is pending, or (b) our receipt of proceeds from the sale of the Mining Data; provided we shall only be obligated to make a redemption to the extent net cash proceeds received are in excess of $20,000,000, net of taxes and $13,500,000 to fund professional fees and expenses and accrued and unpaid prospective operating expenses; (5) capital expenditures (including exploration and related activities) shall not exceed an aggregate of $500,000 in any 12-month period without the prior consent of holders of a majority in the aggregate principal amount of the outstanding 2018 Notes; (6) subject to certain exceptions, we shall not incur, create or suffer to exist any liens securing indebtedness without consent of holders comprising at least 75% in aggregate principal amount of the outstanding 2018 Notes; and (7) we shall not agree with any holder of the 2018 Notes to any amendment or modification to any terms of any security issued under the indenture governing the 2018 Notes, provide any fees or other compensation whether in cash or in-kind to any holder of such securities, or engage in the repurchase, redemption or other defeasance of any such security without offering such terms, compensation or defeasance to all holders of the 2018 Notes on an equitable and pro-rata basis.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In accordance with U.S. GAAP, we allocated the 2018 Convertible Notes between their equity and liability component parts based on their respective fair values at the time of issuance. The liability component was computed by discounting the stream of future payments of interest and principal at an effective interest rate of 27% which was the estimated market rate for a similar liability that does not have an associated equity component. The equity portion of the 2018 Convertible Notes was estimated using the residual value method at approximately $18.2 million net of issuance costs which were allocated pro rata between the equity and liability components. The fair value of the liability component is accreted to the face value of the 2018 Notes using the effective interest rate method over the expected life of the 2018 Convertible Notes, with the resulting charge recorded as interest expense. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">In 2016, $7.2 million face value of 2018 Convertible Notes were converted at a price of $3.00 per share resulting in the issuance of 2.4 million Class A common shares. As of March 31, 2017, the Company had $50.9 million face value of Convertible Notes and $7.7 million face value of Interest Notes outstanding. Pursuant to a 2012 restructuring of convertible notes, we issued CVRs that entitle the holders to an aggregate of 5.468% of any future proceeds, net of certain deductions (including income tax calculation and the payment of our then current obligations), actually received by us with respect to the Brisas Arbitration proceedings and/or disposition of the Mining Data.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> <div style="page:WordSection3;"> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;"> </font></p> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font color="black" lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Gold Reserve Inc. ("Gold Reserve", the "Company", "we", "us", or "our")</font><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> is engaged in the business of acquiring, exploring and developing mining projects. We are an exploration stage company incorporated in 1998 under the laws of the Yukon Territory, Canada and continued to Alberta, Canada in September 2014. </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Gold Reserve Inc. is the successor issuer to Gold Reserve Corporation which was incorporated in 1956. A significant portion of our activities relate to enforcement and collection efforts associated with the September 2014 Award in connection with Venezuela's seizure of our mining project known as the Brisas Project, the execution of the August 2016 Settlement Agreement and more recently the November 4, 2016 amended Settlement Agreement (the "Settlement Agreement") with Venezuela in regards to the payment of the Award and the acquisition of our Mining Data (See Note 3, Arbitral Award Settlement and Associated Mining Data Sale).</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Basis of Presentation and Principles of Consolidation</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The statements include the accounts of the Company, Gold Reserve Corporation, two Barbadian subsidiaries formed to hold our interest in and operate the Mixed Company as defined herein (See Note 8, Mixed Company) and several dormant subsidiaries domiciled in Venezuela, Canada and Barbados which were previously formed to hold our interest in our foreign subsidiaries or for future transactions. The Mixed Company is beneficially owned 55% by Venezuela and 45% by Gold Reserve. All subsidiaries are wholly owned. All intercompany accounts and transactions have been eliminated on consolidation. Our policy is to consolidate those subsidiaries where control exists. We have only one operating segment, the exploration and development of mineral properties. As these unaudited interim consolidated financial statements do not contain all of the disclosures required by U.S. GAAP for annual financial statements, they should be read in conjunction with the annual financial statements and related notes included in our Annual Report on Form 40-F for the year ended December 31, 2016.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Cash and Cash Equivalents</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We consider short-term, highly liquid investments purchased with an original maturity of three months or less to be cash equivalents for purposes of reporting cash equivalents and cash flows. The cost of these investments approximates fair value.  We manage the exposure of our cash and cash equivalents to credit risk by diversifying our holdings into major Canadian and U.S. financial institutions.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Exploration and Development Costs</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Mineral property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Mineral properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Property, Plant and Equipment</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Included in property, plant and equipment is certain equipment, the carrying value of which has been adjusted, as a result of impairment tests, to its estimated fair value of $11.7 million and it is not being depreciated as it is not yet available for its intended use. The ultimate recoverable value of this equipment may be different than management's current estimate. We have additional property, plant and equipment which are recorded at cost less impairment charges and accumulated depreciation. Replacement costs and major improvements are capitalized. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired or sold are removed from the accounts and any resulting gain or loss is reflected in operations. Furniture and office equipment is depreciated using the straight-line method over 5 to 10 years. The remaining property, plant and equipment are fully depreciated.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Impairment of Long Lived Assets</font></i></b><b><i><font lang="EN-US" style="font-family:Times New Roman Bold,serif;font-size:10.0pt;">.</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the expected future net cash flows to be generated from the use or eventual disposition of a long-lived asset (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on a determination of the asset's fair value. Fair value is generally determined by discounting estimated cash flows based on market participant expectations of those future cash flows, or applying a market approach that uses market prices and other relevant information generated by market transactions involving comparable assets.</font></p> <p style="margin:0in;margin-bottom:.0001pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Foreign Currency. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The U.S. dollar is our (and our foreign subsidiaries') functional currency. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Non-monetary assets and liabilities are translated at historical rates and revenue and expense items are translated at average exchange rates during the reporting period, except for depreciation which is translated at historical rates. Translation gains and losses are included in the statement of operations.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Stock Based Compensation</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We maintain the 2012 Equity Incentive Plan (the "2012 Plan") which provides for the grant of stock options to purchase our Class A common shares. We use the fair value method of accounting for stock options. The fair value of options granted to employees is computed using the Black-Scholes method as described in Note 10 and is expensed over the vesting period of the option. For non-employees, the fair value of stock based compensation is recorded as an expense over the vesting period or upon completion of performance. Consideration paid for shares on exercise of share options, in addition to the fair value attributable to stock options granted, is credited to capital stock. We also maintain the Gold Reserve Director and Employee Retention Plan (the "Retention Plan"). Each Unit (each, a "Retention Unit") granted under the Retention Plan to a participant entitles such person to receive a cash payment equal to the fair market value of one Class A common Share (1) on the date the Retention Unit was granted or (2) on the date any such participant becomes entitled to payment, whichever is greater. We will not accrue a liability for these Retention Units until and unless events required for vesting of the units occur.  Stock options and Retention Units granted under the respective plans become fully vested and exercisable upon a change of control.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Income Taxes</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. We use the liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the differences between the tax basis of assets and liabilities and those amounts reported in the financial statements. The deferred tax assets or liabilities are calculated using the enacted tax rates expected to apply in the periods in which the differences are expected to be settled. Deferred tax assets are recognized to the extent that they are considered more likely than not to be realized.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Use of Estimates</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Net Loss Per Share</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">. Net loss per share is computed by dividing net loss by the combined weighted average number of Class A common shares and equity units outstanding during each year. In periods in which a loss is incurred, the effect of potential issuances of shares under options and convertible notes would be anti-dilutive, and therefore basic and diluted losses per share are the same.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible Notes</font></i></b><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">.</font></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> Convertible notes are initially recorded at estimated fair value and subsequently measured at amortized cost. The fair value is allocated between the equity and debt component parts based on their respective fair values at the time of issuance and recorded net of transaction costs. The equity portion of the convertible notes is estimated using the residual value method. The fair value of the debt component is accreted to the face value of the convertible notes using the effective interest rate method over the contractual life of the convertible notes, with the resulting charge recorded as interest expense.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Investments. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">We determine the appropriate classification of investments in equity securities at acquisition and reevaluate such classifications at each reporting date. Investments in incorporated entities in which the Company has the ability to exercise significant influence over the investee and the Company's ownership is between 20% and 50% are accounted for by the equity method.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Financial Instruments. </font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable equity securities are classified as available for sale with any unrealized gain or loss recorded in other comprehensive income. If a decline in fair value of a security is determined to be other than temporary, an impairment loss is recognized. Cash and cash equivalents, deposits and advances are accounted for at cost which approximates fair value. Accounts payable, convertible notes and interest notes are recorded at amortized cost. Amortized cost of accounts payable approximates fair value.</font></p> <p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;text-indent:.5in;"><b><i><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Contingent Value Rights.</font></i></b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;"> Contingent value rights ("CVRs") are obligations arising from the disposition of a portion of the rights to future proceeds of the Award against Venezuela and/or the sale of the Brisas Project technical mining data (the "Mining Data") that we compiled.</font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman Bold,serif;font-size:12.0pt;">Note 4.      Cash and Cash Equivalents:</font></b></p> <table border="1" cellpadding="0" cellspacing="0" width="96%" style="border:none;border-collapse:collapse;margin-left:9.0pt;"> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31,</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31,</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2017</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2016</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Bank deposits</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">4,400,423</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">1,122,542</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Money market funds</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">29,639,539</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">34,624,507</font></p> </td> </tr> <tr style="height:13.95pt;page-break-inside:avoid;"> <td valign="bottom" width="42%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Total</font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="12%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">34,039,962</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">35,747,049</font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:12.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 5.      Marketable Securities:                          </font></b></p> <table border="1" cellpadding="0" cellspacing="0" width="96%" style="border:none;border-collapse:collapse;margin-left:9.0pt;"> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;line-height:12.0pt;">       </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31,</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31,</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2017</font></p> </td> <td valign="top" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">2016</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Fair value at beginning of year</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">180,986</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Dispositions, at cost</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(96)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Realized gain</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(60)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Impairment loss</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:12.0pt;">-</font></p> </td> <td valign="bottom" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(13,769)</font></p> </td> </tr> <tr> <td valign="top" width="42%" style="padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;line-height:12.0pt;">Increase (decrease) in market value</font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="12%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="2%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="4%" style="padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(89,366)</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">374,155</font></p> </td> </tr> <tr style="height:13.95pt;"> <td valign="bottom" width="42%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value at balance sheet date</font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="12%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="2%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font color="black" style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="4%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="bottom" width="2%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;height:13.95pt;padding:0in 0in 0in 0in;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:4.7pt;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Accounting Standards Codification ("ASC") 820</font><font lang="EN-CA" style="font-family:Times New Roman,serif;font-size:10.0pt;"> establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability and Level 3 inputs are unobservable inputs for the asset or liability that reflect the entity's own assumptions. The most observable level 2 inputs used for the convertible notes include the volume weighted average trading price of our common stock and the most recent observable trading history of the 2022 Notes (as defined in Note 11).</font></p> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:7.5pt;">  </font></p> <table border="0" cellpadding="0" cellspacing="0" width="619" style="border-collapse:collapse;width:539.999939pt;"> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value</font></p> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31, 2017</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 1</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 2</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable securities</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">451,850</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:6.75pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible notes and interest notes</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">53,121,880</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:4.25pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">53,121,880</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="17%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="18%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Fair value</font></p> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31, 2016</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 1</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Level 2</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Marketable securities</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">541,216</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:6.75pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Convertible notes and interest notes</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="21%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.35pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">77,164,724</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="17%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="top" width="5%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:10.65pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="top" width="18%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:4.25pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">77,164,724</font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:8.0pt;margin-left:0in;margin-right:0in;margin-top:6.0pt;page-break-after:avoid;"><b><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:12.0pt;">Note 7.      Property, Plant and Equipment:</font></b></p> <table border="0" cellpadding="0" cellspacing="0" width="576" style="border-collapse:collapse;margin-left:23.4pt;width:507.599976pt;"> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">          </font></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Accumulated</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Cost</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Depreciation</font></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Net</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">March 31, 2017</font></b></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Machinery and equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Furniture and office equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">522,672</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(502,067)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">20,605</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Leasehold improvements</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">41,190</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(41,190)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Mineral property</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,591,396</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(543,257)</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,048,139</font></p> </td> </tr> <tr style="height:.1in;"> <td valign="top" width="34%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="7%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="16%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="6%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="6%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:0in;margin-left:0in;margin-right:0pt;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="height:.1in;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Accumulated</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Cost</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Depreciation</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:0pt;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Net</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;">December 31, 2016</font></b></p> </td> <td valign="top" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> <td valign="top" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></b></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.2in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Machinery and equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:0pt;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0in;margin-right:.05in;margin-top:4.0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">11,677,534</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Furniture and office equipment</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">519,832</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(500,870)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">18,962</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Leasehold improvements</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">41,190</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(41,190)</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.2in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">Mineral property</font></p> </td> <td valign="bottom" width="7%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">-</font></p> </td> <td valign="bottom" width="6%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="16%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">350,000</font></p> </td> </tr> <tr> <td valign="top" width="34%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;"> </font></p> </td> <td valign="bottom" width="7%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-left:0pt;margin-right:.05in;margin-top:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,588,556</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">(542,060)</font></p> </td> <td valign="bottom" width="6%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">$</font></p> </td> <td valign="bottom" width="16%" style="border-bottom:solid windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:10.0pt;">12,046,496</font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin-bottom:6.0pt;margin-left:.2in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.3in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">Stock option transactions for the three months ended March 31, 2017 and 2016 are as follows:</font></p> <p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.25in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="548" style="border-collapse:collapse;margin-left:5.4pt;width:486.900024pt;"> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="2" valign="top" width="30%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2017</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="2" valign="bottom" width="29%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2016</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr style="height:37.75pt;"> <td valign="top" width="31%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Shares</font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="top" width="5%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="15%" style="border-bottom:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Shares</font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="top" width="5%" style="height:37.75pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options outstanding - beginning of period</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,357,000</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.84</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,643,500</font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.43</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options granted</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,152,500</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3.16</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options exercised</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(137,500)</font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.89</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(2,273,000)</font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.82</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options expired</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">(1,469,500)</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.89</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options outstanding - end of period</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">6,902,500</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 3.07</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,370,500</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.85</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Options exercisable - end of period</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,877,502</font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 3.05</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">3,345,500</font></p> </td> <td valign="top" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="justify" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$ 2.84</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> <tr> <td valign="top" width="31%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="15%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;">The following table relates to stock options at March 31, 2017:</font></p> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7pt;page-break-after:avoid;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="642" style="border-collapse:collapse;margin-left:5.4pt;width:589.499939pt;"> <tr style="page-break-inside:avoid;"> <td valign="bottom" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="4" valign="bottom" width="42%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.75pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Outstanding Options</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td colspan="4" valign="bottom" width="42%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.75pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Exercisable Options</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Exercise Price</font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Number </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.95pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Aggregate Intrinsic Value</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.4pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Remaining Contractual Term (Years)</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Number </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:4.45pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Exercise Price </font></p> </td> <td valign="bottom" width="10%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Aggregate Intrinsic Value</font></p> </td> <td valign="bottom" width="11%" style="border-bottom:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:5.4pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">Weighted Average Remaining Contractual Term (Years)</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">875,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4.19</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">875,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4.19</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">250,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.20</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">250,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.00</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">1.20</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,027,500</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.88</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">4,002,502</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.15</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.88</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">125,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.81</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">125,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.45</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.81</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">100,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.96</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">100,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.89</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">2.96</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">215,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.25</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">215,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.91</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">9.25</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">310,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">7.32</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.9pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">310,000</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$4.02</font></p> </td> <td valign="top" width="10%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">-</font></p> </td> <td valign="top" width="11%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">7.32</font></p> </td> </tr> <tr style="page-break-inside:avoid;"> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$1.92 - $4.02</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">6,902,500</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.07</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">8.58</font></p> </td> <td valign="top" width="5%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:18.7pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;"> </font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">5,877,502</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:.05in;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$3.05</font></p> </td> <td valign="top" width="10%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">$778,750</font></p> </td> <td valign="top" width="11%" style="border-bottom:double windowtext 2pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;"><font style="font-family:Times New Roman,serif;font-size:8.0pt;">8.35</font></p> </td> </tr> </table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:3.0pt;page-break-after:avoid;text-indent:.5in;"><font lang="EN-US" style="font-family:Times New Roman,serif;font-size:10.0pt;">The weighted average fair value of the options granted in the first three months of 2017 was calculated at $1.05. The fair value of options granted was determined using the Black-Scholes model based on the following weighted average assumptions:</font></p> <table border="1" cellpadding="0" cellspacing="0" style="border:none;border-collapse:collapse;margin-left:.5in;width:408.599976pt;"> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="center" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">2017</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;margin-right:.7in;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Risk free interest rate</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">1.22%</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Expected term</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">2 years</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Expected volatility</font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">59%</font></p> </td> </tr> <tr> <td valign="top" width="58%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">Dividend yield</font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;"> </font></p> </td> <td valign="bottom" width="14%" style="border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;"> <p align="right" style="margin:0in;margin-bottom:.0001pt;margin-right:0pt;page-break-after:avoid;"><font style="font-family:Times New Roman,serif;font-size:9.0pt;">nil</font></p> </td> </tr> </table>
0.55
0.45
11700000
713000000
22300000
5000000
740300000
0.02
770000000
802000000
240000000
150000
0.05468
0.01
0.05
1800000
4400423
1122542
29639539
34624507
34039962
35747049
541216
180986
-96
-60
-13769
-89366
374155
451850
541216
98043
98043
451850
541216
451850
541216
53121880
77164724
53121880
77164724
11677534
11677534
0
0
11677534
11677534
522672
519832
-502067
-500870
20605
18962
41190
41190
-41190
-41190
0
0
350000
350000
0
0
350000
350000
12591396
12588556
-543257
-542060
12048139
12046496
350000
0.03
0.01
4000000
600000
0.55
0.45
200000
0
163000
3357000
5643500
2.84
2.43
5152500
3.16
-137500
-2273000
2.89
1.82
-1469500
2.89
6902500
3370500
3.07
2.85
5877502
3345500
3.05
2.84
875000
1.92
778750
P4Y69D
875000
1.92
778750
P4Y69D
250000
3.00
0
P1Y73D
250000
3.00
0
P1Y73D
5027500
3.15
0
P9Y321D
4002502
3.15
0
P9Y321D
125000
3.45
0
P9Y296D
125000
3.45
0
P9Y296D
100000
3.89
0
P2Y350D
100000
3.89
0
P2Y350D
215000
3.91
0
P9Y91D
215000
3.91
0
P9Y91D
310000
4.02
0
P7Y117D
310000
4.02
0
P7Y117D
6902500
3.07
778750
P8Y212D
5877502
3.05
778750
P8Y128D
0.0122
P2Y
0.59
0.00
7500000
8750000
1710000
P10Y
5152000
0
100000
2300000
400000
4100000
4400000
8000
1.05
1457500
315000
7800000
14200000
37.9
1.0
7.7
The 2018 Convertible Notes bear interest at a rate of 11% per year which is accrued quarterly and is payable in the form of new 11% Senior Secured Interest Notes due December 31, 2018 (the "Interest Notes" and, together with the 2018 Convertible Notes, the “2018 Notes”) and payable in cash at maturity. Interest on the Interest Notes is also payable in additional Interest Notes. The 2018 Convertible Notes are convertible, at the option of the holder, into 333.3333 Class A common shares per $1,000 principal amount (equivalent to a conversion price of $3.00 per common share) at any time upon prior written notice to us. The Interest Notes are not convertible into our Class A common shares or any other security. We also have outstanding $1.0 million aggregate principal amount of 5.50% Senior Subordinated Convertible Notes due June 15, 2022 (the “2022 Convertible Notes” and, together with the 2018 Convertible Notes, the “Convertible Notes”) issued in May 2007 with a maturity date of June 15, 2022. The 2022 Convertible Notes bear interest at a rate of 5.50% per year, payable semiannually in arrears on June 15 and December 15 and, subject to certain conditions we may redeem, repurchase or convert the 2022 Convertible Notes into our Class A common shares at a conversion price of $7.54 per common share.
The 2018 Notes are secured by substantially all of our assets and are subject to certain terms including: (1) the Award and the Mining Data, or any payments made thereon, may not be pledged without consent of holders comprising at least 75% in aggregate principal amount of outstanding 2018 Notes; (2) subject to certain exceptions, we may not incur any additional indebtedness without consent of holders comprising at least 75% in aggregate principal amount of the outstanding 2018 Notes; (3) to the extent the 2018 Notes remain outstanding, each holder of the Secured Notes will have the right to participate, on a pro-rata basis based on the amount of equity it holds, including Class A common shares issuable upon conversion of convertible securities, in any future equity (or equity-linked) or debt financing; (4) the 2018 Notes shall be redeemable on a pro-rata basis, by us at the note holders’ option, for an amount of cash equal to 120% of the outstanding principal balance upon (a) the issuance of a final Arbitration Award, with respect to which enforcement has not been stayed and no annulment proceeding is pending, or (b) our receipt of proceeds from the sale of the Mining Data; provided we shall only be obligated to make a redemption to the extent net cash proceeds received are in excess of $20,000,000, net of taxes and $13,500,000 to fund professional fees and expenses and accrued and unpaid prospective operating expenses; (5) capital expenditures (including exploration and related activities) shall not exceed an aggregate of $500,000 in any 12-month period without the prior consent of holders of a majority in the aggregate principal amount of the outstanding 2018 Notes; (6) subject to certain exceptions, we shall not incur, create or suffer to exist any liens securing indebtedness without consent of holders comprising at least 75% in aggregate principal amount of the outstanding 2018 Notes; and (7) we shall not agree with any holder of the 2018 Notes to any amendment or modification to any terms of any security issued under the indenture governing the 2018 Notes, provide any fees or other compensation whether in cash or in-kind to any holder of such securities, or engage in the repurchase, redemption or other defeasance of any such security without offering such terms, compensation or defeasance to all holders of the 2018 Notes on an equitable and pro-rata basis.
0.27
18.2
7.2
3.00
2.4
50.9
7.7
0.05468