TAIA LION RESOURCES Financial statements for twelve months ended 31st December 2011 STAMEMENT OF FINANCIAL POSITION

Non- Current Assets Intangible Assets Tangible Assets Notes 3 3 USD USD 706,235.77 937,902.94 1,644,138.70 Current Assets Inventories Receivables & Prepayments Cash & Bank Balances 5 6 10,407.60 20,681.97 210.66 31,300.23 1,675,438.93

Equity & Reserves Share Capital Retained Earnings (6,002.24) (3,697,945.13)

Non-Current Liabilities Loans Due to Related Parties Current Liabilities Bank overdraft Tax & fees Withholding Tax Expat Tax Payable 5,251.20 951.06 67.77 3,625.52 9,895.55 1,675,438.93 5,369,490.75

TAIA LION RESOURCES Financial statements for twelve months ended 31st December 2011 TOTAL COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDING 31ST DECEMBER 2011 Notes Revenue Expenses 2 USD 30,713.81 (2,082,671.01) (2,051,957.30) Interest Receivable Loss on Disposal Loss before Tax Income Tax 9 10 21.32 (31,928.50) (2,083,864.48) -

Loss For the period

(2,083,864.48)

Other Comprehensive Income Statement Loss for the Period Foreign Exchange Gain Total Comprehensive loss for the period (2,083,864.48) 4,790.24 (2,079,074.14)

TAIA LION RESOURCES Financial statements for twelve months ended 31st December 2011 STATEMENT OF CASHFLOWS

TAIA LION RESOURCES Financial statements for twelve months ended 31st December 2011 STATEMENT IN CHANGES

At the Start of the period Loss for the Period Foreign Exchange Gain At the end of the period

Share Capital Retained Earnings USD USD (6,002.24) (1,623,172.40) (2,083,864.37) 4,790.23 (6,002.24) (3,702,246.54)

TOTAL USD (1,629,174.64) (2,083,864.37) 4,790.23 (3,708,248.78)

TAIA LION RESOURCES Financial statements for twelve months ended 31st December 2011

NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Policies The Financial Statements have been prepared under the historical cost convention in accordance with the International Financial Reporting Standards (IFRS)/ International Accounting Standards ( IAS).The Following accounting policies have been applied consistently in dealing with items which are material to these financial statements. 1.1 Valuation of investments Investment held as fixed asset are stated at cost less all provision for impairment. Assets that have an indefinite useful life are not subjected to amortization and are tested annually for impairments. Asset that are subjected to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount which may not be recoverable. An impairment Loss is recognize for the amount by which the asset carrying value exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less cost of sale and value in use. For the purpose of assessing impairments, assets are grouped at the lowest levels for which there are separately identifiable cash flows. 1.2 Foreign Currency Transactions Foreign currency transactions are translated into Leones using the exchange rate prevailing at the date of transaction. Foreign exchange gains and losses resulting from the settlement of such transaction and from the translation of monetary asset and liability which are dominated in foreign currencies as at the balance sheet date are recognized and form part of these income financial statement. Foreign exchange rate applied as at the 31st December 2011 Le 4,400 to $1, Average Rate Le 4,300 to$1