CASH FLOWS

During the quarter ended September 30, 2008 the cash flows used by the operating activities totalled
$3,513,897 compared to a generated cash flow of $301,051 for the corresponding quarter of 2007.
This difference is mainly caused by the increases in the net loss and in the changes in working capital
items.
For the quarter ended on September 30, 2008, the cash flow generated by the operating activities
was $824,653 compared to a use of funds of $8,449,699 for the corresponding period of 2007. The
liquidity was used as follow: $2,225,280 of fixed assets compared to $6,259,758 and $12,964 for the
mining properties compared to $11,798. The use of restricted cash for exploration increase by
$1,032,371 during the quarter and the deferred exploration and development expenses generated
$1,757,121 compared to a used of funds of $2,136,001 for the quarter ended September 30, 2007.
The financing activities generated cash flow of $2,689,244 during the quarter ended September 30,
2008 compared to a used of cash flow of $314,458 for the corresponding quarter in 2007. An amount
of $2,750,250 coming from the revolving credit which was used to pay accounts payable and accrued
liabilities. During the corresponding period of 2007, an amount of $517,400 was generated by the
closing of a private placement and by the exercised of warrants.
The cash and cash