By renouncing the expenses by Dec 31, 2014 I believe it allows the purchaser of the Flow-Through-Shares to apply the expenses to their 2014 tax return.

Money raised through flow-through shares has to be spent within 24 months or financial penalties are incurred. My understanding is that it can't be used to purchase any capital equipment or land - though it could be used to cover expenses and free up existing cash previously designated for drilling expenses.

Looks like a lot of drilling is planned.

I see this as a 26 million dollar (before tax deductions) vote of confidence.