The Hi Ho Resource MD&A from December 2012 states that they didn't have the funds to renew the claims, not that it accidently lapsed. It seems very strange to me that they never notified SLI of their financial distress....or did they?

G. PROJECT UPDATE AND FUTURE PLANS

a) Carmi Property

Pursuant to an option agreement with St. Elias Mines Ltd. (“St. Elias”) dated September 12, 2005, as subsequently amended, the Company acquired a 51% interest in the Carmi Property, located in British Columbia. Pursuant to the option agreement, the Company paid $75,000, issued 500,000 common shares and incurred $1,892,084 in exploration expenditures on the property resulting in the acquisition of a 51% interest in the property.

Under the terms of the option agreement, the Company has the right to increase its ownership to a 100% interest, subject to a 1.5% net smelter returns royalty (“NSR”) by paying $750,000 ($250,000 paid) and issuing 3,500,000 common shares of the Company.

During the year ended July 31, 2010, management recorded a write-down of $500,000 to reflect its estimate of the recoverable amount of the Carmi Property deferred exploration expenditures. On July 16, 2011, the tenures comprising the Carmi Property were due for renewal. The Company was not in a position to make the renewal due to lack of available funds, and the properties were forfeited. As a result of this forfeiture, the previously capitalized carrying value of $2,188,967 was written off during the year ended July 31, 2011.

Following the forfeiture, the Company entered into an agreement with arm’s length parties to re-acquire the Carmi Property and title to certain of the tenures within the Carmi Property were restored.

All terms and conditions of the original option agreement with St. Elias remain in force.

During the year ended July 31, 2012, the Company entered into an option agreement to acquire an additional tenure within the Carmi Property for cash consideration of $100,000 (paid).

As at July 31, 2012, certain of the tenures were due for renewal, and the Company was not in a position to make the renewal due to lack of available funds. Accordingly, approximately 60% of the tenures were forfeited, and the Company wrote down the carrying value of its interest in the Property in the amount of $86,354.

http://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00023672&fileName=/csfsprod/data137/filings/01998077/00000001/C%3A%5CAA-SEDAR%5CHHS-712-MDA.pdf