Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
 12 Months Ended 20 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Cash flows from operating activities:      
Net loss $ (4,811,072) $ (8,722,274) $ (7,645,892)
Adjustments to reconcile net loss to net cash used in operating activities:      
Amortization of prepaid expenses    140,601 95,034
Amortization of debt issuance costs 517 6,252 5,206
Amortization of debt discount 119,151 623,667 453,964
Impaiment of mineral rights    500,000 500,000
Derivative liability expense 174,128    174,128
Change in fair value of derivative liabilities (160,740) 6,148,651 520,200
Stock based consulting    130,000 130,000
Stock based compensation expense 41,516 332,132 373,648
Common stock issued for services 3,500,000    3,500,000
Gain from settlement of debt    (28,244)   
(Increase) Decrease in:      
Prepaid expense 32,446 (95,004) 3,641
Accounts payable and accrued expenses 870,528 225,213 1,070,260
Liabilities of discontinued operations    (15,000)   
Net cash used in operating activities (192,527) (754,006) (783,811)
Cash flows from financing activities:      
Proceeds from issuance of preferred stock 50,000    50,000
Proceeds from issuance of common stock    550,000 550,000
Proceeds from exercise of stock warrants    125,000   
Net proceeds from debentures 127,500    127,500
Net cash provided by financing activities 177,500 675,000 727,500
Net decrease in cash (15,027) (79,006) (56,311)
Cash, beginning of period 15,047 94,053 56,331
Cash, end of period 20 15,047 20
Cash paid during the period for:      
Interest         
Income Taxes         
Supplemental disclosure of non-cash investing and financing activities:      
Contributed capital in connection with an extinguishment of a convertible debenture    95,000 31,666
Issuance of common stock for convertible debentures 55,000 700,000 505,000
Issuance of common stock for accrued director's fees    10,000   
Reclassification of derivative liability to equity   12,857,466 9,662,196
Issuance of common stock in connection with the transfer and conveyance of certain silver mining claim    $ 500,000 $ 500,000