IN THIS SECTION

›	Introduction
›	Highlights
›	Overview
›	Operations
›	Operational Review
›	Results from Operations
›	Selected Quarterly Financial Information
›	Selected Annual Information
›	Financial Results
›	Liquidity and Capital Resources
›	Commitments and Contractual Obligations
›	Related Party Transactions
›	Outlook
›	Share Capital
›	Critical Accounting Estimates
›	Risks and Uncertainties
›	Comprehensive Income
›	Adoption of New Accounting Policies
›	New Accounting Pronouncements
›	Safe Harbour Statement
›	Non-GAAP Measures

Management’s Discussion and Analysis of Financial Condition and Results of Operations

For the year ended December 31, 2007 (Expressed in United States dollars)

RELATED PARTY TRANSACTIONS

During the year ended December 31, 2007 a law firm of which a director is a partner received legal fees of $241,000 from the Company (six months ended December 31, 2006 – $296,000; year ended June 30, 2006 - $903,000). During the year ended December 31, 2007 a recruitment firm controlled by a director of the Company received fees of $81,000 (six months ended December 31, 2006 – $10,000; year ended June 30, 2006 – $64,000). All transactions noted above are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed between the related parties. During the year ended December 31, 2007, $409,000 was advanced to the Chief Executive Officer, representing an interest-free advance of his 2008 contractual housing and living allowances. $319,000 was outstanding as at December 31, 2007.