0001031093 2011-01-31 0001031093 2010-10-31 0001031093 2012-01-31 0001031093 2011-10-31 0001031093 2010-11-01 2011-01-31 0001031093 1993-11-08 2012-01-31 0001031093 2012-03-08 0001031093 2011-11-01 2012-01-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares false --10-31 Q1 2012 2012-01-31 10-Q 0001031093 136160157 Accelerated Filer SILVER BULL RESOURCES, INC. 5823476 50601 20000 105982031 126547167 1753222 25000 1563574 276000 59947 -184000 286831 38895 52871 3614341 152148 273244 <div> <div> NOTE 8 – JOINT VENTURE AGREEMENTS In October 2009, Dome and AngloGold entered into two joint venture agreements; the Ogooue Joint Venture Agreement and the Ndjole and Mevang Joint Venture Agreement. Ogooue Joint Venture Agreement AngloGold acquired a reconnaissance license over an area comprising 8,295 square kilometers in Gabon, Africa. This license was acquired by AngloGold for its gold potential. The joint venture is an 80/20 joint venture in favor of AngloGold. AngloGold made a firm commitment to spend $100,000 and solely fund the first $3 million of exploration expenditures, after which the parties will contribute on an 80/20 basis. Joint venture dilution provisions apply whereby if Dome is diluted in the future to a joint venture interest of 5% or less due to lack of contribution to exploration budgets, its interest will be converted to a 2% Net Smelter Return which can be purchased at an appraised value 14 months after commencement of commercial production. Should AngloGold elect not to spend the aforesaid $3 million, the lease shall be assigned to Dome. Ndjole and Mevang Joint Venture Agreement Dome is the owner of the Ndjole and Mevang exploration licenses, each comprised of 2,000 square kilometers. Under the terms of the joint venture, AngloGold earned a 20% interest by paying Dome $400,000 upon signing of the joint venture agreement in October 2009. AngloGold can earn an additional 40% interest by paying Dome $100,000 per year from 2010 through 2012 and by incurring exploration expenditures in the amount of $3.7 million from 2010 through 2012 at the rate of $1 million in the first year, $1.2 million in the second year and $1.5 million in the third year. As of January 31, 2012, AngloGold has incurred exploration expenditures of $5,515,000 and paid Dome two payments of $100,000 each. Once it has earned a 60% interest, AngloGold can earn an additional 10% interest (70% total) by spending $5 million on exploration expenditures within two years of earning into a 60% interest as set out above. When the parties have a 70/30 joint venture, and if Dome elects not to contribute to work programs and budgets, AngloGold may elect to earn an additional 15% interest (85% total) by carrying the project to a completed pre-feasibility study. Should AngloGold fail to perform as set out above, a 100% interest in the licenses shall revert to Dome and the joint venture will cease. AngloGold shall be entitled to withdraw from the joint venture after it has spent $1 million on exploration expenditures. Joint venture dilution provisions apply whereby if Dome is diluted in the future to a joint venture interest of 5% or less due to lack of contribution to exploration budgets, its interests will be converted to a 2% Net Smelter Return which can be purchased at appraised value 14 months after commencement of commercial production. <div> </div> Pursuant to the terms of the joint venture agreement, exploration costs are currently being funded 100% by AngloGold through the Company's wholly owned subsidiary, Dome Gabon SARL. AngloGold will typically fund in advance the exploration costs for the upcoming period. Any funds received in excess of exploration costs are reflected as a payable to joint venture partner on the Company's consolidated balance sheet. As of January 31, 2012, the payable to AngloGold was $575,241.</div> </div> 4195568 197235 188857 -554095 36108 -74501 -94549 200000 -949890 -30000 4846687 4798403 4500148 4179061 <div> NOTE 6 – PROPERTY CONCESSIONS The following is a summary of the Company's property concessions in Sierra Mojada, Mexico and Gabon, Africa as at January 31, 2012 and October 31, 2011, respectively: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="3%"> </td> <td width="18%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="right">Sierra Mojada,</td> <td align="left"> </td> <td align="left"> </td> <td align="right">Gabon,</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Mexico</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Africa</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Property Concessions – October 31, 2010</td> <td align="left">$</td> <td align="right">4,318,292</td> <td align="left"> </td> <td align="left">$</td> <td align="right">4,396,915</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Acquisitions</td> <td align="left"> </td> <td align="right">797,960</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Joint venture agreement payment received (Note 8)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(100,000</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Foreign currency translation adjustment</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(269,565</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">203,233</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Property Concessions – October 31, 2011</td> <td align="left">$</td> <td align="right">4,846,687</td> <td align="left"> </td> <td align="left">$</td> <td align="right">4,500,148</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Acquisitions</td> <td align="left"> </td> <td align="right">20,000</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Impairment</td> <td align="left"> </td> <td align="right">(68,284</td> <td align="left">)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Foreign currency translation adjustments</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(321,087</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Property Concessions – January 31, 2012</td> <td align="left">$ </td> <td style="border-bottom: #000000 1px solid;" align="right">4,798,403</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> $</td> <td style="border-bottom: #000000 1px solid;" align="right">4,179,061</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div>   During the three months ended January 31, 2012, the Company decided not to pursue further work on the Fortaleza and Ampl. A. Fortaleza concessions. As a result the Company did not make a concession option payment for these concessions in February 2012 and has written off the capitalized property concession balance related to these concessions of $68,284. </div> 1493406 83821 <div> <div> NOTE 12 – SHAREHOLDER RIGHTS PLAN On June 11, 2007, the Board of Directors adopted a Shareholders' Right Plan through the adoption of a Rights Agreement, which became effective immediately. In connection with the adoption of the Rights Agreement, the Board of Directors declared a distribution of one Right for each outstanding share of the Company's common stock, payable to shareholders of record at the close of business on June 22, 2007. In accordance with the Rights Plan, one Right is attached to each share of Company common stock issued since that date. Each Right is attached to the underlying common stock and will remain with the common stock if the stock is sold or transferred. As of January 31, 2012, there are 136,160,157 shares outstanding with Rights attached. In certain circumstances, in the event that any person acquires beneficial ownership of 20% or more of the outstanding shares of the Company's common stock, each holder of a Right, other than the acquirer, would be entitled to receive, upon payment of the purchase price, which is initially set at $20 per Right, a number of shares of the Company's common stock having a value equal to two times such purchase price. The Rights will expire on June 11, 2017.</div> </div> 4769840 39881328 1100168 2552137 9346835 8977464 <div> <div> NOTE 9 – VALUE-ADDED TAX RECEIVABLE During 2008, the Company filed value added ("IVA") tax returns with the Mexican authorities to recover IVA taxes paid by its Mexican subsidiaries from 2005 through 2008. The Mexican authorities reviewed the IVA tax returns filed and requested the Company provide copies of supporting documentation for amounts filed. During 2008 and 2009, the Company worked extensively with IVA tax consultants and Mexican authorities to provide the requested documentation and answer questions related to these tax returns, but was unable to recover the IVA tax amounts. As the result of these difficulties, the Company applied for authorization before the tax authorities to transfer the tax office jurisdiction to Mexico City beginning in the 2012 fiscal year. During December 2011 the Company received this authorization and the Company filed IVA tax returns in Mexico City for calendar years 2008, 2009 and 2010 in January 2012. At January 31, 2012, management evaluated the IVA tax receivable and increased the allowance for uncollectible taxes to $MXN 19.1 million or $1,473,676. The allowance for uncollectible taxes was estimated by management based upon a number of factors including the length of time the returns have been outstanding, general economic conditions in Mexico and estimated net recovery after commissions. During the three months ended January 31, 2012, additional IVA allowance for uncollectible taxes of $MXN 1.1 million Pesos or $83,821 has been recorded. A summary of the changes in the allowance for uncollectible taxes for the three months ended January 31, 2012 is as follows: <div> <table border="0" cellspacing="0"> <tr><td width="79%"> </td> <td width="2%"> </td> <td width="18%"> </td></tr> <tr valign="bottom"><td width="79%" align="left">Allowance for uncollectible taxes – October 31, 2011</td> <td width="2%" align="left">$</td> <td width="18%" align="right">1,380,818</td></tr> <tr valign="bottom"><td width="79%" align="left">Provision for Uncollectible IVA Taxes</td> <td width="2%" align="left"> </td> <td width="18%" align="right">83,821</td></tr> <tr valign="bottom"><td width="79%" align="left">Foreign currency translation adjustment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="right">9,037</td></tr> <tr valign="bottom"><td width="79%" align="left">Allowance for uncollectible taxes – January 31, 2012</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="18%" align="right"> 1,473,676</td></tr></table></div></div> </div> <div> <div> NOTE 15 - WARRANTS A summary of warrant activity for the three months ended January 31, 2012 is as follows: <div> <table style="width: 869px; height: 255px;" border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center"> </td> <td width="13%" align="center">Weighted</td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center">Weighted</td> <td width="13%" align="center">Average</td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center">Average</td> <td width="13%" align="center">Remaining</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Aggregate</td></tr> <tr valign="bottom"><td width="32%" align="left"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="14%" align="center">Exercise</td> <td width="13%" align="center">Contractual</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Intrinsic</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 17px;" width="32%" align="left">Warrants</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Shares</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="center">Life (Years)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Value</td></tr> <tr><td width="94%" colspan="8"> </td></tr> <tr valign="bottom"><td width="32%" align="left">Outstanding at November 1, 2011</td> <td width="14%" align="right">1,803,956</td> <td width="2%" align="left"> </td> <td width="2%" align="right">$</td> <td width="14%" align="center">1.30</td> <td width="13%" align="left"> </td> <td width="2%" align="left"> </td> <td width="15%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" width="32%" align="left">Forfeited or expired</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="right">(500,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">3.40</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="left"> </td></tr> <tr valign="bottom"><td width="32%" align="left">Outstanding at January 31, 2012</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">1,303,956</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">0.49</td> <td style="border-bottom: #000000 3px double;" width="13%" align="center">0.51</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="15%" align="center">10,800</td></tr> <tr valign="bottom"><td width="32%" align="left">Exercisable at January 31, 2012</td> <td style="border-bottom: #000000 3px double;" width="14%" align="right">1,303,956</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">0.49</td> <td style="border-bottom: #000000 3px double;" width="13%" align="center">0.51</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="15%" align="center">10,800</td></tr></table></div>   No warrants were exercised during the three months ended January 31, 2012. During the three months ended January 31, 2011, warrants to acquire 20,000 shares of common stock were exercised at an average exercise price of $0.50 per share. The warrants had an intrinsic value of $11,600 at time of exercise. <div> </div> Summarized information about warrants outstanding and exercisable at January 31, 2012 is as follows: <div> <table style="width: 790px; height: 203px;" border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="14%"> </td> <td width="15%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="15%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="63%" colspan="6" align="center">Warrants Outstanding</td> <td style="border-bottom: #000000 1px solid;" width="31%" colspan="3" align="center">Warrants Exercisable</td></tr> <tr><td width="94%" colspan="9"> </td></tr> <tr valign="bottom"><td width="2%" align="left"> </td> <td width="14%" align="center"> </td> <td width="15%" align="center"> </td> <td width="15%" align="center">Weighted</td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="15%" align="center"> </td></tr> <tr valign="bottom"><td width="2%" align="left"> </td> <td width="14%" align="center"> </td> <td width="15%" align="center"> </td> <td width="15%" align="center">Ave.</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Weighted</td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="15%" align="center">Weighted</td></tr> <tr valign="bottom"><td width="2%" align="left"> </td> <td width="14%" align="center"> </td> <td width="15%" align="center"> </td> <td width="15%" align="center">Remaining</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Average</td> <td width="14%" align="center"> </td> <td width="2%" align="center"> </td> <td width="15%" align="center">Average</td></tr> <tr valign="bottom"><td width="2%" align="left"> </td> <td width="14%" align="center">Exercise</td> <td style="text-indent: 2px;" width="15%" align="center">Number</td> <td width="15%" align="center">Contractual</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Exercise</td> <td style="text-indent: 1px;" width="14%" align="center">Number</td> <td width="2%" align="center"> </td> <td width="15%" align="center">Exercise</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Outstanding</td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Life (Years)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" width="14%" align="center">Exercisable</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="15%" align="center">Price</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">0.34 – 0.50</td> <td style="border-bottom: #000000 3px double; text-indent: 2px;" width="15%" align="center">1,303,956</td> <td style="border-bottom: #000000 3px double;" width="15%" align="center">0.51</td> <td style="border-bottom: #000000 3px double;" width="2%" align="center">$</td> <td style="border-bottom: #000000 3px double;" width="15%" align="center">0.49</td> <td style="border-bottom: #000000 3px double;" width="14%" align="center">1,303,956</td> <td style="border-bottom: #000000 3px double;" width="2%" align="center">$</td> <td style="border-bottom: #000000 3px double;" width="15%" align="center">0.49</td></tr></table></div></div> </div>

798679

1155882

874605

552127

973457

998971

198451

39247

105201435

115561609

1380818

1473676

35214161

42102258

4647975

11869924

20433865

20508569

2618548

10570598

8294152

4239899

11336283

<div> <div> NOTE 5 – RESTRICTED CASH At January 31, 2012 and October 31, 2011, the Company has $111,858 and $77,068 respectively of restricted cash which is classified as a current asset. The restricted cash represents cash contributed by AngloGold Ashanti Limited ("AngloGold") for use exclusively on exploration costs related to the joint venture agreements with AngloGold (Note 8).</div> </div>

11336283

-2276446

7096384

<div> NOTE 17 - COMMITMENTS AND CONTINGENCIES Compliance with Environmental Regulations The Company's activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties, but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays; affect the economics of a project, and cause changes or delays in the Company's activities. Employment Agreements Effective September 2, 2011, the Company entered into an amended and restated employment agreement with Mr. Edgar that revised the change in control provision. The amended and restated employment agreement provides that Mr. Edgar is entitled to written notice of termination for 12 months if Mr. Edgar is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Edgar is entitled to receive a severance payment equal to 12 months of his base salary ($CDN 7,500 per month) plus the previous year bonus, if Mr. Edgar terminates his employment within three months of such change in control. <div> </div> On September 2, 2011 (although effective June 1, 2011), the Company entered into an amended and restated employment agreement with Mr. Barry, that provides for base compensation of $CDN 18,000 per month (or $CDN 216,000 annually) and a potential bonus of $CDN 30,000 if certain performance targets are met. The amended and restated employment agreement provides that Mr. Barry is entitled to written notice of termination for up to 12 months if Mr. Barry meets certain employment terms and is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Barry is entitled to receive a severance payment of up to 18 months of his base salary plus the previous year bonus, if Mr. Barry terminates his employment within three months of such change in control. On April 6, 2011 (although effective February 7, 2011), the Company entered into an amended and restated employment agreement with Sean Fallis, as Chief Financial Officer starting April 15, 2011 that provides for an annual base salary of $CDN 150,000. The amended and restated employment agreement provides that Mr. Fallis is entitled to written notice of termination for up to six months if Mr. Fallis meets certain employment terms and is terminated without cause. Further upon a change of control (which is defined in the amended and restated employment agreement), Mr. Fallis is entitled to receive a severance payment of up to 12 months of his base salary, if Mr. Fallis terminates his employment within three months of such change in control. On August 4, 2011, the Company entered into an amended and restated independent contractor agreement with Jason Cunliffe, as the newly appointed Vice President of Exploration. Pursuant to the agreement Mr. Cunliffe will receive a base consulting rate of $700 per day for each day worked and a potential annual bonus of $20,000 if certain performance targets are met. The amended and restated independent contractor agreement continues on a month-to-month basis and can be terminated by either party with 30 days advance notice. Further upon a change of control (which is defined in the amended and restated independent contractor agreement), Mr. Cunliffe is entitled to receive a severance payment of up to 240 days of his base consulting rate, if Mr. Cunliffe terminates his contract within three months of such change in control. Property Concessions Mexico To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work. In addition ten of the concessions in the Sierra Mojada project are subject to options to purchase from existing third party concession owners. The agreements are considered option purchase agreements and give the Company the option, but not the obligation, to acquire the concessions at established prices. Pursuant to the option purchase agreements, the Company is required to make certain payments over the terms of these contracts. The payments required to obtain full ownership of these concessions are set forth in the table below: Olympia (1 concession) <div> <table style="width: 394px; height: 120px;" border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="53%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="center">Payment Date</td> <td style="border-bottom: #000000 1px solid;" align="center">Payment Amount</td></tr> <tr valign="bottom"><td align="center">February 2012</td> <td align="center">$MXN $200,000</td></tr> <tr valign="bottom"><td align="center">August 2012</td> <td align="center">$MXN $250,000</td></tr> <tr valign="bottom"><td align="center">February 2013</td> <td align="center">$MXN $470,000</td></tr> <tr valign="bottom"><td align="center">August 2013</td> <td align="center">$MXN $1,000,000</td></tr></table></div>   Nuevo Dulces Nombres (Centenario) and Yolanda III (2 concessions) <div> <table style="width: 710px; height: 150px;" border="0" cellspacing="0"> <tr><td width="28%"> </td> <td width="69%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="28%" align="center">Payment Date</td> <td style="border-bottom: #000000 1px solid;" width="69%" align="center">Payment Amount(1)</td></tr> <tr valign="bottom"><td width="28%" align="center">Anticipated Second Quarter 2012(2)</td> <td width="69%" align="center">$460,000</td></tr> <tr valign="top"><td width="28%"> Beginning 24 months after the initial payment date and ending 48 months after the initial payment date</td> <td width="69%"> $20,000 per month</td></tr></table></div>   <div> </div> (1) 48 months after the initial payment date, Silver Bull has the option of acquiring Nuevo Dulces Nombres (100% interest) for $4 million and Yolanda III (100% interest) for $2 million. (2) Initial payment less advances is expected to be paid in the second quarter of the 2012 fiscal year. Poder de Dios, Anexas a Poder de Dios, and Ampliacion a Poder de Dios (3 concessions) <div> <table style="width: 693px; height: 192px;" border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="36%"> </td> <td width="34%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="29%" align="center">Payment Date</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="36%" align="center">Payment Amount</td> <td style="border-bottom: #000000 1px solid;" width="34%" align="center">Option Purchase Price(1)</td></tr> <tr valign="bottom"><td width="29%" align="center">April 2012</td> <td width="2%" align="right">$</td> <td width="36%" align="center">200,000</td> <td width="34%" align="center">$4 million</td></tr> <tr valign="bottom"><td width="29%" align="center">October 2012</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$4 million</td></tr> <tr valign="bottom"><td width="29%" align="center">April 2013</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$5 million</td></tr> <tr valign="bottom"><td width="29%" align="center">October 2013</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$5 million</td></tr> <tr valign="bottom"><td width="29%" align="center">April 2014</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$6 million</td></tr> <tr valign="bottom"><td width="29%" align="center">October 2014</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$6 million</td></tr> <tr valign="bottom"><td width="29%" align="center">April 2015(2)</td> <td width="2%" align="right">$</td> <td width="36%" align="center">300,000</td> <td width="34%" align="center">$7 million</td></tr></table></div>   (1) Payments shown in the second column are required to maintain the option. Payments shown in the third column reflect the purchase price at that point in time for the acquisition of 100% of the concessions. Upon payment of the option purchase price, no subsequent payments are required. (2) After April 2015, Silver Bull must pay $300,000 every 6 months in order to maintain the option-purchase agreement. During this period, Silver Bull has the option of acquiring Poder de Dios, Anexas a Poder de Dios, and Ampliacion a Poder de Dios (100% interest) for $7 million. Veta Rica o La Inglesa (1 concession) <div> <table style="width: 288px; height: 105px;" border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="2%"> </td> <td width="51%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="46%" align="center">Payment Date</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="51%" align="center">Payment Amount</td></tr> <tr valign="bottom"><td width="46%" align="center">April 2012</td> <td width="2%" align="right">$</td> <td width="51%" align="center">200,000</td></tr> <tr valign="bottom"><td width="46%" align="center">April 2013</td> <td width="2%" align="right">$</td> <td width="51%" align="center">300,000</td></tr> <tr valign="bottom"><td width="46%" align="center">April 2014</td> <td width="2%" align="right">$</td> <td width="51%" align="center">300,000</td></tr></table></div>   La Perla, La India, and La India Dos (3 concessions) <div> <table style="width: 481px; height: 109px;" border="0" cellspacing="0"> <tr><td width="26%"> </td> <td width="2%"> </td> <td width="37%"> </td> <td width="35%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="26%" align="center">Payment Date</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="37%" align="center">Payment Amount</td> <td style="border-bottom: #000000 1px solid;" width="35%" align="center">Option Purchase Price(1)</td></tr> <tr valign="bottom"><td width="26%" align="center">April 2012</td> <td width="2%" align="right">$</td> <td width="37%" align="center">300,000</td> <td width="35%" align="center">$3 million</td></tr> <tr valign="bottom"><td width="26%" align="center">April 2013</td> <td width="2%" align="right">$</td> <td width="37%" align="center">400,000</td> <td width="35%" align="center">$4 million</td></tr> <tr valign="bottom"><td width="26%" align="center">April 2014</td> <td width="2%" align="right">$</td> <td width="37%" align="center">500,000</td> <td width="35%" align="center">$5 million</td></tr></table></div>   (1) Payments shown in the second column are required to maintain the option. Payments shown in the third column reflect the purchase price at that point in time for the acquisition of 100% of the concessions. Upon payment of the option purchase price, no subsequent payments are required. <div> </div> Property Concessions Gabon The Company holds title to several property concessions in Gabon, Africa that require the Company to spend minimal amounts each term to renew the licenses. Each license is renewable twice with each renewal lasting for three years. The Company must spend 200,000,000 $CFA francs in order to renew each exploration license for a second term of three years and 400,000,000 $CFA francs in order to renew the license for a third term of three years. The Company must spend 800,000,000 $CFA francs in the third term. Dome may apply for a mining license at any time during these periods. The initial term of these exploration licenses expired on September 18, 2011. The Company applied for renewal in June of 2011 as it had met the necessary expenditure requirements and expects to receive the renewal approval in 2012. As of January 31, 2012, one U.S. dollar approximates $CFA 507. Drilling Agreement The Company entered into drilling agreements with two companies for a minimum of 25,000 meters of drilling at the Sierra Mojada Property. The remaining drilling commitment under these agreements was equal to $1,793,000 at January 31, 2012. </div>

0.01

300000000

115110157

136160157

115110157

136160157

1151101

1361601

-76988016

-1799155

-3752692

261095

3430

315

1526329

59002

104328

1757723

68703

106585

<div> NOTE 14 - STOCK OPTIONS The Company has adopted two active stock option plans. Under the 2006 Stock Option Plan (the "2006 Plan") the Company may grant non-statutory and incentive options to employees, directors and consultants for up to a total of 5,000,000 shares of common stock. Under the 2010 Stock Option and Stock Bonus Plan (the "2010 Plan"), the lesser of (i) 30,000,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses. Options are typically granted with an exercise price equal to the closing market price of the Company's stock at the date of grant, have a graded vesting schedule over approximately 2 to 3 years and have a contractual term of 5 to 10 years. A summary of the range of assumptions used to value stock options granted for the three months ended January 31, 2012 and 2011 are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="34%"> </td> <td width="22%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="2" align="center">Three months Ended</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">January 31,</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 16px;" align="left">Options</td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td></tr> <tr><td colspan="3"> </td></tr> <tr valign="bottom"><td align="left">Expected volatility</td> <td align="left">81% - 104%</td> <td align="left">103% - 116%</td></tr> <tr valign="bottom"><td align="left">Risk-free interest rate</td> <td align="left">0.29% - 0.46%</td> <td align="left">0.88% - 1.34%</td></tr> <tr valign="bottom"><td align="left">Dividend yield</td> <td align="center">—</td> <td align="center">—</td></tr> <tr valign="bottom"><td align="left">Expected term (in years)</td> <td align="left">2.50 - 3.50</td> <td align="left">2.50 - 3.50</td></tr></table></div>   During the three months ended January 31, 2012, the Company granted options to acquire 1,630,000 shares of common stock with a weighted-average grant-date fair value of $0.30. No options were exercised during the three months ended January 31, 2012. During the three months ended January 31, 2011, options to acquire 201,640 shares of common stock were exercised at an average exercise price of $0.66 per share. The options had an intrinsic value of $95,090 at the time of exercise. Also during the three months ended January 31, 2011, the Company granted options to acquire 250,000 shares of common stock with a weighted-average grant-date fair value of $0.78. The following is a summary of stock option activity for the three months ended January 31, 2012: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="36%"> </td> <td width="13%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Weighted</td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Weighted</td> <td align="center">Average</td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Average</td> <td align="center">Remaining</td> <td align="left"> </td> <td align="center">Aggregate</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Exercise</td> <td align="center">Contractual</td> <td align="left"> </td> <td align="center">Intrinsic</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="center">Options</td> <td style="border-bottom: #000000 1px solid;" align="right">Shares</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" align="center">Life (Years)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr><td colspan="8"> </td></tr> <tr valign="bottom"><td align="left">Outstanding at November 1, 2011</td> <td align="right">4,551,908</td> <td align="left"> </td> <td align="right">$</td> <td align="center">1.06</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Granted</td> <td align="right">1,630,000</td> <td align="left"> </td> <td align="left"> </td> <td align="center">0.54</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Forfeited or cancelled</td> <td align="right">(710,001</td> <td align="left">)</td> <td align="left"> </td> <td align="center">2.18</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Expired</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Outstanding at January 31, 2012</td> <td style="border-bottom: #000000 1px solid;" align="right">5,471,907</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="center">0.76</td> <td style="border-bottom: #000000 1px solid;" align="center">4.28</td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 11px;" align="left">—</td></tr> <tr><td colspan="8"> </td></tr> <tr valign="bottom"><td align="left">Vested or Expected to Vest at January</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">31, 2012</td> <td style="border-bottom: #000000 1px solid;" align="right">5,471,907</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="center">0.76</td> <td style="border-bottom: #000000 1px solid;" align="center">4.28</td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 11px;" align="left">—</td></tr> <tr valign="bottom"><td align="left">Exercisable at January 31, 2012</td> <td style="border-bottom: #000000 1px solid;" align="right">2,991,897</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="center">0.78</td> <td style="border-bottom: #000000 1px solid;" align="center">4.12</td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid; text-indent: 11px;" align="left">—</td></tr></table></div>   The Company recognized stock-based compensation costs for stock options of $352,900 and $191,931 for the three months ended January 31, 2012 and 2011, respectively. The Company typically does not recognize any tax benefits for stock options due to the Company's recurring losses. The Company currently expects all outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options vested is likely to differ from previous estimates. Summarized information about stock options outstanding and exercisable at January 31, 2012 is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="15%"> </td> <td width="17%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="13%"> </td> <td width="19%"> </td> <td width="3%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" colspan="2" align="left">Options Outstanding</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" colspan="3" align="left">Options Exercisable</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Weighted</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Ave.</td> <td align="left"> </td> <td align="center">Weighted</td> <td align="left"> </td> <td align="left"> </td> <td align="center">Weighted</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Remaining</td> <td align="left"> </td> <td align="center">Average</td> <td align="left"> </td> <td align="left"> </td> <td align="center">Average</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center">Exercise</td> <td align="center">Number</td> <td align="center">Contractual</td> <td align="left"> </td> <td align="center">Exercise</td> <td align="center">Number</td> <td align="left"> </td> <td align="center">Exercise</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" align="right">Outstanding</td> <td style="border-bottom: #000000 1px solid;" align="center">Life (Years)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Price</td> <td style="border-bottom: #000000 1px solid;" align="right">Exercisable</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Price</td></tr> <tr valign="bottom"><td align="left">$</td> <td align="center">0.54</td> <td align="right">1,630,000</td> <td align="center">4.96</td> <td align="right">$</td> <td align="center">0.54</td> <td align="right">643,328</td> <td align="left">$</td> <td align="center">0.54</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="text-indent: 1px;" align="left">0.63 - 1.20</td> <td align="right">3,713,333</td> <td align="center">3.93</td> <td align="left"> </td> <td align="center">0.80</td> <td align="right">2,219,995</td> <td align="left"> </td> <td align="center">0.77</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2.18</td> <td style="border-bottom: #000000 1px solid;" align="right">128,574</td> <td style="border-bottom: #000000 1px solid;" align="center">5.97</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2.18</td> <td style="border-bottom: #000000 1px solid;" align="right">128,574</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2.18</td></tr> <tr valign="bottom"><td align="left">$</td> <td style="border-bottom: #000000 3px double;" align="center">0.54 - 2.18</td> <td style="border-bottom: #000000 3px double;" align="right">5,471,907</td> <td style="border-bottom: #000000 3px double;" align="center">4.28</td> <td align="right">$</td> <td style="border-bottom: #000000 3px double;" align="center">0.76</td> <td style="border-bottom: #000000 3px double;" align="right">2,991,897</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="center">0.78</td></tr></table></div>   A summary of the non-vested shares as of January 31, 2012 and changes during the three months ended January 31, 2012 is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="28%"> </td> <td width="3%"> </td> <td width="6%"> </td> <td width="14%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Weighted-</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Average</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="center">Grant-Date</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 16px;" align="left">Nonvested Shares</td> <td style="border-bottom: #000000 1px solid;" align="right">Shares</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left">Nonvested at November 1, 2011</td> <td align="right">1,520,005</td> <td align="left"> </td> <td align="left">$</td> <td align="center">0.56</td></tr> <tr valign="bottom"><td align="left">Granted</td> <td align="right">1,630,000</td> <td align="left"> </td> <td align="left"> </td> <td align="center">0.30</td></tr> <tr valign="bottom"><td align="left">Vested</td> <td align="right">(643,328</td> <td align="left">)</td> <td align="left"> </td> <td align="center">0.30</td></tr> <tr valign="bottom"><td align="left">Forfeited</td> <td style="border-bottom: #000000 1px solid;" align="right">(26,667</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">0.42</td></tr> <tr valign="bottom"><td align="left">Nonvested at January 31, 2012</td> <td style="border-bottom: #000000 1px solid;" align="right">2,480,010</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="center">0.47</td></tr></table></div>   As of January 31, 2012, there was $593,306 of total unrecognized compensation costs related to non-vested share based compensation arrangements granted under the qualified stock option plans. That cost is expected to be recognized over a weighted average period of 0.61 years. </div>

541913

575241

-0.02

-0.03

<div> <div> NOTE 4 – LOSS PER SHARE The Company has stock options and warrants in the aggregate of 6,775,863 shares and 15,776,715 shares outstanding at January 31, 2012 and 2011. They were not included in the calculation of loss per share because they would have been considered anti-dilutive.</div> </div>

-407850

-15657

-40080

38354999

1041166

2447809

<div> NOTE 16 – FINANCIAL INSTRUMENTS Fair Value Measurements All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of qualifying assets, in which case they are added to the costs of those assets until such time as the assets are substantially ready for their intended use or sale. The three levels of the fair value hierarchy are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="8%"> </td> <td width="91%"> </td></tr> <tr valign="top"><td width="8%"> Level 1</td> <td width="91%"> Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;</td></tr> <tr><td colspan="2"> </td></tr> <tr valign="top"><td width="8%"> Level 2</td> <td width="91%"> Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;</td></tr> <tr><td colspan="2"> </td></tr> <tr valign="top"><td width="8%"> Level 3</td> <td width="91%"> Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).</td></tr></table></div>   Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of January 31, 2012 and October 31, 2011, the Company had no financial or non-financial assets or liabilities required to be reported for fair value purposes. The carrying amounts of the Company's financial instruments, including cash and cash equivalents, restricted cash, other receivables, accounts payable, accrued liabilities and expenses approximate fair value at January 31, 2012 and October 31, 2011 due to the short maturities of these financial instruments. Credit Risk Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets the Company has established policies to ensure liquidity of funds and ensure counterparties demonstrate minimum acceptable credit worthiness. The Company maintains its US Dollar and Canadian Dollar ("$CDN") cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in the United States are insured by the Federal Deposit Insurance Corporation ("FDIC") for up to $250,000 and $CDN cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation ("CDIC") for up to $CDN 100,000. Certain United States and Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they related to US Dollar deposits held in Canadian financial institutions. As of January 31, 2012 and October 31, 2011, the Company's cash and cash equivalent balances held in United States and Canadian financial institutions included $10,570,576 and $4,008,674 respectively, which was not insured by the FDIC or CDIC. The Company has not experienced any losses on such accounts and management believes that using major financial institutions with high credit ratings mitigates the credit risk in cash. The Company also maintains cash in bank accounts in Mexico and Gabon. These accounts are denominated in the local currency and are considered uninsured. As of January 31, 2012 and October 31, 2011, the US dollar equivalent balance for these accounts was $443,367 and $116,451, respectively. Interest Rate Risk The Company holds substantially all of the Company's cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent and restricted cash balances during the three months ended January 31, 2012, a 1% decrease in interest rates would have resulted in a reduction in interest income for the period of approximately $3,379. Foreign Currency Exchange Risk Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, $MXN, Central African Francs ("$CFA") or other currencies. As a result, currency exchange fluctuations may impact the costs of our operations. Specifically, the appreciation of the $MXN, $CDN or $CFA against the US dollar may result in an increase in operating expenses and capital costs in US dollar terms. To reduce this risk as of January 31, 2012, the Company maintains minimum cash balances in $CFA and $MXN. As of January 31, 2012, the Company maintained the majority of its cash balance in $US dollar. The Company currently does not engage in any currency hedging activities. </div>

-3025192

284568

-187960

-3025847

275423

-197571

34735162

810202

882712

18495031

<div> <div> NOTE 10 – GOODWILL Goodwill represents the excess, at the date of acquisition, of the purchase price of the business acquired over the fair value of the net tangible and intangible assets acquired. As at January 31, 2012 the Company did not identify any potential indicators of impairment. The following is a summary of the Company's goodwill balance as at January 31, 2012 and October 31, 2011, respectively: <div> <table border="0" cellspacing="0"> <tr><td width="75%"> </td> <td width="2%"> </td> <td width="19%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="75%" align="left">Goodwill – October 31, 2010</td> <td width="2%" align="left">$</td> <td width="19%" align="right">19,738,862</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" width="75%" align="left">Foreign currency translation adjustment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">(1,243,831</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="75%" align="left">Goodwill – October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">18,495,031</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="75%" align="left">Goodwill – January 31, 2012</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="19%" align="right">18,495,031</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div></div> </div>

-76893219

-1607163

-3588526

145526

4962

134044

3888

4962

906581

-323237

341988

606914

-58818

-315209

13189

1937

12601

-2965

7649

107071

-5582

38005

118184

42345

286771

938277

23440

3379

16061376

270739

274913

35214161

42102258

2223039

2293154

<div> NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS Silver Bull Resources, Inc. (the "Company") was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spinoff from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, at a special directors meeting, the Company's name was changed to Metalline Mining Company ("Metalline"). On April 20, 2011, at an annual meeting of shareholders, the Company's name change to Silver Bull Resources, Inc. was approved and became effective April 21, 2011. The Company's fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an Exploration Stage Company. The Company has not established any reserves with respect to its exploration projects, and may never enter into the development with respect to any of its projects. The Company engages in the business of mineral exploration. The Company currently owns or has the option to acquire a number of property concessions in Mexico (collectively known as the "Sierra Mojada Property"). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. ("Minera") and Contratistas de Sierra Mojada S.A. de C.V. ("Contratistas") and through Minera's wholly-owned subsidiary Minas de Coahuila SBR S.A. de C.V. ("Minas"). On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company, was merged with and into Dome Ventures Corporation ("Dome"). As a result, Dome became a wholly-owned subsidiary of the Company. Dome's subsidiaries include its wholly-owned subsidiaries Dome Asia Inc., and Dome International Global Inc., which are incorporated in the British Virgin Islands. Dome International Global Inc.'s subsidiaries include its wholly-owned subsidiaries incorporated in Gabon, Dome Ventures SARL Gabon, and African Resources SARL Gabon, as well as its 99.99%-owned subsidiary, Dome Minerals Nigeria Limited incorporated in Nigeria. The Company conducts its exploration activities in Gabon, Africa through Dome Ventures SARL Gabon and African Resources SARL Gabon. The Company's efforts have been concentrated in expenditures related to exploration properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether the exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company's investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, the ability of the Company to obtain financing or make other arrangements for development, and upon future profitable production. The ultimate realization of the Company's investment in exploration properties cannot be determined at this time. Accordingly, no provision for any asset impairment that may result, in the event the Company is not successful in developing or selling these properties, has been made in the accompanying consolidated financial statements except as disclosed in Note 6. </div>

72966106

105048

10386824

-5571045

8554

-20000

-55650928

-2374391

-3230360

-77027263

-1611051

-3593488

24840886

1895252

4597376

131288

159275

-2276729

303207

-153677

-74616490

-1910370

-3434849

<div> NOTE 2 – BASIS OF PRESENTATION The Company's unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules of the Securities and Exchange Commission ("SEC") regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2011. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements (except as disclosed in Note 3). In the opinion of management, these unaudited interim consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company's consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company's financial position and results of operations. </div>

112170

16412

39247

-188104

-159204

-126864

-189814

-4801

30904

80789

118780

21609447

3017682

6317

239286

293739

10933

9264

64908705

10217774

21609447

451565

65472

188913

131156

6350286

10000

8126341

207510

175531

<div> <div> NOTE 7 – OFFICE AND MINING EQUIPMENT The following is a summary of the Company's property and equipment at January 31, 2012 and October 31, 2011, respectively: <div> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="46%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="24%" colspan="3" align="center">January 31, 2012</td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="24%" colspan="3" align="center">October 31, 2011</td></tr> <tr valign="bottom"><td width="46%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Mining equipment</td> <td width="2%" align="left">$</td> <td width="20%" align="right">1,050,845</td> <td width="2%" align="left"> </td> <td width="2%" align="left">$</td> <td width="20%" align="right">1,051,312</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Vehicles</td> <td width="2%" align="left"> </td> <td width="20%" align="right">217,852</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">229,912</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Buildings and structures</td> <td width="2%" align="left"> </td> <td width="20%" align="right">186,041</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">186,041</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Computer equipment and software</td> <td width="2%" align="left"> </td> <td width="20%" align="right">201,856</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">203,000</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Well equipment</td> <td width="2%" align="left"> </td> <td width="20%" align="right">39,637</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">39,637</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Office equipment</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">49,041</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">49,041</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,745,272</td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="20%" align="right">1,758,943</td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="46%" align="left">Less: Accumulated depreciation</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">(998,971</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="right">(973,457</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="46%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="20%" align="right">746,301</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="20%" align="right">785,486</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left"> </td></tr></table></div></div> </div>

785486

746301

1486431

83821

<div> NOTE 11 - RELATED PARTY TRANSACTIONS The Company has an arrangement with Rand Edgar Investment Corp., a company owned by Brian Edgar, the Company's Chairman, whereby the Company pays approximately $10,000 per month for general corporate development, rent and administrative services for an office in Vancouver, British Columbia. During the three months ended January 31, 2012 and January 31, 2011, the Company paid $30,000 and $31,340, respectively, to Rand Edgar Investment Corp. for general corporate development, rent and administrative services which is included in the office and administrative line of the consolidated statement of operations and comprehensive loss. </div>

15783

77068

111858

-73559865

-77153353

<div> <div> NOTE 18 – SEGMENT INFORMATION The Company operates in one business segment being the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico and Gabon, Africa. Geographic information is approximately as follows: <div> <table style="width: 899px; height: 279px;" border="0" cellspacing="0"> <tr><td width="31%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="18%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="18%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="31%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="41%" colspan="5" align="center">For the Three Months Ended January 31,</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="22%" colspan="3" align="center">Period from November 8, 1993 (Inception) To January 31, 2012</td></tr> <tr valign="bottom"><td width="31%" align="left"> </td></tr> <tr valign="bottom"><td width="31%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="21%" colspan="3" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" width="20%" colspan="2" align="center">2011</td></tr> <tr valign="bottom"><td width="31%" align="left">Net (loss) for the period</td> <td width="2%" align="left"> </td> <td width="17%" align="left"> </td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="31%" align="left">Mexico</td> <td width="2%" align="left">$</td> <td width="17%" align="right">(2,517,000</td> <td width="2%" align="left">) $</td> <td width="18%" align="right">(407,000</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="18%" align="right">(40,062,000</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="31%" align="left">Canada</td> <td width="2%" align="left"> </td> <td width="17%" align="right">(853,000</td> <td width="2%" align="left">)</td> <td width="18%" align="right">(2,000</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="18%" align="right">(2,138,000</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="31%" align="left">Gabon</td> <td width="2%" align="left"> </td> <td width="17%" align="right">(224,000</td> <td width="2%" align="left">)</td> <td width="18%" align="right">(33,000</td> <td width="2%" align="left">)</td> <td width="2%" align="left"> </td> <td width="18%" align="right">(518,000</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="31%" align="left">United States</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="right">(1,169,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="right">(34,309,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="31%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="17%" align="right">(3,594,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">) $</td> <td style="border-bottom: #000000 3px double;" width="18%" align="right">(1,611,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="18%" align="right">(77,027,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td></tr></table></div>   <div> <table style="width: 903px; height: 279px;" border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="18%"> </td> <td width="2%"> </td> <td width="19%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="18%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="2" width="43%" colspan="5" align="center">For the Three Months Ended January 31,</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" width="22%" colspan="3" align="center">Period from November 8, 1993 (Inception) To January 31, 2012</td></tr> <tr valign="bottom"><td width="30%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="22%" colspan="3" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" width="21%" colspan="2" align="center">2011</td></tr> <tr valign="bottom"><td width="30%" align="left">Exploration and</td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td> <td width="19%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">property holding costs</td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td> <td width="19%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td width="30%" align="left">for the period</td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td> <td width="19%" align="left"> </td> <td width="2%" align="left"> </td> <td width="2%" align="left"> </td> <td width="18%" align="left"> </td> <td width="2%" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="30%" align="left">Mexico</td> <td width="2%" align="left">$</td> <td width="18%" align="right">(2,495,000</td> <td width="2%" align="left">) $</td> <td width="19%" align="right">(1,085,000</td> <td width="2%" align="left">)</td> <td width="2%" align="left">$</td> <td width="18%" align="right">(39,522,000</td> <td width="2%" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 5px;" width="30%" align="left">Gabon</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="right">(57,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="19%" align="right">(15,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="18%" align="right">(359,000</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">)</td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="18%" align="right">(2,552,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">) $</td> <td style="border-bottom: #000000 3px double;" width="19%" align="right">(1,100,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">$</td> <td style="border-bottom: #000000 3px double;" width="18%" align="right">(39,881,000</td> <td style="border-bottom: #000000 3px double;" width="2%" align="left">)</td></tr></table></div>   <div> </div> The following table details foreign assets included in the accompanying balance sheet at January 31, 2012: <div> <table style="width: 1063px; height: 297px;" border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td width="29%" align="left"> </td> <td rowspan="2" width="13%" colspan="2" align="center">United States</td> <td rowspan="2" width="13%" colspan="2" align="center">Canada</td> <td rowspan="2" width="13%" colspan="2" align="center">Mexico</td> <td rowspan="2" width="12%" colspan="2" align="center">Gabon</td> <td rowspan="2" width="12%" colspan="2" align="center">Total</td></tr> <tr valign="bottom"><td width="29%" align="left"> </td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Cash and cash equivalents</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="11%" align="right">300,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="11%" align="right">10,705,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="11%" align="right">262,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="10%" align="right">69,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="10%" align="right">11,336,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Restricted cash</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">112,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">112,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Other receivables</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">109,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">9,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">118,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Prepaid expenses and income taxes</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">155,000</td> <td width="2%" align="left"> </td> <td width="11%" align="right">148,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">303,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Mining concessions</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">4,798,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">4,179,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">8,977,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Office and mining equipment, net</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">6,000</td> <td width="2%" align="left"> </td> <td width="11%" align="right">728,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">12,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">746,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Value-added tax receivable, net</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">1,527,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">470,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">1,997,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Goodwill</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">18,495,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">18,495,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Other assets</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">16,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">16,000</td></tr> <tr valign="bottom"><td width="29%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">300,000</td> <td width="2%" align="left">$</td> <td width="11%" align="right">10,975,000</td> <td width="2%" align="left">$</td> <td width="11%" align="right">25,983,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">4,842,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">42,100,000</td></tr></table></div>   The following table details foreign assets included in the accompanying balance sheet at October 31, 2011: <div> <table style="width: 1062px; height: 297px;" border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td width="29%" align="left"> </td> <td rowspan="2" width="13%" colspan="2" align="center">United States</td> <td rowspan="2" width="13%" colspan="2" align="center">Canada</td> <td rowspan="2" width="12%" colspan="2" align="center">Mexico</td> <td rowspan="2" width="12%" colspan="2" align="center">Gabon</td> <td rowspan="2" width="12%" colspan="2" align="center">Total</td></tr> <tr valign="bottom"><td width="29%" align="left"> </td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Cash and cash equivalents</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="11%" align="right">40,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="11%" align="right">4,160,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="10%" align="right">18,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="10%" align="right">21,000</td> <td bgcolor="#cceeff" width="2%" align="left">$</td> <td bgcolor="#cceeff" width="10%" align="right">4,239,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Restricted cash</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">77,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">77,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Other receivables</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">72,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">9,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">81,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Prepaid expenses and income taxes</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">100,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">150,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">250,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Mining concessions</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">4,847,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">4,500,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">9,347,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Office and mining equipment, net</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">7,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">764,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">14,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">785,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Value-added tax receivable, net</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">1,278,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">549,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">1,827,000</td></tr> <tr valign="bottom"><td width="29%" align="left">Goodwill</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="11%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">18,495,000</td> <td width="2%" align="left"> </td> <td width="10%" align="right">-</td> <td width="2%" align="left"> </td> <td width="10%" align="right">18,495,000</td></tr> <tr valign="bottom"><td bgcolor="#cceeff" width="29%" align="left">Other assets</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="11%" align="right">95,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">-</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">18,000</td> <td bgcolor="#cceeff" width="2%" align="left"> </td> <td bgcolor="#cceeff" width="10%" align="right">113,000</td></tr> <tr valign="bottom"><td width="29%" align="left"> </td> <td width="2%" align="left">$</td> <td width="11%" align="right">40,000</td> <td width="2%" align="left">$</td> <td width="11%" align="right">4,434,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">25,561,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">5,179,000</td> <td width="2%" align="left">$</td> <td width="10%" align="right">35,214,000</td></tr></table></div>   The Company has significant assets in Coahuila, Mexico and Gabon, Africa. Although these countries are generally considered economically stable, it is always possible that unanticipated events in foreign countries could disrupt the Company's operations. Neither the Mexican government nor the Gabonese government requires foreign entities to maintain cash reserves in their respective country.</div> </div>

<div> NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies are defined in the Company's Form 10-K for the year ended October 31, 2011 filed on January 11, 2012 except as follows. Foreign Currency During the year ended October 31, 2011 assets and liabilities of the Company's foreign operations were translated into U.S. dollars at the period-end exchange rate, and revenue and expenses were translated at the average exchange rate during the period. Exchange differences arising on translation were disclosed as a separate component of stockholders' equity. Realized gains and losses from foreign currency transactions were reflected in the results of operations. Intercompany transactions and balances with the Company's Mexican and Gabonese subsidiaries were considered to be short-term in nature except for $13.4 million of intercompany loans which the Company agreed to convert to future capital increases. All foreign currency transaction gains and losses on intercompany loans which were not considered to be short-term in nature were included in the consolidated statement of operations. During the period-ended January 31, 2012 the Company's Gabonese foreign operations were translated into U.S. dollars consistent with the year-ended October 31, 2011. As at November 1, 2011, the Company determined that the functional currency of the Company's Mexican subsidiaries changed from the Mexican Peso ("$MXN") to the U.S. dollar. During the three month period ended January 31, 2012 the Company's Mexican foreign operations monetary assets and liabilities were translated into U.S. dollars at the period-end exchange rate and non-monetary assets and liabilities were translated using the historical exchange rate. The Company's Mexican foreign operations revenue and expenses were translated at the average exchange rate during the period except for depreciation of office and mining equipment and impairment of property concessions which are translated using the historical exchange rate. Foreign currency translation gains and losses of the Company's foreign Mexican operations occurring after November 1, 2011 are included in the consolidated statement of operations. Recent Accounting Pronouncements Adopted in the Three Months Ended January 31, 2012 In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 which included additional disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements disclosures effective for fiscal years beginning after December 15, 2010, and for interim periods within those years. The adoption of this guidance did not have a material effect on the Company's financial position, results of operations or cash flows. Recent Accounting Pronouncements In September 2011, the FASB issued ASU 2011-08 "Intangibles – Goodwill and Other." This new guidance on testing goodwill provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If an entity determines that the fair value of a reporting unit is not less than its carrying amount, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows. In June 2011, the FASB issued ASU 2011-05, "Presentation of Comprehensive Income." This update amended the presentation options in Accounting Standards Codification ("ASC") 220, "Comprehensive Income," to provide an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with retrospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows. In May 2011, the FASB issued ASU 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." This update amended explanations of how to measure fair value to result in common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards. ASU 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with prospective application required. The adoption of this guidance is not expected to have a material effect on the Company`s financial position, results of operations or cash flows. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed to have a material impact on the Company's present or future consolidated financial statements. </div>

32991122

39809104

<div> <div> NOTE 13 - COMMON STOCK On December 12, 2011, the Company closed a registered direct offering for the sale or 20,755,000 shares of common stock at a price of $0.50 per share for gross proceeds of $10,377,500. The Company paid a 6% finder's fee totaling $94,500 to a Canadian finder with respect to certain non-U.S. purchasers who were introduced by them. The Company incurred other offering costs of $209,744 related to this offering. On December 13, 2011, the Company closed a registered direct offering for the sale or 295,000 shares of common stock at a price of $0.50 per share for gross proceeds of $147,500. The Company incurred offering costs of $2,982 related to this offering. During the three months ended January 31, 2011, the Company issued 20,000 shares of common stock upon the exercise of warrants at an average cash consideration of $0.50 per share. Options to acquire 199,480 shares of common stock were also exercised at an average exercise price of $0.66. In addition, options to acquire 6,666 shares of common stock were exercised by way of a cashless exercise whereby the recipients elected to receive 2,160 shares without payment of the exercised price and the remaining options for 4,506 shares were cancelled.</div> </div>

9497529

191931

352900

7842

9904

1826664

1997126

Derived from the audited financial statements for the year ended October 31, 2011.