Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

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INCOME TAXES
 12 Months Ended
Nov. 30, 2012
INCOME TAXES [Text Block]
10. INCOME TAXES

The Company has certain non-capital losses of approximately $12,453,120 (2011: $11,387,337) available, which can be applied against future taxable income and which expire as follows:

  2025 $   188,494  
  2026 $   609,991  
  2027 $   1,731,495  
  2028 $   3,174,989  
  2029 $   2,792,560  
  2030 $   2,044,857  
  2031 $   854,218  
  2032 $   1,056,516  
    $   12,453,120  

Reconciliation of statutory tax rate to the effective income tax rate is as follows:

  Federal statutory income tax rate 35.0%
  Deferred tax asset valuation allowance ( 35.0)%
  Effective rate ( 0.0)%

Deferred tax asset components as of November 30, 2012 and 2011 are as follows:

      2012     2011  
  Operating losses available to offset future income-taxes $   12,453,120   $   11,387,337  
               
  Expected Income tax recovery at statutory rate of 35% (2011: 35.0%) $   (4,358,592 ) $   (3,985,568 )
  Valuation Allowance $   4,358,592   $   3,985,568  
  Net deferred tax assets   -     -  

As the company is in the development stage and has not yet earned any revenue, it has provided a 100 per cent valuation allowance on the net deferred tax asset as of November 30, 2012 and 2011.