Stock Purchase Warrants

9 Months Ended

Aug. 31, 2011

16.	Stock Purchase Warrants

	During the nine months ended August 31, 2011, 101,749,051 stock purchase warrants, exercisable at weighted average exercise price of $0.009 per share, expired. The Company issued 100,000,000 common stock purchase warrants upon the completion of a private placement during the nine months ended August 31, 2011. Each common stock purchase warrant issued during the period is exercisable into one share of common stock for a period of one year commencing from the date of the subscription agreement. There was no value assigned to these warrants when they were issued. During the nine month period ended August 31, 2011, the Company issued 1,928,572 shares of common stock upon the exercise of stock purchase warrants for gross proceeds of $4,494.

	A summary of the changes in the Company’s common share purchase warrants is presented below:

			Weighted Average
	Number		Exercise Price
			$
Balance November 30, 2009	84,900,000		0.020
Issued	172,307,324		0.0079
Exercised	(82,917,550	)	0.0027
Expired	(48,000,000	)	0.020
Balance November 30, 2010	126,289,774		0.010
Issued	100,000,000		0.01
Exercised	(1,928,572	)	0.00233
Expired	(101,749,051	)	0.009
Balance August 31, 2011	122,612,151		0.00356

As at August 31, 2011, the following common share purchase warrants were outstanding:

		Remaining
		Contractual Life
	Exercise Price	(years)
Number of Warrants
	$
22,612,151	0.01	0.02 - 0.15
100,000,000	0.0021	0.27
122,612,151

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References+ Details

SILVERADO GOLD MINES LTD 10-Q/A