Investments, All Other Investments

3 Months Ended

Mar. 31, 2012

7. Financial instruments and risk management

a) Fair value

The Company’s financial instruments include cash and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values, unless otherwise noted.

b) Foreign exchange risk

The Company expects to raise equity predominantly in United States dollars. The Company is conducting business in Canada where financial transactions are based on the Canadian dollar. As such, the Company is subject to risks due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The Company does not enter into derivative financial instruments to mitigate its exposure to foreign currency risk.

At March 31, 2012 the Company had the following financial assets and liabilities denominated in Canadian dollars:

	CDN Dollars
Cash	$	1,236
Accounts payable and accrued liabilities	$	184,852

At March 31, 2012 CDN dollar amounts were converted at a rate of 0.9975 Canadian dollars to 1 US dollar.

Scout Exploration, Inc 10-Q