Deferred Taxes

12 Months Ended

Dec. 31, 2011

11.	Deferred Taxes

	Major items causing the Company's income tax rate to differ from the U.S. federal statutory rate of approximately 34% (2010 - 34%) are as follows:

		2011			2010

Loss before income taxes	$	(3,739,168	)	$	(6,707,546	)

Expected income tax benefit based on statutory rate	$	(1,271,300	)	$	(2,280,600	)
Adjustments resulting from:
Warrant liability		-			668,800
Stock-based compensation		195,700			66,200
Other		39,000			(9,400	)
Change in valuation allowance		1,036,600			1,555,000

Income tax recovery reflected in the statement of operations	$	-		$	-

As at December 31, 2011, the Company had approximately $8,781,232 of net operating loss carry forwards in the U.S., which may be used to reduce taxable income in future years which expire starting December 31, 2027. The Company also has exploration expenditures of approximately $5,350,000 which may be used to reduce taxable income in future years. As management of the Company cannot determine is that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset was recorded at December 31, 2011.

The significant components of the deferred tax assets at December 31, 2011 and 2010 were as follows:

		2011			2010

Deferred income tax assets (liabilities)
Non-capital losses	$	3,153,000		$	2,367,000
Stock-based compensation and warrant liability		-			-
Exploration expenditures		1,820,000			1,403,000
Valuation allowance		(4,973,000	)		(3,770,000	)

	$	-		$	-

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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+ Details

BE Resources Inc. 10-K