10.

TAXATION

(a)

Provision for current tax

During the year ended July 31, 2022, the Company recorded a provision of current income tax of $2,779.

(b)

Provision for deferred tax

As future taxable profits of the Company are uncertain, no deferred tax asset has been recognized. As at July 31, 2022, the Company had unused non-capital loss carry forwards of approximately $3,918,000 (2021 – $3,460,000) in Canada and $12,000 (2021 – $nil) in the United States.

The Company had approximately $ 4,428,000 (2021 – $4,391,000) of resource tax pools available, which may be used to shelter certain resource income.

Reconciliation of effective tax rate:

Years ended July 31,

Reconciliation of effective tax rate

Income (loss) for the period

Income tax expense

Income (loss) excluding income tax

Income tax expense (recovery) using the Company’s domestic tax rate

Effect of tax rates in foreign jurisdictions

Non-deductible expenses and other

Difference in statutory tax rates and deferred tax rates

Change in unrecognized temporary differences

Current tax expense

The Company’s domestic tax rate during the year ended July 31, 2022 was 27% (2021 – 27%; 2020– 27%) and the effective tax rate was nil (2021 – nil; 2020 – nil).

(b)

Provision for deferred tax (continued)

As at July 31, 2022, the Company had the following balances in respect of which no deferred tax assets had been recognized:

Expiry:

Within one year

One to five years

After five years

No expiry date

Total