||Nature, Basis of Presentation and Continuance of Operations|
Silverstar Mining Corp. (the
Company) was incorporated under the laws of the State of Nevada on 5 December 2003. On 4 March 2008, the Company
completed a merger with its wholly-owned subsidiary, Silverstar Mining Corp., which was incorporated by the Company solely to effect
the name change of the Company to Silverstar Mining Corp. The Company was incorporated for the purpose to promote and carry on
any lawful business for which a corporation may be incorporated under the laws of the State of Nevada.
On 13 April 2011 the Company
incorporated a wholly owned subsidiary, Silverstar Mining (Canada) Inc., under the laws of the country of Canada. The subsidiary
was incorporated for the purpose to promote and carry on any lawful business for which a corporation may be incorporated under
the laws of the country of Canada. The subsidiarys main purpose is to hold title to mineral property rights situated in
Canada as the laws of that country require that only local entities can hold title to mineral property rights situated within its
The accompanying consolidated
financial statements include the accounts of the Company and its wholly-owned subsidiaries, Silverdale Mining Corp. (Silverdale)
from 24 July 2008, the date of acquisition, and Silverstar Mining (Canada) Inc. from 13 April 2011, the date of incorporation.
The Company is a development
stage enterprise, as defined in Financial Accounting Standards Board No. 7. The Company is devoting all of its present efforts
in securing and establishing a new business, and its planned principle operations have not commenced, and, accordingly, no revenue
has been derived during the organization period.
The consolidated financial
statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of
America applicable to development stage enterprises, and are expressed in U.S. dollars. The Companys fiscal year end is
These consolidated financial
statements as at 30 September 2012 and for the year then ended have been prepared on a going concern basis, which contemplates
the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company has a
loss for the year ended 30 September 2012 of $90,703 (2011 loss - $72,935), cumulative loss - $1,628,428 (2011 cumulative loss
- $1,537,725) and has working capital deficit of $180,439 at 30 September 2012 (30 September 2011 deficit - $159,704).
Management cannot provide assurance
that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity
capital. If the Company is unable to raise additional capital in the near future, due to the Companys liquidity problems,
management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable
terms and/or pursue other remedial measures. These consolidated financial statements do not include any adjustments related to
the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.
At 30 September 2012, the
Company had suffered losses from development stage activities to date. Although management is currently attempting to implement
its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will
be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated
financial statements do not include any adjustments that might result from the outcome of this uncertainty.