UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549


FORM 10-Q


(Mark one)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2011


[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from ______ to ______


GOLD CREST MINES, INC.

(Exact name of registrant as specified in its charter)


Nevada

000-52392

82-0290112

(State or other jurisdiction of incorporation or organization)

Commission file number

(IRS Employer Identification Number)


724 E Metler Lane

 Spokane, WA

 


99218

(Address of principal executive offices)

 

(Zip Code)


Registrant's telephone number, including area code: (509) 893-0171


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES x  NO   ¨


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes   ¨     No   x


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  


Large accelerated filer

¨

 

Accelerated filer

¨

Non-accelerated filer

¨

(Do not check if a smaller reporting company)

Smaller reporting company

x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨  No x


Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:  


At May 16, 2011, 88,505,828 shares of the registrant’s common stock were outstanding.



1







GOLD CREST MINES, INC.

FORM 10-Q

For the Quarter Ended March 31, 2011


TABLE OF CONTENTS

 

 

Page #

PART I - Financial Information

 

 

 

 

 

Ite m 1

Financi a l State ments (Unaudited)

3

 

 

 

 

 

 

Consolidated Balance Sheets

3

 

 

 

 

 

 

Consolidated Statements of Operations

4

 

 

 

 

 

 

Consolidated Statements of Cash Flows

5

 

 

 

 

 

 

Notes to Consolidated Financial Statements

6

 

 

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

10

 

 

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

12

 

 

 

 

 

Item 4

Controls and Procedures

12

 

 

 

 

PART II - Other Information

 

 

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

13

 

 

 

 

 

Item 6

Exhibits

13

 

 

 

 

Signatures

14

 

 

 

 







2







GOLD CREST MINES, INC.

(An Exploration Stage Company)

Consolidated Balance Sheets

 

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

 

 

2011

 

2010

ASSETS

 

(Unaudited)

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

$

4,257

$

10,814

 

 

 

 

Total Current Assets

 

4,257

 

10,814

 

Equipment, net of accumulated depreciation

 

 

 

 

 

 

of $2,572 and $2,743, respectively

 

670

 

841

 

Mineral properties

 

11,373

 

11,373

 

 

TOTAL ASSETS

$

16,300

$

23,028

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Accounts payable

$

37,272

$

27,890

 

 

Accounts payable – related party

 

36,000

 

36,000

 

 

Accrued liabilities

 

6,298

 

6,298

 

 

 

 

Total Current Liabilities

 

79,570

 

70,188

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

79,570

 

70,188

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

Preferred stock; no par value; 10,000,000 shares

 

 

 

 

 

 

 

authorized, none issued or outstanding

 

-

 

-

 

 

Common stock; $0.001 par value; 500,000,000 shares

 

 

 

 

 

 

 

authorized; 88,505,828 and 88,205,828 shares issued

 

 

 

 

 

 

 

and outstanding, respectively

 

88,506

 

88,206

 

 

Additional paid-in capital

 

9,419,203

 

9,416,503

 

 

Accumulated deficit during exploration stage

 

(9,570,979)

 

(9,551,869)

 

 

 

 

Total Stockholders' Deficit

 

(63,270)

 

(47,160)

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

16,300

$

23,028

 


The accompanying notes are an integral part of these consolidated financial statements.




3







GOLD CREST MINES, INC.

(An Exploration Stage Company)

Consolidated Statements of Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From Inception

 

 

 

 

 

 

 

January 11, 2005

 

 

 

Three Months Ended

 

to

 

 

 

March 31,

 

March 31,

 

March 31,

 

 

 

2011

 

2010

 

2011

 

 

 

 

 

 

 

 

REVENUES

$

-

$

-

$

-

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 Exploration expenditures

 

-

 

7,339

 

4,352,387

 

 Settlement of drilling contract

 

-

 

-

 

161,813

 

 Abandonment of mineral lease

 

-

 

-

 

83,600

 

 Gain on sale of mineral lease

 

-

 

-

 

(16,875)

 

 Mineral lease option income

 

-

 

-

 

(30,000)

 

 Impairment of mineral properties and

 

 

 

 

 

 

 

    royalty interest

 

-

 

-

 

616,875

 

 Impairment of investment in Golden Lynx LLC

 

-

 

-

 

43,202

 

 Loss on disposal of equipment

 

-

 

-

 

16,738

 

 Legal and accounting expenses

 

9,422

 

11,226

 

535,572

 

 Directors' fees

 

-

 

-

 

844,000

 

 General and administrative

 

9,688

 

9,090

 

3,020,289

 

    TOTAL OPERATING EXPENSES

 

19,110

 

27,655

 

9,627,601

 

 

 

 

 

 

 

 

 LOSS FROM OPERATIONS

 

(19,110)

 

(27,655)

 

(9,627,601)

 

 

 

 

 

 

 

 

 OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 Interest income

 

-

 

-

 

79,182

 

 Interest expense

 

-

 

-

 

(22,560)

 

     TOTAL OTHER INCOME (EXPENSE)

 

-

 

-

 

56,622

 

 

 

 

 

 

 

 

 LOSS BEFORE INCOME TAXES

 

(19,110)

 

(27,655)

 

(9,570,979)

 INCOME TAXES

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 NET LOSS

$

(19,110)

$

(27,655)

$

(9,570,979)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER COMMON SHARE - BASIC

 

 

 

 

 

 

 

AND DILUTED

$

Nil

$

Nil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 WEIGHTED AVERAGE NUMBER

 

 

 OF SHARES OUTSTANDING

 

 

 

 

 

 

 

 BASIC  AND DILUTED

 

88,239,161

 

85,705,828

 

 

 

 

 

 

 

 

 

 

 



The accompanying notes are an integral part of these consolidated financial statements.



4






GOLD CREST MINES, INC.

(An Exploration Stage Company)

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

Three Months

 

Three Months

 

From Inception

 

 

 

 

Ended

 

Ended

 

January 11, 2005 to

 

 

 

 

March 31, 2011

 

March 31, 2010

 

March 31, 2011

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 Net loss

$

(19,110)

$

(27,655)

$

(9,570,979)

 

 Adjustments to reconcile net loss to net cash used

 

 

 

 

 

 

 

     by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

171

 

171

 

52,523

 

 

Common stock and options issued for services

 

-

 

-

 

1,368,976

 

 

Equity compensation for management and directors

 

-

 

-

 

1,214,241

 

 

Interest paid with common shares

 

-

 

-

 

12,500

 

 

Settlement of drilling contract

 

-

 

-

 

161,813

 

 

Gain recognized on equipment exchanged in settlement

 

 

 

 

 

 

 

 

     of accounts payable

 

-

 

-

 

(3,421)

 

 

Loss on disposal of equipment

 

-

 

-

 

16,738

 

 

Abandonment of mineral lease

 

-

 

-

 

83,600

 

 

Impairment of mineral properties and royalty interest

 

-

 

-

 

616,875

 

 

Impairment of investment in Golden Lynx LLC

 

-

 

-

 

43,202

 

 

Gain on sale of mineral properties

 

-

 

-

 

(16,875)

 

 Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Interest receivable

 

-

 

-

 

(6,266)

 

 

Prepaid expenses and deposits

 

-

 

4,866

 

57,999

 

 

Miscellaneous receivable

 

-

 

-

 

3,000

 

 

Accounts payable and accrued liabilities

 

9,382

 

(1,885)

 

109,399

 

 

       Net cash used by operating activities

 

(9,557)

 

(24,503)

 

(5,856,675)

 

 

 

 

 

 

 

 

 

 CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 Cash received in reverse merger  

 

-

 

-

 

7,456

 

 Note receivable issued

 

-

 

-

 

(200,000)

 

 Purchase of royalty interest in mineral property

 

-

 

-

 

(400,000)

 

 Purchase of mineral properties

 

-

 

-

 

(388,175)

 

 Proceeds from the sale of equipment

 

-

 

-

 

22,979

 

 Proceeds from the sale of mineral properties

 

-

 

-

 

50,000

 

 Proceeds from deposit on option agreement

 

-

 

20,000

 

-

 

 Purchase of equipment

 

-

 

-

 

(134,971)

 

 

       Net cash provided (used) by investing activities

 

-

 

20,000

 

(1,042,711)

 

 

 

 

 

 

 

 

 

 CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 Borrowings under line of credit

 

-

 

-

 

250,000

 

 Payments on line of credit

 

-

 

-

 

(250,000)

 

 Proceeds from the issuance of stock on the exercise of warrants

 

-

 

-

 

201,300

 

 Sale of common stock, net of issuance costs

 

3,000

 

-

 

6,702,343

 

 

       Net cash provided by financing activities

 

3,000

 

-

 

6,903,643

 

 

 

 

 

 

 

 

 

 

 Net change in cash and cash equivalents

 

(6,557)

 

(4,503)

 

4,257

 

 Cash and cash equivalents, beginning of period

 

10,814

 

12,931

 

-

 

 Cash and cash equivalents, end of period

$

4,257

$

8,428

$

4,257

 

 

 

 

 

 

 

 

 

 NON-CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 Land contributed in exchange for investment in Golden Lynx LLC

$

-

$

-

$

54,575

 

 Land held in Golden Lynx LLC returned as mineral properties

 

-

 

11,373

 

11,373

 

 Note receivable forgiven in connection with settlement agreement

 

-

 

-

 

120,000

 

 Equipment relinquished in connection with settlement agreement

 

-

 

-

 

12,654

 

 Equipment exchanged for settlement of accounts payable  

 

-

 

-

 

29,828

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 




5





Gold Crest Mines, Inc.

(An Exploration Stage Company)

Notes to Unaudited Consolidated Financial Statements


NOTE 1.  Basis of Presentation


Gold Crest Mines, Inc. and its subsidiaries (“Gold Crest” and “the Company”) is a Nevada corporation originally incorporated on August 20, 1968, as Silver Crest Mines, Inc., an Idaho corporation.  


On August 1, 2006, Gold Crest acquired 100% of the issued and outstanding shares of Niagara Mining and Development Co., (“Niagara”), an Idaho corporation formed on January 11, 2005, and its wholly-owned subsidiary, Kisa Gold Mining, Inc. (“Kisa”), an Alaskan corporation formed on July 28, 2006.  Gold Crest’s sole asset on the merger date was cash of $7,456, which was accounted for as being acquired by Niagara in exchange for 14,600,100 common shares of Niagara.    Niagara’s sole asset on the merger date was cash of $150,000.   Neither company had liabilities on the date of the merger.  This transaction has been treated as a reverse merger, effectively as if Niagara had issued shares for consideration equal to the net monetary assets of Gold Crest. Under reverse acquisition accounting, the consolidated financial statements of the entity are considered a continuation of the financial statements of Niagara, the accounting acquirer.  On June 20, 2008, 100% of the issued and outstanding shares of Kisa were transferred from Niagara to the Company.


The Company is in the business of exploration, development, and if warranted the mining of properties containing valuable mineral deposits. The focus of the Company’s exploration programs is directed at precious metals, primarily gold.


The interim Consolidated Financial Statements of the Company and its subsidiaries are unaudited.  In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included.  All such adjustments are, in the opinion of management, of a normal recurring nature.  The results reported in these interim Consolidated Financial Statements are not necessarily indicative of the results that may be reported for the entire year.  These interim Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended December 31, 2010.


NOTE 2.  Summary of Significant Accounting Policies


This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.


Consolidation of Subsidiaries


The consolidated financial statements include the Company’s accounts and the accounts of wholly-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.


Fair Values of Financial Instruments


The carrying amounts of financial instruments including cash and cash equivalents approximated their fair values as of

March 31, 2011 and December 31, 2010.


Fair Value Accounting


Accounting guidance has established a hierarchy of assets that are measured at fair value on a recurring basis. The three levels included in the hierarchy are:

·

Level 1: quoted prices in active markets for identical assets or liabilities

·

Level 2: significant other observable inputs

·

Level 3: significant unobservable inputs


At March 31, 2011 and December 31, 2010, the Company has no assets or liabilities that are recorded at fair value on a recurring basis.





Basic and Diluted Net Loss Per Share


Net loss per share was computed by dividing the net loss by the weighted average number of common shares outstanding during the period.  The weighted average number of shares was calculated by taking the number of shares outstanding and weighting them by the amount of time that they were outstanding.  Diluted net loss per share for the Company is the same as basic net loss per share, as the inclusion of common stock equivalents would be anti-dilutive.  At March 31, 2011 and 2010, the common stock equivalents consisted of 5,280,000 options exercisable at prices ranging from $0.28 to $0.53 per share.


NOTE 3. Going Concern


As shown in the accompanying financial statements, the Company has had no revenues and incurred an accumulated deficit of $9,570,979 through March 31, 2011.  Another factor is that the Company has a negative current ratio of 0.05: 1 at March 31, 2011.  The current ratio is a measurement of the degree to which current assets cover current liabilities (current assets/ current liabilities).  A high ratio indicates a good probability the enterprise can retire current debts.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  Management intends to seek additional capital from new equity securities offerings that will provide funds needed to increase liquidity, fund internal growth and fully implement its business plan.


The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.


Should the Company be unable to raise capital through future private placements, its business, and, as a result, its financial position, results of operations and cash flow will likely be materially adversely impacted.  As such, substantial doubt as to the Company’s ability to continue as a going concern remains as of the date of these financial statements.


The Company drastically reduced its overhead expenses in 2009 and 2010 such as reducing staff on payroll to one part time employee and eliminating its office space.  With these reductions in overhead, the Company believes it



6






will only need an estimated $50,000 to $100,000 to continue operations through the next twelve months.


On February 22, 2011 the Company began a private placement offering up to a maximum of 2,500,000 shares at $0.01 per share for a maximum of $25,000 in proceeds.  As of March 31 and the date of this report, the Company had sold 300,000 shares for $3,000.  The shares were being offered and sold by officers and directors of the Company who received no remuneration for the sale of the shares.


NOTE 4.  Mineral Properties


The following is a summary of the Company’s mineral properties in Alaska.


Alaska Mineral Properties

 

Number of Claims

 

Acres

Southwest Kuskokwim Project

 

 

 

 

    AKO

 

45

 

7,200

    Luna

 

50

 

8,000

    Kisa

 

38

 

5,840

    Gold Lake

 

69

 

9,720

    Gold Creek

 

12

 

1.920

    Little Swift

 

14

 

2,240

    Gosson Valley

 

2

 

   320

TOTAL Southwest Kuskokwim Project

 

230

 

       35,240

 

 

 

 

 

Buckstock Project

 

 

 

 

    Chilly

 

44

 

7,040

 TOTAL Buckstock Project

 

44

 

7,040

 

 

 

 

 



The Company is required to perform certain work commitments and pay annual assessments to the State of Alaska to hold these claims in good standing.  See “Note 6. Commitments and Contingencies”.


In Alaska, the lands are held under and are subject to the State’s mining laws and regulations.  


North Fork Master Earn-in Agreement


On March 28, 2011 the Company, through its wholly owned subsidiary, Kisa Gold Mining, Inc. (“Kisa”), executed a Master Earn-In agreement (“the Agreement”) with North Fork LLC, (“North Fork”) an Alaska limited liability company.  


This agreement will call for North Fork to explore for gold deposits on Kisa’s claim blocks in the Southwest Kuskokwim Project area and the Buckstock project area (“Projects”).  The Projects consist of exploration properties in southwest Alaska approximately 90 miles east of the village of Bethel covering approximately 42,280 acres of State of Alaska-owned lands in claim groups known as the Kisa, Luna, AKO, GL, Chilly, Little Swift, Gold Creek and Gossan Valley within the Kuskokwim Mineral Belt.


The following is a breakdown of the proposed earn-in terms:


1.

The initial interest at the time North Fork exercises its option to earn into the “Projects” will be as follows:

a.

Gold Crest Mines, Inc. – 100%

b.

North Fork – 0%

2.

North Fork can acquire a 51% interest in one or more “Projects” by making an aggregate of $3,000,000 of Exploration Expenditures on or for the benefit of the claims on or before October 31, 2013.

3.

If North Fork withdraws from the Joint Venture prior to earning a 51% interest in the “Projects”, it will have no further interest in the “Projects”.

4.

North Fork can earn an additional 24% interest in the “Projects”, taking its total interest to 75% by the expenditure of an additional $3,000,000 by October 31, 2016.

5.

North Fork can earn a total interest of 90% in any of the “Projects” claim blocks by the completion of a Bankable Feasibility Study.

6.

Gold Crest Mines, Inc. will retain a free carried 10% interest in the “Projects” up to a Decision to Mine at which point it can elect to contribute at 10% or dilute to a 2% Net Smelter Royalty.

7.

North Fork is obliged to keep the Projects in “good standing”.

8.

North Fork will be the sole manager of the “Projects” and will make all decisions in regards to the exploration programs.

NOTE 5.  Common Stock and Common Stock Warrants


Common Stock


The Company is authorized to issue 500,000,000 shares of its common stock.  All shares of common stock are equal to each other with respect to voting, liquidation, dividend, and other rights.  Owners of shares are entitled to one vote for each share owned at any Shareholders’ meeting.  The common stock of the Company does not have cumulative voting rights, which means that the holders of more than fifty percent (50%) of the shares voting in an election of directors may elect all of the directors if they choose to do so.


During the three months ending March 31, 2011 the Company had the following issuances of common stock:


On February 22, 2011 the Company began a private placement offering up to a maximum of 2,500,000 shares at $0.01 per share for a maximum of $25,000 in proceeds.  As of March 31 and the date of this report, the Company has issued 300,000 shares raising a total of $3,000.  The shares were being offered and sold by officers and directors of the Company who received no remuneration for the sale of the shares.


During the three months ending March 31, 2010 the Company did not have any issuances of common stock.


NOTE 6.  Commitments and Contingencies


Alaska Mineral Property Rent and Assessment Work Commitments


In Alaska, land holdings consist of state mining claims and prospecting sites totaling 42,280 acres of land.  Annual rental payments in the amount of $46,375 for these claims are due by November 30, 2011. If these rental payments are not paid by the due date, the claims will be considered abandoned.


The Alaska Department of Natural Resources, Division of Mining, Land & Water requires that upon the prospecting, and the discovery of a locatable mineral and the staking of mineral location, annual labor must be performed on the location each labor year in further development of the locatable mineral so that it can be mined.  The labor year for the claims begins on September 1 and ends the following September 1.  The Company or its joint venture partner, if applicable, will be required to perform qualified labor in the amount of $105,700 by September 1, 2011 except we have qualified carry-over amounts that can be applied to the labor year ending September 1, 2011 in the amount of $83,134 leaving only $22,566 to be performed by the September 1, 2011 deadline.  If these labor requirements are not met by the due date, the claims will be considered abandoned.


Environmental Matters


A predecessor entity to the Company owned mineral property interests on certain public and private lands in Idaho and Montana.  Holdings included lands in mining districts designated as “Superfund” sites pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"). The properties were, and are, subject to a variety of federal and state regulations governing land use and environmental matters. A consultant reviewed the potential environmental impact of the prior mineral exploration and development activities, and believes there was substantial compliance with all such regulations, and is unaware of any pending action or proceedings relating to regulatory matters that would affect the financial position of the Company. Management acknowledges, however, that the possibility exists that the Company may be subject to environmental liabilities associated with its prior activities in the unforeseeable future, although the likelihood of such is deemed remote and the amount and nature of the liabilities is impossible to estimate.


NOTE 7.  Subsequent Events


Board of Directors


On April 22, 2011, the Board of Directors appointed Matt J. Colbert, current CFO as a director of the Company. The Company also awarded Mr. Colbert 100,000 shares of the Company’s common stock under our 2007 Stock Plan for accepting the appointment as a director.  Management estimated the fair value of the shares to be $2,000.



7






ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


This Form 10-Q, including in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, includes forward-looking statements. Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities. We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Gold Crest Mines, Inc. or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.  Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The safe harbors of forward-looking statements provided by Section 21E of the Exchange Act are unavailable to issuers of penny stock.  As we issued securities at a price below $5.00 per share, our shares are considered penny stock and such safe harbors set forth under Section 21E are unavailable to us.

The following discussion should be read in conjunction with the unaudited consolidated financial statements included elsewhere in this report, as well as the audited consolidated financial statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2010.


Overview and Plan of Operation


As discussed in “Note 3. Going Concern” to our consolidated financial statements, the Company has had no revenues and incurred an accumulated deficit of $9,570,979 through March 31, 2011.  Another factor is that the Company has a negative current ratio of 0.05: 1 at March 31, 2011.  The current ratio is a measurement of the degree to which current assets cover current liabilities (current assets/ current liabilities).  A high ratio indicates a good probability the enterprise can retire current debts.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  Management intends to seek additional capital from new equity securities offerings that will provide funds needed to increase liquidity, fund internal growth and fully implement its business plan.


We are in the business of exploration, development, and if warranted the mining of properties containing valuable mineral deposits. We are traded on the over the counter market in the United States and, as is typical with such companies, losses are incurred in the stages of exploration and development, which typically need to be funded through equity or debt financing.  


In the Kisaralik Lake area of southwest Alaska, the Company’s wholly owned subsidiary Kisa Gold Mining, Inc. (KGMI) controls or has interests in claim blocks consisting of 274 State of Alaska mining claims covering approximately 42,280 acres.  The Company calls the claim blocks the Southwest Kuskokwim Project and the Buckstock Project and the individual names of each claim block are Kisa, Gold Lake, Luna, AKO, Chilly, Gold Creek, Gossan Valley and Little Swift.  


On March 28, 2011 the Company, through its wholly owned subsidiary, Kisa Gold Mining, Inc. (“Kisa”), executed a Master Earn-In agreement (“the Agreement”) with North Fork LLC, (“North Fork”) an Alaska limited liability company.  


This agreement will call for North Fork to explore for gold deposits on Kisa’s claim blocks in the Southwest Kuskokwim Project area and Buckstock Project area (“Projects”).  The Projects consist of exploration properties in southwest Alaska approximately 90 miles east of the village of Bethel covering approximately 42,280 acres of State of Alaska-owned lands in claim groups known as Kisa, Gold Lake, Luna, AKO, Chilly, Gold Creek, Gossan Valley and Little Swift within the Kuskokwim Mineral Belt.  See “Note 4. Mineral Properties – North Fork Master Earn-in Agreement ” to our consolidated financial statements for further details.




8






On February 22, 2011 the Company began a private placement offering up to a maximum of 2,500,000 shares at $0.01 per share for a maximum of $25,000 in proceeds.  As of March 31 and the date of this report, the Company has issued 300,000 shares raising a total of $3,000.  The shares were being offered and sold by officers and directors of the Company who received no remuneration for the sale of the shares.


Board of Directors


On April 22, 2011, the Board of Directors appointed Matt J. Colbert, CFO, as a director of the Company. The Company also awarded Mr. Colbert 100,000 shares of the Company’s common stock under our 2007 Stock Plan for accepting the appointment as a director.  Management estimated the fair value of the shares to be $2,000.

Liquidity and Capital Resources

We have limited capital resources and thus have had to rely upon the sale of equity securities for the cash required for exploration and development purposes, for acquisitions and to fund our administration.  Since we do not expect to generate any revenues in the near future, we must continue to rely upon the sale of our equity securities to raise capital.  There can be no assurance that financing, whether debt or equity, will always be available to us in the amount required at any particular time or for any period or, if available, that it can be obtained on terms satisfactory to us.


Our cash balance at March 31, 2011 was $4,257 versus $10,814 at December 31, 2010.  This slight decrease is primarily due to the fact that during the three months ended March 31, 2011, we received only $3,000 on our current private placement offering in which we issued 300,000 at $0.01 per share.  The amount received was less than the amount of money spent on our daily operations for the same time period, most notably our audit fees for the annual audit.  


Future Outlook


Based on the current market environment and our low share price it is not likely we will be able to raise enough money through a private placement of our common stock to fully implement our business plan. We have cut our operating costs down to the bare minimum by reducing our employee base down to only one employee with reduced time and pay and we currently intend to rely on the use of outside consultants to provide certain services to the Company.


On March 28, 2011 the Company, through its wholly owned subsidiary, Kisa Gold Mining, Inc. (“Kisa”), executed a Master Earn-In agreement (“the Agreement”) with North Fork LLC, (“North Fork”) an Alaska limited liability company.  


This agreement will call for North Fork to explore for gold deposits on Kisa’s claim blocks in the Southwest Kuskokwim Project area and Buckstock Project area (“Projects”).  The Projects consist of exploration properties in southwest Alaska approximately 90 miles east of the village of Bethel covering approximately 42,280 acres of State of Alaska-owned lands in claim groups known as Kisa, Gold Lake, Luna, AKO, Chilly, Gold Creek, Gossan Valley and Little Swift within the Kuskokwim Mineral Belt.  See “Note 4. Mineral Properties – North Fork Master Earn-in Agreement ” to our consolidated financial statements for further details.


Results of Operations


Comparison of the Three Months Ended March 31, 2011 and March 31, 2010:


The following table sets forth certain information regarding the components of our Consolidated Statements of Operations for the three months ended March 31, 2011 compared with the three months ended March 31, 2010. The table is provided to assist in assessing differences in our overall performance:



9







 

 

 

The Three Months Ended

 

 

 

 

 

 

 

March 31,

 

March 31,

 

 

 

 

 

 

 

2011

 

2010

 

$ Change

 

% Change

REVENUES

$

-

$

-

$

-

$

-

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 Exploration expenditures

 

-

 

7,339

 

(7,339)

 

-100.0%

 

 Legal and accounting expenses

 

9,422

 

11,226

 

(1,804)

 

-16.1%

 

 General and administrative

 

9,688

 

9,090

 

598

 

6.6%

 

    TOTAL OPERATING EXPENSES

 

19,110

 

27,655

 

(8,545)

 

-30.9%

 LOSS FROM OPERATIONS

 

(19,110)

 

(27,655)

 

8,545

 

-30.9%

 

 Interest income

 

-

 

-

 

-

 

-

 

 Interest expense

 

-

 

-

 

-

 

-

 

     TOTAL OTHER INCOME (EXPENSE)

 

-

 

-

 

-

 

-

 LOSS BEFORE TAXES

$

(19,110)

$

(27,655)

$

8,545

$

-30.9%


Overview of Operating Results

Operating Expenses


The decrease of $8,545 in operating expenses during the three months ended March 31, 2011 compared to the three months ended March 31, 2010 was primarily the result of decreased exploration activity during the three months ended March 31, 2011


Legal and Accounting Expenses


Legal and accounting expenses were $9,422 for the three months ended March 31, 2011 versus $11,226 for the three months ended March 31, 2010 for a decrease of $1,804.  The decrease was entirely due to $1,810 in legal fees in the three months ended March 31, 2010 versus zero in 2011.  


Overview of Financial Position


At March 31, 2011, Gold Crest had cash of $4,257 and total liabilities of $79,570.  During the three months ended March 31, 2011, we received $3,000 on a non-brokered private placement offering in which we issued 300,000 at $0.01 per share.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as required by Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report.  Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures, including controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management (including our CEO and CFO), were effective as of March 31, 2011, in ensuring them in a timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported.




10






Changes in Internal Control Over Financial Reporting


There were no changes in our internal control over financial reporting during the quarter ended March 31, 2011, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II – OTHER INFORMATION


ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


On February 22, 2011 the Company began a private placement offering up to a maximum of 2,500,000 shares at $0.01 per share for a maximum of $25,000 in proceeds for general corporate purposes.  As of March 31 and the date of this report, the Company has issued 300,000 shares raising a total of $3,000.  The shares were being offered and sold by officers and directors of the Company who received no remuneration for the sale of the shares.


The shares above were issued without registration under the Securities Act by reason of the exemption from registration afforded by the provisions of Section 4(2), and Rule 506 promulgated by the SEC, and Section 4(6) thereof, as a transaction by an issuer not involving any public offering.  Each participant was an accredited investor at the time of the issuance.  They delivered appropriate investment representations with respect to the issuance of the shares and consented to the imposition of a restrictive legend upon the certificate representing their shares.  They represented that they had not entered into the transaction with us as a result of or subsequent to any advertisement, article, notice, or other communication published in any newspaper, magazine, or similar media or broadcast on television or radio, or presented at any seminar or meeting.  They represented that they had been afforded the opportunity to ask questions of our management and to receive answers concerning the terms and conditions of the share purchase.  No underwriting discounts or commissions were paid in connection with these transactions.


ITEM 6.  EXHIBITS


Exhibit Number

Description of Document

10.1

Master Earn-In Agreement dated March 28, 2011, between Kisa Gold Mining, Inc. and North Fork LLC.  Filed herewith.                

31.1

Certification of CEO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act

31.2

Certification of CFO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act

32.1

Certification of CEO pursuant to 18 U.S.C. Section 1350

32.2

Certification of CFO pursuant to 18 U.S.C. Section 1350





11








SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GOLD CREST MINES, INC.



Date:  May 18, 2011

By:   /s/ John P. Ryan

John P. Ryan

CEO

(Principal Executive Officer)



Date:  May 18, 2011

By:   /s/ Matt J. Colbert

Matt J. Colbert

CFO

(Principal Financial Officer)



12





North Fork LLC / Kisa Gold Mining, Inc. – Master Earn-In Agreement



   

 

 

 


North Fork LLC / Kisa Gold Mining, Inc.







Master Earn-In

Agreement

 

 

 

 

 

 

 



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North Fork LLC / Kisa Gold Mining, Inc. – Master Earn-In Agreement


Table of Contents

 

I.    Definitions.

 1

a. “Affiliate”

 1

b. “Agreement”

1

c. “Area of Interest”  ..

2

d. “Bankable Feasible Study”

2

e. “Claims”

2

f. “Effective Date”

 2

g. “Exploration Expense”

 2

h. “Force Majeure”

3

i. “Mineral Products”

 3

j. “Optionor”

3

k. “Optionee”

 3

l. “Project”

3

m. “Purchase Price”

 3

n. “Purpose of this Agreement”

3

II.   Representations.

 4

III.    Indemnification.

 6

IV.    Grant.

 7

V.      Option to Acquire Interest in Project.

 8

VI.     Additional Covenants.

 10

VII.   Exploration Expense.

 11

VIII.  Termination by Optionee.

 11

IX.     Default; Termination by Optionor.

 13

X.      Operations.

 14

XI.     Joint Venture

 15

XII.    Maintenance of Claims.

 15

XIII.   Force Majeure; Delay

 16

XIV.   Notices.

 16

XV.    Assignment.

18

XVI.   Confidentiality.

 18

XVII.  Miscellaneous.

 18


 



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List of Exhibits

 

A. List  of Claims and Map

B. Kisa Gold Mining, Inc. Form of Deed

C. North Fork LLC Form of Deed

D. Form of Joint Venture Agreement

E. Memorandum of Agreement


 



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North Fork LLC / Kisa Gold Mining, Inc. – Master Earn-In Agreement



MASTER EARN-IN AGREEMENT


This master earn-in agreement (“ Agreement ”) dated and effective this ____ day of _____________ 2011 (the “ Effective Date ”) by and between; Kisa Gold Mining, Inc. (“Kisa”), an Alaska corporation having its principal place of business at 724 East Metler Lane, Spokane Valley, Washington 99216 (“ Optionor ”) and North Fork LLC, an Alaska limited liability company, having its principal place of business at PO Box 284, West Perth, WA 6872 Australia (“ Optionee ”)  


WITNESSETH:


WHEREAS, Kisa is the record owner of several blocks of Claims that are the subject of this Agreement ; and


WHEREAS, Optionee desires to explore each of these blocks of Claims for the purpose of developing one or more mines thereon; and


WHEREAS, the Parties agree that, except as specified in Exhibit A, such new Projects as may be discovered by either Party within the Area of Interest may become subject to this Agreement ; and


WHEREAS, each Project provided for in this Agreement may evolve separately and become the subject of separate agreements from time-to-time;


NOW THEREFORE, in consideration of these premises and the mutual promises hereinafter set forth and Twenty Thousand Dollars ($20,000.00) in hand paid, receipt of which is hereby acknowledged by Kisa , the Parties agree as follows:


I. Definitions. Unless context requires otherwise, the following definitions shall apply to this Agreement :


a. “Affiliate” shall mean any person, partnership, joint venture, corporation or other form of enterprise that directly or indirectly controls, or is controlled by, or is under common control with, a Party to this Agreement . For the purposes of this paragraph, “control” shall mean possession, directly or indirectly, of the power to direct or cause direction of management and policies through ownership of voting securities, contract, voting trust or otherwise;


b. “Agreement” shall mean this master earn-in agreement;



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North Fork LLC / Kisa Gold Mining, Inc. – Master Earn-In Agreement


c. “Area of Interest”  shall mean the area within thirty (30) kilometers of the outer periphery of the Claims as they are constituted on the Effective Date ; provided, however, the Area of Interest shall specifically exclude any claims held by North Fork on the Effective Date and the “BP Claims 1 - 70” as described in Exhibit A attached hereto and incorporated herein and shall further exclude an area within one section in any direction of the BP Claims as constituted on the Effective Date ;


d. “Bankable Feasible Study” shall mean a report, which may be prepared either internally or by an independent third party, to ascertain whether a deposit or deposits of ores on the Claims can profitably be extracted, treated and sold in circumstances that would provide reasonable long term returns to the Parties, and shall include, without limiting the generality of the foregoing, such other information in such form and level of detail as may be appropriate and necessary to allow a bank or other lending institution familiar with the mining industry to make a decision as to whether to loan funds for such operations.


e.  “Claims” shall mean those State of Alaska mining locations identified in Exhibit A, attached hereto and incorporated herein by reference ;


f. “Effective Date” shall mean the date set forth on the preamble to this Agreement ;


g. “Exploration Expense” shall mean expenditures made from and after the Effective Date , in connection with the good faith evaluation, exploration or development of the Claims , whether conducted on or off the Claims , including:

i. Maintaining the Claims in good standing with all governmental agencies, paying fees, wages, salaries and traveling expenses of all persons engaged in exploration thereon and all insurance costs relating to the Claims ;


ii. Acquisition of additional rights or interests in the Claims ;


iii. Searching title and curing title defects, including the purchase of conflicting rights;


iv. Discharging any finder’s fee that may be due or owning as the result of the parties entering into this Agreement ;


v. Acquisition of public and private permits and authorizations required for operations on the Claims , including all costs to acquire or make bonds and deposits to secure or maintain such permits or authorizations and any bond or deposit amount forfeited under circumstances beyond the control of Optionee ; and




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vi. Making payments to Optionors in lieu of Exploration Expenditures pursuant to this Agreement . After making any payments required by law to maintain the Claims in good standing, Optionee may tender to Optionor a cash payment equal to the unfulfilled Exploration Expenditures in full satisfaction thereof if necessary Optionee to maintain this Agreement in effect.


h.  “Force Majeure” shall mean any cause beyond Optionee’s reasonable control, whether or not foreseeable, including law, regulation, action or inaction of government; inability to obtain in a timely manner and on terms reasonably acceptable to Optionee any public or private license, permit or authorization which may be required for compliance with this Agreement or operations in connection with the Claims , including removal and disposal of waters, wastes and tailings and reclamation; fire; explosion; inclement weather (by which is meant unusual weather conditions for the area); earthquake; flood; civil commotion; labor dispute; inability to obtain workmen or material; delay in transportation; and acts of God;


i. “Mineral Products” shall mean all locatable mineral substances occurring naturally on or otherwise derived from the Claims ;


j. “Optionor” shall mean Kisa Gold Mining, Inc. , an Alaska corporation which is  wholly-owned by Gold Crest Mines, Inc ., a Nevada corporation;


k. “Optionee” shall mean North Fork LLC , an Alaska limited liability company;


l. “Project” shall mean an operation undertaken by Optionee on any of the several blocks of Claims that are the subject of this Agreement ;


m. “Purchase Price” shall mean the amount specified in the Preamble to this Agreement ;


n.   “Purpose of this Agreement” shall be to grant Optionee the right to enter onto the Claims , to explore the same and, if warranted, to mine Mineral Products thereon as hereinafter provided;



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II. Representations .


a. Optionee hereto represents to Optionor that:

i. It is a limited liability company duly organized and in good standing in the State of Alaska;


ii. It is qualified to do business in the State of Alaska;


iii. All actions required to authorize it to enter into and perform this Agreement have been properly taken;


iv. It is not and will not be, after the giving of notice and passage of time, in breach or violation of any other agreement or obligation by entering into or performing this Agreement or any transaction contemplated by it;


v. This Agreement has been duly executed and delivered by it; and


vi. This Agreement is valid and binding upon it in accordance with its terms.


b. Optionor jointly and severally represents to Optionee that as of the Effective Date of this Agreement  


i. Kisa , is a corporation duly organized under the laws of the State of Alaska and wholly-owned by Gold Crest Mines, Inc., a corporation duly organized and in good standing under the laws of the State of Nevada ;


ii. Kisa is qualified to do business in the State of Alaska;


iii. Kisa has full power and authority to carry on his business and to enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement ;


iv. Neither the execution and delivery of this Agreement nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated will conflict with, result in the breach of or accelerate the performance required by any agreement to which any of the Optionors is a party or by an Optionor is bound; and




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v. The execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto.


vi. Neither Kisa nor any of its officers or directors have any knowledge of any toxic or hazardous substances on, in or under the Claims ;  


vii. Neither Kisa nor any of its officers or directors have any notice or knowledge of any release or discharge of any toxic or hazardous substance on, in, under, or from the Claims at any time or times;  


viii. Neither Kisa nor any of its officers or directors have any notice or knowledge of any investigation or proceeding by any federal, state or local government or agency thereof that might lead to listing some or all of the Claims under the Comprehensive Environmental Response and Liability Act of 1980, as amended, or any state or local law or regulation dealing with the control of toxic or hazardous substances, materials or wastes;  


ix. Neither Kisa nor any of its officers or directors have any knowledge of any conditions existing on or in respect of the Claims which could give rise to a remediation order or otherwise subject either Party to liability for cleanup or remediation of the environment or for damage to natural resources;


x. Kisa has provided to Optionee all information in order that the Optionee could effectively conduct and complete its due diligence and


xi. All of Kisa’s activities on or in relation to the Claims have been carried out in compliance with all applicable laws, regulations and permits, including those intended to protect the environment.


c. Optionor further represents and warrants that as of the Effective Date :


i. Except as set forth in Exhibit A, Kisa is in exclusive possession of, and are the recorded and beneficial owners of, an undivided 100% interest in and has good and marketable title to the Claims and all rights to all Mineral Products thereon or therein, free and clear of all mortgages, liens, charges, pledges, security interests, prior claims or adverse claims whatsoever; that they has not granted or assigned any interest in the Claims ; the Claims have been properly located and monumented; location and any required validation work has been properly performed; location notices and certificates have been properly and timely recorded or filed;




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North Fork LLC / Kisa Gold Mining, Inc. – Master Earn-In Agreement



all filings required to maintain the Claims in good standing, including evidence of location and assessment work, or the equivalent thereof, under applicable law have been properly made; all assessment work required to hold the Claims has been properly performed (or deferred or excused) through the assessment year ending September 1, 2010; and all required affidavits of assessment work have been properly and timely filed;


ii. The Claims are not subject to any royalties, overriding royalties, production payments, or other payments out of production other than statutory royalties payable to the State of Alaska;


iii. The Claims are not subject to any finder’s fee or any similar obligation and Optionor covenants to discharge any such finder’s fee immediately if claimed;


iv. All rentals, royalties and other payments to the State of Alaska or to any other entity that are required to be paid to hold the Claims in good standing through August 31, 2011, have been paid in a timely manner and any documents that are required to evidence the foregoing have been properly and timely recorded or filed in the appropriate offices;


d. A breach of any one or more of the representations and warranties in this Agreement may be waived in writing by the Party in whose favor they are given in whole or in part at any time without prejudice to that Party’s rights in respect of any other breach of the same or any other representation or warranty.


e. The representations set forth in this Section II shall survive the termination of this Agreement .  


III. Indemnification.  


a. Notwithstanding any other provision of this Agreement , Optionee shall have no liability or obligation of any kind to any Optionor or to any third party for the reclamation or remediation of any environmental or other condition on or relating to the Claims arising from any exploration, mining activities or other activity or use of the Claims prior to the Effective Date . Optionor agrees to defend, indemnify and hold harmless Optionee , its directors, officers, employees and agents from any cost, liability, loss, damage, claim, demand, suit, proceeding, expense or contribution, including attorneys’ fees, arising from or related to any such condition or the reclamation or remediation thereof arising from or relating to activities conducted prior to the Effective Date .  




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b. Optionee shall assume all risk of loss, death, or injury to property or person, which may arise out of or in connection with any accident that may occur on the Claims after the Effective Date . Optionee shall indemnify, defend and save harmless Optionor , its employees and agents


i. from all claims, demands, suits, proceedings, judgments, costs, and expenses on account of any loss or injury which may occur on the Claims caused by Optionee after the Effective Date , except to the extent that such loss or injury was caused by the negligent conduct of Optionor or their employees, agents, or representatives; and


ii. from any liability arising from requirements, levies or fines of any type by any local, state or federal governmental bodies which are incurred by Optionee as a result of Optionee’s operations, actions or omissions on the Claims , including any violation by Optionee of applicable provisions of federal, state or local law intended to protect the environment.  


c. The representations and warranties hereinbefore set out are conditions on which the Parties have relied in entering into this Agreement and will survive the acquisition of any interest in the Claims by the Optionee and each Party will indemnify and save the other harmless from all loss, damage, costs, actions and suits arising out of or in connection with any breach or any representation, warranty, covenant, agreement or condition made by the other Party and contained in this Agreement.


 

IV. Grant.     


Optionor hereby grants unto Optionee the exclusive, complete and unrestricted right to enter, occupy, use, prospect, drill, sample, tunnel, evaluate, and control the Claims in accordance with the Purpose of this Agreement , together with the right to explore for, develop, mine (by open pit, strip, underground, solution mining or any other method, including, but without limitation any method hereafter developed), extract, mill, store, process, remove and market from the Claims all Mineral Products and the right to place thereon, construct, use and remove such structures, facilities, equipment, roadways, haulageways and such other improvements as Optionee may deem necessary, useful or convenient in conducting its operations when or where in Optionee’s sole judgment it is reasonably useful or necessary to do so and to use and consume, for stockpiles, waste dumps, rock or ore in connection with exploration, evaluation and development, so much of the Claims as may be reasonably necessary, useful or convenient for the full enjoyment of the rights herein granted.



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V. Option to Acquire Interest in Project.  


a. Optionor hereby grants an exclusive option to Optionee to acquire a fifty-one percent (51%) interest in one or more Projects , free and clear of any liens, charges, debts, royalties or other encumbrances of any kind whatsoever by making an aggregate of Three Million Dollars ($3,000,000.00) of Exploration Expenditures on or for the benefit of Claims on or before October 31, 2013.  


i. All decisions concerning the allocation of Exploration Expenditures shall be in the sole discretion of Optionee ; provided, however, nothing contained herein shall relieve Optionee from the obligation to keep the Claims in good standing until released as provided in this Agreement .  


ii. Upon the Optionee incurring the Exploration Expenditures in accordance with this Section V(a), Optionor shall convey to Optionee (or such other, related party as Optionee shall designate) a fifty-one percent (51%) interest in the title to such of the Projects or Claims as Optionee shall specify in writing, by executing, acknowledging, and delivering to Optionee a Special Warranty Deed in the form of Exhibit B attached hereto together with any other documents, deeds, instruments or declarations required to fully vest such interest in the Claims in Optionee .   


iii. Optionee shall thereafter have the right in its sole discretion to proceed with further Exploration Expenditures in accordance with Section V(b) or to proceed with a 51/49 Joint Venture with Optionor , as hereinafter provided.


iv. If Optionee elects to withdraw from Joint Venture in one or more of the Projects or Claims prior to earning a fifty-one (51%) interest in that Project or Claim , it will have no further interest in that specific Project or Claim.  


b. Optionor hereby grants an exclusive option to Optionee to acquire an additional twenty-four percent (24%) interest in one or more Projects , free and clear of any liens, charges, debts, royalties or other encumbrances of any kind whatsoever by expending an additional Three Million Dollars ($3,000,000.00) in the aggregate of Exploration Expenditures on or for the benefit of Claims on or before October 31, 2016.  


i. Upon the Optionee incurring the Exploration Expenditures in accordance with this Section V(b), Optionor shall convey to Optionee (or such other,




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related party as Optionee shall designate) an additional twenty-four percent (24%) interest in such of the Projects or Claims as Optionee shall designate in writing, by executing, acknowledging, and delivering to Optionee a Special Warranty Deed in the form of Exhibit B attached hereto together with any other documents, deeds, instruments or declarations required to fully vest  such title and interest in Optionee .  


ii. Optionee shall thereafter have the right in its sole discretion to prepare a Bankable Feasibility Study in accordance with this Section V(c) or to proceed with a 75/25 Joint Venture with Optionor , as hereinafter provided.


c. Optionor hereby further grants an exclusive option to Optionee to acquire an additional fifteen percent (15%) interest in one or more Projects or Claims , free and clear of any liens, charges, debts, royalties or other encumbrances of any kind whatsoever by the completion of a Bankable Feasible Study .  


i. Upon the Optionee completing a Bankable Feasibility Study in accordance with this Section V(c), Optionor shall convey to Optionee (or such other, related party as Optionee shall designate) an additional fifteen percent (15%) interest in the Claims , by executing, acknowledging, and delivering to Optionee a Special Warranty Deed in the form of Exhibit B attached hereto together with any other documents, deeds, instruments or declarations required to fully vest such interest in the Claims in Optionee .


d. Optionee may, in its sole discretion, elect to not go forward with the preparation of a Bankable Feasibility Study with regard to one or more specific Projects , in which case the Joint Venture with regard to that Project shall remain at the 75/25 ownership ratio.


e. Optionor’s interest under this Section V shall be carried by Optionee until, in accordance with this paragraph V(e) a Joint Venture established under this Agreement, at any time after the preparation of a Bankable Feasibility Study , makes a Decision to Mine one or more Projects .  Not later than thirty (30) days after being notified of the Decision to Mine, Optionor shall elect, in writing, whether to have its interests in such Project be converted from a ten percent (10%) carried interest to a ten percent (10%) participating interest or to a two percent (2%) Net Smelter Returns Royalty.




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VI. Additional Covenants.


a. By Optionor. As an integral part of the consideration for this Agreement , Optionor further covenants:


i. not do any act or thing which would or might in any way adversely affect the rights of Optionee hereunder;


ii. to cooperate with and assist Optionee in obtaining approval of a such plans of operations as may be required for operations to be conducted on the Claims under this Agreement;


iii. to cooperate with and assist Optionee , at Optionee’s cost, in obtaining all required federal, state and local permits as may be required for operations to be conducted on the Claims under this Agreement;


iv. to deliver to Optionee a copy of each technical, engineering or geological report relating to the Claims or any of them; and


v. to provide promptly to Optionee any and all notices and correspondence received by the Optionor from government agencies in respect to the Claims  


vi. to cooperate fully with Optionee in obtaining such assurances or other accommodations from third parties to confirm the validity of the title to be conveyed by Optionor to Optionee under this Agreement as Optionee may from time-to-time request.  




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VII. Exploration Expense.  


a. Notwithstanding anything else contained in this Agreement, at all time during the term of this Agreement , Optionee shall do all things and take all steps necessary to keep the Claims in good standing with the State of Alaska.  


b. Unless otherwise agreed, the obligation to pay rental to the State of Alaska with respect to the Claims for any rental year commencing on the Effective Date of this Agreement shall accrue hereunder on the August 1 immediately preceding said September 1, if this Agreement remains in effect on said August 1 but not otherwise.


VIII. Termination by Optionee.  


a. Optionee may elect at any time to terminate this Agreement and its performance hereunder it by conveying all right, title, and interest it may have in the Claims to Optionor .


b. The document by which Optionee conveys its interests in the Claims to Optionors shall be substantially in the form of the deed attached to this Agreement as Exhibit D , and shall provide for title, free and clear of any liens or other encumbrances created or arising as a result of Optionee’s possession and ownership of an interest in the Claims .


c. Except for those obligations which by their terms survive this Agreement and those obligations the due date or incurrence of which precedes the actual date the said deed is delivered to Optionor , upon conveyance of Optionee’s interest in the Claims to Optionors pursuant to this Section, Optionee’s obligations under this Agreement shall terminate.  


d. Upon conveyance of all of Optionee’s interest in the Claims to Optionor pursuant to this Section, Optionee   


i. shall have the right, at its own risk and expense, to remove from the Claims , at any time within one year, all fixtures, personal property and improvements which Optionee has erected or placed thereon, and


ii. shall have the obligation to remove within said year, at its own risk and expense, all fixtures, personal property and improvements which Optionee has erected or placed thereon that are described in a notice delivered by Optionor to Optionee within 90 days after Optionor’s receipt of the conveyance pursuant to this Section; provided, however, that




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any such fixtures, personal property and improvements that were not required to be removed within said year and which were not removed shall become and remain Optionor’s sole property.  


e. Optionee , at its own risk and expense, may post watchmen on the Claims during such one year period; provided, however, that nothing contained in this Agreement shall be construed to prevent Optionor from assuming immediate possession and control of the Claims for the purpose of conducting mineral exploration and development activities thereon or conveying the Claims to third parties so that they may conduct such activities, subject to Optionee’s removal rights hereunder, as limited as provided below.  


f. Optionee shall make such reasonable accommodations with Optionor concerning the location and relocation of personal property left on the Claims , but not abandoned by Optionee , so as not to interfere with the use of the Claims by Optionor as set forth in this Section; provided, however , that if Optionee fails or refuses to relocate any such items within a reasonable time after notice to do so has been received by Optionee , such personal property may be relocated by Optionor at Optionee’s expense.


g. Upon conveyance of Optionee’s interest in the Claims to Optionor as herein provided, all permanent structures on the Claims used or constructed, and abandoned or not removed by Optionee , will be left in a neat, clean, and safe condition and shall become the sole property of Optionor .  


h. Prior to such conveyance, Optionee will close all openings and shafts that it has constructed or used and fence off the same unless otherwise agreed in writing between the parties. Failure of Optionee to fulfill this obligation by the date of conveyance shall constitute authorization for Optionor to do so at Optionee’s expense.


i. Optionee will comply with all laws concerning reclamation and, to the maximum extent practicable, restore the Claims to their original condition; subject to reasonable changes made to the Claims as a consequence the activities undertaken pursuant to this Agreement .  


j. Following conveyance of the Claims to Optionor , Optionee shall promptly deliver to Optionor a copy of all engineering, geologic and factual data obtained from the Claims including assay results, drill hole logs and drill hole location maps which Optionee has obtained or prepared as a result of exploration on the Claims and which has not previously been delivered to Optionor . Optionee




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makes no representation or warranty as to the accuracy or utility of such data and shall have no liability of any kind for any use of or reliance thereon by Optionor .  


IX. Default; Termination by Optionor.


a. Subject to Section IX(b), in the event of a material default by Optionee under the provisions of this Agreement other than a default in the obligation to maintain the Claims in good standing, Optionor shall have the right at any time to give written notice of the default to Optionee .  


b. Optionee shall have thirty (30) days after the date such notice is received within which either (i) to commence to cure and thereafter continue with reasonable diligence to cure the alleged default or (ii) to contest the claim.


c. If Optionee fails to contest the claim or to commence to cure the alleged default within thirty (30) days after receipt of such notice, Optionor may elect to terminate this Agreement , in which case Optionee shall promptly convey all of its right, title and interest in the Claims to Optionor .  


d. If Optionee contests the alleged default and is found to be in default, it shall commence to cure the default within thirty (30) days after the decision and thereafter continue with reasonable diligence to cure the default.


e. If Optionee fails to complete curative action with reasonable diligence Optionor may terminate this Agreement , in which case Optionee shall promptly convey all of its right, title and interest in the Claims to Optionor .  


f. Notwithstanding the foregoing, if the alleged default relates to Optionee’s failure i) to pay money when due, or ii) to maintain the Claims in good standing, and if Optionor seeks judicial redress in any court of competent jurisdiction, the only question which shall be laid before the court shall be how much money, if any, is due Optionor. If the court finds that Optionee is in default and awards a judgment against Optionee , Optionee shall make the appropriate disbursal within thirty (30) business days after the date decision becomes final.


g. Recovery of title pursuant to this Section, due to Optionee’s material default and failure to cure such default, shall not be in lieu of any other remedies that might otherwise be available to Optionors .


h. Optionors hereby acknowledge that Optionee does not have and never shall have any express or implied obligation to explore, develop, or mine the Claims .




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X. Operations.


a. Optionee will perform all acts and do all things consistent with the Purpose of this Agreement including:


i. Conducting all of its operations on the Claims in a sound and minerlike manner;


ii. Maintaining adequate Workers’ Compensation Insurance;


iii. Maintaining adequate public liability insurance;


iv. Naming Optionor as an additional insureds on such liability policies and providing Optionor with proof of such insurance upon request;


v. Obtaining all licenses, permits and bonds required by law for the use of or operations on the Claims ; and


vi. Reclaiming the Claims from the effects of Optionee’s activities to the extent required by applicable law.


b. Optionor and their authorized agents shall, at Optionor’s sole risk and expense, have the right to inspect the Claims and such books and records relating to operations being conducted on the Claims , wherever they may be found, for the purpose of confirming that Optionee is complying with its obligations under this Agreement . All such inspections shall be:


i. made upon reasonable prior notice to Optionee , such notice to be not less than five (5) days;


ii. conducted in a reasonable manner, conforming to such of Optionee’s rules and regulations as are generally applicable to Optionee’s employees; and


iii. carried out in such a manner as not to interfere with Optionee’s operations.  


c. Optionee shall not permit or create a mortgage, lien or other encumbrance upon the Claims prior to the exercise of the Option to Purchase , except that Optionee shall have the right to encumber its interest under this Agreement for the purposes of financing mining operations hereunder.  




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d. Optionee agrees to post appropriate notices to contractors and materialmen on the Claims advising them of the non-liability of Optionor for work performed and materials provided to the site.  


e. In the event a mortgage, lien, or other encumbrance is attached to the Claims for reasons other than financing the mining operations thereon, Optionee shall promptly cause the removal of same, and upon failure to do so, Optionor may pay the sums legally necessary to discharge said mortgage, lien or encumbrance and recover such sums from Optionee .  


f. Optionee , at its option, may discharge any royalty, tax, mortgage, lien or other encumbrance legally imposed or existing against Optionor’s interest in the Claims, either in whole or in part and, in such event, Optionee shall be subrogated to such discharged tax, mortgage, lien or other encumbrance with the right to enforce the same against any obligation accruing hereunder toward satisfying same.


XI. Joint Venture


The Claims that are the subject of this Agreement consist of several discrete Projects, each of which potentially could host on or more mineable resources.  As appropriate, and from time-to-time, the Parties hereto agree to enter into agreements governing the operations on each Project as appropriate.  Those agreements will be substantially in the form set forth in Exhibit D. At all times during the Term of this Agreement, Optionee shall be the sole manager of all operations conducted on the Claims and will make all decisions with regard to Exploration Expenditures.


XII. Maintenance of Claims.


a. During the term of this Agreement , Optionee


i. shall pay such fees and perform such acts and obligations and make such recordings and filings as it has become obligated to pay, perform, or make and that otherwise may be required to maintain the Claims in good standing in compliance with all applicable laws and regulations of the State of Alaska; and


ii. shall provide to Optionor evidence of satisfaction of the same not later than (A) August 1 of each assessment work year (in the case of any accrued obligation to perform adequate assessment work during said assessment work year), (B) not later than November 1 (in the case of any accrued obligation to pay rental due under AS38.05.211, and (C) 30 days




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prior to the date any other such payment, act, obligation, recording, or filing is required to be completed.


b. If Optionee fails to comply timely in any respect with Section XI(a) above, Optionors shall have the right  


i. to give Optionee written notice of the alleged failure; and, thereafter,  


ii. to enter on the Claims (if the failure is the failure to perform sufficient assessment work) and perform the required assessment work, record or file the required documents, or make the required payments, as the case may be, all at Optionee’s expense.


c. Optionee may amend or relocate the Claims and may convert any of the Claims , to a State of Alaska mining lease or leases. All rights so acquired by Optionee shall be part of the Claims for the Purposes of this Agreement . In the event of the termination of this Agreement , Optionee shall convey all of its right, title and interest so obtained to Optionor .


d. Optionor agrees to cooperate with Optionee and to take such reasonable actions, execute and deliver such reasonable documents, and otherwise provide such reasonable assistance as may be useful or necessary to permit Optionee to comply with the provisions of this Section.


XIII. Force Majeure; Delay.


a. If Optionee shall be prevented by Force Majeure from timely performance of any obligations under this Agreement other than the obligation to maintain the  Claims in good standing, the failure shall be excused and the period for performance shall be extended for a period equal to the duration of the condition constituting Force Majeure .  


b. Optionee shall promptly give Optionor notice of commencement and termination of Force Majeure . Optionee shall use reasonable diligence to remove Force Majeure but shall not be required to institute legal proceedings, settle any labor dispute or challenge the validity of any law, regulation, action or inaction of government.


XIV. Notices.  


a. All payments, notices and other communications to either Party shall be in writing and delivered personally; sent by certified or registered prepaid mail, return




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receipt requested; sent by fax; sent by email; sent by courier; or sent by any other means providing for receipt of the communication in written form.  


b. Notices delivered personally, sent by certified mail or registered mail, or sent by courier shall be effective on the next business day after the date of actual delivery.  


c. Notices sent by fax or sent by email shall be effective on the next business day after the day of transmission, provided that the sending Party has received electronic confirmation of successful transmission.  


d. Until a change of address is given in accordance with the provisions of this Section, notices shall be addressed to Optionee and Optionor , respectively:  


If to Optionee :

North Fork LLC

North Fork Resources Pty Ltd.  

PO Box 284

West Perth, WA 66872

AUSTRALIA

Email:   akelly@dorayminerals.com.au

Attention:  Allan Kelly, Manager

Phone No: 61 8 9226 0600

 

with copy to:

J. P. Tangen

Attorney at Law (P.C.)

1600 A Street, Suite 310

Anchorage, AK 99501

USA

Phone No:  (907) 222-3985

Email:    jpt@jptangen.com

If to Optionors :


Kisa Gold Mining, Inc.

724 East Mettler Lane

Spokane, WA 99216

USA

Attn:  Terrence J. Dunne, Secretary

Phone No.:  (509) 893-0171    

Email:  dunneterrencej@qwestoffice.net

   



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XV. Assignment.  


Any party may assign its interest under this Agreement , in whole or in part, at any time to an Affiliate or to an unrelated, qualified third party; provided, however, that if any such assignment is to an Affiliate the assigning Party shall remain a guarantor of the performance of that Affiliate ; and provided further , that if any such assignment is to a qualified unrelated third party such assignment will not be effective until thirty (30) days after the non-assigning Party had received actual notice of the assignment and, if requested, competent evidence of the assignee’s qualifications. The non-assigning third party may be deemed unqualified by the non-assigning party if it lacks the financial or technical capacity to perform it obligations under this Agreement , in which case the assigning Party shall remain as a guarantor of the performance of the assignee.


XVI. Confidentiality.  


Optionor agrees that all information developed or acquired as a result of activities by Optionee under this Agreement , including but not limited to information relating to mineral discoveries, ore reserves, mining methods, plans and production schedules and other information, including the terms of this Agreement , shall be kept strictly confidential and shall not be released or made public without Optionee’s express prior written consent during the time that this Agreement is in effect.


XVII. Miscellaneous.


a. The parties shall execute and record a memorandum of this Agreement substantially on the form of Exhibit E in order to provide notice of this Agreement to third parties


b. This Agreement will be governed by and construed in accordance with the laws of the State of Alaska.   


c. All references to money refer to U. S. Dollars.


d. This Agreement contains the entire understanding between the Parties relating to its subject matter and supersedes any prior or contemporaneous Agreement s, commitments, representations, writings and discussions relating thereto, whether oral or written, express or implied and may only be amended in writing and signed by each Party.




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e. This Agreement shall not be construed to contain any implied consideration, warranties, representations, or covenants, including any implied obligation of Optionee to explore, mine or otherwise work the Claims , beyond the specific undertakings set forth herein and is not intended to create any partnership between the parties.


f. If any provision of this Agreement is determined to be unenforceable pursuant to a judicial proceeding, the remainder shall remain in full force and effect.


g. The Parties agree that they will execute such further agreements, conveyances and assurances as the parties may deem necessary to carry out the Purpose of this Agreement .


h. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.


i. Time is of the essence in this Agreement .


j. The headings and subheadings set forth in this Agreement are for ease of reference only and are not intended to be used in construing the meaning of the provisions hereof.


k. This Agreement may be signed in counterparts and delivered electronically.


EFFECTIVE as of the date initially set forth above.

 

North Fork LLC, Optionee

 

 

       By: ______________________________

        Allan Kelly, Manager

      

         

Kisa Gold Mining, Inc. Optionor

 

By: _______________________________

        Terrence J. Dunne, Secrerary

 



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Exhibit 31.1

Certification pursuant to rules 13a-14(a) and 15d-14(a), as

adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002


Principal Executive Officer


I, John P. Ryan, certify that:


(1) I have reviewed this quarterly report on Form 10-Q of Gold Crest Mines, Inc.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:   May 18, 2011

/s/ John P. Ryan                              

    

John P. Ryan

        

          

Chief Executive Officer


Exhibit 31.2

Certification pursuant to rules 13a-14(a) and 15d-14(a), as

adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002


Principal Financial Officer


I, Matt J. Colbert, certify that:


(1) I have reviewed this quarterly report on Form 10-Q of Gold Crest Mines, Inc.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:   May 18, 2011

/s/        Matt J. Colbert

Matt J. Colbert

Chief Financial Officer


Exhibit 32.1


CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


I, John P. Ryan, President and CEO of Gold Crest Mines, Inc. (“the “Registrant”) do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:


1.

This quarterly report on Form 10-Q of the Registrant for the period ended March 31, 2011, as filed with the Securities and Exchange Commission (the “report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2.

The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.


Date:  May 18, 2011


/s/ John P. Ryan                                               

John P. Ryan

Chief Executive Officer




Exhibit 32.2


CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


I, Matt J. Colbert, Chief Financial Officer of Gold Crest Mines, Inc. (“the “Registrant”) do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:


1.

This quarterly report on Form 10-Q of the Registrant for the period ended March 31, 2011, as filed with the Securities and Exchange Commission (the “report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2.

The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.


Date:  May 18, 2011


/s/        Matt J. Colbert_____  

            Matt J. Colbert

            Chief Financial Officer