XIANA MINING INC. (ifrs-full:DisclosureOfIncomeTaxExplanatory)

12.	INCOME TAXES

A reconciliation of income taxes at Canadian statutory rates of

26.08%

(

2017

26.00%;

2016

26.00%

) with the reported taxes is as follows for the years ended

January 31:

	2018			2017			2016

Loss before income tax	$	(285,490	)	$	(1,807,330	)	$	(74,072	)
Canadian statutory rate		26.08	%		26.00	%		26.00	%

Expected income tax recovery		(74,455	)		(469,906	)		(19,259	)
Difference in foreign tax rates		-			-			(34,591	)
Other temporary differences		(6,549	)		384,083			-
Tax effect of foreign exchange on assets and liabilities		-			-			561,476
Effect on change in tax rates		(148,288	)		-			-
Adjustment to tax losses provided from prior years		(44,862	)		54,112			-
Unused tax losses and tax offsets not recognized as deferred tax asset		274,154			31,711			(507,626	)
	$	-		$	-		$	-

Effective

January 1, 2018,

British Columbia increased the province

’s general corporate income tax rate to

12%

(

2017

–

11%;

2016

–

11%

). The combined corporate income tax rate, prorated for the increase in tax rate, is

26.08%

(

2017

–

26.00%;

2016

–

26.00%

The Company recognizes tax benefits on losses or other deductible amounts generated in countries where probable

the Company will generate taxable income to recognize deferred tax assets. The balance of tax assets resulting from the Company’s unrecognized deductible temporary differences and unused tax losses consist of the following amounts:

	2018		201 7

Carrying value less than income tax basis of interest in exploration properties	$	5,410,000	$	5,410,000
Carrying value less than income tax basis of fixed assets		53,000		53,000
Non-capital losses carried forward		9,381,000		9,067,000
Capital losses carried forward		42,000		42,000
	$	14,886,000	$	14,572,000

The deductible temporary differences do

not

expire and the

non-capital tax losses expire as follows:

Available to	Canada		Foreign		Total

2027	$	50,000	$	-	$	50,000
2028		150,000		-		150,000
2029		871,000		-		871,000
2030		1,899,000		-		1,899,000
2031		2,229,000		-		2,229,000
2032		1,843,000		-		1,843,000
2033		704,000		-		704,000
2034		486,000		-		486,000
2035		310,000		-		310,000
2036		173,000		-		173,000
2037		352,000		-		352,000
2037		314,000				314,000
	$	9,381,000	$	-	$	9,381,000

XIANA MINING INC. | CIK:0001126932 |

ifrs-full:DisclosureOfIncomeTaxExplanatory