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EX-32.1 - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - IRELAND INC.exhibit32-1.htm
EX-32.2 - CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER - IRELAND INC.exhibit32-2.htm
EX-31.2 - CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER - IRELAND INC.exhibit31-2.htm
EXCEL - IDEA: XBRL DOCUMENT - IRELAND INC.Financial_Report.xls
EX-31.1 - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - IRELAND INC.exhibit31-1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 September 30, 2011

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

For the transition period from ________to ________

COMMISSION FILE NUMBER 000-50033

IRELAND INC.
(Exact name of registrant as specified in its charter)

NEVADA 91-2147049
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
   
2441 West Horizon Ridge Parkway, Suite 100  
Henderson, Nevada 89052
(Address of principal executive offices) (Zip Code)

(702) 932-0353
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 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.
[ x ] Yes     [   ] 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).
[ x ] Yes     [   ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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     [ x ] No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
As of November 9, 2011, the Registrant had 127,452,641 shares of common stock
outstanding.


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that can be expected for the year ending December 31, 2011.

As used in this Quarterly Report, the terms “we,” “us,” “our,” “Ireland,” and the “Company” mean Ireland Inc. and its subsidiaries, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

2



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
CONSOLIDATED BALANCE SHEETS

    (Unaudited)        
    September 30, 2011     December 31, 2010  
             
ASSETS    
             
Current assets            
   Cash $  1,625,471   $  1,602,179  
   Short-term investments   -     878,608  
   Other receivables   20,989     30,000  
   Prepaid expenses   74,730     258,095  
   Deposits - related party   195,000     -  
             
       Total current assets   1,916,190     2,768,882  
             
Property and equipment, net   3,543,971     4,081,820  
Mineral properties   31,948,053     31,948,053  
Restricted investments held for reclamation bonds   1,194,533     -  
Reclamation bonds   40,000     908,368  
Deposits   2,200     22,200  
             
       Total non-current assets   36,728,757     36,960,441  
             
       Total assets $  38,644,947   $  39,729,323  
             
LIABILITIES AND STOCKHOLDERS' EQUITY   
             
Current liabilities            
   Accounts payable $  102,453   $  90,783  
   Accounts payable - related party   -     67,190  
   Accrued payroll and related taxes   68,064     45,875  
   Due to related party   23,290     23,290  
             
       Total current liabilities   193,807     227,138  
             
Long-term liabilities            
   Accrued reclamation and remediation costs   572,338     275,338  
   Deferred income taxes   3,334,597     5,402,258  
             
       Total long-term liabilities   3,906,935     5,677,596  
             
       Total liabilities   4,100,742     5,904,734  
             
Commitments and contingencies - Note 9   -     -  
             
Stockholders' equity            
   Common stock, $0.001 par value; 400,000,000 shares
       authorized, 127,452,641 and 122,434,442
       shares, respectively, issued and outstanding
 

127,452
   

122,434
 
   Additional paid-in capital   51,930,257     48,299,851  
   Accumulated other comprehensive income (loss)   25,557     (614 )
   Accumulated deficit during exploration stage   (17,539,061 )   (14,597,082 )
             
       Total stockholders' equity   34,544,205     33,824,589  
             
       Total liabilities and stockholders' equity $  38,644,947   $  39,729,323  

See Accompanying Notes to these Consolidated Financial Statements
F-1



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

                            For the period from  
                            February 20, 2001  
                            (date of inception)  
    For the Three Months Ended     For the Nine Months Ended     through  
    September 30, 2011     September 30, 2010     September 30, 2011     September 30, 2010     September 30, 2011  
                               
                               
Revenue $  -   $  -   $  -   $  -   $  -  
                               
Operating expenses                              
 Mineral exploration and evaluation expenses   760,890     1,077,039     2,187,861     1,887,936     11,515,013  
 Mineral exploration and evaluation expenses - related party   122,296     136,827     396,346     423,641     2,979,465  
 General and administrative   632,353     698,765     1,796,402     2,252,184     8,234,376  
 General and administrative - related party   -     -     2,000     21,066     23,066  
 Depreciation   206,312     181,009     613,670     370,521     1,233,453  
 Mineral and property holding costs   23,750     15,000     53,750     45,000     524,250  
 Mineral and property holding costs - reimbursed to related party   -     -     -     -     295,000  
 Write-off of mineral rights   -     -     -     -     14,000  
                               
     Total operating expenses   1,745,601     2,108,640     5,050,029     5,000,348     24,818,623  
                               
Loss from operations   (1,745,601 )   (2,108,640 )   (5,050,029 )   (5,000,348 )   (24,818,623 )
                               
Other income (expense)                              
 Interest income   11,691     9,310     25,787     27,223     344,677  
 Interest expense   -     (234 )   -     (3,728 )   (5,983 )
                               
     Total other income (expense)   11,691     9,076     25,787     23,495     338,694  
                               
Loss before income taxes   (1,733,910 )   (2,099,564 )   (5,024,242 )   (4,976,853 )   (24,479,929 )
                               
Income tax benefit   1,173,643     564,611     2,082,263     1,343,760     6,940,868  
                               
Net loss $  (560,267 ) $  (1,534,953 ) $  (2,941,979 ) $  (3,633,093 ) $  (17,539,061 )
                               
Loss per common share - basic and diluted $  (0.00 ) $  (0.01 ) $  (0.02 ) $  (0.03 )      
                               
Weighted average common shares outstanding - basic and diluted   127,452,641     121,934,442     124,741,033     121,368,545      

See Accompanying Notes to these Consolidated Financial Statements
F-2



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
AND COMPREHENSIVE LOSS
(UNAUDITED)

                            Accumulated     Accumulated        
                      Common     Other     Deficit During     Total  
    Common Stock     Additional     Stock     Comprehensive     Exploration     Stockholders'  
    Shares     Amount     Paid-in Capital     Subscribed     Income (Loss)     Stage     Equity  
Balance, December 31, 2009   110,899,442   $  110,899   $  42,099,452   $  162,000   $  -   $  (9,906,028 ) $  32,466,323  
Stock-based compensation   -     -     892,928     -     -     -     892,928  
Sale of shares for cash, net of issuance costs   11,035,000     11,035     4,942,972     (162,000 )   -     -     4,792,007  
Unrealized gain on investments, net of $8,018 deferred tax   -     -     -     -     14,890     -     14,890  
Net loss, September 30, 2010   -     -     -     -     -     (3,633,093 )   (3,633,093 )
Balance, September 30, 2010   121,934,442   $  121,934   $  47,935,352   $  -   $  14,890   $  (13,539,121 ) $  34,533,055  
Balance, December 31, 2010   122,434,442   $  122,434   $  48,299,851   $  -   $  (614 ) $  (14,597,082 ) $  33,824,589  
Stock-based compensation   -     -     877,870     -     -     -     877,870  
Sale of shares for cash, net of issuance costs   5,018,199     5,018     2,752,536     -     -     -     2,757,554  
Unrealized gain on investments, net of deferred tax $14,271   -     -     -     -     26,171     -     26,171  
Net loss, September 30, 2011   -     -     -     -     -     (2,941,979 )   (2,941,979 )
Balance, September 30, 2011   127,452,641   $  127,452   $  51,930,257   $  -   $  25,557   $  (17,539,061 ) $  34,544,205  

See Accompanying Notes to these Consolidated Financial Statements
F-3



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

                For the period from  
                February 20, 2001  
                (date of inception)  
    For the Nine Months Ended     through  
    September 30, 2011     September 30, 2010     September 30, 2011  
CASH FLOWS FROM OPERATING ACTIVITIES                  
   Net loss $  (2,941,979 ) $  (3,633,093 ) $  (17,539,061 )
   Adjustments to reconcile loss from operating to net cash used in operating activities:            
           Depreciation   613,670     370,521     1,233,453  
           Write-off of mineral rights   -     -     14,000  
           Stock-based expenses   877,870     892,928     3,770,193  
                   
   Changes in operating assets and liabilities:                  
           Other receivables   9,011     (30,000 )   (20,989 )
           Prepaid expenses and deposits   (11,635 )   (49,859 )   (419,804 )
           Reclamation bonds and other deposits   888,368     -     (10,940 )
           Accounts payable and accrued liabilities   (33,331 )   211,152     66,915  
           Deferred income taxes   (2,082,263 )   (1,343,760 )   (6,940,868 )
           Accrued reclamation and remediation costs   297,000     -     572,338  
                   
 Net cash used in operating activities   (2,383,289 )   (3,582,111 )   (19,274,763 )
                   
CASH FLOWS FROM INVESTING ACTIVITIES                  
   Purchase of property and equipment   (75,821 )   (818,644 )   (4,651,578 )
   Purchase of restricted investments held for reclamation bonds   (275,152 )   (875,724 )   (1,154,705 )
                   
   Net cash used in investing activities   (350,973 )   (1,694,368 )   (5,806,283 )
                   
CASH FLOWS FROM FINANCING ACTIVITIES                  
   Proceeds from stock issuance   2,760,009     4,965,750     27,240,719  
   Proceeds from option issuance   -     -     20,000  
   Stock issuance costs   (2,455 )   (11,743 )   (562,492 )
   Common stock subscribed   -     (162,000 )   -  
   Proceeds from borrowings - related party   -     -     8,290  
                   
   Net cash provided by financing activities   2,757,554     4,792,007     26,706,517  
                   
NET CHANGE IN CASH   23,292     (484,472 )   1,625,471  
                   
CASH AT BEGINNING OF PERIOD   1,602,179     3,651,015     -  
                   
CASH AT END OF PERIOD $  1,625,471   $  3,166,543   $  1,625,471  
                   
                   
                   
SUPPLEMENTAL INFORMATION                  
                   
Interest paid $  -   $  3,728   $  5,983  
                   
Income taxes paid $  -   $  -   $  -  
                   
Non-cash investing and financing activities:                  
                   
   Assets acquired for common stock and warrants issued for mineral properties $  -   $  -   $  21,584,351  
                   
   Net deferred tax liability assumed $  -   $  -   $  10,261,194  

See Accompanying Notes to these Consolidated Financial Statements
F-4



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.

DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES

Description of business - Ireland Inc. (the “Company”) is considered an exploration stage company since its formation and the Company has not yet realized any revenues from its planned operations. The Company is primarily focused on the acquisition and exploration of mining properties. Upon identification of commercially minable reserves, the Company expects to actively prepare the site for its extraction and enter the development stage.

History - The Company was incorporated on February 20, 2001 under the laws of the State of Nevada under the name Merritt Ventures Corp. On December 19, 2005, the Company changed its name to Ireland Inc.

Basis of presentation - The interim financial statements present the consolidated balance sheets, statements of operations, stockholders’ equity and comprehensive income, and cash flows of the Company. These consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”).

These consolidated financial statements have been prepared without audit in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments and disclosures necessary for the 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 consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 30, 2011.

Going concern - The accompanying financial statements have been prepared assuming the Company will continue as a going concern.

Since its formation, the Company has incurred comprehensive cumulative net losses of $17,513,504 as of September 30, 2011. This amount is comprised of net loss from operations of $17,539,061 and other comprehensive income of $25,557. The Company has not commenced its commercial mining and mineral processing operations; rather, it is still in the exploration stage, raising substantial doubt about the Company’s ability to continue as a going concern. The Company will seek additional sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful in accomplishing its objectives.

The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Principles of consolidation - The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Columbus Minerals Inc. (“CMI”) (including its wholly-owned single-member LLC subsidiary Columbus Salt Marsh LLC (“CSM”)) and Rand Metals LLC (“Rand”). Intercompany accounts and transactions have been eliminated.

F-5



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.

DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (continued)

Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions include the valuation of stock-based compensation, impairment analysis of long-lived assets, accrued reclamation and remediation costs and the realizability of deferred tax assets. Actual results could differ from those estimates.

Fair value of financial instruments - Fair value accounting establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2

Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The Company’s financial instruments consist of restricted investments in U.S. Treasury Notes and certificates of deposit. These investments are classified within Level 1 of the fair value hierarchy as their fair value is determined using quoted prices in active markets.

Restricted investments held for reclamation bonds - Restricted investments serve as collateral for reclamation bonding. The investments are classified as available for sale and are recorded at fair value based on quoted market prices with the unrealized gains and losses reflected in accumulated other comprehensive income until realized. Realized gains and losses are determined on a specific identification method and are recognized in the consolidated statement of operations.

The Company evaluates unrealized losses, if any, in its investment securities for other-than temporary impairment using both qualitative and quantitative criteria. In the event that an investment is determined to be other-than-temporarily impaired, the Company recognizes the loss in the consolidated statement of operations.

Mineral properties - Costs of acquiring mineral properties are capitalized upon acquisition. Exploration costs and costs to maintain mineral properties are expensed as incurred while the project is in the exploration stage. Development costs and costs to maintain mineral properties are capitalized as incurred while the property is in the development stage. When a property reaches the production stage, the related capitalized costs are amortized using the units-of-production basis over the proven and probable reserves. Mineral properties are assessed for impairment when circumstances indicate that the carrying amount may not be recoverable. Impairment losses are charged to operations at the time of impairment. When a property is sold or abandoned, a gain or loss is recognized and included in the consolidated statement of operations.

F-6



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.

DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (continued)

Mineral exploration and development costs - Exploration expenditures incurred prior to entering the development stage are expensed and included in “Mineral exploration and evaluation expenses”.

Property and equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

Impairment of long-lived assets - The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. If the sum of the estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. Future cash flows are estimated based on quantities of recoverable minerals, expected commodity prices, production levels, operating costs, capital requirements and reclamation costs. The Company also considers its continued right to explore the property, exploration reports, drill results, technical reports and continued plans to fund exploration programs on the property. Any impairment loss is measured by comparing estimated future net cash flows on a discounted basis to the carrying amount of the asset. To date, no such impairments have been identified.

The Company’s estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, commodity prices, and production levels and costs are each subject to significant risks and uncertainties.

Reclamation and remediation costs (asset retirement obligation) - The Company records a liability for the present value of the estimated costs associated with environmental remediation obligations in the period in which the liability is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset. The liability will be accreted, and the asset will be depreciated over their expected useful lives. As reclamation work is performed or liabilities are otherwise settled, the recorded amount of the liability will be reduced.

Future reclamation and environmental-related expenditures are difficult to estimate in many circumstances due to the early stage nature of the exploration project, the uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities and changes in reclamation or remediation technology. The Company periodically reviews accrued liabilities for such reclamation and remediation costs as evidence indicating that the liabilities have potentially changed becomes available. Changes in estimates are reflected in the consolidated statement of operations in the period an estimate is revised.

The Company is in the exploration stage and is unable to determine the estimated timing of expenditures relating to reclamation accruals. It is reasonably possible that the ultimate cost of reclamation and remediation could change in the future and that changes to these estimates could have a material effect on future operating results as new information becomes known.

F-7



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.

DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (continued)

Per share amounts - Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. In computing diluted earnings per share, the weighted average number of shares outstanding is adjusted to reflect the effect of potentially dilutive securities, such as stock options and warrants. In these financial statements, stock options and warrants are not considered in the computation of diluted earnings per share as their inclusion would be anti-dilutive for the periods presented. Excluded stock options and warrants amounted to 39,014,456 and 36,670,762 as of September 30, 2011 and 2010, respectively.

Stock-based compensation - Stock-based compensation awards are recognized in the financial statements based on the grant date fair value of the award which is estimated using the Binomial Lattice option pricing model. The Company believes that this model provides the best estimate of fair value due to its ability to incorporate inputs that change over time, such as volatility and interest rates, and to allow for the actual exercise behavior of option holders. The compensation cost is recognized over the requisite service period which is generally equal to the vesting period. Upon exercise, shares issued will be newly issued shares from authorized common stock.

The fair value of performance-based stock option grants is determined on their grant date through use of the Binomial Lattice option pricing model. The total value of the award is recognized over the requisite service period only if management has determined that achievement of the performance condition is probable. The requisite service period is based on management’s estimate of when the performance condition will be met. Changes in the requisite service period or the estimated probability of achievement can materially affect the amount of stock-based compensation recognized in the financial statements.

The fair value of market-based stock option grants is determined on their grant date through use of an option pricing model which uses a combination of Monte Carlo simulation and a Trinomial Lattice function. The requisite service period for market-based awards is derived from the model. Achievement of the market condition earlier than estimated can materially affect the amount of stock-based compensation recognized in the financial statements.

Income taxes - The Company follows the liability method of accounting for income taxes. This method recognizes certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset as measured by the statutory tax rates in effect. The effect of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.

For acquired properties that do not constitute a business, a deferred income tax liability is recorded on GAAP basis over income tax basis using statutory federal and state rates. The resulting estimated future income tax liability associated with the temporary difference between the acquisition consideration and the tax basis is computed in accordance with Accounting Standards Codification (“ASC”) 740-10-25-51, Acquired Temporary Differences in Certain Purchase Transactions that Are Not Accounted for as Business Combinations, and is reflected as an increase in the total purchase price which is then applied to the underlying acquired assets in the absence of there being a goodwill component associated with the acquisition transactions.

F-8



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.

DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (continued)

Recent accounting standards - From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. The Company has evaluated all the recent accounting pronouncements and unless otherwise discussed, believes they will not have a material effect on the financial statements.

In June 2011, the FASB issued amended standards to increase the prominence of items reported in other comprehensive income. These amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and require that all changes in stockholders’ equity, except investments by, and distributions to, owners, be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, these amendments require presentation, on the face of the financial statements, of reclassification adjustments for items that are reclassified from other comprehensive income to net income. These new standards are effective beginning in the first quarter of 2012 and are to be applied retrospectively. These amended standards will impact the presentation of other comprehensive loss but will not impact our financial position or results of operations.

F-9



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

2.

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

      September 30, 2011     December 31, 2010  
            Accumulated     Net book           Accumulated     Net book  
      Cost     depreciation     value     Cost     depreciation     value  
                                       
  Furniture and fixtures $ 20,854   $ (6,611 ) $ 14,243   $ 20,854   $ (4,376 ) $ 16,478  
  Computers and equipment   45,370     (32,667 )   12,703     41,165     (29,154 )   12,011  
  Land   30,000     -     30,000     30,000     -     30,000  
  Site improvements   2,925,731     (775,223 )   2,150,508     2,934,409     (365,718 )   2,568,691  
  Site equipment   1,231,872     (332,780 )   899,092     1,151,578     (175,401 )   976,177  
  Vehicles   23,595     (15,337 )   8,258     23,595     (11,798 )   11,797  
  Building   500,000     (70,833 )   429,167     500,000     (33,334 )   466,666  
                                       
    $ 4,777,422   $ (1,233,451 ) $ 3,543,971   $ 4,701,601   $ (619,781 ) $ 4,081,820  

Depreciation expense was $613,670 and $370,521 for the nine month periods ended September 30, 2011 and 2010, respectively.

   
3.

MINERAL PROPERTIES

   

Columbus Project - As of December 31, 2007, the Company had earned a 15% interest in the Columbus Project by satisfying its option agreement requirements and had the right to merge with the corporation holding the remaining 85% interest in the Columbus Project in Esmeralda County, Nevada.

   

Pursuant to the option assignment agreement dated March 30, 2007, as amended August 8, 2007, the Company granted a 5% net smelter return royalty to Nanominerals Corp (“NMC”), one of the principal stockholders of the Company.

   

On February 20, 2008, the Company, through its wholly-owned subsidiary CMI, acquired a 100% interest in the Columbus Project, including an option for additional mining claims, by way of merger with the owner of the Columbus Project, Columbus Brine Inc. (“CBI”). Under the terms of the Merger Agreement, the Company issued an aggregate of 10,440,087 shares of its common stock and 5,220,059 share purchase warrants to the former shareholders of CBI. Each share purchase warrant issued by the Company entitles the holder to purchase one additional share of the Company’s common stock at a price of $2.39 per share for a period of 5 years. This acquisition supersedes the option agreement.

   

The Company believes that the acquisition of the Columbus Project was beneficial because it provides for 100% ownership of the properties and fosters greater opportunity to finance and further develop the project.

   

This merger was treated as a statutory merger for tax purposes whereby CMI was the surviving merger entity.

F-10



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

3.

MINERAL PROPERTIES (continued)

The Company applied ASC 805-10-25-1 (formerly Emerging Issues Task Force (“EITF”) 98-03) with regard to the acquisition of the Columbus Project. The Company determined that the acquisition of the Columbus Project did not constitute an acquisition of a business, as that term is defined in ASC 805-10-55-4, and the Company recorded the acquisition as a purchase of assets.

As required by ASC 930-805-30, Mining – Business Combinations – Initial Recognition, and ASC 740-10-25-49-55, Income Taxes – Overall – Recognition – Acquired Temporary Differences in Certain Purchase Transactions that Are Not Accounted for as Business Combinations, the purchase price of $32 million was allocated to the assets acquired and liabilities assumed based on their respective fair values at the date of acquisition. The purchase price allocated to the real properties was based on fair market values determined using an independent real estate appraisal firm (Arden Salvage Company), and the fair value of the remaining assets acquired and liabilities assumed were based on management’s best estimates taking into account all available information at the time.

Pursuant to the terms of the acquisition of CBI, the Company issued an aggregate of 10,440,087 shares of common stock and 5,220,059 share purchase warrants to the former shareholders of CBI. Each share purchase warrant issued by the Company entitles the holder to purchase one additional share of the Company’s common stock at a price of $2.39 per share for a period of 5 years. Each warrant provides the holder with a cashless right of exercise. If the holder chooses to utilize this cashless exercise right, the total number of shares that the holder will be entitled to exercise will be determined by the following formula: [( A B ) C ] ÷ A where:

A = the average closing price of the Company’s common stock during the five trading days prior to exercise.

B = the exercise price of $2.39.

C = the maximum number of shares of the Company’s common stock issuable upon exercise of the warrants.

If the holder chooses to utilize the cashless exercise right, the holder must do so with respect to all of the unexercised warrants held by him.

The Company will have the right to accelerate the expiration date of the warrants at any time after August 19, 2010 if the average closing price of the Company’s common stock over any 20 consecutive trading days is equal to or greater than 150% of the exercise price. If the Company exercises this acceleration right, the expiration date for the warrants will be accelerated to 30 days after the Company sends out notice that it is exercising the acceleration right.

The Company estimated the fair value of warrants issued in connection with the acquisition of CBI using the Binomial Lattice pricing model.

F-11



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

3.

MINERAL PROPERTIES (continued)

   

The following table reflects the recorded purchase consideration for the Columbus Project:


Purchase price:      
   Common stock issued $ 20,000,000  
   Fair value of warrants issued   1,359,351  
   Acquisition costs   600,000  
       
Total purchase price   21,959,351  
       
Net deferred income tax liability assumed   10,261,194  
       
Total $ 32,220,545  

The following table reflects the components of the Columbus Project:

Allocation of acquisition cost:      
   Mineral properties (including deferred tax liability assumed of $10,261,194) $ 31,948,053  
   Property, plant and equipment   202,430  
   Deposits   44,720  
   Cash   6,570  
   Prepaid expenses   24,925  
   Accounts payable   (6,153 )
       
Total $ 32,220,545  

Red Mountain Project – On July 20, 2011, the Company entered into an Amended and Restated Option Agreement (the “Amendment”) on the Red Mountain Project. The Amendment acknowledged that the Company has earned an undivided 30.6% interest in the original Red Mountain Claims and amended the terms of the original Letter Agreement as follows:

To maintain the buyout option, the Company is required to pay $8,000 per month effective July 1, 2011 until December 31, 2016 and spend an aggregate of $600,000 in additional qualifying expenditures by December 31, 2016. For each $2,000 in qualifying expenditures, the Company will earned 0.1% interest in in the Red Mountain Claims, up to a maximum of an additional 29.4% interest.

The Company may at any time during the life of the Red Mountain Project earn a 100% interest by paying $200,000 and by issuing shares with an aggregate value of $2,800,000 if the option is exercised prior to March 31, 2012 or $3,800,000 if the option is exercised after March 31, 2012. The share price will be equal to the volume weighted average trading price during the 20 trading days immediately prior to the date of the notice of exercise.

Pursuant to the option assignment agreement the Company granted a 5% net smelter return royalty to NMC.

F-12



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

3.

MINERAL PROPERTIES (continued)

Reclamation bonds - The Company maintains required reclamation bonding with the Bureau of Land Management (“BLM”). Reclamation bonding consists of cash bonding held with the BLM and restricted investments held by the Company. Restricted investments consist of U.S. Treasury Notes and certificates of deposit. At September 30, 2011 and December 31, 2010, cash bonding amounted to $40,000 and $908,368, respectively. At September 30, 2011, restricted investments amounted to $1,194,533 and exceeded bonding requirements by $44,533. The Company anticipates using the excess amount for future collateral requirements.

Reclamation and remediation activities - Changes in the Company’s accrued reclamation and remediation costs for the nine month period ended September 30, 2011 and for the year ended December 31, 2010 are as follows:

      September 30,     December 31,  
      2011     2010  
               
  Accrued reclamation and remediation – opening balance $  275,338   $  275,338  
  Adjustment reflecting updated estimates   297,000     -  
               
  Accrued reclamation and remediation – ending balance $  572,338   $  275,338  

The balance of accrued reclamation and remediation costs relates to the Columbus Project. The adjustment to the reclamation and remediation accrual made during the nine month period ended September 30, 2011 resulted from additional equipment and housing at the Columbus Project site.

F-13



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

4.

STOCKHOLDERS’ EQUITY

Issuance of common stock - For the nine month period ended September 30, 2011, the Company completed the following private placement:

On June 8, 2011, the Company completed the 2011 Private Placement offering of up to 5,500,000 units at a price of $0.55 per unit. Under the 2011 Private Placement, the Company issued a total of 5,018,199 units for gross proceeds of $2,760,009. Fees related to this private placement were $2,455.

Each unit consisted of one share of the Company’s common stock and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.80 per share expiring June 30, 2014. After November 30, 2011, the Company may accelerate the expiration date for the warrants if the volume weighted average price for its common stock on its principal trading market exceeds $2.80 per share for 20 consecutive trading days, and the average trading volume on that market during that 20 day period is not less than 0.2% of the Company's free float. The Company has also agreed that, if during the remainder of 2011, it approves another offering of its securities (a “Subsequent 2011 Offering”), the subscribers of the 2011 Private Placement shall have the right to (a) surrender their unexercised warrants in exchange for any warrants that the subscriber would have been entitled to receive had they subscribed under the Subsequent 2011 Offering instead of the 2011 Private Placement (at the same aggregate subscription amount); and (b) receive any additional shares of the Company's common stock that the subscriber would have been entitled to had they subscribed under the Subsequent 2011 Offering instead of the 2011 Private Placement.

The Company determined that the warrants were not afforded equity classification because the warrants are not freestanding and are not considered to be indexed to the Company’s own stock due to the anti-dilution provisions. In addition, the Company determined that the anti-dilution provisions shield the warrant holders from the dilutive effects of subsequent security issuances and therefore the economic characteristics and risks of the warrants are not clearly and closely related to the Company’s common stock. Accordingly, if material, the warrants would be treated as a derivative liability and would be carried at fair value. The Company determined that the fair value of the derivative warrant liability was not material and therefore the fair value of the warrants was not reclassified from equity. The anti-dilution provision expires on December 31, 2011.

F-14



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

4.

STOCKHOLDERS’ EQUITY (continued)

Private Placement Warrants - A summary of investor warrant activity for the nine month period ended September 30, 2011 is as follows:

                  Weighted  
                  Average  
                  Remaining  
                  Contractual  
      Number of     Exercise     Life  
      Shares     Price     (Years)  
                     
                     
  Outstanding and exercisable, December 31, 2010   28,121,857   $ 0.75 - 2.39     2.43  
                     
  Forfeited/expired   -     -     -  
  Granted   2,509,100     0.80     2.75  
                     
  Outstanding and exercisable, September 30, 2011   30,630,957   $ 0.75 - 2.39     1.77  

The table above does not include warrants issued to employees, non-employee directors and consultants as they are included under “Stock-Based Compensation” in Note 5.

F-15



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

5.

STOCK-BASED COMPENSATION

Stock-based compensation includes grants of stock options and purchase warrants to eligible directors, employees and consultants as determined by the Board of Directors.

Stock option plans - On March 27, 2007, the Board of Directors adopted the 2007 Stock Incentive Plan (the “Plan”). Under the terms of the Plan, options to purchase up to 6,000,000 shares of the common stock of the Company, subject to an increase each quarter equal to 15% of the increase in the total number of outstanding shares during the previous quarter, may be granted to officers, directors, employees and eligible consultants. As of September 30, 2011, the Company had granted 7,866,916 options under the Plan, of which, 7,049,697 were outstanding.

Stock warrants – From time to time the Company grants stock warrants to consultants for services performed. These grants are on an individual transaction basis and issued upon approval of the Board of Directors.

Valuation of awards - At September 30, 2011, the Company had options outstanding that vest on three different types of vesting schedules:

  1.

Service-based;

     
  2.

Performance-based; and

     
  3.

Market-based.

For service-based and performance-based stock option grants the Company utilizes the Binomial Lattice pricing model to estimate the fair values of options and warrants granted in exchange for services. The Company used the following assumptions to estimate the fair value of the options granted:

  2011
   
Dividend yield -
Expected volatility 68.66% - 83.36%
Risk-free interest rate 0.33% - 2.31%
Expected life (years) 2.75 – 7.88

For market-based stock option grants the Company utilizes a combination of a Monte Carlo simulation and a Trinomial Lattice function to estimate the fair values of options in exchange for services. The Company used the following assumptions to estimate the fair value of market-based options granted:

  2011
   
Dividend yield -
Expected volatility 83.36%
Risk-free interest rate 2.23%
Expected life (years) 4.75

F-16



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

5.

STOCK-BASED COMPENSATION (continued)

   

The expected life represents the weighted-average period the awards are expected to remain outstanding and is a derived output of the option pricing models. The expected life is impacted by all of the underlying assumptions and calibration of the Company’s models. The models estimate the probability of exercise as a function of these variables based on the history of exercises and cancellations on past grants made by the Company. The requisite service period for market-based stock option awards is a derived output of the hybrid Monte Carlo-Trinomial Lattice model.

   

For grants awarded during 2011 the expected volatility is based on the average historical volatility levels of a representative peer group. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues over the equivalent contractual lives of the options.

   

Stock-based compensation activity - During the nine month period ended September 30, 2011, the Company granted stock-based awards as follows:


  a)

On August 24, 2011, the Company granted stock options under the Plan for the purchase of 975,000 shares of common stock at $0.75 per share. The options were granted to officers and employees. 343,750 of the options are fully vested. 631,250 of the options vest at various dates through December 31, 2013. All of the options expire five years after the date that they vest.

     
  b)

On August 24, 2011, the Company granted stock options under the Plan for the purchase of 300,000 shares of common stock at $0.75 per share to officers of the Company. The options vest upon completion of defined events and milestones. The options expire on the fifth anniversary of the date that they vest, but in no event later than the tenth anniversary of the agreement. At September 30, 2011, management determined that achievement of the performance conditions were probable.

     
  c)

On August 24, 2011, the Company granted stock options under the Plan for the purchase of 300,000 shares of common stock at $0.75 per share to officers of the Company. The options vest upon the Company’s stock achieving certain market- based targets. The options expire on the fifth anniversary of the date that they vest, but in no event later than the tenth anniversary of the agreement.

     
  d)

On August 9, 2011, the Company granted stock warrants for the purchase of 500,000 shares of common stock at $0.75 per share to a consultant. 25% of the warrants were immediately vested and the remaining warrants vest 25% on September 30, 2011, December 31, 2011 and March 31, 2012. The warrants expire on June 30, 2014.

     
  e)

On April 8, 2011, the Company granted stock options under the Plan for the purchase of 200,000 shares of common stock at $0.36 per shares to an officer. 50,000 of the options were immediately vested with the remaining options vesting 50,000 each on June, 30, 2011, September 30, 2011 and December 30, 2011. The options expire five years after the date that they vest.

     
  f)

On March 21, 2011, the Company granted stock options under the Plan for the purchase of 100,000 shares of common stock at $0.23 per share. The options were granted to a consultant of the Company, are fully vested and expire on March 20, 2016. The exercise price of the stock options was less than the closing price of the Company’s common stock which was $0.26 on the grant date.

F-17



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

5.

STOCK-BASED COMPENSATION (continued)

Total expense for the nine month periods ended September 30, 2011 and 2010 related to the granting and vesting of all share based payments was $877,870 and $892,928, respectively. Such expenses are included in general and administrative expense and mineral exploration and evaluation expense.

The following table summarizes the Company’s stock-based compensation activity for the nine month period ended September 30, 2011:

                  Weighted  
                  Average  
            Weighted     Remaining  
      Number of     Average     Contractual Life  
      Shares     Exercise Price     (Years)  
                     
  Balance, December 31, 2010   9,412,197   $  0.50     2.79  
  Options/warrants granted   2,375,000     0.70     6.00  
  Options/warrants exercised   -     -     -  
  Options/warrants expired   (37,500 )   1.88     -  
  Options/warrants cancelled   (200,000 )   0.53     -  
                     
  Balance, September 30, 2011   11,549,697   $  0.54     2.80  

The following table summarizes the changes of the Company’s stock-based compensation awards subject to vesting for the nine month period ended September 30, 2011:

            Weighted Average  
      Number of     Grant Date  
      Shares     Fair Value  
               
  Unvested, December 31, 2010   3,411,666   $  0.40  
  Granted   1,806,250     0.26  
  Vested   (956,667 )   0.25  
  Forfeited   -     -  
               
  Unvested, September 30, 2011   4,261,249   $  0.37  

As of September 30, 2011, there was $686,874 of total unrecognized compensation cost related to unvested stock options and warrants. This cost is expected to be fully recognized as follows:

     2011 $ 292,204  
     2012   263,029  
     2013   131,641  
       
Total $ 686,874  

F-18



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

6.

WARRANTS AND OPTIONS

   

The following table summarizes all of the Company’s stock option and warrant activity for the nine month period ended September 30, 2011, including private placement warrants and stock options and warrants granted for compensation:


                  Weighted  
                  Average  
                  Remaining  
            Weighted     Contractual  
      Number of     Average     Life  
      Shares     Exercise Price     (Years)  
                     
  Balance, December 31, 2010   37,534,054   $  0.92     2.52  
  Options/warrants granted   4,884,100     0.75     4.05  
  Options/warrants cancelled   (200,000 )   0.53     -  
  Options/warrants expired   (37,500 )   1.88     -  
                     
  Balance, September 30, 2011   42,180,654   $  0.90     2.05  

F-19



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

7.

INCOME TAXES

   

The Company is a Nevada corporation and is subject to federal income taxes. Nevada does not impose a corporate income tax.

   

Significant components of the Company’s net deferred income tax assets and liabilities at September 30, 2011 and December 31, 2010 were as follows:


      September 30,     December 31,  
      2011     2010  
  Deferred income tax assets:            
               
     Net operating loss carryforward $  6,749,176   $  5,541,704  
     Option compensation   1,227,043     940,019  
     Property, plant & equipment   261,378     122,898  
     Unrealized losses on investments   -     331  
     Reclamation and remediation costs   200,318     96,368  
               
  Gross deferred income tax assets   8,437,915     6,701,320  
     Less: valuation allowance   (691,050 )   (1,036,387 )
               
         Net deferred income tax assets   7,746,865     5,664,933  
               
  Deferred income tax liabilities:            
               
     Unrealized gains on investments   14,271     -  
     Acquisition related liabilities   11,067,191     11,067,191  
               
         Net deferred income tax liabilities $  3,334,597   $  5,402,258  

A valuation allowance was established for deferred tax assets related to certain option compensation and accrued reclamation and remediation costs due to the uncertainty of realizing these deferred tax assets based on conditions existing at September 30, 2011 and December 31, 2010.

The realizability of deferred tax assets are reviewed at each balance sheet date. The majority of the Company’s deferred tax liabilities are depletable. Such depletion will begin with the processing of mineralized material once production has commenced. Therefore, the deferred tax liabilities will reverse in similar time periods as the deferred tax assets. The reversal of the deferred tax liabilities is sufficient to support the net deferred tax assets.

The acquisition related liabilities are a result of the estimated future federal income tax liability associated with the temporary difference between the acquisition consideration and the tax basis. The deferred tax liabilities were reflected as an increase to the total purchase price which has been applied to the underlying mineral and Columbus project assets in the absence of there being a goodwill component associated with the acquisition transactions.

F-20



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

7.

INCOME TAXES (continued)

   

A reconciliation of the tax benefit for the nine month periods ended September 30, 2011 and 2010 at US federal tax rates to the actual tax provision recorded in the financial statements consisted of the following components:


      September 30,     September 30,  
      2011     2010  
               
  Income tax benefit based on statutory tax rate $  1,758,485   $  1,741,899  
               
  Reconciling items:            
     Non-deductible items   (21,559 )   (1,729 )
     Change in valuation allowance   345,337     (396,410 )
               
  Income tax benefit $  2,082,263   $  1,343,760  

The Company had cumulative net operating losses of approximately $19,283,359 and $15,833,440 as of September 30, 2011 and December 31, 2010, respectively for federal income tax purposes. Cumulative net operating losses from December 31, 2006 and previous years are effectively nil due to the annual limitation imposed by the Internal Revenue Code of 1986 as a result of the ownership percentage change limitations. The net operating loss carryforwards will expire between 2027 and 2031.

The Company and its subsidiary file income tax returns in the United States. These tax returns are subject to examination by taxation authorities provided the years remain open under the relevant statues of limitations, which may result in the payment of income taxes and/or a decrease in the net operating losses available for carryforwards. The Company is no longer subject to income tax examinations by US federal tax authorities for years prior to 2006. While the Company believes that its tax filings do not include uncertain tax positions, the results of potential examinations or the effect of changes in tax law cannot be ascertained at this time. The Company currently has no tax years under examination.

F-21



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

8.

PROPERTY RENTAL AGREEMENTS AND LEASES

   

The Company, through its subsidiary CMI, has a lease agreement for mining claims with DDB Syndicate, an entity owned by related parties, including Douglas D.G. Birnie, Chief Executive Officer of the Company; Mr. Chizmar, a former director of the Company; three former officers and directors of CBI; Geotech Mining Inc., Jack Corp. and Wiser Corp. Geotech Mining Inc., Jack Corp. and Wiser Corp. are affiliates of Nanominerals Corp.

   

The DDB Syndicate has leased the DDB Claims to CSM, a wholly owned subsidiary of the Company. The mining lease agreement (the “DDB Agreement”), between the DDB Syndicate and CSM, provides CSM with a lease, extending for approximately 5 years, with an option to purchase the DDB Claims at any time during the lease period. To maintain the lease rights, CSM paid the DDB Syndicate $130,000 by June 30, 2008, with annual rental payments thereafter of $30,000 per year, payable on June 30, 2009, 2010, and 2011, respectively. CSM may exercise its option to purchase the DDB Claims by paying a purchase price of $400,000, less any rental payments made by CSM prior to exercising the option, or paying the DDB Syndicate $10, plus the grant of a 2% royalty of net smelter returns on the DDB Claims.

   

The Company paid the $30,000 rental payments due on June 30, 2011 and 2010, respectively. The annual rental payment consists of $3,651 in payments to each of the eight owners of DDB Syndicate and reimbursement of expenses of $792 to a company controlled by Douglas D.G. Birnie.

   
9.

COMMITMENTS AND CONTINGENCIES

   

Lease obligations – The Company rents office space in Henderson, Nevada. The lease terms expired on September 1, 2008 and the Company continues to rent the existing space under month-to-month terms.

   

Rental expense resulting from this operating lease agreement was $53,775 and $49,725 for the nine month periods ended September 30, 2011 and 2010, respectively.

   

Columbus Project – Pursuant to the option assignment agreement dated March 30, 2007, as amended August 8, 2007, the Company granted a 5% net smelter return royalty to NMC, one of the principal stockholders of the Company. The Columbus Project is further discussed in Note 3.

   

Red Mountain Project – Pursuant to the option assignment agreement the Company granted a 5% net smelter return royalty to NMC, one of the principal stockholders of the Company. The Red Mountain Project is further discussed in Note 3.

   

Stand-by letter of credit – In June 2011, a financial institution issued a stand-by letter of credit to the BLM for up to $175,000 on behalf of the Company. The stand-by letter of credit was issued to guarantee the Company’s compliance with reclamation bonding requirements. The letter of credit expires on June 24, 2012 and will be automatically renewed for one year periods unless either party elects not to renew. The Company is required to maintain a $175,000 certificate of deposit with the financial institution which is included in “restricted investments held for reclamation bonds” on the balance sheet. The Company is also required to pay an annual fee of 2% of the total value of the letter of credit. As of September 30, 2011, no draws have been made on the letter of credit.

F-22



IRELAND INC.
(AN EXPLORATION STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

10.

CONCENTRATIONS

   

Concentration of credit risk - The Company maintains its cash accounts in financial institutions. Cash accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) for up to $250,000 per financial institution. Additionally, all non-interest bearing transactional accounts are fully insured by the FDIC through December 31, 2012. The Company has never experienced a material loss or lack of access to its cash accounts; however, no assurance can be provided that access to the Company’s cash accounts will not be impacted by adverse conditions in the financial markets. At September 30, 2011, the Company had deposits in excess of FDIC insured limits in the amount of $519,334.

   

Concentration of activity - For the nine months ended September 30, 2011, the Company purchased services from two major vendors, NMC and Western Analytical, which exceeded more than 10% of total purchases and amounted to $396,346 and $354,164, respectively. In addition, the Company paid NMC $195,000 as a deposit on equipment purchases.

   
11.

RELATED PARTY TRANSACTIONS

   

Pursuant to option assignment agreements related to both the Columbus and Red Mountain projects, the Company granted a 5% net smelter return royalty to NMC. NMC is the Company’s largest shareholder, owning approximately 33% of the Company’s outstanding common stock. The Columbus Project and the Red Mountain Project are further discussed in Note 3.

   

During the nine month period ended September 30, 2011, the Company utilized the services of NMC to provide technical assistance and financing related activities. These services related primarily to the Columbus Project and the Red Mountain Project. In addition to the above services, NMC provided dedicated use of its laboratory, instrumentation, milling equipment and research facilities. NMC provided invoices for these fees plus expenses.

   

For the nine month period ended September 30, 2011, the Company incurred total fees and reimbursements of expenses to NMC of $315,000 and $81,346, respectively. Additionally, the Company paid NMC $195,000 as a deposit on equipment purchases. At September 30, 2011, no amounts were due to NMC.

   

Due to related parties includes amounts due to former officers of the Company. At September 30, 2011, the remaining amount of due to related parties was $23,290.

   

For the nine month period ended September 30, 2011, the Company incurred fees of $2,000 for services performed by one of its independent directors, Mark Brennan.

F-23



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

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q constitute "forward-looking statements.” These statements, identified by words such as “plan,” "anticipate,” "believe,” "estimate,” "should,” "expect" and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption "Part II, Item 1A. Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. We advise you to carefully review the reports and documents we file from time to time with the United States Securities and Exchange Commission (the “SEC”), particularly our periodic reports filed with the SEC pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”).

OVERVIEW

We were incorporated on February 20, 2001 under the laws of the State of Nevada. We are a minerals exploration and development company focused on the discovery and extraction of precious metals from mineral deposits in the Southwestern United States.

In February 2008, we acquired our lead project, a prospective gold, silver and calcium carbonate property located in Esmeralda County, Nevada, that we call the “Columbus Project.” The Columbus Project consists of 25,498 acres of placer mineral claims, including a 378 acre Permitted Mine Area (58-acre mill site and mill facility and 320-acre mine site). Our current permits allow us to mine up to 792,000 tons per year to 40 feet in depth for the purpose of extracting precious metals and calcium carbonate from the Permitted Mine Area. We also have a mineral lease covering, and the option to acquire, an additional 23,440 acres of placer mineral claims adjoining the current project area (the “DDB Claims”).

To date, 34 holes have been drilled in the North Sand Zone of the Columbus Project, These holes outline a zone covering an area of approximately 0.67 square miles, to a depth of 200 feet, with a weight mean average gold equivalent (AuE1) head grade of 0.0378 ounces per ton (opt) (AuE opt = Au opt + 0.025 Ag opt). We have estimated the geological tonnage of the mineralized sands within this zone, from the surface to a depth of 200 feet, to be 145 million (MM) tons. We had previously reported the mineralized sands, contained within the North Sand Zone, to be estimated at 83 MM tons. The geological tonnage of the mineralized sands within the South Sand Zone, to a depth of 100 feet, is currently estimated to be 29 MM tons. Previous drilling has also indicated that the mineralized sands in both North and South Sand Zones extend below 200 feet.

In addition to the Columbus Project, we own the right to acquire a prospective gold, silver and tungsten property located in San Bernardino County, California, that we call the “Red Mountain Project.”

The discussion provided in this Quarterly Report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2010 filed with the United States Securities and Exchange Commission (the “SEC”) on March 30, 2011.

RECENT CORPORATE DEVELOPMENTS

The following significant developments occurred since our fiscal quarter ended June 30, 2011:

1.

On July 20, 2011, we entered into an amended and restated option agreement on the Red Mountain Project (the “Amended Red Mountain Option”). The Amended Red Mountain Option replaces the Red Mountain Letter Agreement under which we had previously earned a 30.6% undivided interest in the Red Mountain Project. Under the terms of the Amended Red Mountain Option, we have the option (the

___________________
1
AuE calculated at Au + (Ag/40)

3



“Buyout Option”) to buyout all of the optionor’s interest in the Red Mountain Project by paying to the optionor $200,000 in cash and (i) if the Buyout Option is exercised on or before March 31, 2012, issuing to the optionor $2,800,000 worth of our common stock, or (ii) if the Buyout Option is exercised after March 31, 2012, issuing to the optionor $3,800,000 worth of our common stock. If we exercise the Buyout Option, of which there is no assurance, we will own 100% of the Red Mountain Project. We have until December 31, 2016 to exercise the Buyout Option.

       

To maintain the Buyout Option, we must (i) pay the optionor the sum of $8,000 per month, and (ii) spend a total of $600,000 on the Red Mountain Project. For every $2,000 that we spend on the Red Mountain Project, we will earn an additional 0.1% undivided interest, up to an additional 29.4% undivided interest (which would bring our total undivided interest in the Red Mountain Project to 60.0%). On execution of the Amended Red Mountain Option, we prepaid $35,000 to the optionor to be applied against the monthly payment amounts.

       

The project acreage of all claims under the Red Mountain Option Agreement now totals 13,729.

       
2.

On August 9, 2011, we granted share purchase warrants to a consultant, pursuant to which the warrant holder may purchase up to 500,000 shares of our common stock at a price of $0.75 per share. Of this amount, the holder was entitled to exercise warrants to purchase up to 125,000 shares of our common stock on issuance of the warrants, with the remaining warrants vesting in 125,000 share increments on September 30, 2011, December 31, 2011 and March 30, 2012, respectively. All unvested warrants will vest and become exercisable upon a change in control of the Company or if we sell a greater than 50% interest in our Columbus Project. The warrants were issued pursuant to the exemption from registration provided by Rule 506 of Regulation D. The consultant represented and warranted to us that he is an accredited investor as defined in Regulation D.

       
3.

Effective August 24, 2011 (the "Grant Date"), we granted non-qualified stock options to acquire an aggregate of 1,200,000 shares of our common stock under the Company’s 2007 Stock Incentive Plan (the “2007 Plan”) to certain of our executive officers as follows:

       
(a)

Douglas D.G. Birnie, our CEO, President and Secretary, was granted non-qualified stock options to purchase an aggregate of 600,000 shares of the Company's common stock as follows:

       
(i)

Options to purchase an aggregate of 300,000 shares of our common stock vesting on the dates and in the amounts, exercisable at the price, and expiring on the dates, each as set out below:


Number of Options to Exercise Price    
Vest Per Share Vesting Date Expiration Date
50,000 $0.75 The Grant Date June 29, 2016
50,000 $0.75 December 31, 2011 December 30, 2016
50,000 $0.75 June 30, 2012 June 29, 2017
50,000 $0.75 December 31, 2012 December 30, 2017
50,000 $0.75 June 30, 2013 June 30, 2018
50,000 $0.75 December 31, 2013 December 30, 2018

  (ii)

Options to purchase an aggregate of 150,000 shares of our common stock at an exercise price of $0.75 per share, vesting on the dates and in the amounts, and expiring on the dates, each as set out below:


Number of Options to            
Vest  

Vesting Date

 

 

Expiration Date

 
150,000  

The first date after the Grant Date that the closing price for our common stock (as quoted by the principal market or exchange on which such shares trade) exceeds $1.50 per share for 20 consecutive trading days.

 

 

The date that is 5 years after the vesting date.

 

4



  (iii)

Options to purchase an aggregate of 150,000 shares of our common stock at an exercise price of $0.75 per share, vesting upon the Board of Directors determining, by resolution, that the Company has, from the Grant Date, made adequate and sufficient progress on its technical and feasibility programs for our Columbus Mineral Project, and expiring on the date that is 5 years after the vesting date.

       
  (b)

Robert D. McDougal, our CFO and Treasurer, was granted non-qualified stock options to purchase an aggregate of 300,000 shares of our common stock as follows:

       
  (i)

Options to purchase an aggregate of 150,000 shares of our common stock vesting on the dates and in the amounts, exercisable at the price, and expiring on the dates, each as set out below:


Number of Options to Exercise Price Vesting Date Expiration Date
Vest Per Share    
25,000 $0.75 The Grant Date June 29, 2016
25,000 $0.75 December 31, 2011 December 30, 2016
25,000 $0.75 June 30, 2012 June 29, 2017
25,000 $0.75 December 31, 2012 December 30, 2017
25,000 $0.75 June 30, 2013 June 30, 2018
25,000 $0.75 December 31, 2013 December 30, 2018

  (ii)

Options to purchase an aggregate of 75,000 shares of our common stock at an exercise price of $0.75 per share, vesting on the dates and in the amounts, and expiring on the dates, each as set out below:


Number of Options to            
Vest   Vesting Date     Expiration Date  
75,000

The first date after the Grant Date that the closing price for our common stock (as quoted by the principal market or exchange on which such shares trade) exceeds $1.50 per share for 20 consecutive trading days.

The date that is 5 years after the vesting date.


  (iii)

Options to purchase an aggregate of 75,000 shares of our common stock at an exercise price of $0.75 per share, vesting upon the Board of Directors determining, by resolution, that the Company has, from the Grant Date, made adequate and sufficient progress on its technical and feasibility programs for our Columbus Mineral Project, and expiring on the date that is 5 years after the vesting date.

       
  (c)

David Z. Strickler, Jr., our VP of Finance and Administration, was granted non-qualified stock options to purchase an aggregate of 300,000 shares of our common stock as follows:

       
  (i)

Options to purchase an aggregate of 150,000 shares of our common stock vesting on the dates and in the amounts, exercisable at the price, and expiring on the dates, each as set out below:


Number of Options to Exercise Price Vesting Date Expiration Date
Vest Per Share    
25,000 $0.75 The Grant Date June 29, 2016
25,000 $0.75 December 31, 2011 December 30, 2016
25,000 $0.75 June 30, 2012 June 29, 2017
25,000 $0.75 December 31, 2012 December 30, 2017
25,000 $0.75 June 30, 2013 June 30, 2018
25,000 $0.75 December 31, 2013 December 30, 2018

5



  (ii)

Options to purchase an aggregate of 75,000 shares of our common stock at an exercise price of $0.75 per share, vesting on the dates and in the amounts, and expiring on the dates, each as set out below:


Number of Options to            
Vest  

Vesting Date

 

 

Expiration Date

 
75,000  

The first date after the Grant Date that the closing price for our common stock (as quoted by the principal market or exchange on which such shares trade) exceeds $1.50 per share for 20 consecutive trading days.

 

 

The date that is 5 years after the vesting date.

 

  (iii)

Options to purchase an aggregate of 75,000 shares of our common stock at an exercise price of $0.75 per share, vesting upon the Board of Directors determining, by resolution, that the Company has, from the Grant Date, made adequate and sufficient progress on its technical and feasibility programs for our Columbus Mineral Project, and expiring on the date that is 5 years after the vesting date.


Pursuant to the option agreements between the Company and Messrs. Birnie, McDougal and Strickler with respect to the above grants, each of the options granted to Messrs. Birnie, McDougal and Strickler will automatically vest and become exercisable upon the occurrence of a change in control of the Company.

   
4.

On August 24, 2011, we granted non-qualified stock options to acquire an aggregate of 375,000 shares of the Company’s common stock under our 2007 Stock Incentive Plan to certain employees of the Company. Each of the options was granted with an exercise price of $0.75 per share subject to certain vesting provisions and expiring five years after vesting.

   
5.

In September, 2011, we staked an additional 288 20-acre placer mineral claims on the west side of the Columbus Basin. These additional claims are adjacent to the placer mineral claims that we already own or have options to acquire. This increases the total acreage of placer mineral claims of the Columbus Project by 5,760 acres to a new total of 25,498, with a mineral lease covering, and the option to acquire, an additional 23,440 acres of placer mineral claims adjoining the current project area (the DDB Claims) that would increase the project size to 48,938 acres.

PLAN OF OPERATIONS

During the next twelve months, we intend to proceed with our exploration and development program for the Columbus Project, while the Red Mountain Project remains not in active development.

The Columbus Project

The technical program for the Columbus Project has two primary objectives: (a) to identify the mineral resources, and (b) to determine the feasibility of mining and extracting precious metals from the project.

(a)

Mineral Resources: Exploration and development work to date has identified three different host materials (sand, clay, brine) each of which could potentially contain commercial quantities of gold and silver mineralization within the project area. The sand zones outcrop on the western side of the Columbus basin and dip gently eastward. The clay zones also outcrop and overlay the sand zones. The brine zone occurs as an aquifer at some 400 feet depth underlying the sand/clay zones. Our exploration efforts to date have focused on drilling both the sand and clay zones within the approximately 5,000 acre Columbus Project Area of Interest outlined by previous geochemical exploration work. Our recent work has focused on the North Sand Zone.

6



To date, 34 holes have been drilled in the North Sand Zone, These holes outline a zone covering an area of approximately 0.67 square miles, to a depth of 200 feet, with a weight mean average AuE head grade of 0.0378 ounces per ton (opt) (AuE opt = Au opt + 0.025 Ag opt). We have estimated the geological tonnage of the mineralized sands within this zone, from the surface to a depth of 200 feet, to be 145 million (MM) tons. We had previously reported the mineralized sands, contained within the North Sand Zone, to be estimated at 83 MM tons. The geological tonnage of the mineralized sands within the South Sand Zone, to a depth of 100 feet, is currently estimated to be 29 MM tons. Previous drilling has also indicated that the mineralized sands in both the North and South Sand Zones extend below 200 feet.

   

We are currently permitted and plan to drill more holes in 2012, covering approximately 0.48 square miles adjacent to the North Sand Zone, to potentially expand the boundaries of the mineralized area.

   
(b)

Feasibility Study: The Company currently has a production permit for the Columbus Project. The production permit allows for the extraction of precious metals and the production of calcium carbonate on the 378 acre site (320 acre mine site and 58-acre mill site) at a mine rate of up to 792,000 tons per year. During the period from 2008-2011 the Company developed a dredge mine, constructed a Pilot Plant and began operations to develop and prove the extractive metallurgy for the Columbus Project. Initial metallurgical testing was primarily focused on extracting gold and silver from the clay material. As previously reported, problems with organic material interfered with the extraction of precious metals from the clays, and this has led Ireland to focus on extraction of precious metals from the sands.

   

The company recently completed nine bulk scale tests on sand material from the Columbus Basin. Bulk sand samples were taken from Zone S North and delivered to AuRIC Metallurgical Laboratories, in Salt Lake City, Utah, for gravity concentration and leach testing. The sand material was then leached directly or processed through a gravity concentration system and produced a concentrate. The grade of the concentrates were determined by caustic fusion assay and confirmed by fire assay. The concentrate was then leached by both cyanide and thiosulphate. The average net recovery of precious metals from head ore to leach in the nine tests approximated 86%.

   

We have installed new pilot plant processing equipment onsite and are conducting additional bulk scale and onsite pilot tests to confirm and optimize the extraction of both gold and silver from the sand material and will report results in a timely manner as the test data is received.

   

If the operation of the pilot plant proves, to our satisfaction, that the Columbus Project is economically viable, we may seek to expand the production permitted area, reconfigure the production process and/or construct additional production circuits within the mill site to increase production capacity. The production model for the Columbus Project is anticipated to be a low cost, high volume mining operation.

Readers are cautioned that, although we believe that the results of our exploration activities to date are sufficiently positive to proceed with the installation and operation of a pilot production circuit for the Columbus Project, we have not yet established any probable or proven reserves. There is no assurance that we will be able to establish that any commercially extractable ore reserves exist on the Columbus Project or that we will enter into commercial production.

We anticipate spending approximately $3,791,000 on our exploration and development program and $93,000 on our capital expenditures for the Columbus Project from October 1, 2011 until September 30, 2012.

The Red Mountain Project

Sampling and Drilling Program: Our exploration and development program for the Red Mountain Project currently consists of a Drilling and Sampling program. Currently the Red Mountain Project is not in active development. We have set a budget of $100,000 for property payments and maintenance costs for the Red Mountain Project for the year ending September 30, 2012. We have reallocated funds originally budgeted towards the Red Mountain Project in order to provide us with maximum flexibility in achieving our technical milestones at our lead project.

7


Cash Requirements

We have budgeted for the following cash expenditures for the period from October 1, 2011 until September 30, 2012:

Columbus Project      
  • Property Payments
  • $  280,000  
  • Drilling Program and Mineralization Estimates
  •   1,849,000  
  • Pilot Plant / Project Feasibility
  •   1,662,000  
         Total for Columbus Project $  3,791,000  
    Red Mountain Project      
  • Property Acquisition and Maintenance Costs
  • $  100,000  
  • Sampling Exploration Program
  •      
         Total for Red Mountain Project $  100,000  
    General and Administration      
         Total for General and Administration $  1,844,000  
    Total Expected Expenses $  5,735,000  
    Total Expected Capital Expenditures $  93,000  
    Total Expected Cash Expenditures $  5,828,000  

    As of September 30, 2011, we had cash in the amount of $1,625,471 and a working capital surplus of $1,722,383. On June 8, 2011, we closed our May 2011 Private Placement, receiving total gross proceeds of $2,760,009. We do not currently have sufficient financial resources to pay for our anticipated cash expenditures for the period from October 1, 2011 until September 30, 2012. We anticipate that our existing financial resources are sufficient only to pay for the anticipated costs of our exploration and development programs until January 31, 2012. We will require additional financing to complete our planned exploration and development plans. If we are unable to obtain sufficient financing to complete our planned exploration and development plans, we will scale back our plans depending upon our existing financial resources. We do not currently have any financing arrangements in place.

    RESULTS OF OPERATIONS

    Three Months and Nine Months Summary

        Three Months Ended     Percentage     Nine Months Ended September     Percentage  
        September 30,     Increase /     30,     Increase /  
        2011     2010     (Decrease)     2011     2010     (Decrease)  
    Revenue $  -   $  -     n/a   $  -   $  -     n/a  
                                         
    Operating Expenses   (1,745,601 )   (2,108,640 )   (17)%     (5,050,029 )   (5,000,348 )   1%  
    Other Income (Expense)   11,691     9,076     29%     25,787     23,495     10%  
    Income Tax Benefit   1,173,643     564,611     108%     2,082,263     1,343,760     55%  
    Net Loss $  (560,267 ) $  (1,534,953 )   (63)%   $  (2,941,979 ) $  (3,633,093 )   (19)%  

    Revenue

    We have not earned any operational revenues since our inception and we do not anticipate earning revenues until our mineral properties enter into commercial production, of which there are no assurances. Our pilot production plant at the Columbus Project is currently being operated for pre-feasibility testing purposes only. We are currently in the exploration stage of our business and we can provide no assurances that we will be able to establish the existence of probable or proved mineral reserves on our properties, or if such reserves are established, that we will be able to enter into commercial production.

    8


    Operating Expenses

    Our operating expenses for the three and nine months ended September 30, 2011 and 2010 consisted of the following:

        Three Months Ended     Percentage     Nine Months Ended     Percentage  
        September 30,     Increase /     September 30,     Increase /  
        2011     2010     (Decrease)     2011     2010     (Decrease)  
    Mineral exploration and evaluation expenses $  760,890   $  1,077,039     (29)%   $  2,187,861   $  1,887,936     16%  
    Mineral exploration and evaluation expenses related party   122,296     136,827     (11)%   396,346     423,641     (6)%  
    General and administrative   632,353     698,765     (10)%   1,796,402     2,252,184     (20)%  
    General and administrative – related party       -     %     2,000     21,066     (91)%
    Depreciation   206,312     181,009     14%     613,670     370,521     66%  
    Mineral and property holding costs   23,750     15,000     58%     53,750     45,000     19%  
    Total Expenses $  1,745,601   $  2,108,640     (17)% $  5,050,029   $  5,000,348     1%  

    Our operating expenses for the quarter ended September 30, 2011 decreased as compared with our quarter ended September 30, 2010. This decrease was due in part to the absence of any drill program expenses in the quarter that were part of the quarter ended September 30, 2010. In addition, general and administrative expenses decreased as there was less stock based vesting of consultant warrants in the quarter compared to 2010.

    The item “Mineral exploration and evaluation expenses – related party” represents amounts paid or reimbursed to Nanominerals for exploration work conducted on the Columbus and Red Mountain Projects.

    During our quarter ended September 30, 2011, we incurred fees payable to Nanominerals of $105,000 for technical and financing related services relating primarily to the Columbus and Red Mountain Projects. In addition, we incurred $17,296 in respect to reimbursable expenses paid for by Nanominerals. In addition, the Company paid Nanominerals $75,000 as a deposit on equipment which is included in prepaid expenses.

    We anticipate that our operating expenses will increase significantly as we pursue our exploration and development programs for the Columbus Project and the Red Mountain Project.

    LIQUIDITY AND CAPITAL RESOURCES

    Working Capital                  
                    Percentage  
        At September 30, 2011     At December 31, 2010     Increase / (Decrease)  
    Current Assets $  1,916,190   $  2,768,882     (31 )%
    Current Liabilities   (193,807 )   (227,138 )   (15 )%
    Working Capital $  1,722,383   $  2,541,744     (32 )%

    9



    Cash Flows            
        Nine Months Ended     Nine Months Ended  
        September 30, 2011     September 30, 2010  
    Cash Flows used in Operating Activities $  (2,383,289 ) $  (3,582,111 )
    Cash Flows used in Investing Activities   (350,973 )   (1,694,368 )
    Cash Flows from Financing Activities   2,757,554     4,792,007  
    Net Change in Cash During Period $  23,292   $  (484,472 )

    At September 30, 2011 we had a working capital surplus of $1,722,383 as compared with a working capital surplus of $2,541,774 at December 31, 2010. The decrease in our working capital surplus is primarily attributable to the reclassification of a treasury security illustrated as a short term investment on the December 31, 2010 balance sheet to a non-current asset on the September 30, 2011 balance sheet as the BLM’s approval of this security as collateral for the Company’s bonding requirements was completed.

    Financing Requirements

    As of September 30, 2011, we had cash in the amount of $1,625,471 and a working capital surplus of $1,722,383. On June 8, 2011, we closed our May 2011 Private Placement, receiving total gross proceeds of $2,760,009. We do not currently have sufficient financial resources to pay for our anticipated cash expenditures for the period from October 1, 2011 until September 30, 2012. We anticipate that our existing financial resources are sufficient only to pay for the anticipated costs of our exploration and development programs until January 31, 2012. We will require additional financing to complete our planned exploration and development plans. If we are unable to obtain sufficient financing to complete our planned exploration and development plans, we will scale back our plans depending upon our existing financial resources. We do not currently have any financing arrangements in place.

    There is no assurance that the actual costs of our exploration and development programs will not exceed our estimates. Furthermore, we may need additional financing to proceed beyond our current exploration and development plans. Our ability to obtain additional financing will be subject to a number of factors, including the variability of market prices for gold and silver, investor interest in our mineral projects, and the performance of equity markets in general. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us. If we are not able to obtain financing when needed or in an amount sufficient to enable us to complete our programs, we may be required to adjust our exploration and development plans depending upon our existing capital resources.

    For these reasons, our financial statements filed herewith include a statement that these factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern will be dependent on our raising additional capital and the success of our business plan.

    OFF-BALANCE SHEET ARRANGEMENTS

    We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

    CRITICAL ACCOUNTING POLICIES

    The preparation of financial statements in conformity with United States generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our management routinely makes judgments and estimates about the effects of matters that are inherently uncertain.

    10


    We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are also disclosed in the notes to our unaudited consolidated financial statements for the period ended September 30, 2011 included in this Quarterly Report on Form 10-Q.

    Mineral properties

    Costs of acquiring mineral properties are capitalized upon acquisition. Exploration costs and costs to maintain mineral properties are expensed as incurred while the project is in the exploration stage. Development costs and costs to maintain mineral properties are capitalized as incurred while the property is in the development stage. When a property reaches the production stage, the related capitalized costs are amortized using the units-of-production basis over the proven and probable reserves. Mineral properties are assessed for impairment when circumstances indicate that the carrying amount may not be recoverable. Impairment losses are charged to operations at the time of impairment. When a property is sold or abandoned, a gain or loss is recognized and included in the consolidated statement of operations.

    Mineral exploration and development costs

    Exploration expenditures incurred prior to entering the development stage are expensed and included in “Mineral exploration and evaluation expenses”.

    Property and equipment

    Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense).

    Impairment of long-lived assets

    We review and evaluate long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable. If the sum of the estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. Future cash flows are estimated based on quantities of recoverable minerals, expected commodity prices, production levels, operating costs, capital requirements and reclamation costs. We also consider our continued right to explore the property, exploration reports, drill results, technical reports and continued plans to fund exploration programs on the property. Any impairment loss is measured by comparing estimated future net cash flows on a discounted basis to the carrying amount of the asset. To date, no such impairments have been identified.

    Our estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different from the estimates, as actual future quantities of recoverable minerals, commodity prices, and production levels and costs are each subject to significant risks and uncertainties.

    Reclamation and remediation costs (asset retirement obligation)

    We record a liability for the present value of the estimated costs associated with environmental remediation obligations in the period in which the liability is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset. The liability will be accreted, and the asset will be depreciated over their expected useful lives. As reclamation work is performed or liabilities are otherwise settled, the recorded amount of the liability will be reduced.

    Future reclamation and environmental-related expenditures are difficult to estimate in many circumstances due to the early stage nature of the exploration project, the uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities and changes in reclamation or remediation technology. We periodically review accrued liabilities for such reclamation and remediation costs as evidence indicating that the liabilities have potentially changed becomes available. Changes in estimates are reflected in the consolidated statement of operations in the period an estimate is revised.

    11



    ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

    Not Applicable.

    ITEM 4. CONTROLS AND PROCEDURES.

    As of September 30, 2011, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures. These controls and procedures are based on the definition of disclosure controls and procedures in Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934.

    Based on that evaluation as of September 30, 2011, our management, including the CEO and CFO, concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

    Management, including our CEO and CFO, have concluded that our disclosure controls and procedures provide reasonable assurance that the controls and procedures will meet their desired control objectives. In designing and evaluating our control system, management recognized that any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Further, the design of a control system must reflect the fact that there are resource constraints, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any that may affect our operations have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.

    During the third quarter ended September 30, 2011, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

    12


    PART II - OTHER INFORMATION

    ITEM 1. LEGAL PROCEEDINGS.

    None.

    ITEM 1A. RISK FACTORS.

    The following are some of the important factors that could affect our financial performance or could cause actual results to differ materially from estimates contained in our forward-looking statements. We may encounter risks in addition to those described below. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, may also impair or adversely affect our business, financial condition or results of operation.

    Although we have installed the leach circuit of the onsite pilot production module for the Columbus Project, there is no assurance that this project is commercially feasible.

    We have begun testing and optimizing the onsite pilot production module at the Columbus Project. This pilot production module is part of our pre-feasibility study for the Columbus Project and is designed to evaluate the commercial viability of the Columbus Project. There is no assurance that the results of our pre-feasibility program will result in a decision to enter into commercial production.

    Additional exploration work is required before proved or probable reserves can be established.

    We intend to report the results of our exploration activities promptly after those results have been received and analysed. However, there is no assurance that the test results reported by us will be indicative of extraction rates throughout our mineral properties. We have not yet established proved or probable reserves on the Columbus Project or on our other mineral properties and additional exploration work will be required before proved or probable reserves can be established.

    We will likely require additional financing to complete our exploration and development programs for our mineral projects.

    We expect to spend approximately $5,828,000 on the exploration and development of our Columbus and Red Mountain Projects and the general costs of operating and maintaining our business and mineral properties for the twelve months ending September 30, 2012. We do not currently have sufficient financial resources to pay for our anticipated expenditures for that period. We anticipate that our existing financial resources are sufficient only to pay for the anticipated costs of our exploration and development programs until January 31, 2012. We will require additional financing to complete our planned exploration and development plans. In addition, actual costs of completing our exploration and development plans could be greater than anticipated and we may need additional financing sooner than anticipated. If we are unable to obtain sufficient financing to complete our planned exploration and development plans, we will scale back our plans depending upon our existing financial resources. We do not currently have any financing arrangements in place.

    Our ability to obtain future financing will be subject to a number of factors, including the variability of market prices for gold and silver, investor interest in our mineral projects, and the performance of equity markets in general. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us. If we are not able to obtain financing when needed or in an amount sufficient to enable us to complete our programs, we may be required to scale back our exploration and development programs.

    If we complete additional financings through the sale of our common stock, our existing stockholders will experience dilution.

    The most likely source of future financing presently available to us is through the sale of shares of our common stock. The only other anticipated alternative for the financing of further exploration would be the offering by us of an interest in our mineral properties to be earned by another party or parties carrying out further exploration thereof, which is not presently contemplated. In addition, if our management decides to exercise the right to acquire a 100% interest in the Red Mountain Project, we will be required to issue significantly more shares of our common stock. Issuing shares of our common stock, for financing purposes or otherwise, will dilute the interests of our existing stockholders.

    13


    In order to maintain the rights to our mineral properties, we will be required to make annual filings with federal and state regulatory agencies and/or be required to complete assessment work or pay fees in respect of those properties.

    In order to maintain the rights to our mineral projects, we will be required to make annual filings and pay fees with federal and state regulatory authorities. On June 16, 2011, the Governor of Nevada approved Senate Bill 493 (SB 493), which repealed a one-time tiered fee hike on mining claims in Nevada. SB 493 also eliminated a number of tax deductions that had previously been available for companies with mining operations in Nevada. However, we are currently an exploration stage company and do not have significant mineral extraction activities or any revenues from mining operations and do not expect the elimination of these tax deductions to have a significant impact on our current exploration activities or financial prospects. However, if we do, in the future engage in significant mineral extraction operations, of which there is no assurance, the elimination of these tax deductions could affect our future financial results.

    In addition to claim maintenance fees, we may be required by federal and/or state legislation or regulations to complete minimum annual amounts of mineral exploration work on our mineral properties. A failure by us to meet the annual maintenance requirements under federal and state laws could cause our mineral rights to lapse.

    Because we are an exploration stage company, we face a high risk of business failure.

    To date, our primary business activities have involved the acquisition of mineral claims and the exploration and development on these claims. We have not earned any revenues as of the date of this report. Potential investors should be aware of the difficulties normally encountered by exploration stage companies and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates.

    Because we anticipate that our operating expenses will increase prior to earning revenues, we may never achieve profitability.

    Prior to exiting the exploration stage, we anticipate that we will incur increased operating expenses without realizing any revenues. We therefore expect to incur significant losses into the foreseeable future. We recognize that if we are unable to generate significant revenues from the exploration of our mineral claims and the production of minerals thereon, if any, we will not be able to earn profits or continue operations. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and we may not be able to ever generate any operating revenues or achieve profitable operations. If we are unsuccessful in addressing these risks, our business will most likely fail.

    Because of the speculative nature of exploration of mining properties, there is substantial risk that no commercially exploitable minerals will be found.

    The search for valuable minerals as a business is extremely risky. Although we have been encouraged by the results of the exploration work conducted by us to date, further exploration work is required before proven or probable reserves can be established, and there are no assurances that we will be able to establish any proven or probable reserves. Exploration for minerals is a speculative venture, necessarily involving substantial risk. The expenditures to be made by us may not result in the discovery of commercial quantities of ore. Problems such as unusual or unexpected formations and other conditions are involved in mineral exploration and often result in unsuccessful exploration efforts.

    Because of the inherent dangers involved in mineral exploration, there is a risk that we may incur liability or damages if and when conducting mineral exploration activities.

    14


    The search for valuable minerals involves numerous hazards. As a result, when conducting exploration activities we may become subject to liability for such hazards, including pollution, cave-ins and other hazards against which we cannot insure or against which we may elect not to insure. The payment of such liabilities may have a material adverse effect on our financial position.

    Even if we establish proven or probable reserves on our mineral claims, we may not be able to successfully reach commercial production.

    We anticipate using a low cost, high volume surface dredge operation to mine the Columbus Project. Our pre-feasibility program for the Columbus Project is designed to test and optimize our planned mining process for the Columbus Project. There is no assurance that this pre-feasibility program will result in a decision to enter into commercial production. In addition, expanding our production facilities to accommodate commercial operations is expected to require substantially more financial resources than what we currently have available to us.

    There is a risk that we will not be able to obtain such financing if and when needed.

    Even if we can successfully reach commercial production, any change to mining laws or regulations or levy of additional taxes in the future may make our planned production process nonviable economically.

    Several bills have been introduced by the US federal government that would levy resource taxes on mineral exploration companies. Any levy of additional taxes would have an adverse effect on our business. In addition, laws and regulations governing the exploration of mineral properties and the mining process are subject to change. Changes to mining laws and regulations that would have the effect of increasing the cost of mineral exploration and mining activities would adversely impact our business.

    We are subject to compliance with government regulations. The costs of complying with these regulations may change without notice, and may increase the anticipated cost of our exploration and development programs.

    There are several government regulations that materially restrict the exploration of minerals. We will be required to obtain work permits, post bonds and perform remediation work for any physical disturbance to the land in order to comply with these laws. While our planned exploration program budgets for regulatory compliance, there is a risk that new regulations could increase our costs of doing business and prevent us from carrying out our exploration program.

    In addition, if our applications for permits from the relevant regulatory bodies are denied, we may not be able to proceed with our exploration and development programs.

    If we decide to pursue commercial production, we may be subject to an environmental review process that may delay or prohibit commercial production.

    Our planned method for mining the Columbus Project is not expected to generate any significant long term environmental impact. However, we have not yet had a comprehensive environmental review conducted on our planned mining operations for the Columbus Project.

    Compliance with an environmental review process may be costly and may delay commercial production. Furthermore, there is the possibility that we would not be able to proceed with commercial production upon completion of the environmental review process if government authorities do not approve our mine or if the costs of compliance with government regulation adversely affected the commercial viability of the proposed mine.

    The market for our common stock is limited and investors may have difficulty selling their stock.

    Our shares are currently traded on the over the counter market, with quotations entered for our common stock on the OTC Bulletin Board under the symbol “IRLD.” However, the volume of trading in our common stock is currently limited. As a result, holders of our common stock may have difficulty selling their shares.

    15


    Because our common stock is a penny stock, stockholders may be further limited in their ability to sell their shares.

    Our shares constitute a penny stock under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are expected to remain classified as a penny stock for the foreseeable future. Classification as a penny stock makes it more difficult for a broker-dealer to sell the stock into a secondary market, which makes it more difficult for a purchaser to liquidate his or her investment. Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares will be subject to Rules 15g-2 through 15g-9 of the Exchange Act. Rather than having to comply with these rules, some broker-dealers will refuse to attempt to sell a penny stock.

    No assurance that forward looking assessments will be realized.

    Our ability to accomplish our objectives and whether or not we are financially successful is dependent upon numerous factors, each of which could have a material effect on the results obtained. Some of these factors are in the discretion and control of management and others are beyond management’s control. The assumptions and hypothesis used in preparing any forward-looking assessments contained herein are considered reasonable by management. There can be no assurance, however, that any projections or assessments contained herein or otherwise made by management will be realized or achieved at any level.

    If we are, or were, a U.S. real property holding corporation, non-U.S. holders of our common stock or other security convertible into our common stock could be subject to U.S. federal income tax on the gain from the sale, exchange, or other disposition of such security.

    If we are or ever have been a U.S. real property holding corporation (a “USRPHC”) under the Foreign Investment Real Property Tax Act of 1980, as amended (“FIRPTA”) and applicable United States Treasury regulations (collectively, the “FIRPTA Rules”), unless an exception described below applies, certain non-U.S. investors in our common stock (or options or warrants for our common stock) would be subject to U.S. federal income tax on the gain from the sale, exchange or other disposition of shares of our common stock (or such options or warrants), and such non-U.S. investor would be required to file a United States federal income tax return. In addition, the purchaser of such common stock, option or warrant would be required to withhold from the purchase price an amount equal to 10% of the purchase price and remit such amount to the U.S. Internal Revenue Service.

    In general, under the FIRPTA Rules, a company is a USRPHC if its interests in U.S. real property comprise at least 50% of the fair market value of its assets. If we are or were a USRPHC, so long as our common stock is “regularly traded on an established securities market” (as defined under the FIRPTA Rules), a non-U.S. holder who, actually or constructively, holds or held no more than 5% of our common stock is not subject to U.S. federal income tax on the gain from the sale, exchange, or other disposition of our common stock under FIRPTA. In addition, other interests in equity of a USRPHC may qualify for this exception if, on the date such interest was acquired, such interests had a fair market value no greater than the fair market value on that date of 5% of our common stock. Any of our common stockholders (or owners of options or warrants for our common stock) that are non-U.S. persons and own or anticipate owning more than 5% of our common stock (or, in the case of options or warrants, of a value greater than the fair market value of 5% of our common stock) should consult their tax advisors to determine the consequences of investing in our common stock (or options or warrants). We have not conducted a formal analysis of whether we are or have ever been a USRPHC. We do not believe that we are or have ever been a USRPHC. However, if we later determine that we were a USRPHC, then we believe that we would have ceased to be a USRPHC as of June 1, 2005 and that non-U.S. holders would not be subject to FIRPTA with respect to a sale, exchange, or other disposition of shares of our common stock (or options or warrants) after June 1, 2010.

    FOR ALL OF THE AFORESAID REASONS AND OTHERS SET-FORTH AND NOT SET-FORTH HEREIN, AN INVESTMENT IN OUR SECURITIES INVOLVES A CERTAIN DEGREE OF RISK. ANY PERSON CONSIDERING TO INVEST IN OUR SECURITIES SHOULD BE AWARE OF THESE AND OTHER FACTORS SET-FORTH IN THIS REPORT AND IN THE OTHER REPORTS AND DOCUMENTS THAT WE FILE FROM TIME TO TIME WITH THE SEC AND SHOULD CONSULT WITH HIS/HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN OUR SECURITIES. AN INVESTMENT IN OUR SECURITIES SHOULD ONLY BE ACQUIRED BY PERSONS WHO CAN AFFORD TO LOSE THEIR TOTAL INVESTMENT.

    16



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

    None.

    ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

    None.

    ITEM 5. OTHER INFORMATION.

    None.

    ITEM 6. EXHIBITS.

    The following exhibits are either provided with this Quarterly Report or are incorporated herein by reference:

    Exhibit  
    Number Description of Exhibit
    3.1 Articles of Incorporation.(1)
    3.2 Certificate of Amendment to Articles - Name Change from Merritt Ventures Corp. to Ireland Inc.(2)
    3.3 Certificate of Change – 4-for-1 Stock Split.(3)
    3.4 Bylaws.(1)
    10.1 2007 Stock Incentive Plan.(4)
    10.2 Consulting Agreement between the Company and RJ Falkner & Company, Inc., dated for reference as of November 5, 2007.(5)
    10.3 Consultant Non-Qualified Stock Option Agreement between the Company and R. Jerry Falkner, dated effective as of November 5, 2007.(5)
    10.4 Mining Lease Agreement dated November 30, 2007 between DDB Syndicate and Columbus S.M., LLC.(7)
    10.5 Non-Qualified Stock Option Agreement for Douglas D.G. Birnie.(9)
    10.6 Non-Qualified Stock Option Agreement for Robert D. McDougal.(9)
    10.7 Non-Qualified Stock Option Agreement for Michael A. Steele.(9)
    10.8 Non-Qualified Stock Option Agreement for Mark H. Brennan.(9)
    10.9 Non-Qualified Stock Option Agreement for David Z. Strickler, Jr.(10)
    10.10 Non-Qualified Stock Option Agreement dated April 8, 2011 for Mark H. Brennan.(11)
    10.11 Amended and Restated Option Agreement dated July 20, 2011 between Sierra Mineral Management Inc. and Ireland Inc.(12)
    10.12 Non-Qualified Stock Option Agreement for Douglas D.G. Birnie.(13)
    10.13 Non-Qualified Stock Option Agreement for Robert D. McDougal.(13)
    10.14 Non-Qualified Stock Option Agreement for David Z. Strickler, Jr.(13)
    14.1 Code of Ethics.(6)
    21.1 List of Subsidiaries.(10)
    31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
    31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
    32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

    17



    Exhibit  
    Number Description of Exhibit
    32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
    101.INS XBRL Instance Document.
    101.SCH XBRL Taxonomy Extension Schema.
    101.CAL XBRL Taxonomy Extension Calculation Linkbase.
    101.DEF XBRL Taxonomy Extension Definition Linkbase.
    101.LAB XBRL Taxonomy Extension Label Linkbase.
    101.PRE XBRL Taxonomy Extension Presentation Linkbase.

    (1)

    Filed as an exhibit to our Registration Statement on Form SB-2 originally filed on April 18, 2002, as amended.

    (2)

    Filed as an exhibit to our Annual Report on Form 10-KSB for the year ended December 31, 2005 filed on April 12, 2006.

    (3)

    Filed as an exhibit to our Current Report on Form 8-K filed on April 30, 2007.

    (4)

    Filed as an exhibit to our Annual Report on Form 10-KSB for the year ended December 31, 2006 filed on April 5, 2007.

    (5)

    Filed as an exhibit to our Current Report on Form 8-K filed on November 9, 2007.

    (6)

    Filed as an exhibit to our Annual Report on Form 10-KSB for the year ended December 31, 2003 filed on September 28, 2004.

    (7)

    Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2007 filed on March 31, 2008.

    (8)

    Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2009 filed on April 15, 2010.

    (9)

    Filed as an exhibit to our Current Report on Form 8-K filed on July 28, 2010.

    (10)

    Filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2010 filed on March 30, 2011.

    (11)

    Filed as an exhibit to our Current Report on Form 8-K filed on April 13, 2011.

    (12)

    Filed as an exhibit to our Quarterly Report on Form 10-Q for the period ended June 30, 2011 filed on August 19, 2011.

    (13)

    Filed as an exhibit to our Current Report on Form 8-K filed on August 26, 2011.

    18


    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.

          IRELAND INC.
           
           
           
    Date: November 14, 2011 By: /s/ Douglas D.G. Birnie
          DOUGLAS D.G. BIRNIE
          Chief Executive Officer, President and Secretary
          (Principal Executive Officer)
           
           
           
           
    Date: November 14 , 2011 By: /s/ Robert D. McDougal
          ROBERT D. MCDOUGAL
          Chief Financial Officer and Treasurer
          (Principal Financial Officer)