Silverton Adventures, Inc. announced restatement of audited earnings results for the year ended June 30, 2011 and June 30, 2012. As of November 19, 2012 the company determined that it will need to restate its audited financial statements for the year ended June 30, 2012. As a result of the preparation of the company's unaudited financial statements as September 30, 2012 and for the three months ended September 30, 2012, the company determined that it had not used the proper accounting treatment of capital distributions to an officer and director of the company.

An officer and director of the company were advanced funds in connection with travel and other expenses. These advancements of funds were improperly recorded as related-party accounts receivable. The company should have recorded these transactions as expenses and/or compensation for services performed.

As a result, the company understated its net loss by $50,408 and $26,445 for the years ended June 30, 2012 and 2011, respectively. In the restatement of the June 30, 2012 financial statements, the amounts will be accounted for as a payroll expense. The result from the change will be an increase in accumulate deficit totaling $76,853 and an increase of $50,408 in payroll expense which results in a $76,853 change to total current assets and stockholders' equity.