Abstract: This paper is intended to detailed introduce the special Canadian preferential personal income tax policy, Flow-through shares, and its supporting tax policy, Mineral Exploration Tax Credit, which are successful directed the personal capital into junior mining exploration industry.By analyzing the policy design idea and implementation method, this paper grasps the goal of policy and procedures.Through the actual case analysis, the functions and the practical effects of this policy are explained in detail.The Flow-Through Shares has been successfully implemented in Canada for more than 20 years which still sustained and effective plays an investment guiding role.It makes individual investment become one of the important channels of market-oriented financing in the junior mining exploration industry.It is also considered as one of the effective solutions for the junior mining exploration industry financing difficulty in the current worldwide mining market downturns.This particular preferential personal income tax policy has revelation effect for China to design similar fiscal policy.