-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Uf95LA5vdvVnXQJbvUwqBOdXBoxs04IDjBwBd8ysssjV7o+Z8Lgwe88YGgt3owWi
 UWdmAUlB9L04Wo5XXgYl1A==

<SEC-DOCUMENT>0001137171-06-000516.txt : 20060307
<SEC-HEADER>0001137171-06-000516.hdr.sgml : 20060307
<ACCEPTANCE-DATETIME>20060307093531
ACCESSION NUMBER:		0001137171-06-000516
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040331
FILED AS OF DATE:		20060307
DATE AS OF CHANGE:		20060307

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PAN AMERICAN SILVER CORP
		CENTRAL INDEX KEY:			0000771992
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13727
		FILM NUMBER:		06668822

	BUSINESS ADDRESS:	
		STREET 1:		1500-625 HOWE STREET
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 2T6

	MAIL ADDRESS:	
		STREET 1:		1500 625 HOWE ST
		CITY:			VANCOUVER BC V6C 2T6
		STATE:			A1
		ZIP:			999999999

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PAN AMERICAN MINERALS CORP
		DATE OF NAME CHANGE:	19950608
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>panamerican6k030606b.htm
<DESCRIPTION>6-K FILING FOR PAN AMERICAN SILVER
<TEXT>
<html>

<head>
<meta name="GENERATOR" content="Microsoft FrontPage 4.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title> CC Filed by Filing Services Canada Inc. 403-717-3898</title>
</head>

<body>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>FORM
  6-K</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>SECURITIES
  AND EXCHANGE COMMISSION</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Washington,
  D.C. 20549</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Report
  of Foreign Private Issuer</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Pursuant
  to Rule 13a-16 or 15d-16</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>of
  the Securities Exchange Act of 1934</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">For
  the month of </font>
  <font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">March,
  2004</font>
  <p><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Commission
  File Number: 000-13727</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><u>Pan
  American Silver Corp.</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">(Translation
  of registrant's name into English)</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <br>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><u>1500-625
  HOWE STREET</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><u>VANCOUVER
  BC CANADA V6C 2T6</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">(Address
  of principal executive offices)</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Indicate
  by check mark whether the registrant files or will file annual reports under
  cover Form 20-F or Form 40-F.</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Form
  20-F___ &nbsp;&nbsp;Form 40-F &nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;X&nbsp;&nbsp;</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;<p><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Indicate
  by check mark if the registrant is submitting the Form 6-K in paper as
  permitted by Regulation S-T Rule 101(b)(1):&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font><p><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Indicate
  by check mark if the registrant is submitting the Form 6-K in paper as
  permitted by Regulation S-T Rule 101(b)(7):&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font><p>&nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Indicate
  by check mark whether the registrant by furnishing the information contained
  in this Form is also thereby furnishing the information to the Commission
  pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Yes
  ..... &nbsp;No ..X...</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">If
  &quot;Yes&quot; is marked, indicate below the file number assigned to the
  registrant in connection with Rule 12g3-2(b): &nbsp;82-________</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Signatures</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">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.</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><u>Pan
  American Silver Corp.</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">(Registrant)</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">By:<u>/s/
  Ross Beaty&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">(Signature)</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Ross
  Beaty, </font><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Chairman</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">Date:
  </font><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">March
  6, 2006</font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="display: block; text-indent: 0pt; line-height: 1.25; width: 928; height: 19; margin-left: 0pt; margin-right: 0pt" align="left">
  <font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Ross
  Beaty, Chairman </font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">Exhibit:
  </font>
  <p><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="q12004financials.htm">Financial
  Statements for March 31, 2004 (Restated March 2, 2006)</a>

</div>
<div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
  <div id="FTR">
    <div id="GLFTR" style="WIDTH: 100%" align="left">
    </div>
  </div>
  <div id="PN" style="PAGE-BREAK-AFTER: always">
    <div style="WIDTH: 100%; TEXT-ALIGN: center">
    </div>
  </div>
</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>q12004financials.htm
<DESCRIPTION>FINANCIAL STATEMENTS FROM FIRST QUARTER 2004
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CC Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
<META NAME="author" CONTENT="lscott">
<META NAME="date" CONTENT="03/01/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height: 14pt; font-family: Arial; font-size: 12pt; margin: 0pt" align="center"><BR><b>RESTATED</b></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=185.4></TD><TD width=99.35></TD><TD width=18></TD><TD width=14.5></TD><TD width=12.5></TD><TD width=12.5></TD><TD width=77.5></TD><TD width=45.35></TD><TD width=44.65></TD></TR>
<TR><TD valign=top width=679.667 colspan=9><P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>PAN AMERICAN SILVER CORP</B>.</P>
</TD></TR>
<TR><TD valign=top width=679.667 colspan=9><P style="margin:0pt; font-family:Arial" align=center>Consolidated Balance Sheets</P>
</TD></TR>
<TR><TD valign=top width=679.667 colspan=9><P style="margin:0pt; font-family:Arial" align=center>(in thousands of U.S. dollars)</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3>&nbsp;</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:33pt; font-family:Arial"><B>March 31</B></P>
</TD><TD valign=top width=120 colspan=2><P style="margin:0pt; text-indent:12.95pt; font-family:Arial"><B>December 31</B></P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3>&nbsp;</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:51.65pt; font-family:Arial"><B>2004</B></P>
</TD><TD valign=top width=120 colspan=2><P style="margin:0pt; text-indent:46.25pt; font-family:Arial"><B>2003</B></P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial"><B>ASSETS</B></P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD valign=top width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; font-family:Arial" align=center><B>Restated &#150; Note 3</B></P>
</TD><TD valign=top width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:3.25pt; font-family:Arial" align=center><B>(Unaudited)</B></P>
</TD><TD width=120 colspan=2><P style="margin:0pt; font-family:Arial" align=center><B>(Audited)</B></P>
</TD></TR>
<TR><TD width=403.667 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Cash and cash equivalents</P>
</TD><TD valign=top width=19.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; padding-left:3.25pt; text-indent:4pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-left:3.25pt; text-indent:35.5pt; font-family:Arial">67,505</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.25pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:39.1pt; font-family:Arial">14,191</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">Short-term investments</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:43.4pt; font-family:Arial">75,294</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">74,938</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Accounts receivable, net of $Nil provision for doubtful accounts</P>
</TD><TD valign=top width=19.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:48.4pt; font-family:Arial">9,465</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">7,545</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">Inventories</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:48.4pt; font-family:Arial">8,447</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">6,612</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Deferred loss on commodity contracts</P>
</TD><TD valign=top width=19.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:55.9pt; font-family:Arial">828</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:18.05pt; font-family:Arial" align=right>&nbsp;-</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=403.667 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">Prepaid expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=19.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:48.4pt; font-family:Arial">1,391</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">1,289</P>
</TD></TR>
<TR><TD width=403.667 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Total Current Assets</P>
</TD><TD valign=top width=19.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:38.4pt; font-family:Arial">162,930</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:34.1pt; font-family:Arial">104,575</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Mineral property, plant and equipment, net (note 5)</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:43.4pt; font-family:Arial">84,834</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">83,574</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Investment and non-producing properties (note 6)</P>
</TD><TD valign=top width=19.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:43.4pt; font-family:Arial">84,221</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">83,873</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Direct smelting ore</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:48.4pt; font-family:Arial">3,604</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">3,901</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Other assets</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=19.333>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=16.667>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:48.4pt; font-family:Arial">3,506</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">3,960</P>
</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Total Assets</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=19.333>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=16.667>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=120 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-5.4pt; text-indent:12.65pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-left:-5.4pt; text-indent:38.4pt; font-family:Arial">339,095</P>
</TD><TD style="border-bottom:2pt double #000000" width=120 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.25pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:34.1pt; font-family:Arial">279,883</P>
</TD></TR>
<TR><TD valign=top width=403.667 colspan=3>&nbsp;</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial"><B>LIABILITIES</B></P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=403.667 colspan=3><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=top width=19.333>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=423 colspan=4 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial" align=justify>Accounts payable and accrued liabilities</P>
</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-5.4pt; text-indent:12.65pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">10,697</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.25pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:39.1pt; font-family:Arial">10,525</P>
</TD></TR>
<TR><TD valign=top width=379.667 colspan=2><P style="margin:0pt; text-indent:9pt; font-family:Arial">Advances for metal shipments</P>
</TD><TD valign=top width=43.333 colspan=2>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:49.15pt; font-family:Arial">5,198</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">4,536</P>
</TD></TR>
<TR><TD valign=top width=379.667 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Unrealized loss on commodity contracts</P>
</TD><TD valign=top width=43.333 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=16.667 style="background-color: #E6E9FF">&nbsp;</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:49.15pt; font-family:Arial">2,485</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:18.05pt; font-family:Arial" align=right>&nbsp;-</P>
</TD></TR>
<TR><TD valign=top width=379.667 colspan=2><P style="margin:0pt; text-indent:9pt; font-family:Arial">Current portion of bank loans and capital lease </P>
</TD><TD valign=top width=43.333 colspan=2>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">12,629</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">2,639</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=423 colspan=4><P style="margin:0pt; text-indent:9pt; font-family:Arial">Current portion of non-current liabilities</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=16.667>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:49.15pt; font-family:Arial">4,948</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">4,948</P>
</TD></TR>
<TR><TD width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Total Current Liabilities</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">35,957</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">22,648</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Deferred revenue</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:56.65pt; font-family:Arial">853</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:51.6pt; font-family:Arial">865</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Bank loans and capital lease </P>
</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:56.65pt; font-family:Arial">407</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">10,803</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Liability component of convertible debentures</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">17,078</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">19,116</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Provision for asset retirement obligation and reclamation (note 4)</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">21,132</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">21,192</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Provision for future income tax</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">19,035</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:39.1pt; font-family:Arial">19,035</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Severance indemnities and commitments</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:49.15pt; font-family:Arial">2,140</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; text-indent:44.1pt; font-family:Arial">2,126</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Total Liabilities</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">96,602</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; text-indent:38.75pt; font-family:Arial">95,785</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; font-family:Arial"><B>SHAREHOLDERS&#146; EQUITY</B></P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Share capital (note 7)</P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:9pt; font-family:Arial">Authorized:</P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:18pt; font-family:Arial">100,000,000 common shares of no par value</P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:9pt; font-family:Arial">Issued:</P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:18pt; font-family:Arial">December 31, 2003 &#150; 53,009,851 common shares</P>
</TD><TD width=120 colspan=2>&nbsp;</TD><TD width=120 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=439.667 colspan=5 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:18pt; font-family:Arial">March 31, 2004 &#150; 57,316,341 common shares</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:39.15pt; font-family:Arial">285,613</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:34.1pt; font-family:Arial">225,154</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:9pt; font-family:Arial">Equity component of convertible debentures</P>
</TD><TD width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">68,855</P>
</TD><TD width=120 colspan=2><P style="text-indent: 38.75pt; font-family: Arial; margin: 0pt">66,735</P>
</TD></TR>
<TR><TD valign=top width=439.667 colspan=5 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Additional paid in capital</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:-5.4pt; text-indent:44.15pt; font-family:Arial">12,711</P>
</TD><TD width=120 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:38.75pt; font-family:Arial">12,752</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=439.667 colspan=5><P style="margin:0pt; text-indent:9pt; font-family:Arial">Deficit</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:32.45pt; font-family:Arial">(124,686)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=120 colspan=2><P style="text-indent: 30.1pt; font-family: Arial; margin: 0pt">(120,543)</P>

</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Total Shareholders&#146; Equity</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="margin:0pt; padding-left:-5.4pt; text-indent:39.15pt; font-family:Arial">242,493</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=120 colspan=2><P style="text-indent: 34.1pt; font-family: Arial; margin: 0pt">184,098</P>

</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" width=439.667 colspan=5><P style="margin:0pt; font-family:Arial">Total Liabilities and Shareholders&#146; Equity</P>
</TD><TD style="border-bottom:2pt double #000000" width=120 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; padding-left:-5.4pt; text-indent:12.65pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-left:-5.4pt; text-indent:39.15pt; font-family:Arial">339,095</P>
</TD><TD style="border-bottom:2pt double #000000" width=120 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.25pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:34.1pt; font-family:Arial">279,883</P>
</TD></TR>
<TR><TD valign=top width=247.2>&nbsp;</TD><TD valign=top width=192.467 colspan=4>&nbsp;</TD><TD valign=top width=16.667>&nbsp;</TD><TD width=163.8 colspan=2>&nbsp;</TD><TD width=59.533>&nbsp;</TD></TR>
  </center>
<TR><TD valign=top colspan=9><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
</div>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=198></TD><TD width=72></TD><TD width=18></TD><TD width=18></TD><TD width=37.1></TD><TD width=16.9></TD><TD width=54.85></TD><TD width=0.5></TD><TD width=16.55></TD><TD width=59.5></TD></TR>
<TR><TD valign=top colspan=10><P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=top colspan=10><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Operations and Deficit</P>
</TD></TR>
<TR><TD valign=top colspan=10><P style="margin:0pt; font-family:Arial" align=center>(Unaudited &#150; in thousands of U.S. dollars, except for shares and per share amounts)</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD valign=top width=73.467 colspan=2>&nbsp;</TD><TD valign=top width=197.733 colspan=5>&nbsp;</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD width=73.467 colspan=2>&nbsp;</TD><TD width=197.733 colspan=5><P style="margin:0pt; font-family:Arial" align=center><B>Three months ended</B></P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD width=73.467 colspan=2>&nbsp;</TD><TD width=197.733 colspan=5><P style="margin:0pt; font-family:Arial" align=center><B>March 31,</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=384 colspan=3>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=24><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=49.467><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=96.333 colspan=3><P style="margin:0pt; text-indent:37.6pt; font-family:Arial"><B>2004</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=101.4 colspan=2><P style="margin:0pt; text-indent:37.6pt; font-family:Arial"><B>2003</B></P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3><P style="line-height:18pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Restated&#150;Note 3</B></P>
</TD><TD valign=top width=101.4 colspan=2><P style="line-height:18pt; margin:0pt; text-indent:27.35pt; font-family:Arial; font-size:9pt"><B>(Note 4)</B></P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3 style="background-color: #E6E9FF"><P style="line-height: 14pt; font-family: Arial; margin: 0pt"><B>Revenue</B></P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF"><P style="line-height: 14pt; margin: 0pt"></P>
</TD><TD valign=top width=49.467 style="background-color: #E6E9FF"><P style="line-height: 14pt; margin: 0pt"></P>
</TD><TD valign=top width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="line-height: 14pt; text-indent: -1.4pt; font-family: Arial; margin-top: 0pt; margin-bottom: -14pt">$</P>
<P style="line-height: 14pt; text-indent: 30.1pt; font-family: Arial; margin: 0pt">15,708</P>
</TD><TD valign=top width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="line-height: 14pt; text-indent: -1.4pt; font-family: Arial; margin-top: 0pt; margin-bottom: -14pt">$</P>
<P style="line-height: 14pt; text-indent: 35.1pt; font-family: Arial; margin: 0pt">7,822</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3><P style="margin:0pt; font-family:Arial"><B>Expenses</B></P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3>&nbsp;</TD><TD valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=384 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Operating</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=49.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:30.1pt; font-family:Arial">11,168</P>
</TD><TD valign=top width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:35.1pt; font-family:Arial">7,429</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">General and administration</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">803</P>
</TD><TD valign=top width=101.4 colspan=2><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">401</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Depreciation and amortization</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=49.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:35.1pt; font-family:Arial">2,145</P>
</TD><TD valign=top width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">471</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">Stock-based compensation (note 4)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">440</P>
</TD><TD valign=top width=101.4 colspan=2><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">487</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Reclamation</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=49.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">302</P>
</TD><TD valign=top width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:47.6pt; font-family:Arial">61</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3><P style="margin:0pt; text-indent:9pt; font-family:Arial">Exploration</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">528</P>
</TD><TD valign=top width=101.4 colspan=2><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">496</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:9pt; font-family:Arial">Interest expense</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=49.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">468</P>
</TD><TD valign=top width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">159</P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=384 colspan=3>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=49.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=96.333 colspan=3><P style="margin:0pt; text-indent:30.1pt; font-family:Arial">15,854</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=101.4 colspan=2><P style="margin:0pt; text-indent:35.1pt; font-family:Arial">9,504</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3>&nbsp;</TD><TD valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
<TR><TD width=384 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Net loss from operations</P>
</TD><TD width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD width=49.467 style="background-color: #E6E9FF">&nbsp;</TD><TD width=96.333 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:35.9pt; font-family:Arial">(146)</P>
</TD><TD width=101.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:28.4pt; font-family:Arial">(1,682)</P>
</TD></TR>
<TR><TD width=384 colspan=3><P style="margin:0pt; font-family:Arial">Loss on commodity contracts</P>
</TD><TD width=24>&nbsp;</TD><TD width=49.467>&nbsp;</TD><TD width=96.333 colspan=3><P style="margin:0pt; text-indent:28.4pt; font-family:Arial">(2,214)</P>
</TD><TD width=101.4 colspan=2><P style="margin:0pt; padding-right:3.25pt; font-family:Arial" align=right>&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=384 colspan=3><P style="line-height:18pt; margin:0pt; font-family:Arial">Other income</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=49.467>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=96.333 colspan=3><P style="line-height:18pt; margin:0pt; text-indent:42.6pt; font-family:Arial">337</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=101.4 colspan=2><P style="line-height:18pt; margin:0pt; text-indent:42.6pt; font-family:Arial">109</P>
</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" width=384 colspan=3><P style="line-height:18pt; margin:0pt; font-family:Arial">Net loss for the period</P>
</TD><TD style="border-bottom:2pt double #000000" width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=49.467>&nbsp;</TD><TD style="border-bottom:2pt double #000000" width=96.333 colspan=3><P style="line-height:20pt; margin-top:0pt; margin-bottom:-20pt; font-family:Arial">$</P>
<P style="line-height:18pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(2,023)</P>
</TD><TD style="border-bottom:2pt double #000000" width=101.4 colspan=2><P style="line-height:20pt; margin-top:0pt; margin-bottom:-20pt; font-family:Arial">$</P>
<P style="line-height:18pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(1,573)</P>
</TD></TR>
<TR><TD valign=top width=384 colspan=3>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD><TD valign=top width=96.333 colspan=3>&nbsp;</TD><TD valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=384 colspan=3 height="40"><P style="font-family: Arial; margin-top: 0pt">Accretion of convertible, unsecured senior subordinated<br>
    &nbsp;&nbsp;&nbsp; debentures </P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=24 height="40">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=49.467 height="40">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=96.333 colspan=3 height="40"><P style="margin:0pt; font-family:Arial" align=right>(2,120)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=101.4 colspan=2 height="40"><P style="margin:0pt; padding-right:3.25pt; font-family:Arial" align=right>&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=384 colspan=3><P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial">Adjusted net loss for purposes of determining basic loss per </P>
<P style="margin:0pt; text-indent:252pt; font-family:Arial"><br>
&nbsp;&nbsp;&nbsp; share</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=49.467>&nbsp;</TD></center><TD valign=bottom width=22.533><P style="margin:0pt; font-family:Arial" align=left>$</P>
</TD><center><TD valign=bottom><P style="margin:0pt; font-family:Arial" align=right>(4,143)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></center><TD valign=bottom width=22.733 colspan=2><P style="margin:0pt; font-family:Arial" align=left>$</P>
</TD><center><TD valign=bottom width=79.333><P style="margin:0pt; font-family:Arial" align=right>(1,573)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=384 colspan=3>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=49.467>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=96.333 colspan=3>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=384 colspan=3><P style="line-height:15pt; margin:0pt; font-family:Arial">Loss per share based on net loss for the period</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=49.467>&nbsp;</TD></center><TD valign=top width=96.333 colspan=3><P style="line-height: 15pt; text-indent: 26pt; font-family: Arial; margin: 0pt">($0.04)</P>
</TD><center><TD valign=top width=101.4 colspan=2><P style="line-height:15pt; margin:0pt; text-indent:26.2pt; font-family:Arial">($0.03)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=384 colspan=3><P style="line-height:15pt; margin:0pt; font-family:Arial">Effect of accretion to convertible debentures</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=49.467>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=96.333 colspan=3><P style="line-height: 15pt; text-indent: 26pt; font-family: Arial; margin: 0pt">&nbsp;
    (0.04)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=101.4 colspan=2><P style="line-height:15pt; margin:0pt; text-indent:52.9pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" valign=top width=384 colspan=3><P style="line-height:15pt; margin:0pt; font-family:Arial">Basic and fully diluted loss per share attributable to common shareholders</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=49.467>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=96.333 colspan=3><P style="line-height: 15pt; text-indent: 26pt; font-family: Arial; margin: 0pt">($0.08)</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=101.4 colspan=2><P style="line-height:15pt; margin:0pt; text-indent:26.2pt; font-family:Arial">($0.03)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=384 colspan=3><P style="margin:0pt; font-family:Arial">Weighted average shares outstanding</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=49.467>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=96.333 colspan=3><P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:12.6pt; font-family:Arial">54,054,224</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=101.4 colspan=2><P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:12.6pt; font-family:Arial">50,597,399</P>
</TD></TR>
<TR><TD valign=top width=655.2 colspan=10>&nbsp;</TD></TR>
<TR><TD valign=top width=655.2 colspan=10><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
<TR><TD valign=top width=264>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=97.467 colspan=3>&nbsp;</TD><TD valign=top width=96.333 colspan=3>&nbsp;</TD><TD valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=264>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=97.467 colspan=3>&nbsp;</TD><TD valign=top width=96.333 colspan=3>&nbsp;</TD><TD valign=top width=101.4 colspan=2>&nbsp;</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<A NAME="OLE_LINK1"></A>
<div align="center">
  <center><TABLE style="font-size:10pt" cellspacing=0><TR><TD width=230.4></TD><TD width=81></TD><TD width=11.8></TD><TD width=15.2></TD><TD width=18></TD><TD width=29.8></TD><TD width=33.2></TD><TD width=29.8></TD><TD width=33.2></TD></TR>
<TR><TD valign=top width=643.2 colspan=9><P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=top width=643.2 colspan=9><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Cash Flows</P>
</TD></TR>
<TR><TD valign=top width=643.2 colspan=9><P style="margin:0pt; font-family:Arial" align=center>(Unaudited &#150; in thousands of U.S. dollars)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=84 colspan=3>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=44.267>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=60 colspan=3>&nbsp;</TD><TD width=168 colspan=4><P style="margin:0pt; font-family:Arial" align=center><B>Three months ended</B></P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=60 colspan=3>&nbsp;</TD><TD width=168 colspan=4><P style="margin:0pt; font-family:Arial" align=center><B>March 31,</B></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=415.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=36 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; font-family:Arial" align=center><B>&nbsp;&nbsp;2004</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; font-family:Arial" align=center><B>&nbsp;2003</B></P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=108 colspan=3><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right><B>Restated&#150;Note 3</B></P>
</TD><TD valign=top width=84 colspan=2><P style="line-height:normal; margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;<B>(Note 4)</B></P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin-top:5pt; margin-bottom:0pt; font-family:Arial"><B>Operating activities</B></P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Net loss for the period</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:-1.4pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:19.4pt; font-family:Arial">(2,023)</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; padding-right:-9pt; text-indent:-1.4pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-right:-9pt; text-indent:19.4pt; font-family:Arial">(1,573)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">Reclamation expenditures</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; font-family:Arial" align=right>(362)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; font-family:Arial" align=right>&nbsp;-</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Items not involving cash</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="line-height:13pt; margin:0pt; font-family:Arial">&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; text-indent:26.1pt; font-family:Arial">2,145</P>
</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:33.6pt; font-family:Arial">471</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; font-family:Arial">&nbsp;&nbsp;Interest accretion on convertible debentures </P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; text-indent:33.6pt; font-family:Arial">269</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="line-height:13pt; margin:0pt; font-family:Arial">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; text-indent:33.6pt; font-family:Arial">440</P>
</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:33.6pt; font-family:Arial">487</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; font-family:Arial">&nbsp;&nbsp;Reclamation</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; text-indent:33.6pt; font-family:Arial">302</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:38.6pt; font-family:Arial">61</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="line-height:13pt; margin:0pt; font-family:Arial">&nbsp;&nbsp;Operating cost provisions</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; text-indent:33.6pt; font-family:Arial">517</P>
</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:33.6pt; font-family:Arial">352</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Arial">&nbsp;&nbsp;Gain on sale of marketable securities</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; text-indent:31.9pt; font-family:Arial">(22)</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="line-height:13pt; margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Arial">&nbsp;&nbsp;Unrealized loss on commodity contracts</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; text-indent:26.1pt; font-family:Arial">1,657</P>
</TD><TD valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; font-family:Arial" align=right>&nbsp;-</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=415.2 colspan=2><P style="line-height:13pt; margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Arial">&nbsp;&nbsp;Changes in non-cash operating working capital items (note 8)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=36 colspan=2>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; text-indent:19.4pt; font-family:Arial">(3,316)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84 colspan=2><P style="line-height:13pt; margin:0pt; padding-right:-9pt; text-indent:26.9pt; font-family:Arial">(342)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">Cash used by operations</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=36 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; text-indent:26.9pt; font-family:Arial">(393)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:26.9pt; font-family:Arial">(544)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial"><B>Financing activities</B></P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for cash</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:21.1pt; font-family:Arial">60,062</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:-9pt; text-indent:33.6pt; font-family:Arial">723</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Share issue costs</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; text-indent:31.9pt; font-family:Arial">(84)</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Convertible debentures interest payment</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:19.4pt; font-family:Arial">(2,307)</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:-9pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Repayment of line of credit</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:26.9pt; font-family:Arial">(125)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Proceeds from bank loans</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:-9pt; text-indent:26.1pt; font-family:Arial">4,000</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Repayment of bank loans</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=36 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; text-indent:26.9pt; font-family:Arial">(407)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:26.9pt; font-family:Arial">(407)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=415.2 colspan=2>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=36 colspan=2>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; text-indent:21.1pt; font-family:Arial">57,264</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:26.1pt; font-family:Arial">4,191</P>
</TD></TR>
<TR><TD width=415.2 colspan=2>&nbsp;</TD><TD width=36 colspan=2>&nbsp;</TD><TD width=24>&nbsp;</TD><TD width=84 colspan=2>&nbsp;</TD><TD width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial"><B>Investing activities</B></P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Mineral property, plant and equipment expenditures</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:19.4pt; font-family:Arial">(3,234)</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:-9pt; text-indent:19.4pt; font-family:Arial">(4,415)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Investment and non-producing property expenditures</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; text-indent:26.9pt; font-family:Arial">(345)</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:33.6pt; font-family:Arial">100</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Acquisition of cash of subsidiary (note 2)</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=24 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-right:-9pt; text-indent:26.1pt; font-family:Arial">3,063</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Proceeds from sale of marketable securities</P>
</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; text-indent:38.6pt; font-family:Arial">22</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=415.2 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Other</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=36 colspan=2>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:31.9pt; font-family:Arial">(19)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" width=415.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=36 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; text-indent:19.4pt; font-family:Arial">(3,557)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=84 colspan=2><P style="margin:0pt; padding-right:-9pt; text-indent:19.4pt; font-family:Arial">(1,271)</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=415.2 colspan=2 style="background-color: #E6E9FF"><P style="font-family: Arial; margin-bottom: 0pt">Increase in cash and cash equivalents during the period</P>
</TD><TD valign=top width=36 colspan=2 style="background-color: #E6E9FF">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD valign=top width=24 style="background-color: #E6E9FF">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="text-indent: 21.1pt; font-family: Arial; margin-top: 0; margin-bottom: 0">53,314</P>
</TD><TD valign=top width=84 colspan=2 style="background-color: #E6E9FF"><P style="text-indent: 26.1pt; font-family: Arial; margin-top: 0; margin-bottom: 0; padding-right: -9pt">2,376</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=415.2 colspan=2><P style="font-family: Arial; margin-top: 0; margin-bottom: 0">Cash and cash equivalents, beginning of period</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=36 colspan=2>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=24>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="text-indent: 21.1pt; font-family: Arial; margin-top: 0; margin-bottom: 0">14,191</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84 colspan=2><P style="text-indent: 21.1pt; font-family: Arial; margin-top: 0; margin-bottom: 0; padding-right: -9pt">10,185</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=415.2 colspan=2><P style="font-family: Arial; margin-left: 0pt; margin-right: 0pt; margin-top: 0; margin-bottom: 0">Cash and cash equivalents, end of period</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=36 colspan=2>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=24>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  </TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=84 colspan=2><P style="text-indent: -1.4pt; font-family: Arial; margin-top: 0; margin-bottom: -26pt">$</P>
<P style="text-indent: 21.1pt; font-family: Arial; margin-left: 0pt; margin-right: 0pt">67,505</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=84 colspan=2><P style="text-indent: -1.4pt; font-family: Arial; margin-top: 0; margin-bottom: -26pt">$</P>
<P style="text-indent: 21.1pt; font-family: Arial; margin-left: 0pt; margin-right: 0pt">12,561</P>
</TD></TR>
<TR><TD valign=top width=415.2 colspan=2>&nbsp;</TD><TD valign=top width=36 colspan=2>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=451.2 colspan=4><P style="margin:0pt; font-family:Arial"><B>Supplemental disclosure of non-cash transactions</B></P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD><TD valign=top width=84 colspan=2>&nbsp;</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=307.2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for acquisition of subsidiary</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=144 colspan=3>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=24>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=84 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:-1.4pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:45.25pt; font-family:Arial">-</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" width=84 colspan=2><P style="margin-top:0pt; margin-bottom:-12pt; padding-right:-9pt; text-indent:-1.4pt; font-family:Arial">$</P>
<P style="margin:0pt; padding-right:-9pt; text-indent:21.1pt; font-family:Arial">64,228</P>
</TD></TR>
<TR><TD valign=top width=643.2 colspan=9>&nbsp;</TD></TR>
<TR><TD valign=top colspan=9><P style="margin:0pt; padding-right:3.6pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Shareholders&#146; Equity<BR>
For the three months ended March 31, 2004<BR>
(in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=11% nowrap colspan=2 align=right>
<font size="2">
<FONT face="sans-serif">Additional</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=21% nowrap colspan=2 align=center style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Common shares</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap colspan=2 align=right>
<font size="2">
<FONT face="sans-serif">Convertible</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">Paid In</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Shares</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Amount</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap colspan=2 align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Capital</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Deficit</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Total</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=center style="background-color: #E6E9FF">
<p align="left"><font size="2">
<FONT face="sans-serif">Balance, December 31, 2002</FONT>&nbsp;</font></p>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">43,883,454</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36; 161,108</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp;<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">1,327</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;(106,943)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36; 55,492</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Stock-based compensation</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">2,871</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">2,871</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Exercise of stock options</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">1,385,502</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">9,312</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(1,471)</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">7,841</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Issued on acquisition of Corner Bay</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=center style="background-color: #E6E9FF">
<p align="left"><font size="2">
<FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Silver Inc. (note 2)</FONT>&nbsp;</font></p>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">7,636,659</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">54,203</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">54,203</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Fair value of stock options granted</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">1,136</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">1,136</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Fair value of share purchase warrants</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">8,889</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">8,889</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Exercise of share purchase warrants</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">100,943</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">509</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">509</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Issue of convertible debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">63,201</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">63,201</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Convertible debentures issue costs</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(3,272)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(3,272)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Issued as compensation</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">3,293</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">22</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<B><FONT face="sans-serif">-</FONT></B>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<B><FONT face="sans-serif">-</FONT></B>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">22</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Accretion to convertible debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">3,534</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(3,534)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<B><FONT face="sans-serif">-</FONT></B>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Net loss for the year</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(6,794)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(6,794</FONT><B><FONT face="sans-serif">)</FONT></B>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=center>
<p align="left"><font size="2">
<FONT face="sans-serif">Balance, December 31, 2003</FONT>&nbsp;</font></p>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">53,009,851</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">225,154</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">66,735</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">12,752</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(120,543</FONT><B><FONT face="sans-serif">)</FONT></B>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">184,098</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Stock-based compensation</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">440</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">440</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Exercise of stock options</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">433,361</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">3,626</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(481)</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">3,145</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Exercise of share purchase warrants</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">539,796</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">1,917</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">1,917</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Shares issued for cash</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">3,333,333</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">55,000</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">55,000</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Shares issue costs</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(84)</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(84)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left>
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Accretion to convertible debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">2,120</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(2,120)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
 <font size="2">
 &nbsp; &nbsp;<FONT face="sans-serif">Net loss for the period (Restated)</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(2,023)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(2,023)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=33% nowrap align=left style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">Balance, March 31, 2004</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">57,316,341</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36; 285,613</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="border-bottom-style: double; border-bottom-color: #000000">
 <font size="2">
 &nbsp;<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">68,855</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">12,711</FONT>&nbsp;</font>
	</TD>
	<TD width=11% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;(124,686)</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36; 242,493</FONT>&nbsp;</font>
	</TD>
</TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-family:Arial; font-size:11pt" align=right>See accompanying notes to consolidation financial statements</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at March 31, 2004 and 2003 and for the three month periods then ended</P>
<P style="margin:0pt; font-family:Arial">(Tabular amounts are in thousands of US dollars, except for shares, price per share and per share amounts)</P>
<P style="margin:0pt"><BR></P>
<P style="font-family: Arial; margin-top: 0pt; margin-bottom: -12pt"><B>1.</B></P>
<P style="font-family: Arial; text-indent: 36pt; margin: 0pt"><B>Basis of presentation and other disclosures</B></P>
<P style="margin:0pt"><BR></P>
<P style="font-family: Arial; margin-top: 0pt; margin-bottom: -12pt; padding-left: 36pt" align=justify>a)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>These unaudited interim consolidated financial statements are expressed in United States dollars and are prepared in accordance with accounting principles generally accepted in Canada (&#147;Canadian GAAP&#148;), which are more fully described in the annual audited consolidated financial statements for the year ended December 31, 2003 which is included in the Company&#146;s 2003 Annual Report. &nbsp;These statements do not include all of the disclosures required by Canadian GAAP for annual financial statements. &nbsp;Certain comparative figures have been reclassified to conform to the current presentation. &nbsp;Significant differences from United States accounting principles are described in note 9.</P>
<P style="font-family: Arial; margin: 0pt; padding-left: 72pt" align=justify>In management&#146;s opinion, all adjustments necessary for fair presentation have been included in these financial statements.</P>
<P style="font-family: Arial; margin-top: 0pt; margin-bottom: -12pt; padding-left: 36pt" align=justify>b)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>On February 9, 2004, the Company signed a binding agreement with a number of individuals, subject to regulatory approval and other conditions, to purchase 92% of the voting shares in Compa&#241;&#237;a Minera Argentum S.A. (&#147;Argentum&#148;) for approximately $35,000,000. &nbsp;Argentum received the Anticona and Manuelita mining units and related infrastructure and processing assets, (&#147;Morococha&#148;) from Sociedad Minera Corona S.A.. Morococha is located in central Peru 150 km northeast of Lima. &nbsp;This proposed purchase is expected to close in the second quarter of 2004.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>2.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Business Acquisition</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>On February 20, 2003, the Company acquired a 100% interest in Corner Bay Silver Inc. (&#147;Corner Bay&#148;). &nbsp;The consideration paid to the shareholders of Corner Bay was 7,636,659 common shares of the Company (&#147;Pan American shares&#148;), representing 0.3846 of a share of the Company for each share of Corner Bay and 3,818,329 warrants (the &#147;Pan American warrants&#148;) to purchase common shares of the Company, representing 0.1923 of a warrant for each share of Corner Bay. &nbsp;The Pan American shares issued were valued at $54,203,000, which was derived from an issue price of Cdn$11.30. The Pan American warrants were valued at $8,889,000, which was equal to $2.328 per warrant. &nbsp;The Pan American warrants were valued using an option pricing model assuming a weighted average volatility of the Company&#146;s share price of 35% and a weighted average annual risk free rate of 4.16%.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>Each whole Pan American warrant allows the holder to purchase a Pan American share for a price of Cdn$12.00 for a five-year period ending February 20, 2008.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>In addition, the Company agreed to grant 553,847 stock options to purchase common shares of the Company. &nbsp;These options replaced 960,000 fully vested stock options held by employees and shareholders of Corner Bay. &nbsp;The value of the stock options granted was determined to be $1,136,000.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>The acquisition was accounted for using the purchase method, which resulted in the allocation of the consideration paid to the fair value of the assets acquired and the liabilities assumed, as follows:</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size: 10pt" cellspacing=0 align=center height="371"><TR><TD width=304.2 height="18"></TD><TD width=85.5 height="18"></TD></TR>
<TR><TD valign=top width=405.6 height="49">
<P style="margin:0pt"></P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=114 height="49"><P style="margin:0pt; text-indent:44.4pt; font-family:Arial" align="right">As at
February 20,<br>
    &nbsp;2003</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18"><P style="margin:0pt; font-family:Arial">Fair value of net assets acquired (000&#146;s)</P>
</TD><TD valign=top width=114 height="18">&nbsp;</TD></TR>
<TR><TD valign=top width=405.6 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:8.65pt; font-family:Arial">Current assets</P>
</TD><TD valign=top width=114 height="18" style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:4.75pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:41.25pt; font-family:Arial" align="right">2,512</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18">
    <p style="text-indent: 8.65pt; font-family: Arial; margin: 0pt">Equipment
</TD><TD valign=top width=114 height="18">
<P style="margin:0pt; text-indent:42.75pt; font-family:Arial" align="right">2,500</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:8.65pt; font-family:Arial">Mineral properties</P>
</TD><TD valign=top width=114 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:36.25pt; font-family:Arial" align="right">79,008</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18"><P style="margin:0pt; text-indent:8.65pt; font-family:Arial">Other assets</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=114 height="18"><P style="margin:0pt; text-indent:53.75pt; font-family:Arial" align="right">29</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="22" style="background-color: #E6E9FF">&nbsp;</TD><TD valign=top width=114 height="22" style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; text-indent:36.25pt; font-family:Arial" align="right">84,049</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18"><P style="margin:0pt; font-family:Arial">Less: </P>
</TD><TD valign=top width=114 height="18"><P style="margin:0pt" align=right></P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18" style="background-color: #E6E9FF">
    <p style="text-indent: 8.65pt; font-family: Arial; margin: 0pt">Current liabilities
</TD><TD style="background-color: #E6E9FF" valign=top width=114 height="18">
<P style="margin:0pt; text-indent:42.05pt; font-family:Arial" align="right">(104)</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18">
    <p style="text-indent: 8.65pt; font-family: Arial; margin: 0pt">Provision for future income tax liability
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=114 height="18">
<P style="margin:0pt; text-indent:29.55pt; font-family:Arial" align="right">(19,035)</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="26" style="background-color: #E6E9FF"></TD><TD style="border-bottom: 2pt double #000000" valign=top width=114 height="26"><P style="line-height: 17pt; text-indent: 4.75pt; font-family: Arial; background-color: #E6E9FF; margin-top: 0pt; margin-bottom: -17pt">$</P>
<P style="line-height: 15pt; text-indent: 36.25pt; font-family: Arial; background-color: #E6E9FF; margin: 0pt" align="right">64,910</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18">&nbsp;</TD><TD valign=top width=114 height="18">&nbsp;</TD></TR>
<TR><TD valign=top width=405.6 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; text-indent:8.65pt; font-family:Arial">Consideration paid</P>
</TD><TD valign=top width=114 height="18" style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:6.25pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:36.25pt; font-family:Arial" align="right">64,228</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="18"><P style="margin:0pt; text-indent:8.65pt; font-family:Arial">Add: &nbsp;Costs of acquisition</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=114 height="18"><P style="margin:0pt; text-indent:48.75pt; font-family:Arial" align="right">682</P>
</TD></TR>
<TR><TD valign=top width=405.6 height="26" style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=top width=114 height="26"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:6.25pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:36.25pt; font-family:Arial" align="right">64,910</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>The purchase consideration of $64,228,000 for 100% of Corner Bay exceeded the carrying value of the net assets acquired by $54,108,000, which was applied to increase the carrying value of the mineral properties. &nbsp;The excess amount did not increase the carrying value of the underlying assets for tax purposes resulting in a temporary difference between accounting and tax values. &nbsp;The resulting estimated future income tax liability associated with this temporary difference of $19,035,000 was applied to increase the carrying value of the mineral properties.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>The following table presents the unaudited pro forma results of operations for information purposes assuming that the Company acquired Corner Bay at the beginning of 2003:</P>
<P style="margin:0pt" align=justify><BR></P>
<div align="center">
  <center>
<TABLE border=0 width=75% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD width=61% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Revenue</FONT>&nbsp;</font>
	</TD>
	<TD width=25% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">7,822</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=61% nowrap align=left>
<font size="2">
<FONT face="sans-serif">Net loss</FONT>&nbsp;</font>
	</TD>
	<TD width=25% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(1,858)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=61% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Basis and diluted loss per share</FONT>&nbsp;</font>
	</TD>
	<TD width=25% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(0.04)</FONT>&nbsp;</font>
	</TD>
</TR>
</TABLE></center>
</div>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial" align=justify><B>3.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>Restatement</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>In 2004, Pan American implemented a hedge accounting policy for the accounting treatment of its base-metal forward contracts program. &nbsp;In the fourth quarter of 2005 it was concluded that the Company&#146;s accounting for its forward contracts for the sale of base metals (lead and zinc) ,its forward contracts for purchasing Mexican pesos with US dollars and its silver fixing contracts do not qualify for hedge accounting under AcG-13, Hedging Relationships. &nbsp;As a result, Pan American has restated its unaudited consolidated financial statements for each quarter from March 31, 2004 to September 30, 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>Pan American is now required to recognize mark-to market valuations of its open forward contract positions through its income at the end of each period. &nbsp;In the past, Pan American had recognized gains, losses, revenues and expenses from its forward contracts in its income only in the period in which they settled. &nbsp;The effects of the change in accounting treatment are summarized in the tables below:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=186.25></TD><TD width=18></TD><TD width=96.2></TD><TD width=20.8></TD><TD width=87.2></TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=248.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=152.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>&nbsp;As Previously Reported</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>&nbsp;As Restated</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=248.333>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=152.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>&nbsp;March 31</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>&nbsp;March 31</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=248.333>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=152.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>2004</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>2004</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=248.333><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify><B>Consolidated Balance Sheets</B></P>
</TD><TD valign=top width=152.267 colspan=2>&nbsp;</TD><TD valign=top width=144 colspan=2>&nbsp;</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000" valign=top width=248.333>&nbsp;</TD><TD valign=top width=152.267 colspan=2>&nbsp;</TD><TD valign=top width=144 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=248.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Deferred loss on commodity contracts</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=128.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:108pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD valign=top width=27.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=116.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:72pt; font-family:Arial; font-size:9pt">828</P>
</TD></TR>
<TR><TD valign=top width=248.333><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Unrealized loss on commodity contracts</P>
</TD><TD width=24><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=128.267><P style="line-height:11pt; margin:0pt; text-indent:108pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD width=27.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=116.267><P style="line-height:11pt; margin:0pt; text-indent:72pt; font-family:Arial; font-size:9pt">2,485</P>
</TD></TR>
<TR><TD valign=top width=248.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Deficit</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=128.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:108pt; font-family:Arial; font-size:9pt">(123,029)</P>
</TD><TD valign=top width=27.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=116.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:72pt; font-family:Arial; font-size:9pt">(124,686)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<hr>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=186.95></TD><TD width=18></TD><TD width=96.95></TD><TD width=20.05></TD><TD width=87.95></TD></TR>
<TR><TD valign=top width=249.267><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify><B>Consolidated Statement of Operations</B></P>
</TD><TD valign=top width=153.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Three Month Ended</B></P>
</TD><TD valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Three Month Ended</B></P>
</TD></TR>
<TR><TD valign=top width=249.267>&nbsp;</TD><TD valign=top width=153.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>March 31, 2004</B></P>
</TD><TD valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>March 31, 2004</B></P>
</TD></TR>
<TR><TD valign=top width=249.267>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=129.267><P style="margin:0pt" align=justify><BR></P>
</TD><TD valign=top width=26.733>&nbsp;</TD><TD valign=top width=117.267><P style="margin:0pt" align=justify><BR></P>
</TD></TR>
<TR><TD valign=top width=249.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Revenue</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=129.267 align="right" style="background-color: #E6E9FF"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">15,151</P>
</TD><TD valign=top width=26.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=117.267 align="right" style="background-color: #E6E9FF"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">15,708</P>
</TD></TR>
<TR><TD valign=top width=249.267><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Mine operating earnings</P>
</TD><TD width=24><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=129.267 align="right"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">1,838</P>
</TD><TD width=26.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=117.267 align="right"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">2,395</P>
</TD></TR>
<TR><TD valign=top width=249.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Loss on commodity contracts</P>
</TD><TD valign=top width=24 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=129.267 align="right" style="background-color: #E6E9FF"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>-</P>
</TD><TD valign=top width=26.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=117.267 align="right" style="background-color: #E6E9FF"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">(2,214)</P>
</TD></TR>
<TR><TD valign=top width=249.267><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Net loss for the period</P>
</TD><TD valign=top width=24><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=129.267 align="right"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>(366)</P>
</TD><TD valign=top width=26.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=117.267 align="right"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">(2,023)</P>
</TD></TR>
<TR><TD valign=bottom width=249.267 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Adjusted net loss for the period attributable to common shareholders</P>
</TD><TD width=24 style="background-color: #E6E9FF" valign="bottom"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=129.267 align="right" style="background-color: #E6E9FF" valign="bottom"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">(2,486)</P>
</TD><TD width=26.733 style="background-color: #E6E9FF" valign="bottom"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD width=117.267 align="right" style="background-color: #E6E9FF" valign="bottom"><P style="line-height: 11pt; text-indent: 0; font-family: Arial; font-size: 9pt; margin: 0pt">(4,143)</P>
</TD></TR>
<TR><TD valign=top width=249.267><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Basic and diluted loss per share</P>
</TD><TD valign=top width=24><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=129.267 align="right"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; text-indent: 0; margin: 0pt" align=right>(0.05)</P>
</TD><TD valign=top width=26.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$</P>
</TD><TD valign=top width=117.267 align="right"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; text-indent: 0; margin: 0pt">(0.08)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>4.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Change in accounting policies (Restated)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-18pt; font-family:Arial" align=justify>a)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>During the fourth quarter 2003 the Company changed its accounting policy, retroactive to January 1, 2002, in accordance with recommendation of CICA 3870, &#147;Stock-based Compensation and Other Stock-based Payments&#148;. &nbsp;As permitted by CICA 3870, the Company has applied this change retroactively for new awards granted on or after January 1, 2002. &nbsp;Stock-based compensation awards are calculated using the Black-Scholes option pricing model. &nbsp;Previously, the Company used the intrinsic value method for valuing stock-based compensation awards granted to employees and directors where compensation expense was recognized for the excess, if any, of the quoted market price of the Company&#146;s common shares over the common share exercise price on the day that options were granted.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="font-family: Arial; margin: 0pt; padding-left: 72pt" align=justify>Using the fair value method for stock-based compensation, the Company recorded an additional charge to earnings of $440,000 for the three months ended March 31, 2004 (three months ended March 31, 2003 - $487,000) for stock options granted to employees and directors. &nbsp;These amounts were determined using an option pricing model assuming no dividends were paid, a weighted average volatility of the Company&#146;s share price of 58%, weighted average expected life of 3.5 years and weighted average annual risk free rate of 4.03%.</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-18pt; font-family:Arial" align=justify>b)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>During the fourth quarter of 2003, the Company changed its accounting policy on a retroactive basis with respect to accounting and reporting for obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and the normal operation of long-lived assets. &nbsp;The Company adopted CICA 3110 &#147;Asset Retirement Obligations&#148; whereby the fair value of the liability is initially recorded and the carrying value of the related asset is increased by the corresponding amount. &nbsp;The liability is accreted to its present value and the capitalized cost is amortized over the useful life of the related asset.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-18pt; font-family:Arial" align=justify>c)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>Effective January 1, 2004, the Company adopted the CICA Accounting Guideline 13, Hedging Relationships (&quot;AcG-13&quot;).&nbsp; AcG-13 specifies the conditions under which hedge accounting is appropriate and includes requirements for the identification, documentation and designation of hedging relationships, sets standards for determining hedge effectiveness, and establishes criteria for the discontinuance of hedge accounting.&nbsp; The adoption of AcG-13 had the effect of increasing unrealized loss on commodity contracts and deferred loss on commodity contracts by $1.5 million, at January 1, 2004, (see note 3.). </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>5.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Mineral property, plant and equipment</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">During the first quarter of 2004, the Company spent $3,234,000 on the following capital projects:</P>
<P style="margin:0pt"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=153></TD><TD width=63></TD><TD width=63></TD><TD width=63></TD><TD width=63></TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=204>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=center>Huaron</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=center>La Colorada</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=center>Other</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD valign=top width=204 style="background-color: #E6E9FF"><P style="line-height:16pt; margin:0pt; font-family:Arial">Plant and equipment</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:35.85pt; font-family:Arial">720</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:47.5pt; font-family:Arial">-</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:47.5pt; font-family:Arial">-</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:25.95pt; font-family:Arial">720</P>
</TD></TR>
<TR><TD valign=top width=204><P style="line-height:16pt; margin:0pt; font-family:Arial">Mine development</P>
</TD><TD valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:35.85pt; font-family:Arial">564</P>
</TD><TD valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:28.35pt; font-family:Arial">1,803</P>
</TD><TD valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:47.5pt; font-family:Arial">-</P>
</TD><TD valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:18.45pt; font-family:Arial">2,367</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=204><P style="line-height:16pt; margin:0pt; font-family:Arial">Other</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:47.5pt; font-family:Arial">-</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:47.5pt; font-family:Arial">-</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:35.85pt; font-family:Arial">147</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="line-height:16pt; margin:0pt; text-indent:25.95pt; font-family:Arial">147</P>
</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" valign=top width=204>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:28.35pt; font-family:Arial">1,284</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:28.35pt; font-family:Arial">1,803</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:35.85pt; font-family:Arial">147</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:18pt; margin-top:0pt; margin-bottom:-18pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:16pt; margin:0pt; text-indent:18.45pt; font-family:Arial">3,234</P>
</TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial">.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>6.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Investment and non-producing properties</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>Acquisition costs of mineral development properties together with costs directly related to mine development expenditures are deferred. &nbsp;Exploration expenditures on investment properties are charged to operations in the period they are incurred.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>During the first quarter of 2004, exploration and development expenditures were spent on the following properties:</P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=153></TD><TD width=45></TD><TD width=117></TD><TD width=81></TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=60>&nbsp;</TD><TD valign=top width=156>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD></TR>
<TR><TD valign=bottom width=204 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Alamo Dorado, Mexico</P>
</TD><TD valign=bottom width=60 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=156 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=108 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:4.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:42.6pt; font-family:Arial">236</P>
</TD></TR>
<TR><TD valign=bottom width=204><P style="margin:0pt; font-family:Arial">Manantial Espejo, Argentina</P>
</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">467</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=204><P style="margin:0pt; font-family:Arial">Others</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=60>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">170</P>
</TD></TR>
<TR><TD valign=bottom width=204>&nbsp;</TD><TD valign=bottom width=60>&nbsp;</TD><TD valign=bottom width=156>&nbsp;</TD><TD valign=bottom width=108><P style="margin:0pt; text-indent:42.6pt; font-family:Arial">873</P>
</TD></TR>
<TR><TD valign=bottom width=204 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Less:</P>
</TD><TD valign=bottom width=60 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=156 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=108 style="background-color: #E6E9FF">&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=204><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Amount deferred</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=60>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=156>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108><P style="margin:0pt; text-indent:35.9pt; font-family:Arial">(345)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=204><P style="margin:0pt; font-family:Arial">Exploration expenditures</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=60>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=156>&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=108><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:4.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:42.6pt; font-family:Arial">528</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>7.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Share capital</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>During the three-month period ended March 31, 2004 the Company:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>1)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 3,333,333 common shares at $16.50 per share, for net proceeds of $54,916,000, after legal, accounting and other fees;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>2)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 433,361 common shares for proceeds of $3,626,000 in connection with the exercise of employees and directors stock options; and</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>3)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 539,796 common shares for proceeds of $1,917,000 in connection with the exercise of share purchase warrants.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">The following table summarizes information concerning stock options outstanding as at
March 31, 2004:</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size: 10pt" cellspacing=0 height="282"><TR><TD width=85.3 height="18"></TD><TD width=67.1 height="18"></TD><TD width=78 height="18"></TD><TD width=69.3 height="18"></TD><TD width=91.85 height="18"></TD><TD width=87.25 height="18"></TD></TR>
<TR><TD valign=top width=113.733 height="18">&nbsp;</TD><TD valign=top width=89.467 height="18">&nbsp;</TD><TD style="border-bottom: 0.5pt solid #000000" width=196.4 colspan=2 height="18"><P style="margin:0pt; font-family:Arial" align=center>Options Outstanding</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" width=238.8 colspan=2 height="18"><P style="margin:0pt; font-family:Arial" align=center>Options Exercisable</P>
</TD></TR>
<TR><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=113.733 height="81"><P style="margin:0pt; font-family:Arial" align=center>Range of Exercise Prices</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=89.467 height="81"><P style="margin:0pt; font-family:Arial" align=center>Year of Expiry</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=104 height="81"><P style="margin:0pt; font-family:Arial" align=center>Number Outstanding as at March 31, 2004</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=92.4 height="81"><P style="margin:0pt; font-family:Arial" align=center>Weighted Average Remaining Contractual Life (months)</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=122.467 height="81"><P style="margin:0pt; font-family:Arial" align=center>Number Exercisable as at March 31, 2004</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=116.333 height="81"><P style="margin:0pt; font-family:Arial" align=center>Weighted Average Exercise Price</P>
</TD></TR>
<TR><TD valign=bottom width=113.733 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$3.47 - $7.05</P>
</TD><TD valign=bottom width=89.467 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2004</P>
</TD><TD valign=bottom align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>50,036</P>
</TD><TD valign=bottom align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>4.67</P>
</TD><TD valign=bottom align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>50,036</P>
</TD><TD valign=bottom align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$7.05</P>
</TD></TR>
<TR><TD valign=top width=113.733 height="18"><P style="margin:0pt; font-family:Arial" align=center>$9.15</P>
</TD><TD valign=top width=89.467 height="18"><P style="margin:0pt; font-family:Arial" align=center>2005</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>44,077</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>10.98</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>44,077</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$9.15</P>
</TD></TR>
<TR><TD valign=top width=113.733 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$3.81 - $7.44</P>
</TD><TD valign=top width=89.467 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2006</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>195,000</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>24.94</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>140,000</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$3.81</P>
</TD></TR>
<TR><TD valign=top width=113.733 height="18"><P style="margin:0pt; font-family:Arial" align=center>$7.37 - $7.70</P>
</TD><TD valign=top width=89.467 height="18"><P style="margin:0pt; font-family:Arial" align=center>2007</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>484,000</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>39.35</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>450,000</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$7.64</P>
</TD></TR>
<TR><TD valign=top width=113.733 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$6.79 - $11.00</P>
</TD><TD valign=top width=89.467 height="18" style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2008</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>614,231</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>50.76</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>29,231</P>
</TD><TD valign=top align="right" style="background-color: #E6E9FF; padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$8.47</P>
</TD></TR>
<TR><TD valign=top width=113.733 height="17"><P style="margin:0pt; font-family:Arial" align=center>$12.58 - $17.17</P>
</TD><TD valign=top width=89.467 height="17"><P style="margin:0pt; font-family:Arial" align=center>2009</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>302,000</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>58.21</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>122,000</P>
</TD><TD valign=top align="right" style="padding-right: 0"><P style="font-family: Arial; margin: 0pt" align=right>$15.03</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=113.733 height="17"><P style="margin:0pt; font-family:Arial" align=center>$3.81</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=89.467 height="17"><P style="margin:0pt; font-family:Arial" align=center>2010</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000; padding-right: 0" valign=top align="right"><P style="font-family: Arial; margin: 0pt" align=right>247,000</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000; padding-right: 0" valign=top align="right"><P style="font-family: Arial; margin: 0pt" align=right>79.50</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000; padding-right: 0" valign=top align="right"><P style="font-family: Arial; margin: 0pt" align=right>247,000</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000; padding-right: 0" valign=top align="right"><P style="font-family: Arial; margin: 0pt" align=right>$3.81</P>
</TD></TR>
<TR><TD style="border-bottom: 2pt double #000000" valign=bottom width=113.733 height="19">&nbsp;</TD><TD style="border-bottom: 2pt double #000000" valign=bottom width=89.467 height="19">&nbsp;</TD></center><TD style="border-bottom: 2pt double #000000; padding-right: 0" valign=bottom align="right"><P style="margin:0pt; font-family:Arial" align=right>1,936,344</P>
</TD><center><TD style="border-bottom: 2pt double #000000; padding-right: 0" valign=bottom align="right"><P style="margin:0pt; font-family:Arial" align=right>45.75</P>
</TD><TD style="border-bottom: 2pt double #000000; padding-right: 0" valign=bottom align="right"><P style="margin:0pt; font-family:Arial" align=right>1,082,344</P>
</TD><TD style="border-bottom: 2pt double #000000; padding-right: 0" valign=bottom align="right"><P style="margin:0pt; font-family:Arial" align=right>$7.16</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>During the three months ended March 31, 2004, the Company recognized $440,000 (2003 - $487,000) of stock compensation expense consisting of $214,000 for options issued in 2004 and $226,000 for options issued in 2003.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>As at March 31, 2004 there were warrants outstanding to allow the holders to purchase 3,814,700 common shares of the Company at Cdn$12.00 per share. &nbsp;These warrants expire on February 20, 2008.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial" align=justify><B>8.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>Changes in non-cash working capital items </B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>The following table summarizes the changes in non-cash working capital items</P>
<P style="margin:0pt" align=justify><BR></P>
<div align="center">
  <center>
<TABLE border=0 width=75% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=left style="border-bottom: 1 solid #000000">
 <p align="right"><font size="2">
 &nbsp;<FONT face="sans-serif">2004</FONT>&nbsp;</font></p>
	</TD>
	<TD width=6% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">2003</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Short-term investments</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(356)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left>
<font size="2">
<FONT face="sans-serif">Accounts receivable</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(1,920)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(248)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Inventories</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(1,666)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(3,039)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left>
<font size="2">
<FONT face="sans-serif">Prepaid expenses</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(102)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">1,198</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Accounts payable and accrued liabilities</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">172</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(1,585)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left>
<font size="2">
<FONT face="sans-serif">Advances for metal shipments</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right>
<font size="2">
<FONT face="sans-serif">662</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right>
<font size="2">
<FONT face="sans-serif">4,070</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">Non-current working capital items</FONT>&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(106)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(54)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=53% nowrap align=left style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=16% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=12% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(3,316)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=10% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(342)</FONT>&nbsp;</font>
	</TD>
</TR>
</TABLE></center>
</div>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>9.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Segmented information (Restated)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>Substantially all of the Company&#146;s operations are within the mining sector, conducted through operations in six countries. &nbsp;Due to differences between mining and exploration activities, the Company has a separate budgeting process and measures the results of operations and exploration activities independently. &nbsp;The Corporate office provides support to the mining and exploration activities with respect to financial, human resources and technical support.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial">Segmented disclosures and enterprise-wide information are as follows:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=176.4></TD><TD width=72></TD><TD width=72></TD><TD width=84.65></TD><TD width=72></TD></TR>
<TR><TD valign=top width=235.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=400.867 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the three months ended March 31, 2004</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=235.2><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Mining</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; font-family:Arial" align=center>Corporate</P>
<P style="margin:0pt; font-family:Arial" align=center>Office</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=112.867><P style="margin:0pt; font-family:Arial" align=center>Exploration &amp; Development</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD width=235.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Revenue from external customers</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:30.1pt; font-family:Arial">16,395</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:35.9pt; font-family:Arial">(687)</P>
</TD><TD width=112.867 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:31.9pt; font-family:Arial">15,708</P>
</TD></TR>
<TR><TD valign=top width=235.2><P style="line-height:15pt; margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:35.1pt; font-family:Arial">1,282</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(2,801)</P>
</TD><TD valign=top width=112.867><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(504)</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:30.2pt; font-family:Arial">(2,023)</P>
</TD></TR>
<TR><TD valign=top width=235.2 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial">109,723</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial">141,877</P>
</TD><TD valign=top width=112.867 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">87,495</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial">339,095</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">&nbsp;</P>
<hr>
<p style="margin: 0pt">&nbsp;</p>
<p style="margin: 0pt">&nbsp;</p>
<P style="margin:0pt">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=176.4></TD><TD width=72></TD><TD width=72></TD><TD width=84.65></TD><TD width=72></TD></TR>
<TR><TD valign=top width=235.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=400.867 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the three months ended March 31, 2003</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=235.2><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Mining</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; font-family:Arial" align=center>Corporate</P>
<P style="margin:0pt; font-family:Arial" align=center>Office</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=112.867><P style="margin:0pt; font-family:Arial" align=center>Exploration &amp; Development</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD valign=top width=235.2 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Revenue from external customers</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:35.1pt; font-family:Arial">7,658</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:42.6pt; font-family:Arial">164</P>
</TD><TD valign=top width=112.867 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:36.9pt; font-family:Arial">7,822</P>
</TD></TR>
<TR><TD valign=top width=235.2><P style="line-height:15pt; margin:0pt; font-family:Arial">Net loss for the period</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(526)</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(700)</P>
</TD><TD valign=top width=112.867><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(347)</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:30.2pt; font-family:Arial">(1,573)</P>
</TD></TR>
<TR><TD valign=top width=235.2 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:31.9pt; font-family:Arial">89,738</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:36.9pt; font-family:Arial">9,311</P>
</TD><TD valign=top width=112.867 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">85,855</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial">184,904</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>10.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Subsequent events</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:3pt; text-indent:33pt; font-family:Arial">Subsequent to March 31, 2004, the Company:</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>a)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 120,334 common shares for proceeds of $659,000 in connection with the exercise of employees and directors stock options;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>b)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>converted $70,865,000 principal amount from the holders of the Company&#146;s US$86,250,000 5.25% unsecured senior subordinated convertible debentures by issuing 7,577,519 common \shares and cash payments totaling $9,301,000;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>c)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>repaid the Huaron pre-production loan facility on April 16, 2004 by making a payment of $3,115,000; and</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>d)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>notified the International Finance Corporation of its intention to repay the $9,500,000 La Colorada project loan facility on May 17, 2004.</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
