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<SEC-DOCUMENT>0001137171-06-000520.txt : 20060307
<SEC-HEADER>0001137171-06-000520.hdr.sgml : 20060307
<ACCEPTANCE-DATETIME>20060307093557
ACCESSION NUMBER:		0001137171-06-000520
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040930
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:		06668827

	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>panamerican6k030606f.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>
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<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 September</font><font style="display: inline; font-size: 10pt; color: #000000; font-family: 'Times New Roman', serif">,
  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="q32004financials.htm">Financial
  Statements for September 30, 2004 (Restated March 2, 2006)</a>

</div>
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</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>q32004financials.htm
<DESCRIPTION>FINANCIAL STATEMENTS FROM THIRD 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="gordon">
<META NAME="date" CONTENT="03/02/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height: 16pt; font-family: Arial; font-size: 14pt; margin: 0pt" align="center"><b>RESTATED</b><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=289.25></TD><TD width=93.05></TD><TD width=75.9></TD></TR>
<TR><TD valign=bottom width=610.933 colspan=3><P style="line-height:16pt; margin:0pt; font-family:Arial; font-size:14pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=bottom width=610.933 colspan=3><P style="margin:0pt; font-family:Arial" align=center>Consolidated Balance Sheets</P>
</TD></TR>
<TR><TD valign=bottom width=610.933 colspan=3><P style="margin:0pt; font-family:Arial" align=center>(in thousands of US dollars)</P>
</TD></TR>
<TR><TD valign=bottom width=385.667>&nbsp;</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;September 30 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align=right>&nbsp;December 31 </P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;2004 </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align=right>&nbsp;2003 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667>&nbsp;</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align=right>&nbsp;(Unaudited) </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align=right>(Audited)</P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial"><B>ASSETS</B></P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial">(Restated &#150; note 3)</P>
</TD><TD valign=bottom width=101.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=bottom width=124.067>&nbsp;</TD><TD valign=bottom width=101.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Cash and cash equivalents</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,862 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,191 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Short-term investments</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,977 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74,938 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Accounts receivable</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,948 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,545 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Inventories</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,809 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,612 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Deferred loss on commodity contracts</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>111</P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>-</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Prepaid expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,599 </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,289 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Total Current Assets</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110,306 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;104,575 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Mineral property, plant and equipment - notes 4 and 5</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102,315 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,574 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Investment and non-producing properties - note 6</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,323 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,873 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Direct smelting ore</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,289 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,901 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Other assets</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,826 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,960 </P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Total Assets</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;342,059 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;279,883 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667>&nbsp;</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial"><B>LIABILITIES</B></P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Accounts payable and accrued liabilities</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,435 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,525 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Advances for metal shipments</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,244 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,536 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Unrealized loss on commodity contracts</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>2,634</P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Current portion of bank loans and capital lease</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14</P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,639 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Current portion of other non-current liabilities</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;426 </P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,948 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Total Current Liabilities</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,753 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,648 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Deferred revenue</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;754 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;865 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Bank loans and capital lease</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;332 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,803 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Liability component of convertible debentures</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;167</P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,116 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Provision for asset retirement obligation and reclamation</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,796 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21,192 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Provision for future income tax</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,073 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,035 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Non-controlling interest</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,734 </P>
</TD><TD valign=bottom width=101.2><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Severance indemnities and commitments</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,640 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,126 </P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Total Liabilities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,249 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,785 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667>&nbsp;</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial"><B>SHAREHOLDERS' EQUITY</B></P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Share capital</P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Authorized: 100,000,000 common shares with no par value</P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Issued:</P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2003 - 53,009,851 common shares</P>
</TD><TD valign=bottom width=124.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=101.2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2004 - 66,752,572 common shares</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;380,404 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,154 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Equity component of convertible debentures</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;701 </P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66,735 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Additional paid in capital</P>
</TD><TD valign=bottom width=124.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,874 </P>
</TD><TD valign=bottom width=101.2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,752 </P>
</TD></TR>
<TR><TD valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Deficit</P>
</TD><TD valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(130,169)</P>
</TD><TD valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(120,543)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Total Shareholders' Equity</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260,810 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184,098 </P>
</TD></TR>
<TR><TD style="border-bottom:3pt double #000000" valign=bottom width=385.667><P style="margin:0pt; font-family:Arial">Total Liabilities and Shareholders' Equity</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=124.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;342,059 </P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=101.2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;279,883 </P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin-top:5pt; margin-bottom:0pt; font-family:Arial">See accompanying notes to consolidated financial statements</P>
<P style="margin-top:5pt; margin-bottom: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:7pt; margin-bottom:0pt"><BR>
<BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=213.35></TD><TD width=65.15></TD><TD width=1.9></TD><TD width=61.7></TD><TD width=5.35></TD><TD width=38.35></TD><TD width=28.7></TD><TD width=67.05></TD></TR>
<TR><TD valign=bottom width=642.067 colspan=8><P style="line-height:16pt; margin:0pt; font-family:Arial; font-size:14pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=bottom width=642.067 colspan=8><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Operations</P>
</TD></TR>
<TR><TD valign=bottom width=642.067 colspan=8><P style="margin:0pt; font-family:Arial" align=center>(Unaudited - in thousands of US dollars, except per share amounts)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=86.867>&nbsp;</TD><TD valign=bottom width=84.8 colspan=2>&nbsp;</TD><TD valign=bottom width=58.267 colspan=2>&nbsp;</TD><TD valign=bottom width=127.667 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=171.667 colspan=3><P style="margin:0pt; font-family:Arial" align=center>Three months ended</P>
</TD><TD valign=bottom width=185.933 colspan=4><P style="margin:0pt; font-family:Arial" align=center>Nine months ended</P>
</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=171.667 colspan=3><P style="margin:0pt; font-family:Arial" align=center>September 30,</P>
</TD><TD valign=bottom width=185.933 colspan=4><P style="margin:0pt; font-family:Arial" align=center>September 30,</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align=right>2004&nbsp;<br>
 (Restated &#150; note 3)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align=right>2003</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align=right>2004&nbsp;<br>
 (Restated &#150; note 3)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align=right>2003</P>
</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align=right>(Note 2)</P>
</TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align=right>(Note 2)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial"><B>Revenue</B></P>
</TD></center><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;27,916 </P>
</TD><center><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;11,890 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;64,803 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;32,265 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial"><B>Expenses</B></P>
</TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Operating</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,526 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,200 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,225 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,962 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;General and administration</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;934 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;565 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,939 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,548 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,033 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,186 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,365 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;518 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;835 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,642 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,036 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Reclamation</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;905 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Exploration and development</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,213 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;600 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,878 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,588 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Interest</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;678 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;823 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,015 </P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,592 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,385 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,598 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,745 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Income (loss) from operations</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,324 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,495)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,205 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,480)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Gain on sale of concessions</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,583 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Debt settlement expenses</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(53)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,364)</P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Non-controlling interest</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(320)</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(320)</P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Loss on commodity contracts</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="font-family: Arial; margin: 0pt" align=right>(3,438)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="font-family: Arial; margin: 0pt" align=right>-</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="font-family: Arial; margin: 0pt" align=right>(3,816)</P>
</TD><TD valign=bottom width=89.4><P style="font-family: Arial; margin: 0pt" align=right>- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Interest and other income (note 8)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;845 </P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;270 </P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,399 </P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;508 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;358 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(1,225)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;1,687 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(3,972)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Adjustments:</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Charges relating to conversion of convertible debentures</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,464)</P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Convertible debentures issue costs</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,000)</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,000)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Accretion of convertible debentures</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(975)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,838)</P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(975)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Adjusted net income (loss) attributable to common shareholders</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;358 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(5,200)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(9,615)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(7,947)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Earnings (loss) per share - Basic </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.01 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.10)</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; text-indent:112.85pt; font-family:Arial">&nbsp;- Diluted</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.01</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.10)</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.16)</P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF">
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=284.467><P style="margin:0pt; font-family:Arial">Weighted average number of shares outstanding - Basic</P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66,660 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,307 </P>
</TD><TD valign=bottom width=89.4 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,947 </P>
</TD><TD valign=bottom width=89.4><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51,030 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Weighted average number of shares outstanding - Fully Diluted</P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,213 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67,990 </P>
</TD><TD valign=bottom width=89.4 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67,499 </P>
</TD><TD valign=bottom width=89.4 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66,714 </P>
</TD></TR>
<TR><TD valign=bottom width=284.467>&nbsp;</TD><TD valign=bottom width=89.4 colspan=2>&nbsp;</TD><TD valign=bottom width=89.4 colspan=2>&nbsp;</TD><TD valign=bottom width=89.4 colspan=2>&nbsp;</TD><TD valign=bottom width=89.4>&nbsp;</TD></TR>
<TR><TD valign=bottom colspan=8><P style="margin:0pt; font-family:Arial" align=right>&nbsp;See accompanying notes to consolidated financial statements </P>
</TD></TR>
</TABLE>
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  <center>
<TABLE style="font-size: 10pt" cellspacing=0 height="1113"><TR><TD width=230.4 height="18"></TD><TD width=3.8 height="18"></TD><TD width=78.2 height="18"></TD><TD width=21.45 height="18"></TD><TD width=43.75 height="18"></TD><TD width=75.75 height="18"></TD><TD width=3.6 height="18"></TD><TD width=76.55 height="18"></TD></TR>
<TR><TD valign=bottom colspan=8 height="20"><P style="line-height:normal; margin:0pt; font-family:Arial; font-size:11pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=bottom colspan=8 height="18"><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Cash Flows</P>
</TD></TR>
<TR><TD valign=bottom colspan=8 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>(Unaudited - in thousands of US dollars)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=137.933 colspan=3 height="18">&nbsp;</TD><TD valign=bottom width=58.333 height="18">&nbsp;</TD><TD valign=bottom width=101 height="18">&nbsp;</TD><TD valign=bottom width=106.867 colspan=2 height="18">&nbsp;</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=196.267 colspan=4 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Three months ended</P>
</TD><TD valign=bottom width=207.867 colspan=3 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Nine months ended</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=196.267 colspan=4 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>September 30,</P>
</TD><TD valign=bottom width=207.867 colspan=3 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>September 30,</P>
</TD></TR>
<TR><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=307.2 height="33"><P style="margin:0pt; font-family:Arial; font-size:9pt">&nbsp;</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=109.333 colspan=2 height="33"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>2004 <BR>
(Restated &#150; note 3)</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=86.933 colspan=2 height="33"><P style="line-height:11pt; margin:0pt; padding-right:10.6pt; font-family:Arial; font-size:9pt" align=right>2003 </P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=105.8 colspan=2 height="33"><P style="line-height:normal; margin:0pt; font-family:Arial; font-size:9pt" align=right>2004<BR>
(Restated &#150; note 3)</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=102.067 height="33"><P style="line-height:11pt; margin:0pt; padding-right:20.9pt; font-family:Arial; font-size:9pt" align=right>2003 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=109.333 colspan=2 height="18">&nbsp;</TD><TD valign=bottom width=86.933 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; padding-right:5.2pt; font-family:Arial; font-size:9pt" align=right><SUP>(Note 2)</SUP></P>
</TD><TD valign=bottom width=105.8 colspan=2 height="18">&nbsp;</TD><TD valign=bottom width=102.067 height="18"><P style="line-height:11pt; margin:0pt; padding-right:15.5pt; font-family:Arial; font-size:9pt" align=right><SUP>(Note 2)</SUP></P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Operating activities</B></P>
</TD><TD valign=bottom width=109.333 colspan=2 height="18">&nbsp;</TD><TD valign=bottom width=86.933 colspan=2 height="18">&nbsp;</TD><TD valign=bottom width=105.8 colspan=2 height="18">&nbsp;</TD><TD valign=bottom width=102.067 height="18">&nbsp;</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Net income (loss) for the period</P>
</TD></center><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;358 </P>
</TD><center><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;(1,225)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;1,687 </P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;(3,972)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Reclamation expenditures</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(327)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(919)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Gain on sale of assets</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(165)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,583)</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(165)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Items not involving cash</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,033 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,186</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,365 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Minority interest</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;320 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;320</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Interest accretion on convertible debentures</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;366</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;518 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;835 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,642</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,036 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Debt settlement expenses</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,208</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Compensation expense</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=102.067 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Unrealized loss on commodity contracts</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>2,931</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>2,523</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Asset retirement and reclamation accretion</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;905</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Operating cost provisions</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(146)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;707</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;849 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Changes in non-cash working capital items (note 9)</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,576)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(804)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>(11,772)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,069)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=307.2 height="18"><P style="margin:0pt; font-family:Arial; font-size:9pt">&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=109.333 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;413 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.933 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(502)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=105.8 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;515 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=102.067 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,725)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=109.333 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Financing activities</B></P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued for cash</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;812 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,940 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,817 </P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,638 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issue costs</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Convertible debentures</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86,250 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86,250 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Convertible debentures issue costs</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,993)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,000)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Convertible debentures payments</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,542)</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Capital lease repayment</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(150)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Proceeds from bank loans</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Repayment of bank loans</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(406)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,021)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,344)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=307.2 height="18"><P style="margin:0pt; font-family:Arial; font-size:9pt">&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=109.333 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;790 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.933 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,716 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=105.8 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,999 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=102.067 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,394 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=109.333 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Investing activities</B></P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Mineral property, plant and equipment expenditures</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,679)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,006)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,687)</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11,644)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Investment and non-producing property expenditures</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(434)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(492)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(988)</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(869)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Acquisition of net assets of subsidiary (note 4)</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36,214)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36,214)</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Acquisition of cash of subsidiary</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,393 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Proceeds from sale of assets</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;165 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,583 </P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;165 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Proceeds from sale of marketable securities</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,007 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,463 </P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Other</P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180)</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,000)</P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60)</P>
</TD></TR>
<TR><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=307.2 height="18"><P style="margin:0pt; font-family:Arial; font-size:9pt">&nbsp;</P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=109.333 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37,320)</P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.933 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,513)</P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=105.8 colspan=2 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31,843)</P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=102.067 height="18"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10,015)</P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=109.333 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=307.2 height="32" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>(Decrease) increase in cash and cash equivalents during the period</B></P>
</TD><TD valign=bottom width=109.333 colspan=2 height="32" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36,117)</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="32" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,701 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="32" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,671 </P>
</TD><TD valign=bottom width=102.067 height="32" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82,654 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Cash and cash equivalents, beginning of period</B></P>
</TD><TD valign=bottom width=109.333 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53,979 </P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,138 </P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,191 </P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,185 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=307.2 height="20"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Cash and cash equivalents, end of period</B></P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=109.333 colspan=2 height="20"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;17,862 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=86.933 colspan=2 height="20"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;92,839 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=105.8 colspan=2 height="20"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;17,862 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=102.067 height="20"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;92,839 </P>
</TD></TR>
<TR><TD valign=bottom width=307.2 height="18">&nbsp;</TD><TD valign=bottom width=109.333 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.933 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=105.8 colspan=2 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="18">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=503.467 colspan=5 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Supplemental disclosure of non-cash financing and investing activities</B></P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=102.067 height="17">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=312.267 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued for compensation</P>
</TD><TD valign=bottom width=104.267 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=312.267 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued for acquisition of subsidiary</P>
</TD><TD valign=bottom width=104.267 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=102.067 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,228 </P>
</TD></TR>
<TR><TD valign=bottom width=416.533 colspan=3 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued for conversion of convertible debentures &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD><TD valign=bottom width=86.933 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=105.8 colspan=2 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,848 </P>
</TD><TD valign=bottom width=102.067 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=711.333 colspan=8 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Arial">&nbsp;</P>
<P style="margin:0pt; font-family:Arial">&nbsp;</P>
<hr>
<p style="font-family: Arial; margin: 0pt">&nbsp;</p>
<p style="font-family: Arial; margin: 0pt">&nbsp;</p>
<P style="margin:0pt; font-family:Arial">&nbsp;</P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=167.3></TD><TD width=48.65></TD><TD width=11.25></TD><TD width=55.3></TD><TD width=0.7></TD><TD width=53.85></TD><TD width=56.8></TD><TD width=56></TD><TD width=55.3></TD></TR>
<TR><TD valign=bottom width=673.533 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=bottom width=673.533 colspan=9><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Shareholders' Equity</P>
</TD></TR>
<TR><TD valign=bottom width=673.533 colspan=9><P style="margin:0pt; font-family:Arial" align=center>For the nine months ended September 30, 2004</P>
</TD></TR>
<TR><TD valign=bottom width=673.533 colspan=9><P style="margin:0pt; font-family:Arial" align=center>(Unaudited - in thousands of US dollars, except for shares)</P>
</TD></TR>
<TR><TD valign=bottom width=223.067>&nbsp;</TD><TD valign=bottom width=64.867>&nbsp;</TD><TD valign=bottom width=88.733 colspan=2>&nbsp;</TD><TD valign=bottom width=72.733 colspan=2>&nbsp;</TD><TD valign=bottom width=75.733>&nbsp;</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=223.067>&nbsp;</TD><TD valign=bottom width=64.867>&nbsp;</TD><TD valign=bottom width=88.733 colspan=2>&nbsp;</TD><TD valign=bottom width=72.733 colspan=2>&nbsp;</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Additional </P>
</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=223.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=153.6 colspan=3><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Common shares</P>
</TD><TD valign=bottom width=72.733 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Convertible</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Paid in </P>
</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=223.067><P style="margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Shares </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Amount </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Debentures </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Capital </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Deficit </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Total </P>
</TD></TR>
<TR><TD valign=bottom width=223.067>&nbsp;</TD><TD valign=bottom width=79.867 colspan=2>&nbsp;</TD><TD valign=bottom width=74.667 colspan=2>&nbsp;</TD><TD valign=bottom width=71.8>&nbsp;</TD><TD valign=bottom width=75.733>&nbsp;</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Balance, December 31, 2002</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>43,883,454 </P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;161,108 </P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,327 </P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$(106,943)</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;55,492 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,871 </P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,871 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Exercise of stock options</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;1,385,502 </P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,312 </P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,471)</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,841 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Exercise of share purchase warrants</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;100,943 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;509 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;509 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issued on acquisition of Corner Bay</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF">&nbsp;</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Silver Inc.</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;7,636,659 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,203 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,203 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Fair value of stock options granted</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,136 </P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,136 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Fair value of share purchase warrants</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,889 </P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,889 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issue of convertible debentures</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63,201 </P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63,201 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Accretion of convertible debentures</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,534 </P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,534)</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Convertible debentures issue costs</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,272)</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(3,272)</P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issued as compensation</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,293 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Net loss for the year</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;(6,794)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(6,794)</P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Balance, December 31, 2003</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>53,009,851 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;225,154 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;66,735 </P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,752 </P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(120,543)</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;184,098 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,642 </P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,642 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Exercise of stock options</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;717,695 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;9,313 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,415)</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,898 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Exercise of share purchase warrants</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;540,026 </P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,024 </P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(105)</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,919 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued for cash</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;3,333,333 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55,000 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;55,000 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issue costs</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(180)</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180)</P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Shares issued on conversion of </P>
</TD><TD valign=bottom width=79.867 colspan=2>&nbsp;</TD><TD valign=bottom width=74.667 colspan=2>&nbsp;</TD><TD valign=bottom width=71.8>&nbsp;</TD><TD valign=bottom width=75.733>&nbsp;</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;convertible debentures</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>9,135,043 </P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;88,848 </P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;(68,883)</P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,464)</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,501 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issued as compensation</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,624 </P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Accretion of convertible debentures</P>
</TD><TD valign=bottom width=79.867 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,849 </P>
</TD><TD valign=bottom width=75.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,849)</P>
</TD><TD valign=bottom width=73.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Net income for the period (Restated)</P>
</TD><TD valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,687 </P>
</TD><TD valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,687</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=223.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Balance, September 30, 2004</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=79.867 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>66,752,572 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=74.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;&nbsp;380,404 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=71.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;701 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=75.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,874 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=74.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$(130,169)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=73.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;260,810 </P>
</TD></TR>
<TR><TD valign=bottom width=223.067>&nbsp;</TD><TD valign=bottom width=79.867 colspan=2>&nbsp;</TD><TD valign=bottom width=74.667 colspan=2>&nbsp;</TD><TD valign=bottom width=71.8>&nbsp;</TD><TD valign=bottom width=75.733>&nbsp;</TD><TD valign=bottom width=74.667>&nbsp;</TD><TD valign=bottom width=73.733>&nbsp;</TD></TR>
<TR><TD valign=bottom colspan=9><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
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<P style="margin:0pt; font-family:Arial">&nbsp;</P>
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<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align="center">&nbsp;</P>
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<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always">Pan American Silver Corp.</P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-36pt; font-family:Arial"><B>1.</B></P>
<P style="margin:0pt; padding-left:54pt; text-indent:-18pt; font-family:Arial"><B>DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>Pan American Silver Corp (the &#147;Company&#148;) is engaged in silver mining and related activities, including exploration, extraction, processing, refining and reclamation. &nbsp;The Company has mining operations in Peru, Mexico and Bolivia, project development activities in Argentina, Mexico and Bolivia, and exploration activities in South America.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial">The Company completed the acquisition of the Morococha mining assets in central Peru (Note 4) with the effective date July 1, 2004.</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-36pt; font-family:Arial"><B>2.</B></P>
<P style="margin:0pt; padding-left:54pt; text-indent:-18pt; font-family:Arial"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Restated)</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:normal; margin:0pt; padding-left:36pt; font-family:Arial" align=justify>These unaudited interim consolidated financial statements are expressed in United<FONT FACE="Times New Roman"> </FONT>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;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>In management&#146;s opinion, all adjustments necessary for fair presentation have been included in these financial statements.</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>a)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>Stock-based compensation</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; 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;Under the amended standards of this Section, the fair value of all stock-based awards granted are estimated using the Black-Scholes model and are recorded in operations over their vesting periods.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; font-family:Arial" align=justify>Previously, the Company used the intrinsic value method for valuing stock-based compensation awards granted to employees, directors and officers 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; padding-left:54pt; font-family:Arial" align=justify>In addition, the Company provided note disclosure of pro forma net loss and pro forma loss per share as if the fair value based method had been used to account for share purchase options granted to employees, directors and officers after January 1, 2002. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; font-family:Arial" align=justify>Using the fair value method for stock-based compensation, the Company recorded an additional charge to earnings of $1,642,000 for the nine months ended September 30, 2004 (nine months ended September 30, 2003 - $2,036,000) for stock options granted to employees, directors and officers. &nbsp;The fair value of the stock options granted during the nine months ended September 30, 2004 was determined using an option pricing model assuming no dividends were paid, a weighted average volatility of the Company&#146;s share price of 58 per cent, weighted average expected life of 3.5 years and weighted average annual risk free rate of 4.03 per cent.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
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<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></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>Asset retirement obligation</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:54pt; 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. &nbsp;The change in accounting policy did not have a significant impact on reported results of operations in any period presented.</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, as of January 1, 2004. </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>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 following tables:</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=171.45></TD><TD width=11.25></TD><TD width=115.7></TD><TD width=7.85></TD><TD width=100.15></TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=228.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=169.267 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 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=228.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=169.267 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>September 30</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>September 30</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=228.6><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 style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=169.267 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-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=228.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=169.267 colspan=2>&nbsp;</TD><TD valign=top width=144 colspan=2>&nbsp;</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=top width=228.6><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=15 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=top width=154.267><P style="line-height:11pt; margin:0pt; text-indent:61.1pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD valign=top width=10.467 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD valign=top width=133.533 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:53.05pt; font-family:Arial; font-size:9pt">111</P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=228.6><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Unrealized loss on commodity contracts</P>
</TD><TD valign=top width=15>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=154.267><P style="line-height:11pt; margin:0pt; text-indent:61.1pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD valign=top width=10.467>&nbsp;</TD><TD valign=top width=133.533><P style="line-height:11pt; margin:0pt; text-indent:46.3pt; font-family:Arial; font-size:9pt">2,634</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=top width=228.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Deficit</P>
</TD><TD valign=top width=15 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=top width=154.267><P style="line-height:11pt; margin:0pt; text-indent:28.85pt; font-family:Arial; font-size:9pt" align=justify>(127,646)</P>
</TD><TD valign=top width=10.467 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=top width=133.533 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:31.3pt; font-family:Arial; font-size:9pt" align=justify>(130,169)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size: 10pt" cellspacing=0 align=center height="241"><TR><TD width=169.4 height="18"></TD><TD width=11.15 height="18"></TD><TD width=117.85 height="18"></TD><TD width=7.85 height="18"></TD><TD width=100.15 height="18"></TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17">&nbsp;</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=172 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>As Previously Reported</B></P>
</TD><TD valign=top width=144 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>As Restated</B></P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17">&nbsp;</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=172 colspan=2 height="17"><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 height="17"><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 style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17">&nbsp;</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=172 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>September 30 </B></P>
</TD><TD valign=top width=144 colspan=2 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>September 30</B></P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=top width=225.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify><B>Consolidated Statement of Operations</B></P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=14.867 height="17">&nbsp;</TD><TD style="border-right: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=top width=157.133 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>2004</B></P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=10.467 height="17">&nbsp;</TD><TD style="border-bottom: 0.5pt solid #000000" valign=top width=133.533 height="17"><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=225.867 height="18">&nbsp;</TD><TD valign=top width=14.867 height="18">&nbsp;</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=157.133 height="18">&nbsp;</TD><TD valign=top width=10.467 height="18">&nbsp;</TD><TD valign=top width=133.533 height="18">&nbsp;</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867 height="17"><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=bottom width=14.867 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=157.133 height="17"><P style="line-height:11pt; margin:0pt; text-indent:46.7pt; font-family:Arial; font-size:9pt">27,409</P>
</TD><TD valign=bottom width=10.467 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD valign=bottom width=133.533 height="17" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:38pt; font-family:Arial; font-size:9pt">27,916</P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17"><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Mine operating earnings</P>
</TD><TD width=14.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right: 0.5pt solid #000000" width=157.133 height="17"><P style="line-height:11pt; margin:0pt; text-indent:51.2pt; font-family:Arial; font-size:9pt">5,850</P>
</TD><TD width=10.467 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD width=133.533 height="17"><P style="line-height:11pt; margin:0pt; text-indent:42.5pt; font-family:Arial; font-size:9pt">6,357</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867 height="15"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Loss on commodity contracts</P>
</TD><TD valign=bottom width=14.867 height="15" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=157.133 height="15"><P style="line-height:11pt; margin:0pt; text-indent:68.45pt; font-family:Arial; font-size:9pt" align=justify>-</P>
</TD><TD valign=bottom width=10.467 height="15" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=bottom width=133.533 height="15" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:36.5pt; font-family:Arial; font-size:9pt" align=justify>(3,438)</P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Net income for the period</P>
</TD><TD valign=top width=14.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=157.133 height="17"><P style="line-height:11pt; margin:0pt; text-indent:51.2pt; font-family:Arial; font-size:9pt" align=justify>3,289</P>
</TD><TD valign=top width=10.467 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=top width=133.533 height="17"><P style="line-height:11pt; margin:0pt; text-indent:49.25pt; font-family:Arial; font-size:9pt" align=justify>358</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867 height="30"><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Adjusted net earnings for the period attributable to common shareholders</P>
</TD><TD width=14.867 height="30" valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" width=157.133 height="30" valign="bottom"><P style="line-height:11pt; margin:0pt; text-indent:51.2pt; font-family:Arial; font-size:9pt">3,289</P>
</TD><TD width=10.467 height="30" valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD width=133.533 height="30" valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:49.25pt; font-family:Arial; font-size:9pt">358</P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=225.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Basic and diluted loss per share</P>
</TD><TD valign=top width=14.867 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right: 0.5pt solid #000000" valign=top width=157.133 height="17"><P style="line-height:11pt; margin:0pt; padding-right:42.95pt; font-family:Arial; font-size:9pt" align=right>0.05</P>
</TD><TD valign=top width=10.467 height="17"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=top width=133.533 height="17"><P style="line-height:11pt; margin:0pt; padding-right:31.25pt; font-family:Arial; font-size:9pt" align=right>0.01</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=169.4></TD><TD width=11.15></TD><TD width=117.85></TD><TD width=7.85></TD><TD width=100.15></TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=172 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>As Previously Reported</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>As Restated</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=172 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Nine 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>Nine Month Ended</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=172 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>September 30</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>September 30</B></P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=225.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify><B>Consolidated Statement of Operations</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=172 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-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=225.867>&nbsp;</TD><TD style="border-right:0.5pt solid #000000" valign=top width=172 colspan=2>&nbsp;</TD><TD valign=top width=144 colspan=2>&nbsp;</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867><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=bottom width=14.867 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=157.133><P style="line-height:11pt; margin:0pt; text-indent:41.5pt; font-family:Arial; font-size:9pt">63,510</P>
</TD><TD valign=bottom width=10.467 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD valign=bottom width=133.533 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:30.05pt; font-family:Arial; font-size:9pt">64,803</P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Mine operating earnings</P>
</TD><TD width=14.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000" width=157.133><P style="line-height:11pt; margin:0pt; text-indent:41.5pt; font-family:Arial; font-size:9pt">10,099</P>
</TD><TD width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD width=133.533><P style="line-height:11pt; margin:0pt; text-indent:30.05pt; font-family:Arial; font-size:9pt">11,392</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Loss on commodity contracts</P>
</TD><TD valign=bottom width=14.867 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=157.133><P style="line-height:11pt; margin:0pt; text-indent:63.25pt; font-family:Arial; font-size:9pt" align=justify>-</P>
</TD><TD valign=bottom width=10.467 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=bottom width=133.533 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:28.55pt; font-family:Arial; font-size:9pt" align=justify>(3,816)</P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Net income for the period</P>
</TD><TD valign=top width=14.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000" valign=top width=157.133><P style="line-height:11pt; margin:0pt; text-indent:46pt; font-family:Arial; font-size:9pt" align=justify>4,210</P>
</TD><TD valign=top width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=top width=133.533><P style="line-height:11pt; margin:0pt; text-indent:34.55pt; font-family:Arial; font-size:9pt" align=justify>1,687</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" valign=bottom width=225.867><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Adjusted net loss for the period attributable to common shareholders</P>
</TD><TD width=14.867 valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="background-color: #E6E9FF; border-right: 0.5pt solid #000000" width=157.133 valign="bottom"><P style="line-height:11pt; margin:0pt; text-indent:40pt; font-family:Arial; font-size:9pt">(7,092)</P>
</TD><TD width=10.467 valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD width=133.533 valign="bottom" style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:28.55pt; font-family:Arial; font-size:9pt">(9,615)</P>
</TD></TR>
<TR><TD style="border-right:0.5pt solid #000000" valign=top width=225.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Basic and diluted loss per share</P>
</TD><TD valign=top width=14.867><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000" valign=top width=157.133><P style="line-height:11pt; margin:0pt; padding-right:45.45pt; font-family:Arial; font-size:9pt" align=right>(0.11)</P>
</TD><TD valign=top width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD valign=top width=133.533><P style="line-height:11pt; margin:0pt; padding-right:39.65pt; font-family:Arial; font-size:9pt" align=right>(0.16)</P>
</TD></TR>
</TABLE>
<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>4.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>ACQUISITION OF MOROCOCHA MINING ASSETS</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>In July 2004, the Company acquired 92.0 per cent of the voting shares (80.8 per cent equity interest) of Compania Minera Argentum S.A. (&#147;Argentum&#148;) and 100 per cent of the voting shares of Compania Minera Natividad (&#147;Natividad&#148;) for cash of $35,276,000. &nbsp;Argentum and Natividad assets comprise of the Morococha mining assets, its working capital and surrounding mineral concessions located in central Peru. &nbsp;The Company subsequently acquired an additional 3.0 per cent equity interest in Argentum by acquiring 25 per cent its outstanding non-voting investment shares for a cash payment of $844,000.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>The acquisition was accounted for by the purchase method of accounting and the accounts of Argentum and Natividad have been consolidated from July 1, 2004, which was the date the Company acquired effective control and ownership of the assets and liabilities of the Morococha mine.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center>&nbsp;</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Arial">The fair value of assets and liabilities acquired and the consideration paid are summarized as follows:</P>
<P style="margin:0pt"><BR></P>
<div align="center">
  <center>

<TABLE border=0 width=75% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">Current assets, including cash of &#36;657</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">7,945</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left>
<FONT size=2 face="sans-serif">Plant and equipment</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">7,053</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<FONT size=2 face="sans-serif">Mineral properties</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF; border-bottom: 1 solid #000000">
<FONT size=2 face="sans-serif">46,158</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left>
&nbsp;
	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">61,156</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left>
<FONT size=2 face="sans-serif">Less:</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=12% nowrap align=right>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF">
 &nbsp; &nbsp;<FONT size=2 face="sans-serif">Accounts payable and accrued liabilities</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF">
&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">(3,215)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="sans-serif">Non-controlling interest</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(1,414)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF">
 &nbsp; &nbsp;<FONT size=2 face="sans-serif">Provision for asset retirement obligation and reclamation</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF">
&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">(8,618)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="border-bottom: 1 solid #000000">
 &nbsp; &nbsp;<FONT size=2 face="sans-serif">Future income tax liability</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="border-bottom: 1 solid #000000">
&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="border-bottom: 1 solid #000000">
<FONT size=2 face="sans-serif">(11,038)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
<FONT size=2 face="sans-serif">Total purchase price</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
<FONT size=2 face="sans-serif">36,871</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left>
<FONT size=2 face="sans-serif">Consideration paid is as follow:</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=12% nowrap align=right>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Cash</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF">
<FONT size=2 face="sans-serif">36,120</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="border-bottom: 1 solid #000000">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Acquisition costs</FONT>&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="border-bottom: 1 solid #000000">
&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="border-bottom: 1 solid #000000">
<FONT size=2 face="sans-serif">751</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=82% nowrap align=left style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
&nbsp;
	</TD>
	<TD width=5% nowrap align=left style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=12% nowrap align=right style="background-color: #E6E9FF; border-bottom-style: double; border-bottom-color: #000000">
<FONT size=2 face="sans-serif">36,871</FONT>&nbsp;
	</TD>
</TR>
</TABLE></center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial">The final allocation of the consideration among the assets and liabilities of the Morococha Mine may vary from those shown above.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>The purchase consideration for the mining assets of Argentum and Natividad exceeded the carrying value of the underlying assets for tax purposes by $28,176,000. In addition, the Company recorded a provision for future reclamation and restoration costs in amount of $8,618,000. &nbsp;These amounts have been applied to increase the carrying value of the mineral properties for accounting purposes. &nbsp;However, this did not increase the carrying value of the underlying assets for tax purposes and resulted in a temporary difference between accounting and tax value. The resulting estimated future income tax liability associated with this temporary difference of $11,038,000 was also applied to increase the carrying value of the mineral properties.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Arial" align=justify><B>5.</B></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify><B>MINERAL PROPERTY, PLANT AND EQUIPMENT</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">Mineral property, plant and equipment consist of:</P>
<P style="margin:0pt" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=127.3></TD><TD width=62.5></TD><TD width=54.75></TD><TD width=54></TD><TD width=4.6></TD><TD width=54.75></TD><TD width=59.4></TD><TD width=54></TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=228.333 colspan=3><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center><FONT FACE="Arial">September 30, 2004</FONT></P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=224.2 colspan=3><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>December 31, 2003</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD valign=bottom width=83.333>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Accumulated</P>
</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Accumulated</P>
</TD><TD valign=bottom width=72>&nbsp;</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Cost</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Amortization</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Net</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Cost</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Amortization</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center>Net</P>
</TD></TR>
<TR><TD valign=bottom width=628.4 colspan=8><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">Mineral properties</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Morococha mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$9,693&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$(636)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$9,057&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;La Colorada mine, Mexico</P>
</TD><TD valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;4,153&nbsp;</P>
</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(303)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;3,850&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;4,153&nbsp;</P>
</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;4,153&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Huaron mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;1&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;1&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;1&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;1&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;13,847&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(939)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;12,908&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;4,154&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;4,154&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD valign=bottom width=83.333>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=79.2>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD></TR>
<TR><TD valign=bottom width=628.4 colspan=8><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">Plant and equipment</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Morococha mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;7,053&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(463)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;6,590&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;La Colorada mine, Mexico</P>
</TD><TD valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,850&nbsp;</P>
</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(792)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,058&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,332&nbsp;</P>
</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(360)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;9,972&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Huaron mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;14,417&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(4,423)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;9,994&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;14,417&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(3,426)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,991&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Quiruvilca mine, Peru</P>
</TD><TD valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;15,410&nbsp;</P>
</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(15,410)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;15,410&nbsp;</P>
</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(15,410)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Other</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;3,257&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(559)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;2,698&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;3,161&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(503)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;2,658&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;50,987&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(21,647)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;29,340&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;43,320&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(19,699)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;23,621&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD valign=bottom width=83.333>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=79.2>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD></TR>
<TR><TD valign=bottom width=628.4 colspan=8><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">Mine development and others</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Morococha mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;502&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(33)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;469&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;La Colorada mine, Mexico</P>
</TD><TD valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;35,846&nbsp;</P>
</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(2,615)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;33,231&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;31,892&nbsp;</P>
</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(1,113)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;30,779&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Huaron mine, Peru</P>
</TD><TD valign=bottom width=83.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;36,333&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(10,071)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;26,262&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;32,820&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(7,800)</P>
</TD><TD valign=bottom width=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;25,020&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Quiruvilca mine, Peru</P>
</TD><TD valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,151&nbsp;</P>
</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(10,046)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;105&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,046&nbsp;</P>
</TD><TD valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(10,046)</P>
</TD><TD valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;82,832&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(22,765)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;60,067&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=6.133><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;74,758&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(18,959)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;55,799&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD valign=bottom width=83.333>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=79.2>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD></TR>
<TR><TD valign=bottom width=169.733 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=83.333><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$147,666&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$(45,351)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$102,315&nbsp;</P>
</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$122,232&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$(38,658)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$83,574&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>The Company completed the purchase of 83.78 per cent equity interest in Compania Minera Argentum S.A. and 100 per cent equity interest in Compania Minera Natividad for $36,871,000 (Note 4).</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"><B>6.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>INVESTMENT AND OTHER NON-PRODUCING PROPERTIES</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left: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" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>Investment and non-producing properties consist of:<BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=220.6></TD><TD width=54></TD><TD width=68.65></TD><TD width=68.65></TD></TR>
<TR><TD valign=bottom colspan=3><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right><FONT FACE="Arial">September
    30</FONT></P>
</TD><TD valign=bottom width=91.533>
    <p align="right">&nbsp;<FONT FACE="Arial">December 31</FONT></p>
  </TD></TR>
<TR><TD valign=bottom width=294.133>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2004</P>
</TD><TD valign=bottom width=91.533><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2003</P>
</TD></TR>
<TR><TD valign=bottom width=549.2 colspan=4><P style="margin:0pt; padding-left:36pt; font-family:Arial">Non-producing properties</P>
</TD></TR>
<TR><TD valign=bottom width=366.133 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial">&nbsp;&nbsp;Morococha, Peru</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;$36,465&nbsp;</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=366.133 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial">&nbsp;&nbsp;Alamo Dorado, Mexico</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;81,061&nbsp;</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;80,076&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=366.133 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial">&nbsp;&nbsp;Manantial Espejo, Argentina</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;2,012&nbsp;</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;2,012&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=294.133>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;119,538&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;82,088&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=294.133>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=91.533>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=91.533>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=549.2 colspan=4><P style="margin:0pt; padding-left:36pt; font-family:Arial">Investment properties</P>
</TD></TR>
<TR><TD valign=bottom width=366.133 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial">&nbsp;&nbsp;Waterloo, USA</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;1,000&nbsp;</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;1,000&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=366.133 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial">&nbsp;&nbsp;Tres Cruces, Hog Heaven and others</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;785&nbsp;</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;785&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=294.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=72 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;1,785&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;1,785&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=294.133>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD valign=bottom width=91.533>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=91.533>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=294.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=72 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;$121,323&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 2pt double #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;$83,873&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR><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 nine-month period ended September 30, 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>i)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 9,135,043 common shares at a value of $88,848,000 to the holders of $85,431,000 principal amount, senior subordinated convertible debentures on conversion;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>ii)</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 $54,820,000;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>iii)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 717,695 common shares for proceeds of $4,898,000 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>iv)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 540,026 common shares for proceeds of $1,919,000 in connection with the exercise of share purchase warrants; and</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>v)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 16,624 common shares at a value of $245,000 as compensation expense.</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; font-family:Arial" align=justify>The following table summarizes information concerning stock options outstanding as at September 30, 2004:</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><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=87.4></TD><TD width=38.6></TD><TD width=81></TD><TD width=63></TD><TD width=81></TD><TD width=63></TD></TR>
<TR><TD valign=top width=116.533>&nbsp;</TD><TD valign=top width=51.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" width=192 colspan=2><P style="margin:0pt; font-family:Arial" align=center>Options Outstanding</P>
</TD><TD style="border-bottom:0.5pt solid #000000" width=192 colspan=2><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=116.533><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=51.467><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=108><P style="margin:0pt; font-family:Arial" align=center>Number Outstanding as at September 30, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><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=108><P style="margin:0pt; font-family:Arial" align=center>Number Exercisable as at September 30, 2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=center>Weighted Average Exercise Price</P>
</TD></TR>
<TR><TD valign=bottom width=116.533 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$3.61</P>
</TD><TD valign=bottom width=51.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2004</P>
</TD><TD valign=bottom width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>36</P>
</TD><TD valign=bottom width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;.07</P>
</TD><TD valign=bottom width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>36</P>
</TD><TD valign=bottom width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$3.61</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$9.51</P>
</TD><TD valign=top width=51.467><P style="margin:0pt; font-family:Arial" align=center>2005</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>48,077</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;5.03</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>48,077</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$9.51</P>
</TD></TR>
<TR><TD valign=top width=116.533 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$3.96 - $7.73</P>
</TD><TD valign=top width=51.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2006</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>124,666</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;19.42</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>88,000</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$5.07</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$7.93 - $8.01</P>
</TD><TD valign=top width=51.467><P style="margin:0pt; font-family:Arial" align=center>2007</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>385,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;37.83</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>351,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$7.95</P>
</TD></TR>
<TR><TD valign=top width=116.533 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$7.05 - $11.44</P>
</TD><TD valign=top width=51.467 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>2008</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>494,231</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;45.44</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>169,231</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$7.93</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$13.08 - $17.84</P>
</TD><TD valign=top width=51.467><P style="margin:0pt; font-family:Arial" align=center>2009</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>382,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;53.31</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>142,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$15.58</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$3.96</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=51.467><P style="margin:0pt; font-family:Arial" align=center>2010</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>217,000</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;74.53</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>217,000</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$3.96</P>
</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" valign=bottom width=116.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=51.467>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=108><P style="margin:0pt; font-family:Arial" align=right>1,651,010</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=84><P style="font-family: Arial; margin: 0pt" align=right>49.01</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=108><P style="margin:0pt; font-family:Arial" align=right>1,015,344</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=right>$9.01</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>During the nine months ended September 30, 2004, the Company recognized $1,642,000 of stock compensation expense consisting of $831,000 for options issued in 2004 and $811,000 for options issued in 2003.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>As at September 30, 2004 there were warrants outstanding to allow the holders to purchase 3,814,470 common shares of the Company at Cdn$12.00 per share, which expire on February 20, 2008.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>Subsequent to September 30, 2004, the Company issued 7,000 common shares for proceeds of $63,600 pursuant to exercise of employee stock options.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>8.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>INTEREST AND OTHER INCOME</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">Interest and other income consist of:</P>
<P style="margin:0pt"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=187.45></TD><TD width=64></TD><TD width=63.25></TD><TD width=13.1></TD><TD width=63.25></TD><TD width=63.25></TD></TR>
<TR><TD valign=bottom width=249.933>&nbsp;</TD><TD valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>Three months&nbsp;</P>
</TD><TD valign=bottom>
    <p style="font-family: Arial; margin: 0pt" align="center">&nbsp;</p>
  </TD><TD valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>Nine months&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=249.933>&nbsp;</TD><TD valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>ended&nbsp;</P>
</TD><TD valign=bottom>
    <p style="font-family: Arial; margin: 0pt" align="center">&nbsp;</p>
  </TD><TD valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>ended&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=249.933>&nbsp;</TD><TD style="border-bottom: 1 solid #000000" valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>September 30,&nbsp;</P>
</TD><TD valign=bottom>
    <p style="font-family: Arial; margin: 0pt" align="center">&nbsp;</p>
  </TD><TD style="border-bottom: 1 solid #000000" valign=bottom colspan="2"><P style="font-family: Arial; margin: 0pt" align=center>September 30,</P>
</TD></TR>
<TR><TD valign=bottom width=249.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2003</P>
</TD><TD valign=bottom width=17.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2003</P>
</TD></TR>
<TR><TD valign=bottom width=249.933>&nbsp;</TD><TD valign=bottom width=85.333>&nbsp;</TD><TD valign=bottom width=84.333>&nbsp;</TD><TD valign=bottom width=17.467>&nbsp;</TD><TD valign=bottom width=84.333>&nbsp;</TD><TD valign=bottom width=84.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=249.933 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt">Revenue from third party</P>
</TD><TD valign=bottom width=85.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$554&nbsp;</P>
</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$239&nbsp;</P>
</TD><TD valign=bottom width=17.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$780&nbsp;</P>
</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$546&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=249.933><P style="font-family: Arial; margin: 0pt">Power credits</P>
</TD><TD valign=bottom width=85.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;25&nbsp;</P>
</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;14&nbsp;</P>
</TD><TD valign=bottom width=17.467>&nbsp;</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;111&nbsp;</P>
</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;42&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=249.933 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt">Gain on sale of marketable securities</P>
</TD><TD valign=bottom width=85.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;226&nbsp;</P>
</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=17.467 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;475&nbsp;</P>
</TD><TD valign=bottom width=84.333 style="background-color: #E6E9FF"><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=249.933><P style="font-family: Arial; margin: 0pt">Other revenue and expenses</P>
</TD><TD valign=bottom width=85.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;40&nbsp;</P>
</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;17&nbsp;</P>
</TD><TD valign=bottom width=17.467>&nbsp;</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;33&nbsp;</P>
</TD><TD valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;(80)</P>
</TD></TR>
<TR><TD valign=bottom width=249.933 style="background-color: #E6E9FF">&nbsp;</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 2pt double #000000" valign=bottom width=85.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$845&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 2pt double #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$270&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 2pt double #000000" valign=bottom width=17.467><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 2pt double #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$1,399&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 2pt double #000000" valign=bottom width=84.333><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$508&nbsp;</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial" align=justify><B>9.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>SUPPLEMENTAL CASH FLOW INFORMATION</B></P>
<P style="margin:0pt" align=justify><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=192.1></TD><TD width=60.95></TD><TD width=60.95></TD><TD width=60.95></TD><TD width=60.95></TD></TR>
<TR><TD valign=bottom width=256.133>&nbsp;</TD><TD valign=bottom width=162.533 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=center>Three months ended</P>
</TD><TD valign=bottom width=162.533 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=center>Nine months ended</P>
</TD></TR>
<TR><TD valign=bottom width=256.133>&nbsp;</TD><TD valign=bottom width=162.533 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=center>September 30,</P>
</TD><TD valign=bottom width=162.533 colspan=2><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=center>September 30,</P>
</TD></TR>
<TR><TD valign=bottom width=256.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=81.267><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=81.267><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2003</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=81.267><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=81.267><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>2003</P>
</TD></TR>
<TR><TD valign=bottom colspan=5 style="padding-left: 0"><P style="font-family: Arial; margin: 0pt">Changes in non-cash working capital</P>
</TD></TR>
<TR><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;Short-term investments</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;$(475)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;$(475)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;Accounts receivable</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(2,270)</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;1,032&nbsp;</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(5,047)</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(695)</P>
</TD></TR>
<TR><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;Inventories</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(212)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;229&nbsp;</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;803&nbsp;</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(1,807)</P>
</TD></TR>
<TR><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;Prepaids expenses</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(1,260)</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;44&nbsp;</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(1,241)</P>
</TD><TD valign=bottom style="padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;909&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom style="background-color: #E6E9FF; border-bottom: 1 solid #000000; padding-left: 0"><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;Accounts payable and accrued liabilities</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; border-bottom: 1 solid #000000; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(2,359)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; border-bottom: 1 solid #000000; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(2,109)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; border-bottom: 1 solid #000000; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(5,812)</P>
</TD><TD valign=bottom style="background-color: #E6E9FF; border-bottom: 1 solid #000000; padding-left: 0"><P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=right>&nbsp;(1,476)</P>
</TD></TR>
<TR><TD style="border-bottom-style: double; border-bottom-color: #000000; padding-left: 0" valign=bottom><P style="font-family: Arial; margin: 0pt">&nbsp;&nbsp;</P>
</TD><TD style="border-bottom-style: double; border-bottom-color: #000000; padding-left: 0" valign=bottom><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$(6,576)</P>
</TD><TD style="border-bottom-style: double; border-bottom-color: #000000; padding-left: 0" valign=bottom><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$(804)</P>
</TD><TD style="border-bottom-style: double; border-bottom-color: #000000; padding-left: 0" valign=bottom><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$(11,772)</P>
</TD><TD style="border-bottom-style: double; border-bottom-color: #000000; padding-left: 0" valign=bottom><P style="margin:0pt; padding-left:36pt; font-family:Arial" align=right>&nbsp;$(3,069)</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt" align=justify><BR></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"><B>10.</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; padding-left: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 financial, human resources and technical support to its mining and exploration activities.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; 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=162></TD><TD width=70.55></TD><TD width=72></TD><TD width=72></TD><TD width=60.75></TD></TR>
<TR><TD valign=top width=216>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=367.067 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the three months ended September 30, 2004</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=216><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=94.067><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=96><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=81><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD width=216 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Revenue from external customers</P>
</TD><TD width=94.067 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">28,055</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:35.9pt; font-family:Arial">(139)</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD width=81 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:0.05pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:22.45pt; font-family:Arial">27,916</P>
</TD></TR>
<TR><TD valign=top width=216><P style="line-height:15pt; margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD><TD valign=top width=94.067><P style="line-height:15pt; margin:0pt; text-indent:35.1pt; font-family:Arial">5,004</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(4,040)</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(606)</P>
</TD><TD valign=top width=81><P style="line-height:15pt; margin:0pt; text-indent:35.05pt; font-family:Arial">358</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=162></TD><TD width=72></TD><TD width=70.85></TD><TD width=69.75></TD><TD width=63></TD></TR>
<TR><TD valign=top width=216>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=367.467 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the three months ended September 30, 2003</P>
<P style="margin:0pt; font-family:Arial" align=center><SUP>(Note 2)</SUP></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=216><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Mining</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.467><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=93><P style="margin:0pt; font-family:Arial" align=center>Exploration &amp; Development</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD width=216 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">11,838</P>
</TD><TD width=94.467 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:47.6pt; font-family:Arial">52</P>
</TD><TD width=93 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD width=84 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:1.15pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:25.6pt; font-family:Arial">11,890</P>
</TD></TR>
<TR><TD valign=top width=216><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:42.6pt; font-family:Arial">655</P>
</TD><TD valign=top width=94.467><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(1,641)</P>
</TD><TD valign=top width=93><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(239)</P>
</TD><TD valign=top width=84><P style="line-height:15pt; margin:0pt; text-indent:23.9pt; font-family:Arial">(1,225)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><FONT FACE="Arial">Pan American Silver Corp.</FONT></P>
<P style="margin:0pt; font-family:Arial">Notes to consolidated financial statements</P>
<P style="margin:0pt; font-family:Arial">As at September 30, 2004 and 2003 and for the three and nine 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; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Unaudited) </P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=162.15></TD><TD width=72></TD><TD width=72></TD><TD width=71.1></TD><TD width=64.45></TD></TR>
<TR><TD valign=top width=216.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=372.733 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the nine months ended September 30, 2004</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=216.2><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=94.8><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=85.933><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD width=216.2 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">66,207</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:28.4pt; font-family:Arial">(1,404)</P>
</TD><TD width=94.8 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD width=85.933 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:-0.65pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:25.6pt; font-family:Arial">64,803</P>
</TD></TR>
<TR><TD valign=top width=216.2><P style="line-height:15pt; margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">12,022</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(8,281)</P>
</TD><TD valign=top width=94.8><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(2,054)</P>
</TD><TD valign=top width=85.933><P style="line-height:15pt; margin:0pt; text-indent:31.15pt; font-family:Arial">1,687</P>
</TD></TR>
<TR><TD valign=top width=216.2 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:24.25pt; font-family:Arial">178,991</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:31.9pt; font-family:Arial">72,493</P>
</TD><TD valign=top width=94.8 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">90,575</P>
</TD><TD valign=top width=85.933><P style="line-height: 17pt; text-indent: -0.65pt; font-family: Arial; background-color: #E6E9FF; margin-top: 0pt; margin-bottom: -17pt">$</P>
<P style="line-height: 15pt; text-indent: 21.15pt; font-family: Arial; background-color: #E6E9FF; margin: 0pt">342,059</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=168.65></TD><TD width=72></TD><TD width=71.1></TD><TD width=69.75></TD><TD width=71></TD></TR>
<TR><TD valign=top width=224.867>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=378.467 colspan=4><P style="margin:0pt; font-family:Arial" align=center>For the nine months ended September 30, 2003</P>
<P style="margin:0pt; font-family:Arial" align=center><SUP>(Note 2)</SUP></P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=224.867><P style="margin:0pt"><BR></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Mining</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.8><P style="margin:0pt; font-family:Arial" align=center>Corporate</P>
<P style="margin:0pt; font-family:Arial" align=center>Office</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=93><P style="margin:0pt; font-family:Arial" align=center>Exploration &amp; Development</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.667><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>Total</P>
</TD></TR>
<TR><TD valign=top width=224.867 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Revenue from external customers</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">31,905</P>
</TD><TD valign=top width=94.8 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:42.6pt; font-family:Arial">360</P>
</TD><TD valign=top width=93 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:54.25pt; font-family:Arial">-</P>
</TD><TD valign=top width=94.667 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:31.9pt; font-family:Arial">32,265</P>
</TD></TR>
<TR><TD valign=top width=224.867><P style="line-height:15pt; margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:42.6pt; font-family:Arial">333</P>
</TD><TD valign=top width=94.8><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial">(3,457)</P>
</TD><TD valign=top width=93><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial">(848)</P>
</TD><TD valign=top width=94.667><P style="line-height:15pt; margin:0pt; text-indent:30.2pt; font-family:Arial">(3,972)</P>
</TD></TR>
<TR><TD valign=top width=224.867 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:29.25pt; font-family:Arial">92,611</P>
</TD><TD valign=top width=94.8 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:29.25pt; font-family:Arial">91,696</P>
</TD><TD valign=top width=93 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial">86,403</P>
</TD><TD valign=top width=94.667 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:27.7pt; font-family:Arial">270,710</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
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