-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TW9LSdg734btFsJgh0opMcAL1ANUNm3fbFytx5LZGUPVPqNv7wMRz9TExWUaWYN3
 /IP3iH1HVEb4rZx3JC5GSg==

<SEC-DOCUMENT>0001137171-06-000518.txt : 20060307
<SEC-HEADER>0001137171-06-000518.hdr.sgml : 20060307
<ACCEPTANCE-DATETIME>20060307093549
ACCESSION NUMBER:		0001137171-06-000518
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040630
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:		06668826

	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>panamerican6k030606d.htm
<DESCRIPTION>6-K FILING FOR PAN AMERICAN SILVER
<TEXT>
<html>

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

<body>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>FORM
  6-K</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>SECURITIES
  AND EXCHANGE COMMISSION</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Washington,
  D.C. 20549</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Report
  of Foreign Private Issuer</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>Pursuant
  to Rule 13a-16 or 15d-16</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><strong>of
  the Securities Exchange Act of 1934</strong></font>
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
  &nbsp;
</div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
  <font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">For
  the month of July</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="q22004financials.htm">Financial
  Statements for June 30, 2004 (Restated March 2, 2006)</a>

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

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>q22004financials.htm
<DESCRIPTION>FINANCIAL STATEMENTS FROM SECOND 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="02/27/2006">
</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">&nbsp;</p>
<p style="line-height: 16pt; font-family: Arial; font-size: 14pt; margin: 0pt" align="center"><b>RESTATED</b></p>
<p>&nbsp;</p>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=285.1></TD><TD width=83.3></TD><TD width=82.95></TD></TR>
<TR><TD valign=bottom width=601.8 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=601.8 colspan=3><P style="margin:0pt; font-family:Arial" align=center>Consolidated Balance Sheets</P>
</TD></TR>
<TR><TD valign=bottom width=601.8 colspan=3><P style="margin:0pt; font-family:Arial" align=center>(in thousands of US dollars)</P>
</TD></TR>
<TR><TD valign=bottom width=380.133>&nbsp;</TD><TD valign=bottom width=111.067><P style="margin:0pt; padding-right:8.05pt; font-family:Arial" align=right>&nbsp;June 30 </P>
</TD><TD valign=bottom width=110.6><P style="margin:0pt; padding-right:4.9pt; font-family:Arial" align=right>&nbsp;December 31 </P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=111.067><P style="margin:0pt; padding-right:8.05pt; font-family:Arial" align=right>&nbsp;2004 </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=110.6><P style="margin:0pt; padding-right:4.9pt; font-family:Arial" align=right>&nbsp;2003 </P>
</TD></TR>
<TR><TD valign=bottom width=491.2 colspan=2><P style="margin:0pt; font-family:Arial" align=right><B>(Restated - note 3)</B></P>
</TD><TD valign=bottom width=110.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial"><B>ASSETS</B></P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; padding-right:7.35pt; font-family:Arial" align=right>&nbsp;(Unaudited) </P>
</TD><TD valign=bottom width=110.6><P style="margin:0pt; padding-right:6.3pt; font-family:Arial" align=right>(Audited)</P>
</TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=bottom width=111.067>&nbsp;</TD><TD valign=bottom width=110.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Cash and cash equivalents</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53,979 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Short-term investments</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,757 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Accounts receivable, net of $nil provision for doubtful accounts</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,322 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Inventories</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,777 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Deferred loss and unrealized gain on commodity contracts</P>
</TD><TD valign=bottom width=111.067 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;408 </P>
</TD><TD valign=bottom width=110.6 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;- </P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Prepaid expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,319 </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Total Current Assets</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137,562 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">Mineral property, plant and equipment - note 4</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,766 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Investment and non-producing properties - note 5</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,434 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">Direct smelting ore</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,436 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Other assets</P>
</TD><TD valign=bottom width=111.067 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=110.6 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=380.133><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=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;316,024 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=110.6><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=380.133>&nbsp;</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial"><B>LIABILITIES</B></P>
</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">Current</P>
</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Accounts payable and accrued liabilities</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,135 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Advances for metal shipments</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,632 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Current portion of bank loans and capital lease - note 7</P>
</TD><TD valign=bottom width=111.067 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;&nbsp;14 </P>
</TD><TD valign=bottom width=110.6 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;2,639 </P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Current portion of other non-current liabilities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;426 </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Total Current Liabilities</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,207 </P>
</TD><TD valign=bottom width=110.6 style="background-color: #E6E9FF"><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=380.133><P style="margin:0pt; font-family:Arial">Deferred revenue</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;780 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Bank loans and capital lease - note 7</P>
</TD><TD valign=bottom width=111.067 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;332 </P>
</TD><TD valign=bottom width=110.6 style="background-color: #E6E9FF"><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=380.133><P style="margin:0pt; font-family:Arial">Liability component of convertible debentures - note 6</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;187 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Provision for asset retirement obligation and reclamation</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21,202 </P>
</TD><TD valign=bottom width=110.6 style="background-color: #E6E9FF"><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=380.133><P style="margin:0pt; font-family:Arial">Provision for future income tax</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,035 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Severance indemnities and commitments</P>
</TD><TD valign=bottom width=111.067 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;3,158 </P>
</TD><TD valign=bottom width=110.6 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=380.133><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=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56,901 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=110.6><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=380.133>&nbsp;</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial"><B>SHAREHOLDERS' EQUITY</B></P>
</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">Share capital</P>
</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><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=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Issued:</P>
</TD><TD valign=bottom width=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133><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=111.067>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=110.6>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30, 2004 - 66,638,380 common shares</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;377,091 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">Equity component of convertible debentures - note 6</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;690 </P>
</TD><TD valign=bottom width=110.6><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=380.133 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Additional paid in capital</P>
</TD><TD valign=bottom width=111.067 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,858 </P>
</TD><TD valign=bottom width=110.6 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=380.133><P style="margin:0pt; font-family:Arial">Deficit</P>
</TD><TD valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(130,516)</P>
</TD><TD valign=bottom width=110.6><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=380.133><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=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;259,123 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=110.6><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=380.133><P style="margin:0pt; font-family:Arial">Total Liabilities and Shareholders' Equity</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=111.067><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;316,024 </P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=110.6><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=380.133>&nbsp;</TD><TD valign=bottom width=111.067>&nbsp;</TD><TD valign=bottom width=110.6>&nbsp;</TD></TR>
<TR><TD valign=bottom width=601.8 colspan=3><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=201.05></TD><TD width=67.75></TD><TD width=65></TD><TD width=67.75></TD><TD width=3.45></TD><TD width=9></TD><TD width=64.35></TD></TR>
<TR><TD valign=bottom width=637.8 colspan=7><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>PAN AMERICAN SILVER CORP.</B></P>
</TD></TR>
<TR><TD valign=bottom width=637.8 colspan=7><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Consolidated Statements of Operations</P>
</TD></TR>
<TR><TD valign=bottom width=637.8 colspan=7><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=268.067>&nbsp;</TD><TD valign=bottom width=90.333>&nbsp;</TD><TD valign=bottom width=86.667>&nbsp;</TD><TD valign=bottom width=90.333>&nbsp;</TD><TD valign=bottom width=102.4 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=bottom width=268.067>&nbsp;</TD><TD valign=bottom width=177 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Three months ended</P>
</TD><TD valign=bottom width=192.733 colspan=4><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Six months ended</P>
</TD></TR>
<TR><TD valign=bottom width=268.067>&nbsp;</TD><TD valign=bottom width=177 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>June 30,</P>
</TD><TD valign=bottom width=192.733 colspan=4><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>June 30,</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=268.067><P style="margin:0pt; font-family:Arial; font-size:9pt">&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=86.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>2003</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.933 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>2004</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=97.8 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>2003</P>
</TD></TR>
<TR><TD width=358.4 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right><B>(Restated - note 3)</B></P>
</TD><TD width=86.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right><B>(Note 2)</B></P>
</TD><TD width=106.933 colspan=3><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right><B>(Restated - note 3)</B></P>
</TD><TD width=85.8><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right><B>(Note 2)</B></P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Revenue</B></P>
</TD></center><TD valign=bottom width=90.333 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;21,179 </P>
</TD><center><TD valign=bottom width=86.667 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;12,553 </P>
</TD><TD valign=bottom width=94.933 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;36,887 </P>
</TD><TD valign=bottom width=97.8 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;20,375 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt"><B>Expenses</B></P>
</TD><TD valign=bottom width=90.333>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.667>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=94.933 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=97.8 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Operating</P>
</TD><TD valign=bottom width=90.333 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;16,531 </P>
</TD><TD valign=bottom width=86.667 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;11,333 </P>
</TD><TD valign=bottom width=94.933 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;27,699 </P>
</TD><TD valign=bottom width=97.8 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;18,762 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;General and administration</P>
</TD><TD valign=bottom width=90.333><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;1,202 </P>
</TD><TD valign=bottom width=86.667><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;582 </P>
</TD><TD valign=bottom width=94.933 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;2,005 </P>
</TD><TD valign=bottom width=97.8 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;983 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067 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=90.333 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;2,008 </P>
</TD><TD valign=bottom width=86.667 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;462 </P>
</TD><TD valign=bottom width=94.933 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;4,153 </P>
</TD><TD valign=bottom width=97.8 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;933 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=90.333><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;684 </P>
</TD><TD valign=bottom width=86.667><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;714 </P>
</TD><TD valign=bottom width=94.933 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;1,124 </P>
</TD><TD valign=bottom width=97.8 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;1,201 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Reclamation</P>
</TD><TD valign=bottom width=90.333 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;301 </P>
</TD><TD valign=bottom width=86.667 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;77 </P>
</TD><TD valign=bottom width=94.933 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;603 </P>
</TD><TD valign=bottom width=97.8 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;156 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Exploration and development</P>
</TD><TD valign=bottom width=90.333><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;1,137 </P>
</TD><TD valign=bottom width=86.667><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;492 </P>
</TD><TD valign=bottom width=94.933 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;1,665 </P>
</TD><TD valign=bottom width=97.8 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;988 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Interest</P>
</TD><TD valign=bottom width=90.333 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;289 </P>
</TD><TD valign=bottom width=86.667 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;178 </P>
</TD><TD valign=bottom width=94.933 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;757 </P>
</TD><TD valign=bottom width=97.8 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;337 </P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=268.067><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=90.333><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;22,152 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=86.667><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;13,838 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=94.933 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;38,006 </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=97.8 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;23,360 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=90.333 style="background-color: #E6E9FF">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.667 style="background-color: #E6E9FF">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=94.933 colspan=2 style="background-color: #E6E9FF">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=97.8 colspan=2 style="background-color: #E6E9FF">
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Loss from operations</P>
</TD><TD valign=bottom width=90.333><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;(973)</P>
</TD><TD valign=bottom width=86.667><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;(1,285)</P>
</TD><TD valign=bottom width=94.933 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;(1,119)</P>
</TD><TD valign=bottom width=97.8 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;(2,985)</P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Gain on sale of concessions (note 4)</P>
</TD><TD valign=bottom width=90.333 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;3,583 </P>
</TD><TD valign=bottom width=86.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=94.933 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;3,583 </P>
</TD><TD valign=bottom width=97.8 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;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Debt settlement expenses</P>
</TD><TD valign=bottom width=90.333><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;(1,311)</P>
</TD><TD valign=bottom width=86.667><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;&nbsp;</P>
</TD><TD valign=bottom width=94.933 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;(1,311)</P>
</TD><TD valign=bottom width=97.8 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;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Gain (loss) on commodity contracts</P>
</TD><TD valign=bottom width=90.333 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;1,836 </P>
</TD><TD valign=bottom width=86.667 style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>-</P>
</TD><TD valign=bottom width=94.933 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;(378)</P>
</TD><TD valign=bottom width=97.8 colspan=2 style="background-color: #E6E9FF"><P style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Other income</P>
</TD><TD valign=bottom width=90.333><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;217 </P>
</TD><TD valign=bottom width=86.667><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;129 </P>
</TD><TD valign=bottom width=94.933 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;554 </P>
</TD><TD valign=bottom width=97.8 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;238 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=268.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Net income (loss) for the period</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=90.333><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;3,352 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=86.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,156)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=94.933 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;1,329 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=97.8 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;(2,747)</P>
</TD></TR>
<TR><TD valign=bottom width=268.067>&nbsp;</TD><TD valign=bottom width=90.333>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.667>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=94.933 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=97.8 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Loss per share - note 8</P>
</TD><TD valign=bottom width=90.333 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;(0.09)</P>
</TD><TD valign=bottom width=86.667 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;(0.02)</P>
</TD><TD valign=bottom width=94.933 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;(0.17)</P>
</TD><TD valign=bottom width=97.8 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;(0.05)</P>
</TD></TR>
<TR><TD valign=bottom width=268.067>&nbsp;</TD><TD valign=bottom width=90.333>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86.667>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=94.933 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=97.8 colspan=2>
    <p style="line-height: 11pt; font-family: Arial; font-size: 9pt; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=268.067 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Weighted average number of shares outstanding</P>
</TD><TD valign=bottom width=90.333 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;&nbsp;65,073,833 </P>
</TD><TD valign=bottom width=86.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align="right">&nbsp;&nbsp;&nbsp;51,947,530 </P>
</TD><TD valign=bottom width=94.933 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;59,564,028 </P>
</TD><TD valign=bottom width=97.8 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;50,849,874 </P>
</TD></TR>
<TR><TD valign=bottom width=268.067>&nbsp;</TD><TD valign=bottom width=90.333>&nbsp;</TD><TD valign=bottom width=86.667>&nbsp;</TD><TD valign=bottom width=94.933 colspan=2>&nbsp;</TD><TD valign=bottom width=97.8 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=637.8 colspan=7><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;See accompanying notes to consolidated financial statements </P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<div align="center">
  <center>
<TABLE style="font-size: 10pt" cellspacing=0 width="691"><TR><TD width=6></TD><TD width=326></TD><TD width=88></TD><TD width=1></TD><TD width=77></TD><TD width=1></TD><TD width=56></TD><TD width=16></TD><TD width=1></TD><TD width=42></TD><TD width=35></TD></TR>
<TR><TD valign=bottom width=6>&nbsp;</TD><TD valign=bottom width=670 colspan=10><P style="line-height:normal; margin:0pt; font-family:Arial; font-size:14pt" align=center><B>PAN AMERICAN SILVER CORP.</B><SMALL>.</SMALL></P>
</TD></TR>
<TR><TD valign=bottom width=6>&nbsp;</TD><TD valign=bottom width=670 colspan=10><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Cash Flows</P>
</TD></TR>
<TR><TD valign=bottom width=6>&nbsp;</TD><TD valign=bottom width=670 colspan=10><P style="margin:0pt; font-family:Arial" align=center>(Unaudited - in thousands of US dollars)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=88>&nbsp;</TD><TD valign=bottom width=81 colspan=2>&nbsp;</TD><TD valign=bottom width=60 colspan=2>&nbsp;</TD><TD valign=bottom width=106 colspan=4>&nbsp;</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=170 colspan=3><P style="margin:0pt; font-family:Arial" align=center>Three months ended</P>
</TD><TD valign=bottom width=170 colspan=6><P style="margin:0pt; font-family:Arial" align=center>Six months ended</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=170 colspan=3><P style="margin:0pt; font-family:Arial" align=center>June 30,</P>
</TD><TD valign=bottom width=170 colspan=6><P style="margin:0pt; font-family:Arial" align=center>June 30,</P>
</TD></TR>
<TR><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=338 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=91 colspan=2><P style="margin:0pt; font-family:Arial" align=right>2004 </P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=79 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=83 colspan=3><P style="margin:0pt; font-family:Arial" align=right>2004 </P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=2><P style="margin:0pt; font-family:Arial" align=right>2003 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial"><B>Operating activities</B></P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align=center><B>(Restated - note 3)</B></P>
</TD><TD valign=bottom width=77 colspan=2>&nbsp;</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align=center><B>(Restated - note 3)</B></P>
</TD><TD valign=bottom width=81 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Net income (loss) for the period</P>
</TD></center><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,352 </P>
</TD><center><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;(1,156)</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;1,329 </P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;(2,747)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">Reclamation expenditures</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(230)</P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(592)</P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">Gain on sale of concessions</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,583)</P>
</TD><TD valign=bottom width=77 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;</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,583)</P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">Items not involving cash</P>
</TD><TD valign=bottom width=89 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=77 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,008 </P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;462 </P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,153 </P>
</TD><TD valign=bottom width=81 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;933 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Interest accretion on convertible debentures</P>
</TD><TD valign=bottom width=89 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;97 </P>
</TD><TD valign=bottom width=77 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;</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;366 </P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=89 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;684 </P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;714 </P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,124 </P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,201 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Debt settlement expenses</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,208 </P>
</TD><TD valign=bottom width=77 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;</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,208 </P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Compensation expense</P>
</TD><TD valign=bottom width=89 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;245 </P>
</TD><TD valign=bottom width=77 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;</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Asset retirement and reclamation accretion</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301 </P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77 </P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;603 </P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Unrealized loss on commodity contracts</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,065)</P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(408)</P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Operating cost provisions</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;358 </P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;146 </P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;853 </P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;499 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Changes in non-cash working capital items</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,880)</P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,389)</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,196)</P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,840)</P>
</TD></TR>
<TR><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=338 colspan=2><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=91 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;495 </P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=79 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,146)</P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102 </P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,798)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=89 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=77 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial"><B>Financing activities</B></P>
</TD><TD valign=bottom width=89 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=77 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for cash</P>
</TD><TD valign=bottom width=89 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;943 </P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,975 </P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,005 </P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,698 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issue costs</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(96)</P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180)</P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Convertible debentures payments</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11,213)</P>
</TD><TD valign=bottom width=77 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;</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;(13,520)</P>
</TD><TD valign=bottom width=81 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></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Capital lease repayment</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Proceeds from bank loans</P>
</TD><TD valign=bottom width=89 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;&nbsp;</P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,000 </P>
</TD><TD valign=bottom width=81 colspan=3 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=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Repayment of bank loans</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12,614)</P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(406)</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;(13,021)</P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(938)</P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=338 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=91 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23,055)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=79 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,487 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,209 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,678 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=89 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=77 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial"><B>Investing activities</B></P>
</TD><TD valign=bottom width=89 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=77 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Mineral property, plant and equipment expenditures</P>
</TD><TD valign=bottom width=89 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,665)</P>
</TD><TD valign=bottom width=77 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,648)</P>
</TD><TD valign=bottom width=81 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,008)</P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,063)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Investment and non-producing property expenditures</P>
</TD><TD valign=bottom width=89 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(318)</P>
</TD><TD valign=bottom width=77 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(255)</P>
</TD><TD valign=bottom width=81 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(554)</P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(377)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Acquisition of cash of subsidiary</P>
</TD><TD valign=bottom width=88 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;</P>
</TD><TD valign=bottom width=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3 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=86 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,393 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Proceeds from sale of concessions</P>
</TD><TD valign=bottom width=88><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=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3><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=86 colspan=3><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=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Proceeds from sale of marketable securities</P>
</TD><TD valign=bottom width=88 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,434 </P>
</TD><TD valign=bottom width=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,456 </P>
</TD><TD valign=bottom width=86 colspan=3 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=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Other</P>
</TD><TD valign=bottom width=88><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,000)</P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;139 </P>
</TD><TD valign=bottom width=80 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,000)</P>
</TD><TD valign=bottom width=86 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=338 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,034 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=83 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;(3,764)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=82 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,477 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=88 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,927)</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=88>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=80 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial"><B>(Decrease) increase in cash and cash equivalents during the period</B></P>
</TD><TD valign=bottom width=88 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;(13,526)</P>
</TD><TD valign=bottom width=81 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;(1,423)</P>
</TD><TD valign=bottom width=80 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39,788 </P>
</TD><TD valign=bottom width=86 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;953 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial"><B>Cash and cash equivalents, beginning of period</B></P>
</TD><TD valign=bottom width=88><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67,505 </P>
</TD><TD valign=bottom width=81 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;12,561 </P>
</TD><TD valign=bottom width=80 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,191 </P>
</TD><TD valign=bottom width=86 colspan=3><P style="margin:0pt; font-family:Arial" 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=338 colspan=2><P style="margin:0pt; font-family:Arial"><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=90><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;53,979 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=83 colspan=2><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$11,138 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=82 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;53,979 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=88 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;11,138 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2>&nbsp;</TD><TD valign=bottom width=88>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=81 colspan=2>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=80 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=510 colspan=5><P style="margin:0pt; font-family:Arial"><B>Supplemental disclosure of non-cash financing and investing activities</B></P>
</TD><TD valign=bottom width=80 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD><TD valign=bottom width=86 colspan=3>
    <p style="font-family: Arial; margin: 0pt" align="right">&nbsp;</p>
  </TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for compensation</P>
</TD><TD valign=bottom width=88 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245 </P>
</TD><TD valign=bottom width=86 colspan=3 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;</P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for acquisition of subsidiary</P>
</TD><TD valign=bottom width=88><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;</P>
</TD><TD valign=bottom width=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3><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=86 colspan=3><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,228 </P>
</TD></TR>
<TR><TD valign=bottom width=336 colspan=2 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;Shares issued for conversion of convertible debentures</P>
</TD><TD valign=bottom width=88 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,848 </P>
</TD><TD valign=bottom width=81 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;</P>
</TD><TD valign=bottom width=80 colspan=3 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,848 </P>
</TD><TD valign=bottom width=86 colspan=3 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=680 colspan=11><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR>
<BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=158.8></TD><TD width=55.25></TD><TD width=4.3></TD><TD width=49.45></TD><TD width=56.25></TD><TD width=51.25></TD><TD width=56.25></TD><TD width=64.8></TD></TR>
<TR><TD valign=bottom width=661.8 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=661.8 colspan=8><P style="margin:0pt; font-family:Arial" align=center>Consolidated Statements of Shareholders' Equity</P>
</TD></TR>
<TR><TD valign=bottom width=661.8 colspan=8><P style="margin:0pt; font-family:Arial" align=center>For the six months ended June 30, 2004</P>
</TD></TR>
<TR><TD valign=bottom width=661.8 colspan=8><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=211.733>&nbsp;</TD><TD valign=bottom width=79.4 colspan=2>&nbsp;</TD><TD valign=bottom width=65.933>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=68.333>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4>&nbsp;</TD></TR>
<TR><TD valign=bottom width=211.733>&nbsp;</TD><TD valign=bottom width=79.4 colspan=2>&nbsp;</TD><TD valign=bottom width=65.933>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=68.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>Additional </P>
</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4>&nbsp;</TD></TR>
<TR><TD valign=bottom width=211.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=145.333 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=75><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center>Convertible</P>
</TD><TD valign=bottom width=68.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;Paid in </P>
</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=211.733><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=73.667><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=71.667 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=75><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>Debentures </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=68.333><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=75><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=86.4><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=211.733>&nbsp;</TD><TD valign=bottom width=73.667>&nbsp;</TD><TD valign=bottom width=71.667 colspan=2>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=68.333>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4>&nbsp;</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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=71.667 colspan=2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$ &nbsp;&nbsp;161,108 </P>
</TD><TD valign=bottom width=75 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=68.333 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=75 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;(106,943)</P>
</TD><TD valign=bottom width=86.4 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;55,492 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Stock-based compensation</P>
</TD><TD valign=bottom width=73.667><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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=75><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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><TD valign=bottom width=75><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&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=86.4><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,871 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,385,502 </P>
</TD><TD valign=bottom width=71.667 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;9,312 </P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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;(1,471)</P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;7,841 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100,943 </P>
</TD><TD valign=bottom width=71.667 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;509 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;509 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=71.667 colspan=2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=75 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=68.333 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=75 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=86.4 style="background-color: #E6E9FF">&nbsp;</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;7,636,659 </P>
</TD><TD valign=bottom width=71.667 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;54,203 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;54,203 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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;1,136 </P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;1,136 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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;8,889 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;8,889 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75 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;63,201 </P>
</TD><TD valign=bottom width=68.333 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=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;63,201 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75><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;3,534 </P>
</TD><TD valign=bottom width=68.333><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=75><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;(3,534)</P>
</TD><TD valign=bottom width=86.4><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;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=211.733 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Convertible debenture issue costs</P>
</TD><TD valign=bottom width=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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=75 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;(3,272)</P>
</TD><TD valign=bottom width=86.4 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;(3,272)</P>
</TD></TR>
<TR><TD valign=bottom width=211.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issued as compensation</P>
</TD><TD valign=bottom width=73.667><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;3,293 </P>
</TD><TD valign=bottom width=71.667 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;22 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;22 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=211.733><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=73.667><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=68.333><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=75><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;(6,794)</P>
</TD><TD style="background-color: #E6E9FF; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4><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;(6,794)</P>
</TD></TR>
<TR><TD valign=bottom width=211.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Balance, December 31, 2003</P>
</TD><TD valign=bottom width=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;53,009,851 </P>
</TD><TD valign=bottom width=71.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,154 </P>
</TD><TD valign=bottom width=75><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;66,735 </P>
</TD><TD valign=bottom width=68.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,752 </P>
</TD><TD valign=bottom width=75><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(120,543)</P>
</TD><TD valign=bottom width=86.4><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;184,098 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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;1,124 </P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;1,124 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;603,695 </P>
</TD><TD valign=bottom width=71.667 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;6,106 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,018)</P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;4,088 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;539,834 </P>
</TD><TD valign=bottom width=71.667 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;1,918 </P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;1,918 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,333,333 </P>
</TD><TD valign=bottom width=71.667 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;55,000 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;55,000 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;(180)</P>
</TD><TD valign=bottom width=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333 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=75 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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4 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;(180)</P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667>&nbsp;</TD><TD valign=bottom width=71.667 colspan=2>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=68.333>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4><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;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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 (note 6)</P>
</TD><TD valign=bottom width=73.667 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;9,135,043 </P>
</TD><TD valign=bottom width=71.667 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;88,848 </P>
</TD><TD valign=bottom width=75 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;(68,883)</P>
</TD><TD valign=bottom width=68.333 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=75 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;(8,464)</P>
</TD><TD valign=bottom width=86.4 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;11,501 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">&nbsp;&nbsp;Issued as compensation</P>
</TD><TD valign=bottom width=73.667><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;16,624 </P>
</TD><TD valign=bottom width=71.667 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;245 </P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=86.4><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;245 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733 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=73.667 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;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75 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;2,838 </P>
</TD><TD valign=bottom width=68.333 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=75 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;(2,838)</P>
</TD><TD valign=bottom width=86.4 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;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=211.733><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=73.667><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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=71.667 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;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=75><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;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=68.333><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=75><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;1,329 </P>
</TD><TD valign=bottom width=86.4><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;1,329 </P>
</TD></TR>
<TR><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=211.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">Balance, June 30, 2004</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=73.667><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;&nbsp;66,638,380 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=71.667 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$ &nbsp;&nbsp;377,091 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=75><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;690 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=68.333><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;11,858 </P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=75><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>$ &nbsp;(130,516)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 3pt double #000000" valign=bottom width=86.4><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;259,123 </P>
</TD></TR>
<TR><TD valign=bottom width=211.733>&nbsp;</TD><TD valign=bottom width=73.667>&nbsp;</TD><TD valign=bottom width=71.667 colspan=2>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=68.333>&nbsp;</TD><TD valign=bottom width=75>&nbsp;</TD><TD valign=bottom width=86.4>&nbsp;</TD></TR>
<TR><TD valign=bottom width=661.8 colspan=8><P style="margin:0pt; font-family:Arial" align=right>See accompanying notes to consolidated financial statements</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt" align=right><BR>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="font-family: Arial; margin-top: 0pt; margin-bottom: -12pt"><B>1.</B></P>
<P style="text-indent: 36pt; font-family: Arial; margin: 0pt"><B>Basis of presentation</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;Significant differences from United States generally accepted accounting principles are described in note 10.</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; font-family:Arial"><B>2.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Change in accounting policies (Restated)</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-18pt; font-family:Arial" align=justify>a)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>During the fourth quarter 2003 the Company changed its accounting policy, retroactive to January 1, 2002, in accordance with recommendation of CICA 3870, &#147;Stock-based Compensation and Other Stock-based Payments&#148;. &nbsp;As permitted by CICA 3870, the Company has applied this change retroactively for new awards granted on or after January 1, 2002. &nbsp;Stock-based compensation awards are calculated using the Black-Scholes option pricing model. &nbsp;Previously, the Company used the intrinsic value method for valuing stock-based compensation awards granted to employees and directors where compensation expense was recognized for the excess, if any, of the quoted market price of the Company&#146;s common shares over the common share exercise price on the day that options were granted.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="font-family: Arial; margin: 0pt; padding-left: 72pt" align=justify>Using the fair value method for stock-based compensation, the Company recorded an additional charge to earnings of $1,124,000 for the six months ended June 30, 2004 (six months ended June 30, 2003 - $1,201,000) for stock options granted to employees and directors. &nbsp;The fair value of the stock options granted during the six months ended June 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-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-18pt; font-family:Arial" align=justify>b)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Arial" align=justify>During the fourth quarter of 2003, the Company changed its accounting policy on a retroactive basis with respect to accounting and reporting for obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and the normal operation of long-lived assets. &nbsp;The Company adopted CICA 3110 &#147;Asset Retirement Obligations&#148; whereby the fair value of the liability is initially recorded and the carrying value of the related asset is increased by the corresponding amount. &nbsp;The liability is accreted to its present value and the capitalized cost is amortized over the useful life of the related asset. &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:0pt" align=justify><BR>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial" align=justify><B>3.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>Restatement</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>In 2004, Pan American implemented a hedge accounting policy for the accounting treatment of its base-metal forward contracts program. &nbsp;In the fourth quarter of 2005 it was concluded that the Company&#146;s accounting for its forward contracts for the sale of base metals (lead and zinc) ,its forward contracts for purchasing Mexican pesos with US dollars and its silver fixing contracts do not qualify for hedge accounting under AcG-13, Hedging Relationships. &nbsp;As a result, Pan American has restated its unaudited consolidated financial statements for each quarter from March 31, 2004 to September 30, 2005.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>Pan American is now required to recognize mark-to market valuations of its open forward contract positions through its income at the end of each period. &nbsp;In the past, Pan American had recognized gains, losses, revenues and expenses from its forward contracts in its income only in the period in which they settled. &nbsp;The effects of the change in accounting treatment are summarized in the tables below:</P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=259.2></TD><TD width=7.85></TD><TD width=128.35></TD><TD width=7.85></TD><TD width=74.4></TD><TD width=1></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=top width=345.6>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=181.6 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>&nbsp;As Previously Reported</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=111 colspan=3><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-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=181.6 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=111 colspan=3><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=181.6 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>2004</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=111 colspan=3><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-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6><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=181.6 colspan=2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=111 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=181.6 colspan=2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=111 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6><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 and unrealized gain on commodity contracts</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=171.133><P style="line-height:11pt; margin:0pt; text-indent:73.55pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=100.533 colspan=2><P style="line-height:11pt; margin:0pt; text-indent:37.65pt; font-family:Arial; font-size:9pt">408</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=345.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Deficit</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=10.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=171.133><P style="line-height:11pt; margin:0pt; text-indent:41.3pt; font-family:Arial; font-size:9pt" align=justify>(130,924)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=10.467><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; border-bottom:0.5pt solid #000000" valign=top width=100.533 colspan=2><P style="line-height:11pt; margin:0pt; text-indent:15.9pt; font-family:Arial; font-size:9pt" align=justify>(130,516)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=266.8></TD><TD width=9.8></TD><TD width=98.2></TD><TD width=10.95></TD><TD width=86.6></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=top width=355.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=144 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 style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.067 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-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><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=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Three Month Ended</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.067 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Three Month Ended</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=144 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30, 2004</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.067 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30, 2004</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=13.067>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.933><P style="margin:0pt" align=justify><BR></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14.6>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=115.467><P style="margin:0pt" align=justify><BR></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><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 style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=13.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.933><P style="line-height:11pt; margin:0pt; text-indent:55.4pt; font-family:Arial; font-size:9pt">20,950</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=115.467><P style="line-height:11pt; margin:0pt; text-indent:29.85pt; font-family:Arial; font-size:9pt">21,179</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Mine operating earnings</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=13.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=130.933><P style="line-height:11pt; margin:0pt; text-indent:59.9pt; font-family:Arial; font-size:9pt">2,411</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=14.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=115.467><P style="line-height:11pt; margin:0pt; text-indent:34.35pt; font-family:Arial; font-size:9pt">2,640</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Gain on commodity contracts</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=13.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.933><P style="line-height:11pt; margin:0pt; text-indent:77.15pt; font-family:Arial; font-size:9pt">-</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=115.467><P style="line-height:11pt; margin:0pt; text-indent:34.35pt; font-family:Arial; font-size:9pt" align=justify>1,836</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Net income for the period</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=13.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.933><P style="line-height:11pt; margin:0pt; text-indent:59.9pt; font-family:Arial; font-size:9pt">1,287</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14.6><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=115.467><P style="line-height:11pt; margin:0pt; text-indent:34.35pt; font-family:Arial; font-size:9pt" align=justify>3,352</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=355.733><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Adjusted net loss for the period attributable to common shareholders</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=13.067 valign="bottom"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=130.933 valign="bottom"><P style="line-height:11pt; margin:0pt; text-indent:53.9pt; font-family:Arial; font-size:9pt">(7,895)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=14.6 valign="bottom"><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=115.467 valign="bottom"><P style="line-height:11pt; margin:0pt; text-indent:28.35pt; font-family:Arial; font-size:9pt">(5,830)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=355.733><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Basic and diluted loss per share</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=13.067><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=130.933><P style="line-height:11pt; margin:0pt; padding-right:13.55pt; font-family:Arial; font-size:9pt" align=right>(0.12)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14.6><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; border-bottom:0.5pt solid #000000" valign=top width=115.467><P style="line-height:11pt; margin:0pt; padding-right:26.4pt; font-family:Arial; font-size:9pt" align=right>(0.09)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=268.85></TD><TD width=8.4></TD><TD width=98.65></TD><TD width=10.5></TD><TD width=87.25></TD></TR>
<TR><TD style="border:0.5pt solid #000000" valign=top width=358.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=142.733 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 style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.333 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-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><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=142.733 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Six Month Ended</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.333 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>Six Month Ended</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=142.733 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30, 2004</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.333 colspan=2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=center><B>June 30, 2004</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><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 style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=131.533><P style="line-height:11pt; margin:0pt; text-indent:46.7pt; font-family:Arial; font-size:9pt">36,101</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.333><P style="line-height:11pt; margin:0pt; text-indent:38pt; font-family:Arial; font-size:9pt">36,887</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Mine operating earnings</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=131.533><P style="line-height:11pt; margin:0pt; text-indent:51.2pt; font-family:Arial; font-size:9pt">4,249</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=14><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=116.333><P style="line-height:11pt; margin:0pt; text-indent:42.5pt; font-family:Arial; font-size:9pt">5,035</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Loss on commodity contracts</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=131.533><P style="line-height:11pt; margin:0pt; text-indent:68.45pt; font-family:Arial; font-size:9pt" align=justify>-</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.333><P style="line-height:11pt; margin:0pt; text-indent:43.25pt; font-family:Arial; font-size:9pt" align=justify>(378)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Net income for the period</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=131.533><P style="line-height:11pt; margin:0pt; text-indent:57.95pt; font-family:Arial; font-size:9pt" align=justify>921</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.333><P style="line-height:11pt; margin:0pt; text-indent:42.5pt; font-family:Arial; font-size:9pt" align=justify>1,329</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><P style="line-height:11pt; margin:0pt; padding-left:14.2pt; text-indent:-14.2pt; font-family:Arial; font-size:9pt" align=justify>Adjusted net loss for the period attributable to common shareholders</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=131.533><P style="line-height:11pt; margin:0pt; text-indent:40.7pt; font-family:Arial; font-size:9pt">(10,381)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=14><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt">$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=116.333><P style="line-height:11pt; margin:0pt; text-indent:36.5pt; font-family:Arial; font-size:9pt">(9,973)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=358.467><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>Basic and diluted loss per share</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=11.2><P style="line-height:11pt; margin:0pt; font-family:Arial; font-size:9pt" align=justify>$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=131.533><P style="line-height:11pt; margin:0pt; padding-right:21.7pt; font-family:Arial; font-size:9pt" align=right>(0.17)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=14><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; border-bottom:0.5pt solid #000000" width=116.333><P style="line-height:11pt; margin:0pt; padding-right:18.65pt; font-family:Arial; font-size:9pt" align=right>(0.17)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>4.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>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=54></TD><TD width=54.75></TD><TD width=50.9></TD><TD width=4.6></TD><TD width=54.75></TD><TD width=59.4></TD><TD width=50.9></TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=212.867 colspan=3><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=center><FONT FACE="Arial">June 30, 2004</FONT></P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=220.067 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=72>&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=67.867>&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=67.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</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>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=67.867><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=67.867><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=608.8 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;La Colorada mine, Mexico</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;$4,153&nbsp;</P>
</TD><TD valign=bottom width=73 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><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=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;$4,153&nbsp;</P>
</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><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><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=72><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><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=67.867><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>&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;1&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=67.867><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 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=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><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;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=67.867><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 valign=bottom width=6.133 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=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="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;- &nbsp;&nbsp;</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=67.867><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=72>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=67.867>&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=67.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=608.8 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;La Colorada mine, Mexico</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;12,446&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;(756)</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;11,690&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;10,332&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;(360)</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><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><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=72><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><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;(4,083)</P>
</TD><TD valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,334&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;14,417&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;(3,426)</P>
</TD><TD valign=bottom width=67.867><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 style="background-color: #E6E9FF"><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=72 style="background-color: #E6E9FF"><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 style="background-color: #E6E9FF"><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=67.867 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=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;15,410&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;(15,410)</P>
</TD><TD valign=bottom width=67.867 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;Other</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;3,229&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;(540)</P>
</TD><TD valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;2,689&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;3,161&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;(503)</P>
</TD><TD valign=bottom width=67.867><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 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=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;45,502&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;(20,789)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;24,713&nbsp;</P>
</TD><TD valign=bottom width=6.133 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=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="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;(19,699)</P>
</TD><TD style="background-color: #E6E9FF; border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=67.867><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=72>&nbsp;</TD><TD valign=bottom width=73>&nbsp;</TD><TD valign=bottom width=67.867>&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=67.867>&nbsp;</TD></TR>
<TR><TD valign=bottom width=608.8 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;La Colorada mine, Mexico</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;33,030&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;(2,337)</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;30,693&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;31,892&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;(1,113)</P>
</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF"><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><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=72><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;35,500&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;(9,294)</P>
</TD><TD valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;26,206&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;32,820&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;(7,800)</P>
</TD><TD valign=bottom width=67.867><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 style="background-color: #E6E9FF"><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=72 style="background-color: #E6E9FF"><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;10,046&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;(10,046)</P>
</TD><TD valign=bottom width=67.867 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=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;10,046&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;(10,046)</P>
</TD><TD valign=bottom width=67.867 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>&nbsp;</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;78,576&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;(21,677)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;56,899&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;74,758&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;(18,959)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=67.867><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 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=72 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=6.133 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=73 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=79.2 style="background-color: #E6E9FF">&nbsp;</TD><TD valign=bottom width=67.867 style="background-color: #E6E9FF">&nbsp;</TD></TR>
<TR><TD valign=bottom width=169.733>&nbsp;</TD><TD style="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;$128,232&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=73><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$(42,466)</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=67.867><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$85,766&nbsp;</P>
</TD><TD valign=bottom width=6.133>&nbsp;</TD><TD style="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;$122,232&nbsp;</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=79.2><P style="line-height:11pt; margin:0pt; text-indent:9pt; font-family:Arial; font-size:9pt" align=right>&nbsp;$(38,658)</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=67.867><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" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>On June 28, 2004 the Company completed the sale of certain surface properties and mineral concessions to Barrick Gold Corporation for $3,583,000. &nbsp;Due to the write-off of the Quiruvilca mine in 2002 these properties and concessions had a $nil carrying value and recognized a gain of $3,583,000.</P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial"><B>5.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial"><B>Investment and non-producing properties</B></P>
<P style="line-height:9pt; margin:0pt"><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; text-indent:36pt; font-family:Arial" align=justify>Investment and non-producing properties consists of:</P>
<P style="margin:0pt" align=center><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; text-indent:36pt; font-family:Arial" align=right><FONT FACE="Arial">June
    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="font-family: Arial; margin: 0pt" align=right>2004</P>
</TD><TD valign=bottom width=91.533><P style="margin:0pt; text-indent:36pt; font-family:Arial" align=right>2003</P>
</TD></TR>
<TR><TD valign=bottom width=549.2 colspan=4><P style="margin:0pt; text-indent: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; text-indent: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; text-indent: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=549.2 colspan=4><P style="margin:0pt; text-indent: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; text-indent:36pt; font-family:Arial">&nbsp;&nbsp;Alamo Dorado, Mexico</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;80,637&nbsp;</P>
</TD><TD valign=bottom width=91.533 style="background-color: #E6E9FF"><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><P style="margin:0pt; text-indent:36pt; font-family:Arial">&nbsp;&nbsp;Manantial Espejo, Argentina</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;2,012&nbsp;</P>
</TD><TD valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;2,012&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;82,649&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;82,088&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=294.133>&nbsp;</TD><TD valign=bottom width=72>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=91.533><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;$84,434&nbsp;</P>
</TD><TD style="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>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial" align=justify><B>6.</B></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify><B>Convertible debentures</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>In 2003 the Company completed an offering of $86,250,000 convertible, unsecured senior subordinated debentures (the &#147;Debentures), which mature on July 31, 2009. &nbsp;The Debentures bear interest at a rate of 5.25 per cent per annum, payable semi-annually on January 31 and July 31 of each year, beginning on January 31, 2004. &nbsp;The Company has the option to discharge interest payments from the proceeds on the sale of common shares of the Company issued to a trustee for the purposes of converting such shares into cash.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>In March 2004 the Company announced the terms of an offer (the &#147;Offer&#148;), which was open between April 7, 2004 and May 21, 2004, to induce the holders of the Debentures to convert their holdings into 106.929 common shares of the Company plus cash of $131.25 for every $1,000 principal amount of the Debentures. &nbsp;Pursuant to this Offer the Company issued 9,135,043 common shares and made cash payments totaling $11,213,000 to the holders of $85,431,000 principal amount of the Debentures which accepted the Company&#146;s offer for conversion. &nbsp;Debt settlement expenses of $1,311,000 for interest, professional and other fees have been charged to earnings.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="font-family: Arial; margin-top: 0pt; margin-bottom: -12pt" align=justify><B>7.</B></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify><B>Bank loans</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>During the second quarter of 2004, the Company repaid both its Huaron pre-production and La Colorada project loan facilities by making payments totaling $12,614,000.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>The La Colorada project loan with the International Financial Corporation stipulates that the Company will be required to make an additional payment on the May 15<SUP>th</SUP> of each year until 2009 if the average price of silver for the preceding calendar year exceeded $4.75 per ounce. &nbsp;Such payment would be equal to 20 per cent of the positive difference between the average price of silver for the year and $4.75 multiplied by the number of ounces of silver produced divided by $9,500,000 and multiplied by the scheduled loan balance at the end of the year. &nbsp;As at June 30, 2004, the Company has accrued $358,000 with respect to this additional payment. &nbsp;This additional payment is treated as a royalty for accounting purposes and had been recorded as a reduction against our metal sales.</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>Share capital</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial" align=justify>During the six-month period ended June 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 to induced conversion of the convertible debentures;</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, after legal, accounting and other fees;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Arial" align=justify>iii)</P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; font-family:Arial" align=justify>issued 603,695 common shares for proceeds of $4,088,000 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 539,834 common shares for proceeds of $1,918,000 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 for compensation expense.</P>
<P style="margin:0pt"><BR>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial">The following table summarizes information concerning stock options outstanding as at June 30, 2004:</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 June 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 June 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>$3.39 - $6.90</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>5,036</P>
</TD><TD valign=bottom width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;1.70</P>
</TD><TD valign=bottom width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>5,036</P>
</TD><TD valign=bottom width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$6.88</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$8.95</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>44,077</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;8.10</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>44,077</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$8.95</P>
</TD></TR>
<TR><TD valign=top width=116.533 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$3.73 - $7.27</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>134,666</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;22.52</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>98,000</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$4.69</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$7.21 - $7.53</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>404,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;40.95</P>
</TD><TD valign=top width=108><P style="font-family: Arial; margin: 0pt" align=right>370,000</P>
</TD><TD valign=top width=84><P style="font-family: Arial; margin: 0pt" align=right>$7.49</P>
</TD></TR>
<TR><TD valign=top width=116.533 style="background-color: #E6E9FF"><P style="margin:0pt; font-family:Arial" align=center>$6.64 - $10.76</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>574,231</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>&nbsp;48.49</P>
</TD><TD valign=top width=108 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>69,231</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="font-family: Arial; margin: 0pt" align=right>$7.43</P>
</TD></TR>
<TR><TD valign=top width=116.533><P style="margin:0pt; font-family:Arial" align=center>$12.31 - $16.79</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;56.38</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>$13.87</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>$3.73</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>222,000</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;77.60</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>222,000</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>$3.73</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>1,766,010</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>950,344</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=84><P style="margin:0pt; font-family:Arial" align=right>$8.37</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>During the six months ended June 30, 2004, the Company recognized $1,124,000 of stock compensation expense consisting of $563,000 for options issued in 2004 and $561,000 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 June 30, 2004 there were warrants outstanding to allow the holders to purchase 3,814,662 common shares of the Company at Cdn$12.00 per share. &nbsp;These warrants expire on February 20, 2008.</P>
<P style="margin:0pt"><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>Loss per share (Restated)</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>The following table presents the adjustments to net income (loss) to arrive at the net loss available to common shareholders in computing basic loss per share.</P>
<P style="line-height:13pt; margin:0pt" align=justify><BR></P>
<div align="center">
  <center>

<TABLE border=0 width=75% cellspacing=0 cellpadding=0>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=23% nowrap colspan=3 align=center>
<font size="2">
<FONT face="sans-serif">Three months</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=left>
	</TD>
	<TD width=23% nowrap align=left colspan="4">
<p align="center"><font size="2">
<FONT face="sans-serif">Six months</FONT>&nbsp;</font></p>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=center>
<font size="2">
<FONT face="sans-serif">ended</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=left>
	</TD>
	<TD width=23% nowrap align=left colspan="4">
<p align="center"><font size="2"><FONT face="sans-serif">ended</FONT>
&nbsp;</font></p>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=23% nowrap colspan=3 align=center style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">June 30,</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=left>
	</TD>
	<TD width=23% nowrap align=left colspan="4" style="border-bottom: 1 solid #000000">
<p align="center"><font size="2">
<FONT face="sans-serif">June 30,</FONT>&nbsp;</font></p>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=left style="border-bottom: 1 solid #000000">
 <p align="right"><font size="2">
 &nbsp;<FONT face="sans-serif">2004</FONT>&nbsp;</font></p>
	</TD>
	<TD width=6% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">2003</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=left style="border-bottom: 1 solid #000000">
	</TD>
	<TD width=4% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=center style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">2004</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">2003</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(Note 2)</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=left>
	</TD>
	<TD width=4% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=left>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(Note 2)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Net income (loss) for the period</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<B><FONT face="sans-serif">&#36;</FONT></B>&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">3,352</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(1,156)</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">1,329</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(2,747)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
<font size="2">
<FONT face="sans-serif">Adjustments:</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right>
	</TD>
	<TD width=4% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Charges relating to conversion of</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left>
 <font size="2">
 &nbsp;<FONT face="sans-serif">convertible debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(8,464)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right>
	</TD>
	<TD width=4% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right>
<font size="2">
<FONT face="sans-serif">(8,464)</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right>
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right>
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Accretion of convertible, unsecured senior</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="border-bottom: 1 solid #000000">
 <font size="2">
 &nbsp;<FONT face="sans-serif">subordinated debentures</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(718)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="border-bottom: 1 solid #000000">
	</TD>
	<TD width=4% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">(2,838)</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="border-bottom: 1 solid #000000">
<font size="2">
<FONT face="sans-serif">-</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Adjusted net loss for purpose of</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="border-bottom-style: double; border-bottom-color: #000000">
 <font size="2">
 &nbsp;<FONT face="sans-serif">determining basic loss per share</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(5,830)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(1,156)</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
	</TD>
	<TD width=4% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(9,973)</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="border-bottom-style: double; border-bottom-color: #000000">
<font size="2">
<FONT face="sans-serif">(2,747)</FONT>&nbsp;</font>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=45% nowrap align=left style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">Loss per share</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=8% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<B><FONT face="sans-serif">(</FONT></B><FONT face="sans-serif">0.09)</FONT>&nbsp;</font>
	</TD>
	<TD width=6% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(0.02)</FONT>&nbsp;</font>
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
	</TD>
	<TD width=4% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=9% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(0.17)</FONT>&nbsp;</font>
	</TD>
	<TD width=3% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">&#36;</FONT>&nbsp;</font>
	</TD>
	<TD width=7% nowrap align=right style="background-color: #E6E9FF">
<font size="2">
<FONT face="sans-serif">(0.05)</FONT>&nbsp;</font>
	</TD>
</TR>
</TABLE></center>
</div>
<P style="line-height:13pt; margin:0pt" align=justify>&nbsp;</P>
<P style="line-height:13pt; margin:0pt" align=justify>&nbsp;</P>
<P style="font-family: Arial; margin: 0pt; padding-left: 36pt" align=justify>For the six months ended June 30, 2004, potentially dilutive securities totaling 5,666,252 shares (2003 &#150; 6,723,475) have been excluded from the calculation, as their effect would be anti-dilutive.</P>
<P style="margin:0pt" align=justify><BR></P>
<hr>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<p style="margin: 0pt" align="justify">&nbsp;</p>
<P style="margin:0pt" align=justify>&nbsp;</P>
<P style="margin:0pt" align=justify>&nbsp;</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 support to the mining and exploration activities with respect to financial, human resources and technical support.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">Segmented disclosures and enterprise-wide information are as follows:</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></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 June 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">$</P>
<P style="margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">21,757</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:35.9pt; font-family:Arial" align="right">(578)</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</P>
</TD><TD width=81 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:0.05pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:22.45pt; font-family:Arial" align="right">21,179</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" align="right">5,736</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(1,440)</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial" align="right">(944)</P>
</TD><TD valign=top width=81><P style="line-height:15pt; margin:0pt; text-indent:27.55pt; font-family:Arial" align="right">3,352</P>
</TD></TR>
<TR><TD valign=top width=216 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=94.067 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial" align="right">114,688</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial" align="right">111,852</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">89,484</P>
</TD><TD valign=top width=81 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:0.05pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:17.55pt; font-family:Arial" align="right">316,024</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=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 June 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">$</P>
<P style="margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">12,553</P>
</TD><TD width=94.467 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</P>
</TD><TD width=93 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</P>
</TD><TD width=84 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:1.15pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:25.6pt; font-family:Arial" align="right">12,553</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" align="right">367</P>
</TD><TD valign=top width=94.467><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(1,260)</P>
</TD><TD valign=top width=93><P style="line-height:15pt; margin:0pt; text-indent:35.9pt; font-family:Arial" align="right">(263)</P>
</TD><TD valign=top width=84><P style="line-height:15pt; margin:0pt; text-indent:23.9pt; font-family:Arial" align="right">(1,156)</P>
</TD></TR>
<TR><TD valign=top width=216 style="background-color: #E6E9FF"><P style="line-height:15pt; margin:0pt; font-family:Arial">Segmented assets</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:31.9pt; font-family:Arial" align="right">93,409</P>
</TD><TD valign=top width=94.467 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:36.9pt; font-family:Arial" align="right">7,673</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">86,290</P>
</TD><TD valign=top width=84 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:1.15pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:20.6pt; font-family:Arial" align="right">187,372</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=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 six months ended June 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">$</P>
<P style="margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">38,152</P>
</TD><TD width=96 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(1,265)</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">$</P>
<P style="margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</P>
</TD><TD width=85.933 style="background-color: #E6E9FF"><P style="margin-top:0pt; margin-bottom:-12pt; text-indent:-0.65pt; font-family:Arial">$</P>
<P style="margin:0pt; text-indent:25.6pt; font-family:Arial" align="right">36,887</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:35.1pt; font-family:Arial" align="right">7,018</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(4,241)</P>
</TD><TD valign=top width=94.8><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(1,448)</P>
</TD><TD valign=top width=85.933><P style="line-height:15pt; margin:0pt; text-indent:31.15pt; font-family:Arial" align="right">1,329</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:24.25pt; font-family:Arial" align="right">114,688</P>
</TD><TD valign=top width=96 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:26.9pt; font-family:Arial" align="right">111,852</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">89,484</P>
</TD><TD valign=top width=85.933><P style="line-height: 17pt; text-indent: -0.65pt; font-family: Arial; background-color: #E6E9FF; margin-top: 0pt; margin-bottom: -17pt">$</P>
<P style="line-height: 15pt; text-indent: 21.15pt; font-family: Arial; background-color: #E6E9FF; margin: 0pt" align="right">316,024</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 six months ended June 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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">20,375</P>
</TD><TD valign=top width=94.8 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:54.25pt; font-family:Arial" align="right">-</P>
</TD><TD valign=top width=94.667 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:31.9pt; font-family:Arial" align="right">20,375</P>
</TD></TR>
<TR><TD valign=top width=224.867><P style="line-height:15pt; margin:0pt; font-family:Arial">Net loss for the period</P>
</TD><TD valign=top width=96><P style="line-height:15pt; margin:0pt; text-indent:40.9pt; font-family:Arial" align="right">(14)</P>
</TD><TD valign=top width=94.8><P style="line-height:15pt; margin:0pt; text-indent:28.4pt; font-family:Arial" align="right">(2,124)</P>
</TD><TD valign=top width=93><P style="line-height:15pt; margin:0pt; text-indent:36.95pt; font-family:Arial" align="right">(609)</P>
</TD><TD valign=top width=94.667><P style="line-height:15pt; margin:0pt; padding-right:-2.2pt; font-family:Arial" align=right>(2,747)</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:29.25pt; font-family:Arial" align="right">93,409</P>
</TD><TD valign=top width=94.8 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:34.25pt; font-family:Arial" align="right">7,673</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">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:30.1pt; font-family:Arial" align="right">86,290</P>
</TD><TD valign=top width=94.667 style="background-color: #E6E9FF"><P style="line-height:17pt; margin-top:0pt; margin-bottom:-17pt; text-indent:7.6pt; font-family:Arial">$</P>
<P style="line-height:15pt; margin:0pt; text-indent:27.7pt; font-family:Arial" align="right">187,372</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<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"><B>Pan American Silver Corp.</B></P>
<P style="margin:0pt; font-family:Arial">Notes to Unaudited Interim Consolidated Financial Statements</P>
<P style="margin:0pt; font-family:Arial">As at June 30, 2004 and 2003 and for the three months and six months then ended</P>
<P style="margin:0pt; padding-bottom:3pt; font-family:Arial; border-bottom:0.5pt solid #000000">(Tabular amounts are in thousands of US dollars, except for shares)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:18pt; text-indent:-18pt; font-family:Arial"><B>11.</B></P>
<P style="margin:0pt; padding-left:18pt; text-indent:18pt; font-family:Arial"><B>Subsequent event</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>As previously announced on February 9, 2004 the Company has launched its $36,700,000 cash offer, through the Peru Stock Exchange, to purchase the voting shares of Compania Minera Argentum S.A. (&#147;Argentum&#148;). &nbsp;Argentum&#146;s principal asset is the Morococha silver mine located in central Peru, 150 kilometres northeast of Lima. &nbsp;The Company has a lock-up agreement to acquire 92 per cent of Argentum&#146;s voting shares. &nbsp;The offer is expected to close in the third quarter 2004.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Arial" align=justify>In addition, the Company has acquired, for $1,500,000, 100 per cent of Compania Minera Natividad (&#147;Natividad&#148;), which holds numerous adjacent mineral concessions in proximity to the Morococha mine. &nbsp;The Company intends to combine Natividad with Argentum, which will give the Company an 81 per cent interest in the Morococha silver mine.</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
