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<SEC-DOCUMENT>0001137171-04-000980.txt : 20040728
<SEC-HEADER>0001137171-04-000980.hdr.sgml : 20040728
<ACCEPTANCE-DATETIME>20040728144511
ACCESSION NUMBER:		0001137171-04-000980
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040727
FILED AS OF DATE:		20040728

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELDORADO GOLD CORP                                      /FI
		CENTRAL INDEX KEY:			0000918608
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31522
		FILM NUMBER:		04935708

	BUSINESS ADDRESS:	
		STREET 1:		920 - 1055
		STREET 2:		WEST HASTINGS STREET
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6E 2E9

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ELDORADO CORP LTD                                       /FI
		DATE OF NAME CHANGE:	19960701
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>qurt.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Filed by Filing Services Canada Inc.&nbsp; 403-717-3898</TITLE>
<META NAME="author" CONTENT="Robert Ferguson">
<META NAME="date" CONTENT="07/27/2004">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<font face="Times New Roman" size="2">
<BR>
<BR>
</font>
<h1 align="center"><b><font face="Times New Roman" size="2">FORM
6K</font></b></h1>
<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" --><a name="A002"></a>
<p align="center"><font face="Times New Roman" size="2">UNITED
STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</font></p>
<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" --><a name="A004"></a>
<p align="center"><b><font face="Times New Roman" size="2">Report
of Foreign Issuer<br>
<br>
<br>
Pursuant to Rule 13a-16 or 15d-16 of<br>
the Securities Exchange Act of 1934</font></b></p>
<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" --><a name="A008"></a>
<p><font face="Times New Roman" size="2">For the month of&nbsp;<b>July 27, 2004</b></font></p>
<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<p><font face="Times New Roman" size="2">Commission File
Number&nbsp;<b>001-31522</b></font></p>
<font face="Times New Roman" size="2">
<br>
</font>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td align="center"><b><font face="Times New Roman" size="2">Eldorado
      Gold Corporation</font></b></td>
  </tr>
  <tr>
    <td align="center"><font face="Times New Roman" size="2">(Translation
      of registrant's name into English)</font></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
</font>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td align="center"><b><font face="Times New Roman" size="2">Suite
      920 - 1055 West Hasting Street<br>
      Vancouver, British Columbia&nbsp;&nbsp;V6E 2E9</font></b></td>
  </tr>
  <tr>
    <td align="center"><font face="Times New Roman" size="2">(Address
      of principal executive offices)</font></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
</font>
<p><font face="Times New Roman" size="2">Indicate by check mark
whether the registrant files or will file annual reports under cover Form 20-F
or Form 40-F</font></p>
<table cellspacing="0" cellpadding="0" width="500" border="0">
  <tr>
    <td width="15%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td align="right" width="10%"><font face="Times New Roman"
      size="2">Form 20-F</font></td>
    <td align="middle" width="5%"><u><font face="Times New Roman"
      size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></td>
    <td align="right" width="10%"><font face="Times New Roman"
      size="2">Form 40-F</font></td>
    <td align="middle" width="5%"><u><font face="Times New Roman"
      size="2">&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</font></u></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p><font face="Times New Roman" size="2">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;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<table cellspacing="0" cellpadding="0" width="100%">
  <tr valign="top">
    <td width="5%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td width="95%"><font size="2" face="Times New Roman"><b>Note:</b>&nbsp;&nbsp;Regulation
      S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if
      submitted solely to provide an attached annual report to security holders.</font></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
</font>
<p><font face="Times New Roman" size="2">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;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<table cellspacing="0" cellpadding="0" width="100%">
  <tr valign="top">
    <td width="5%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td width="95%"><font size="2" face="Times New Roman"><b>Note:
      </b>Regulation&nbsp;S-T Rule&nbsp;101(b)(7) only permits the submission in
      paper of a Form&nbsp;6-K if submitted to furnish a report or other
      document that the registrant foreign private issuer must furnish and make
      public under the laws of the jurisdiction in which the registrant is
      incorporated, domiciled or legally organized (the registrant's &quot;home
      country&quot;), or under the rules of the home country exchange on which
      the registrant's securities are traded, as long as the report or other
      document is not a press release, is not required to be and has not been
      distributed to the registrant's security holders, and, if discussing a
      material event, has already been the subject of a Form&nbsp;6-K submission
      or other Commission filing on EDGAR.</font></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
</font>
<p><font face="Times New Roman" size="2">Indicate by check mark
whether by furnishing the information contained in this Form, the registrant is
also thereby furnishing the information to the Commission pursuant to rule
12g3-2(b) under the Securities Exchange Act of 1934.</font></p>
<table cellspacing="0" cellpadding="0" width="500" border="0">
  <tr>
    <td width="25%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td width="5%"><font face="Times New Roman" size="2">Yes</font></td>
    <td width="10%"><u><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></td>
    <td width="5%"><font face="Times New Roman" size="2">No</font></td>
    <td width="15%"><u><font face="Times New Roman" size="2">&nbsp;&nbsp;
      X&nbsp;&nbsp;</font></u></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p><font face="Times New Roman" size="2">If &quot;Yes&quot; is
marked, indicate below the file number assigned to the registrant in connection
with Rule 12g3-2(b) 82 ---<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
<font face="Times New Roman" size="2">
<br>
<br>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
</font>
<hr color="gray" noshade size="5">
<font face="Times New Roman" size="2">
<br>
<br>
<!-- MARKER FORMAT-SHEET="H1" FSL="Default" -->
</font>
<h1 align="center"><u><font face="Times New Roman" size="2">SIGNATURE</font></u></h1>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p><font face="Times New Roman" size="2">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></p>
<table cellspacing="0" cellpadding="0" width="600" border="0">
  <tr>
    <td width="50%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td width="50%"><b><font face="Times New Roman" size="2">ELDORADO
      GOLD CORPORATION</font></b></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
<br>
</font>
<table cellspacing="0" cellpadding="0" width="600" border="0">
  <tr>
    <td width="50%"><font face="Times New Roman" size="2">Date:&nbsp;July 27, 2004</font></td>
    <td width="50%"><font size="2" face="Times New Roman"><u>/s/
      Dawn
      Moss&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
      Dawn Moss, Corporate Secretary</font></td>
  </tr>
</table>
<font face="Times New Roman" size="2">
<br>
<br>
<br>
<br>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
</font>
<hr color="gray" noshade size="5">
<font face="Times New Roman" size="2">
<br>
</font>
<p><font face="Times New Roman" size="2">
<BR>
</font></p>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="right"><font face="Times New Roman" size="2"><img border="0" src="logo1.jpg" width="254" height="108"></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<div align="center">
  <center>
<TABLE cellspacing=0 width="677"><TR><TD style="border-right: 0.5pt solid #000000" valign=top width=448><P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B><font face="Times New Roman" size="2">June
30, 2004</font></B></P>
</TD><TD valign=top width=222><P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Report
to Shareholders</font></B></P>
</TD></TR>
<TR><TD style="border-right: 0.5pt solid #000000" valign=top width=448><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=222><P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Suite
1188 - 550 Burrard Street</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Vancouver,
British Columbia</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">V6C
2B5</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Phone:
&nbsp;(604) 687-4018</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Fax:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(604) 687-4026</font></B></P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR><BR></font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">July 23, 2004</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company&#146;s management.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">The Company&#146;s independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity&#146;s auditor.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:11pt" align="center"><font face="Times New Roman" size="2">2<BR></font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<font face="Times New Roman" size="2">
<BR>
</font>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0 width="677" height="965"><TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B><font face="Times New Roman" size="2">Eldorado Gold Corporation</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">Consolidated Balance Sheets</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">(Expressed in thousands of U.S. dollars)</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">December 31,</font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=90 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">2004</font></P>
</TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=23 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=89 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">2003</font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">ASSETS</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Current Assets</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Cash and cash equivalents</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;86,754</font> </P>
</TD><TD valign=bottom width=21 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;105,465</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Accounts receivable</font> </P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4,145</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,213</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Inventories &nbsp;</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=90 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,342</font> </P>
</TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=23 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 0.5pt solid #000000" valign=bottom width=89 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,623</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;96,241</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;114,301</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Property, plant and equipment &nbsp;</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;28,231</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;23,784</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Mineral properties and deferred development &nbsp;</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;44,111</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;32,287</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Investments and advances</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,224</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,258</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=24 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=90 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;169,807</font> </P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=23 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=89 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;171,630</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">LIABILITIES</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Current Liabilities</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Accounts payable and accrued liabilities</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4,845</font> </P>
</TD><TD valign=bottom width=21 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7,164</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21" style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;4,845</font> </P>
</TD><TD valign=bottom width=21 height="21" style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21" style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;7,164</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Asset retirement obligation</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7,387</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7,172</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Contractual severance obligation</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;477</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;318</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Deferred gain &nbsp;(loss)</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(329)</font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Future income taxes &nbsp;</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21" style="border-bottom: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,939</font> </P>
</TD><TD valign=bottom width=21 height="21" style="border-bottom: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21" style="border-bottom: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,830</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;14,648</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;18,155</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">SHAREHOLDERS' EQUITY</font></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Share capital &nbsp;(Note 3)</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;445,235</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;444,665</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Contributed surplus</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,094</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,094</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Stock based compensation</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4,868</font> </P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,418</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Deficit</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(296,038)</font></P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(293,702)</font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=90 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;155,159</font> </P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=23 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=89 height="21"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;153,475</font> </P>
</TD></TR>
<TR><TD valign=bottom width=334 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=24 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=79 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=24 height="20"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=90 height="20"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;169,807</font> </P>
</TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=23 height="20"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom: 1.5pt solid #000000" valign=bottom width=89 height="20"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;171,630</font> </P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt">&nbsp;</P>
    <P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt">&nbsp;</P>
    <P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">Approved by the Board</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=204 colspan="3" height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">Approved by the Board&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; font-family:Arial"><B><I><font size="2" face="Times New Roman">&quot;Paul N. Wright&quot;</font></I></B></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=204 colspan="3" height="21"><P style="margin:0pt; font-family:Arial"><font face="Times New Roman"><B><I><font size="2">&quot;Robert Gilmore&quot;</font></I></B><font size="2">&nbsp;</font></font></P>
</TD></TR>
<TR><TD valign=bottom width=332 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=332 height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">Director</font></P>
</TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=77 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=22 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=88 height="21"><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">Director</font></P>
</TD><TD valign=bottom width=21 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="center"><font face="Times New Roman" size="2"><BR>3</font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<font face="Times New Roman" size="2">
<BR>
</font>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:13pt; font-family:Arial; font-size:11pt"><B><font face="Times New Roman" size="2">Eldorado Gold Corporation</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=533 colspan="4"><P style="margin:0pt; padding-left:-4.5pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">Consolidated Statements of Operations and Deficit</font></B><font face="Times New Roman" size="2">&nbsp;</font></P>
</TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=533 colspan="4"><P style="margin:0pt; padding-left:-4.5pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">(Expressed in thousands of U.S. dollars except per share amounts)</font></B><font face="Times New Roman" size="2">&nbsp;</font></P>
</TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=207 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">Three months ended&nbsp;</font></P>
  </TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=208 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">Six months ended&nbsp;</font></P>
  </TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067 style="border-bottom: 2 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8 style="border-bottom: 2 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2004</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2003</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2004</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2003</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Revenue</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Gold sales</font></P>
</TD><TD valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6,894</font> </P>
</TD><TD valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;9,022</font> </P>
</TD><TD valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;15,867</font> </P>
</TD><TD valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;18,188</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Interest and other income</font></P>
</TD><TD valign=bottom width=28.8 style="border-bottom: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 1 solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;365</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;326</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,332</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;608</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;7,259</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;9,348</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;17,199</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;18,796</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Expenses</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Operating costs</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,250</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,785</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;11,515</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;10,835</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Depletion, depreciation and amortization</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,064</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,565</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,123</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,129</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;General and administrative</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,124</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;991</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,369</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,029</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Exploration expense</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;798</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;370</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,725</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;620</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Interest and financing costs</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;188</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;380</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Stock based compensation expense</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;134</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;193</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,450</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;915</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Accretion expense</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;108</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;101</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;215</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;203</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Gain on disposal of investments and advances</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(37)</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Writedown of investments and advances</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;94</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;94</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Foreign exchange loss (gain)</font></P>
</TD><TD valign=bottom width=28.8 style="border-bottom: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 1 solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,715</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,469)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,951</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(4,736)</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;10,193</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;7,818</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;23,311</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;15,469</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Profit (loss) before income taxes</font></B></P>
</TD><TD valign=bottom width=28.8 style="border-top: 1 solid #000000; border-bottom: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 1 solid #000000; border-bottom: 1 solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(2,934)</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;1,530</font> </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(6,112)</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;3,327</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Taxes &nbsp;</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Current &nbsp;</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;58</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(83)</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,903</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(201)</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Future</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,203</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,873</font> </P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">&nbsp;Net income (loss) for the period</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(1,673)</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;1,447</font> </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(2,336)</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;3,126</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Deficit at the beginning of the period:</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(294,365)</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(246,990)</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(293,702)</font></P>
</TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(248,669)</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;Deficit at the end of the period</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(296,038)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(245,543)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(296,038)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(245,543)</font></P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">&nbsp;Weighted average number</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=90.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=91.867><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">&nbsp;of shares outstanding</font></B></P>
</TD><TD valign=bottom width=28.8 style="border-bottom: 2 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;254,698,452</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;212,756,916</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;254,467,638</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;211,364,448</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">&nbsp;Basic and Diluted Income (loss) per share - U.S.$</font></B></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(0.01)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;0.01</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(0.01)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;0.02</font> </P>
</TD></TR>
<TR><TD valign=bottom width=388.067><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">&nbsp;Basic and Diluted Income (loss) per share -
    CDN.$</font></B></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(0.01)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;0.01</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=28.8><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=90.467><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(0.01)</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=27.4><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt" align=center><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=91.867><P style="margin:0pt; padding-left:-4.5pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;0.03</font> </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; padding-left:-4.5pt; font-family:Times New Roman; font-size:11pt" align="center"><font face="Times New Roman" size="2"><BR>4</font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<font face="Times New Roman" size="2">
<BR>
</font>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B><font face="Times New Roman" size="2">Eldorado Gold Corporation</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">Consolidated Statements of Cash Flows</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><B><font face="Times New Roman" size="2">(Expressed in thousands of U.S. dollars)</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=184 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">Three months ended&nbsp;</font></P>
  </TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=189 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">Six months ended&nbsp;</font></P>
  </TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">June 30,</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2004</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2003</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2004</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">2003</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">(Unaudited)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Cash flows from operating activities</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Net income (loss) for the period</font></P>
</TD><TD valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,673)</font></P>
</TD><TD valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,447</font> </P>
</TD><TD valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,336)</font></P>
</TD><TD valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,126</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Items not affecting cash</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Depletion, depreciation and amortization</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,064</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,565</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,123</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,129</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Future income taxes</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,203)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#FF0000" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,873)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#FF0000" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Interest and financing costs</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;41</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;86</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Writedown of investments and advances</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;94</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;94</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Amortization of hedging (gain ) loss</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(635)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;329</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,315)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Stock based compensation expense</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;134</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;193</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,450</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;915</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Contractual severance expense</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;79</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;159</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Accretion expense</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;108</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;101</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;215</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;203</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Foreign exchange loss (gain)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;669</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(3,059)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,185</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(5,489)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(822)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;747</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;3,252</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;2,749</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;(Increase) in accounts receivable</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(163)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(832)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(932)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(879)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;(Increase) decrease in inventories</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(146)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(334)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;281</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(327)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;(Decrease) Increase in accounts payable and accrued liabilities</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(152)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;545</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,319)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(215)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(1,283)</font></P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;126</font> </P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;282</font> </P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;1,328</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Cash flow from investing activities</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Property, plant and equipment</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(3,591)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,741)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(6,570)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(4,647)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Mineral properties and deferred development</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,430)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(619)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(11,824)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,414)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Investments and advances</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(136)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(35)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(136)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Proceeds from disposals of investments and advances</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;69</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(5,021)</font></P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(3,496)</font></P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(18,360)</font></P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(6,197)</font></P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Cash flow from financing activities</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Issue of common shares:</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Voting - for cash</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;120</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;158</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;570</font> </P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,161</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;120</font> </P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;158</font> </P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;570</font> </P>
</TD><TD valign=bottom width=17.8 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;3,161</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;Foreign exchange gain (loss) on cash held in foreign currency</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(692)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3,079</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,203)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,519</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Net Increase (decrease) in cash and cash equivalents</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(6,876)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(133)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;(18,711)</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;3,811</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Cash and cash equivalents at beginning of the period</font></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;93,630</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;41,571</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;105,465</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;37,627</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Cash and cash equivalents at end of the period</font></B></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;86,754</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;41,438</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;86,754</font> </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align=right><font face="Times New Roman" size="2">&nbsp;41,438</font> </P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=346.933><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font
></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><B><font face="Times New Roman" size="2">Supplemental cash flow information</font></B></P>
</TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=80.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=85><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Interest paid</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;295</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;295</font> </P>
</TD></TR>
<TR><TD valign=bottom width=346.933><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">Income tax paid</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;74</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.867><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=87.733><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;74</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=17.8><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt" align="right"><font face="Times New Roman" size="2">$</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85><P style="margin:0pt; line-height:9pt; font-family:Arial; font-size:7pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;15</font> </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="center"><font face="Times New Roman" size="2"><BR>5</font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</font></B></P>
<P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003 (in thousands of U.S. dollars except per share and per ounce amounts)</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt">&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">&nbsp;</font></B></P>
<P style="margin-top:0pt; margin-bottom:-10pt; padding-left:18pt; text-indent:-18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">1.</font></B></P>
<B><P style="margin:0pt; padding-left:18pt; text-indent:18pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Nature of Operations</font> </B></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">Eldorado Gold Corporation (&#147;Eldorado&#148;, &#147;the Company&#148;) is engaged in gold mining and related activities, including exploration and development, extraction, processing, and reclamation. Gold, the primary product, is produced in Brazil. Exploration activities are carried on in Brazil, Turkey and China.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">The Company has not determined whether all its development properties contain ore reserves that are economically recoverable. &nbsp;The recoverability of the amount shown for mineral properties and deferred development is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing, licenses and permits to complete the exploration and development of its properties, and upon future profitable production or proceeds from the disposition of the properties. &nbsp;The amounts shown as mineral properties and deferred development represent net costs to date, less amounts amortized and/or written off and do not necessarily represent present or future values.</font> </P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-10pt; padding-left:18pt; text-indent:-18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">2.</font></B></P>
<P style="margin-top:0pt; margin-bottom:-10pt; padding-left:18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;</font></B></P>
<P style="margin:0pt; padding-left:18pt; text-indent:18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Significant Accounting Policies</font></B></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><I><font face="Times New Roman" size="2">Basis of presentation</font></I></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">These interim financial statements do not conform in all respects to the requirements of generally accepted accounting principles for annual financial statements. &nbsp;These interim financial statements should be read in conjunction with the most recent annual financial statements of the company.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">These financial statements follow the same accounting policies and methods of application as the most recent annual financial statements of the Company.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><I><font face="Times New Roman" size="2">Earnings (loss) per share</font></I></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">Earnings or loss per common share is calculated using the weighted average number of common shares outstanding during each period. Diluted earnings or loss per common share is calculated using the treasury stock method which assumes that stock options are only exercised when the exercise price is below the average market price during the period, and that the Company will use the proceeds to purchase its common shares at their average market price during the period.
</font>
</P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</font>
</P>
<P style="margin-top:0pt; margin-bottom:-10pt; padding-left:18pt; text-indent:-18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">3.</font></B></P>
<P style="margin:0pt; padding-left:18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Share Capital</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><I><font face="Times New Roman" size="2">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized and Issued Share Capital</font></I></B></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s authorized share capital consists of an unlimited number of voting and non-voting common shares with no par value. &nbsp;The details of the common shares issued and outstanding are as follows:</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Shares Issued</font></B></P>
</TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Amount</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=364.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Shares &nbsp;at beginning of the year</font></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;253,961,176</font> </P>
</TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$444,665</font> </P>
</TD></TR>
<TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Shares for exercised stock options</font></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;858,000</font> </P>
</TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;541</font> </P>
</TD></TR>
<TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Shares for cash consideration - Warrants</font></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;10,100</font> </P>
</TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;32</font> </P>
</TD></TR>
<TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Shares issue costs for cash consideration - Financing</font></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;(3)</font></P>
</TD></TR>
<TR><TD valign=bottom width=364.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><font face="Times New Roman" size="2">Shares at June 30, 2004</font></P>
</TD><TD valign=bottom width=56.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=bottom width=127.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;254,829,276</font> </P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=bottom width=87.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=bottom width=113.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$445,235</font> </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><I><font face="Times New Roman" size="2">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share option plan</font></I></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">As at June 30, 2004, the Company has a share option plan as described in the most recent annual financial statements of the Company. The Company accounts for its grants under those plans in accordance with the fair value based method of accounting for stock based compensation. Compensation costs charged against net income in 2004 for the plans &nbsp;was $3,450.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">In accordance with the terms of the Employee Incentive Stock Option Plan (the &#147;Plan&#148;) the Board of Directors and the Toronto Stock Exchange approved an amendment to the Plan increasing the reserve of Common Shares for issuance pursuant to the Plan from 10,200,000 to 12,741,463, effective May 13, 2004.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=center><font face="Times New Roman" size="2">6<BR></font></P>
<font face="Times New Roman" size="2">
<BR>
<BR>
</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</font></B></P>
<P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003 (in thousands of U.S. dollars except per share and per ounce amounts)</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">A summary of the terms and status of Company&#146;s outstanding options at June 30, 2004 and the changes for the period ending on that date is presented below:</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="677" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="355"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=3 width="259" align="center"><B><FONT size=2 face="Times New Roman">Six months ended</FONT></B></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=3 width="259" align="center" style="border-bottom: 1 solid #000000"><B><FONT size=2 face="Times New Roman">June 30, 2004</FONT></B></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><B><FONT size=2 face="Times New Roman">Options</FONT></B></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="92" align="center"><B><FONT size=2 face="Times New Roman">Outstanding</FONT></B></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="152" align="center"><B><FONT size=2 face="Times New Roman">Weighted average</FONT></B></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="92" align="center" style="border-bottom: 1 solid #000000"><B><FONT size=2 face="Times New Roman">Options</FONT></B></TD>
   <TD width="11" style="border-bottom: 1 solid #000000"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="152" align="center" style="border-bottom: 1 solid #000000"><B><FONT size=2 face="Times New Roman">exercise price -
    Cdn.$</FONT></B></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="92"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="152"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><FONT size=2 face="Times New Roman">Outstanding at the beginning of the period</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="92"><FONT size=2 face="Times New Roman">3,355,500</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="152"><FONT size=2 face="Times New Roman">1.82</FONT></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><FONT size=2 face="Times New Roman">Granted</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="92"><FONT size=2 face="Times New Roman">3,685,000</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="152"><FONT size=2 face="Times New Roman">3.67</FONT></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><FONT size=2 face="Times New Roman">Exercised</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="92" style="border-bottom: 1 solid #000000"><FONT size=2 face="Times New Roman">(858,000)</FONT></TD>
   <TD width="11" style="border-bottom: 1 solid #000000"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="152" style="border-bottom: 1 solid #000000"><FONT size=2 face="Times New Roman">0.84</FONT></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><FONT size=2 face="Times New Roman">Outstanding at the end of the period</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="92"><FONT size=2 face="Times New Roman">6,182,500</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="152"><FONT size=2 face="Times New Roman">3.07</FONT></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="92"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="152"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="355"><FONT size=2 face="Times New Roman">Options exercisable at period end</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="92"><FONT size=2 face="Times New Roman">5,164,166</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="152"><FONT size=2 face="Times New Roman">3.01</FONT></TD>
   <TD width="44"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">3. &nbsp;Share Capital (continued)</font></B></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">The following table summarizes information about share options outstanding as at June 30, 2004.</font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
<div align="right">
<TABLE width="606" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="186" align="center"><FONT size=2 face="Times New Roman">Number Outstanding</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167" align="center"><FONT size=2 face="Times New Roman">Weighted-Average</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="193" align="center"><FONT size=2 face="Times New Roman">Weighted Average Exercise</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="186" align="center"><FONT size=2 face="Times New Roman">At June 30, 2004</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167" align="center"><FONT size=2 face="Times New Roman">Remaining</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="193" align="center"><FONT size=2 face="Times New Roman">Price -
    Cdn$</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="186" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167" align="center"><FONT size=2 face="Times New Roman">Contractual Life</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="193"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="186"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167" align="center"><FONT size=2 face="Times New Roman">(years)</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="193"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="186"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="193"><HR noshade size=1></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">60,000</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">0.17</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">0.65</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">10,000</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">0.59</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">0.80</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">110,000</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">2.07</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">0.37</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">547,500</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">2.91</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">1.04</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">1,770,000</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">3.88</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">2.70</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">3,685,000</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">4.61</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">3.67</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="186" align="center"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="167"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><HR noshade size=1></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="186"><FONT size=2 face="Times New Roman">6,182,500</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="167"><FONT size=2 face="Times New Roman">4.16</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="193"><FONT size=2 face="Times New Roman">3.07</FONT></TD>
   <TD width="12"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
</div>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">The following table summarizes information about the warrants outstanding as at June 30, 2004.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<div align="right">
<TABLE width="398" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD align="center" width="116" valign="top">
<P align="center">
<FONT size=2 face="Times New Roman">Number Outstanding At June 30, 2004</FONT>
</P>
   </TD>
   <TD width="10" valign="top"></TD>
   <TD align="center" width="120" valign="top">
<P style="margin-top: 0; margin-bottom: 0">
<FONT size=2 face="Times New Roman">Weighted-Average Remaining Contractual Life (years)</FONT>
</P>
<P style="margin-top: 0; margin-bottom: 0">
&nbsp;
</P>
   </TD>
   <TD width="13" valign="top"></TD>
   <TD align="center" width="109" valign="top"><FONT size=2 face="Times New Roman">Weighted Average Conversion Price -
    Cdn.$</FONT>
   </TD>
   <TD width="18"></TD>
</TR>
<TR>
   <TD align="center" width="116"><FONT size=2 face="Times New Roman">12,442,650</FONT></TD>
   <TD width="10"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="120"><FONT size=2 face="Times New Roman">0.15</FONT></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="109"><FONT size=2 face="Times New Roman">4.10</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="116"><HR noshade size=1></TD>
   <TD width="10"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="120"><HR noshade size=1></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="109"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="center" width="116"><FONT size=2 face="Times New Roman">12,442,650</FONT></TD>
   <TD width="10"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="120"><FONT size=2 face="Times New Roman">0.15</FONT></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="109"><FONT size=2 face="Times New Roman">4.10</FONT></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="116"><HR noshade size=1></TD>
   <TD width="10"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="120"><HR noshade size=1></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="109"><HR noshade size=1></TD>
   <TD width="18"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
</div>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
7
<BR>
</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</font></B></P>
<P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003 (in thousands of U.S. dollars except per share and per ounce amounts)</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-10pt; padding-left:18pt; text-indent:-18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">4.</font></B></P>
<P style="margin:0pt; padding-left:18pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Segmented Information</font></B></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify><font face="Times New Roman" size="2">All of Eldorado&#146;s operations are related to the gold mining industry. Eldorado had one producing mine, S&#227;o Bento, and has assets located in South America, Turkey and Australia. In 2003, the Company began exploration activities in China.</font></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Arial; font-size:8pt" align=justify>&nbsp;</P>
<TABLE cellspacing=0 height="686"><TR><TD valign=top width=408.667 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=17.8 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-top: 2 solid #000000" valign=top width=86.4 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 2 solid #000000" valign=top width=17.8 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-top: 2 solid #000000" valign=top width=86.4 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=17.8 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-top: 2 solid #000000" valign=top width=86.4 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 2 solid #000000" valign=top width=17.8 height="19"><font face="Tim
es New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-top: 2 solid #000000" valign=top width=86.4 height="19"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-right: 2 solid #000000" valign=bottom width=190.6 colspan=3 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">Three months</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-right: 2 solid #000000" valign=bottom width=190.6 colspan=3 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">Six months</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">ended</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">ended</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">ended</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">ended</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="20"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=17.8 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="20"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=17.8 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="20"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=17.8 height="20"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="20"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">Six 30</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 style="border-left: 2 solid #000000" height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD></TR>
<TR><TD style="border-bottom: 2 solid #000000" valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=86.4 height="21"><P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Gold sales</font></B></P>
</TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=408.667 height="16"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;S&#227;o Bento Mine</font></B></P>
</TD><TD valign=bottom width=17.8 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=86.4 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6,894</font> </P>
</TD><TD valign=bottom width=17.8 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=86.4 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;9,022</font> </P>
</TD><TD valign=bottom width=17.8 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=86.4 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;15,867</font> </P>
</TD><TD valign=bottom width=17.8 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=86.4 height="16" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;18,188</font> </P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;6,894</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;9,022</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;15,867</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;18,188</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Operating costs</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;S&#227;o Bento Mine</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,250</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,785</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;11,515</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;10,835</font> </P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Accretion expense</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;108</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;101</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;215</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;203</font> </P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;5,358</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;5,886</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;11,730</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;11,038</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Depletion, depreciation and amortization</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;S&#227;o Bento Mine</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,044</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,457</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,088</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4,915</font> </P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;1,044</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;2,457</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;2,088</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;4,915</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="29"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Corporate expenses, net of interest and other income</font></B></P>
</TD><TD valign=bottom width=17.8 height="29" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="29" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,494)</font></P>
</TD><TD valign=bottom width=17.8 height="29" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="29" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,508</font> </P>
</TD><TD valign=bottom width=17.8 height="29" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="29" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,986)</font></P>
</TD><TD valign=bottom width=17.8 height="29" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="29" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,721</font> </P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Exploration expense</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(798)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(370)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1,725)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(620)</font></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Stock based compensation</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(134)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(193)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(3,450)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(915)</font></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Write down of investments and advances</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(94)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(94)</font></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Profit (loss) before income taxes</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(2,934)</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;1,530</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(6,112)</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 0.5pt solid #000000" valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;3,327</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Taxes</font> </B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Current</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;58</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(83)</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,903</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(201)</font></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="21"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Future</font></B></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,203</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,873</font> </P>
</TD><TD valign=bottom width=17.8 height="21" align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=86.4 height="21" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD></TR>
<TR><TD valign=bottom width=408.667 height="17"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Net income (loss) for the period</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=17.8 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=86.4 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(1,673)</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=17.8 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=86.4 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;1,447</font> </B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=17.8 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=86.4 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(2,336)</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=17.8 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top: 0.5pt solid #000000; border-bottom: 1.5pt solid #000000" valign=bottom width=86.4 height="17" align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;3,126</font> </B></P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="center"><font face="Times New Roman" size="2"><BR>8</font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</font></B></P>
<P style="margin:0pt; line-height:11pt; font-family:Arial; font-size:9pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003 (in thousands of U.S. dollars except per share and per ounce amounts)</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<font face="Times New Roman" size="2">
<BR>
</font>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-10pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">4.</font></B></P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Segmented Information (continued)</font></B></P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:10pt; font-family:Arial; font-size:8pt">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=top width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-right: 2 solid #000000; border-top: 2 solid #000000" valign=top width=230 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">Three months ended</font></B><font face="Times New Roman" size="2">&nbsp;</font></P>
  </TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-right: 2 solid #000000; border-top: 2 solid #000000" valign=bottom width=230 colspan="3"><font face="Times New Roman" size="2">&nbsp;</font><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">Six months ended</font></B><font face="Times New Roman" size="2">&nbsp;</font></P>
  </TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD></TR>
<TR><TD style="border-bottom: 2 solid #000000" valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#FF0000" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#FF0000" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#FF0000" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#FF0000" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Revenues by geographic area</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;North America</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;369</font> </P>
</TD><TD valign=bottom width=26 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;291</font> </P>
</TD><TD valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;817</font> </P>
</TD><TD valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;510</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;South America</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6,898</font> </P>
</TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;9,056</font> </P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;16,337</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;18,255</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Turkey</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(8)</font></P>
</TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1</font> </P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;45</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;31</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;7,259</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=26 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;9,348</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;17,199</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;18,796</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Net income (loss) by geographic area</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;North America</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(2,260)</font></P>
</TD><TD valign=bottom width=26 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,814</font> </P>
</TD><TD valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(7,023)</font></P>
</TD><TD valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2,421</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;South America</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,344</font> </P>
</TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(108)</font></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5,407</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1,153</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Turkey</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(737)</font></P>
</TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(230)</font></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(693)</font></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(400)</font></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Australia</font></B></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(20)</font></P>
</TD><TD valign=bottom width=26 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(29)</font></P>
</TD><TD valign=bottom width=23.267 align="right"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(27)</font></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(48)</font></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(1,673)</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=26 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;1,447</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=23.267 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8 align="right"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;(2,336)</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;3,126</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000; border-top: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">June 30</font></B></P>
</TD><TD valign=bottom width=26 style="border-top: 2 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 1.5pt solid #000000; border-top: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">December 31</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-left: 2 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD></TR>
<TR><TD style="border-bottom: 2 solid #000000" valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-left: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#FF0000" align=center><B><font face="Times New Roman" size="2">(unaudited)</font></B></P>

</TD><TD style="border-bottom: 2 solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-right: 2 solid #000000; border-bottom: 2 solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Segment assets</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;S&#227;o Bento Mine</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;45,530</font> </P>
</TD><TD valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;42,952</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Total assets for reportable segments</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;45,530</font> </B></P>
</TD><TD valign=bottom width=26 style="border-top: 1 solid #000000"><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8 style="border-top: 1 solid #000000"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;42,952</font> </B></P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Turkey</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;45,039</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;32,287</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Other</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;79,238</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;96,391</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=23.267><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;169,807</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align="right"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;171,630</font> </B></P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:1.5pt solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=102.8><font face="Times 
New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:1.5pt solid #000000" valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Assets by geographic area</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;North America</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;79,156</font> </P>
</TD><TD valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;91,372</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;South America</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;45,605</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;43,079</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Turkey</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;45,039</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;37,174</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Australia</font></B></P>
</TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5</font> </P>
</TD></TR>
<TR><TD valign=bottom width=308.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=23.267><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=26><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=102.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=23.267><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;169,807</font> </B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=26><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">$</font></B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><B><font face="Times New Roman" size="2">&nbsp;171,630</font> </B></P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial">&nbsp;</P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2"><BR></font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
9
<BR>
</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Please review this report with the Consolidated Financial Statements and accompanying Notes. All monetary amounts are in United States dollars unless otherwise noted.</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Management&#146;s Discussion and Analysis (&#147;MD&amp;A&#148;) contains certain &#147;Forward-Looking Statements&#148; within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Eldorado Gold Corporation (&#147;Eldorado&#148; or the &#147;Company&#148;) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The MD&amp;A is comprised of ten key sections. &nbsp;The Overview provides a high level summary of Eldorado&#146;s financial results, operating performance and financial condition. &nbsp;The Critical Accounting Policy section details the Company&#146;s key accounting policies. &nbsp;The Critical Estimate section details the key estimates the Company utilizes in determining key financial information. &nbsp;The financial Results of Operations section provides a detailed analysis of key financial components. &nbsp;The Review of Operations section provides a detailed analysis of the Company&#146;s operating results at the S&#227;o Bento mine. &nbsp;The Summary of Quarterly Results and 2<SUP>nd</SUP> Quarter Discussion details the revenue and net income (loss) figures for the past eight reporting quarters with a brief discussion summarizing the 2<SUP>nd</SUP> quarter results. Th
e Liquidity and Capital Resources section describes the Company&#146;s cash position and details the significant factors affecting Eldorado&#146;s operating, investing and financing results. &nbsp;In the Risks and Uncertainties section, the risks associated with the business are identified, and the risk management programs in place to manage and mitigate exposures are discussed. &nbsp;The Outlook section outlines Eldorado&#146;s key financial and operating plans for the remainder of 2004 and beyond. &nbsp;Finally the Non-GAAP Measures sections provides definitions for non-GAAP performance measures to reported GAAP measures.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">MANAGEMENT&#146;S DISCUSSION &amp; ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Introduction</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The MD&amp;A reviews the business of Eldorado Gold Corporation and compares its financial results for the Q2 of 2004 with those of the Q2 of 2003. In order to obtain a comprehensive understanding of the Company&#146;s financial condition and results of operations, it is best to read the MD&amp;A together with the consolidated financial statements and accompanying Notes starting on page 6.</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s consolidated financial statements are expressed in United States (&#147;U.S.&#148;) dollars. All monetary amounts in this report are in U.S. dollars except where otherwise indicated.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company&#146;s consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles (&#147;GAAP&#148;) and filed with appropriate regulatory authorities in Canada and the United States.</font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
10</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">1. &nbsp;Overview</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado is a North American based gold producer. The Company owns and operates the S&#227;o Bento Gold Mine (&#147;S&#227;o Bento&#148;) in Brazil, develops gold mineralized properties into mines and explores for and/or acquires precious mineral properties for exploration.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company continues to be in a strong financial position. At June 30, 2004, it had $86,754 in cash and short-term deposits. Cash is available to fund the construction of the Kisladag Project and to carry out planned exploration. The Company is debt free and production remains unhedged. The Company&#146;s consolidated cash from operations for Q2 2004 was ($1,283) compared to $126 in Q2 2003. &nbsp;The negative cash flow from operations in Q2 is a direct result of lower gold sales, higher operating costs and a foreign exchange loss.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">In 2004, the Company achieved a significant milestone at its Kisladag Gold Project (&#147;Kisladag Project&#148;) in Western Turkey, acquiring all of the private lands required for development of the Kisladag Project. &nbsp;The Company had previously purchased all necessary Treasury Land and has secured access to Forestry Land. &nbsp;Successful completion of the private land purchase enables the Company to proceed with the final stages in the permitting process, specifically the submission of the Zoning Plan and application for the Construction Permit leading to construction in Q3 2004. &nbsp;In addition, the Company has acted to secure timely delivery of the long lead time items, particularly the crushing system in awarding a contract for $4.0 million.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">During Q2 the Turkish Parliament passed two major pieces of legislation positively impacting the mining industry in Turkey. &nbsp;Legislation exempting the production of gold in Turkey from Value Added Tax (&#147;VAT&#148;) and amendments to the Mining Law.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The VAT law was amended to exempt the gold mining industry (producers of gold and silver in Turkey) from paying VAT on their activities including exploration, construction, purchase of equipment, mine operation, smelting and refining. &nbsp;The amended VAT Law makes Turkey consistent and competitive with other countries in its treatment of VAT by reducing the cost of mine construction and production of precious metals. &nbsp;The amendment to the VAT Law positively impacts the Company&#146;s Kisladag Project improving the internal rate of return to 43% at a $350/oz. gold price.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=top width=398.533 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Kisladag Project Performance (@$350/oz gold) <SUP>(1)</SUP></font></P>
</TD><TD valign=top width=191.4><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=226.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=172.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=191.4><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Project Data</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">May Cost Update</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">May Cost Update</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">with VAT</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">without VAT</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=172.467><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=191.4><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Initial Project Costs</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$73.3 million</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$62.6 million</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Life of Mine Capital</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$167.1 million</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$142.8 million</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Cash Operating Costs</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$188/oz</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$165/oz</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Total Production Costs</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$244/oz</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$214/oz</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">After Tax Net Present Value @ 0%</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$286 million</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$348 million</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">After Tax Net Present Value @ 5%</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$164 million</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">$215 million</font></P>
</TD></TR>
<TR><TD valign=top width=226.067><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">After Tax IRR</font></P>
</TD><TD valign=top width=172.467><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">29%</font></P>
</TD><TD valign=top width=191.4><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">43%</font></P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:18pt; text-indent:-18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify><font face="Times New Roman" size="2">(1)</font></P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify><font face="Times New Roman" size="2">Feasibility Study Cost Update
- - May 2004</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<p align="center"><font face="Times New Roman" size="2">11
<BR>
</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Mining Law now consolidates the activity of all sectors of the industry including hard rock, soft rock and industrial minerals mining as well as quarrying and aggregate industries. &nbsp;Some significant changes affecting the activities of the Company in Turkey are summarized as follows:</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<ul>
  <li>
    <p style="margin:0pt; padding-left:18pt; line-height:13pt; font-family:Symbol; font-size:11pt"><FONT face="Times New Roman" size="2">access to land previously restricted from mining activity will now be possible through a general regulation of the Council of Ministers;</FONT></li>
  <li>
    <p style="margin:0pt; padding-left:18pt; line-height:13pt; font-family:Symbol; font-size:11pt"><FONT face="Times New Roman" size="2">fund Fees of 5% on capital installations on Forest Lease Lands required in the old legislation no longer apply;</FONT></li>
  <li>
    <p style="margin:0pt; padding-left:18pt; line-height:13pt; font-family:Symbol; font-size:11pt"><FONT face="Times New Roman" size="2">the Expropriation Law No. 2942 which governs procedures to acquire land critical to fulfillment of investment now applies to mining activity;</FONT></li>
  <li>
    <p style="margin:0pt; padding-left:18pt; line-height:13pt; font-family:Symbol; font-size:11pt"><FONT face="Times New Roman" size="2">a Royalty on ore processed off site will be paid to the State for mining activity amounting to 2% of the sales value of the ore mined.&nbsp; Ore processed on site at the operators&#146; plant is reduced to 1%.&nbsp; This compares with previous royalties of 3% of operating cash costs.</FONT></li>
</ul>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Shaft Deepening Project continues at the S&#227;o Bento Mine. Production in Q2 has been adversely affected by the high level of waste handling taking priority over ore production. &nbsp;The Company expects this trend to continue throughout July and August. &nbsp;Commencing in September with completion of the major waste excavation, ore production is planned to increase. Revised estimates are 85,000 ounces of gold produced at a cash cost of $270 per ounce for 2004 improving to 94,000 ounces at $240 per ounce in 2005. The Company continues with its deep drilling program below the metabasite intrusive designed to define the extent of mineralization below the intrusive and expects to comment on the results of this program in its Q3 reporting.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">2. &nbsp;Critical Accounting Policies</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s accounting policies are described in Note 2 to the consolidated financial statements. &nbsp;Management considers the following policies to be critical in understanding the judgments that are involved in preparing Eldorado&#146;s consolidated financial statements and the uncertainties that could impact its results of operations, financial condition and cash flows.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Use of Estimates</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">In preparing the Company&#146;s &nbsp;financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. &nbsp;Actual results could differ from those estimates. &nbsp;The most significant estimates are related to the physical and economic lives of mineral assets, their recoverability, site restoration costs and related obligations.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Revenue Recognition</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado recognizes revenue under the sales method. &nbsp;The sales method recognizes gold sales when delivery is made and title to the refined gold passes to the purchaser.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Property, Plant and Equipment / Exploration and Development</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">In accordance with its accounting policies in these areas, Eldorado capitalizes costs incurred on properties after it has been established that there is a mineral resource on a property. &nbsp;Upon commencement of production, capitalized costs for assets in use are subject to depreciation and depletion over their estimated useful lives.</font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
12</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Management&#146;s estimates of mineral prices, recoverable proven and probable reserves, resources, operating capital and reclamation costs are subject to risks and uncertainties, which may affect the
assessment of recoverability of mineral property costs. Although management has made its best estimate of these factors, it is possible that changes could occur in the near term, which could adversely affect management&#146;s estimate of the net cash flow to be generated from its properties.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Asset Retirement Obligations</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. &nbsp;A liability for the present value of estimated closure costs and the related asset created with it is recorded. &nbsp;The related asset is then amortized over the remaining life of the asset and accretion expense relating to the liability is recognized using a credit-adjusted risk-free interest rate. &nbsp;At various times the Company reviews the adequacy of Eldorado&#146;s asset retirement obligations based on Eldorado&#146;s current estimates of future costs.</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Stock Based Compensation</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company uses the fair value accounting based method for stock options. &nbsp;</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">3.</font></B></P>
<P style="margin:0pt; padding-left:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Critical Accounting Estimates</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company, in assessing the carrying values of its properties, utilizes three critical accounting estimates as follows:</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Reserves and Resources</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Proven and probable reserves are determined in accordance with National Instrument 43-101 (&#147;NI 43-101&#148;).</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Gold Price</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company estimates the future price of gold based on historical trends and published forecasted estimates. &nbsp;Presently the Company&#146;s five-year plan assumes the following prices:</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="581" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="130"></TD>
   <TD width="58"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="63"><FONT size=2 face="Times New Roman">2005</FONT></TD>
   <TD width="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="62"><FONT size=2 face="Times New Roman">2006</FONT></TD>
   <TD width="28"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="72"><FONT size=2 face="Times New Roman">2007</FONT></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="40"><FONT size=2 face="Times New Roman">2008</FONT></TD>
   <TD width="23"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="130"></TD>
   <TD width="58"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="63"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="62"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="28"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="72"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="40"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="23"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="130">
<P>
<FONT size=2 face="Times New Roman">Gold price (US$/oz)</FONT>
</P>
   </TD>
   <TD width="58"><FONT size=2 face="Times New Roman">400</FONT></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="63"><FONT size=2 face="Times New Roman">375</FONT></TD>
   <TD width="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="62"><FONT size=2 face="Times New Roman">350</FONT></TD>
   <TD width="28"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="72"><FONT size=2 face="Times New Roman">350</FONT></TD>
   <TD width="31"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="40"><FONT size=2 face="Times New Roman">350</FONT></TD>
   <TD width="23"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The resulting average price is U.S. $365/oz.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Operating Costs</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company reports its operating costs in accordance with the Gold Institute Standard. Future operating costs however include estimates of currency foreign exchange and inflation trends.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
13</font></p>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">4. &nbsp;Consolidated Financial Results of Operations</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Net income (loss)</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="339" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD align="right" width="218"></TD>
   <TD align="right" width="118"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="36"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="20"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="84"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="147"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right" width="218"></TD>
   <TD align="right" width="118"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="36"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="20"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="84"><FONT size=2 face="Times New Roman">2003</FONT></TD>
   <TD width="147"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="218"></TD>
   <TD width="118"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="36"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="20"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="84"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="147"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD align="right" width="218">
<FONT size=2 face="Times New Roman">Net Income (loss)&nbsp;</FONT>
   </TD>
   <TD align="right" width="118"><FONT size=2 face="Times New Roman"> $(1,673)</FONT></TD>
   <TD width="36"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="20"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="84"><FONT size=2 face="Times New Roman">1,447</FONT></TD>
   <TD width="147"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The net loss reported by the Company in Q2 2004 results primarily from lower sales volumes, higher operating costs per ounce and a foreign exchange loss experienced during the period.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Revenues</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company&#146;s revenues consist of sales of gold bullion. Gold bullion continues to be sold in 2004 to a number of financial and trading institutions.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="437" border=0 cellspacing=0 cellpadding=0 height="336">
<TR>
   <TD width="166" height="21"><B><FONT size=2 face="Times New Roman">Revenue</FONT></B></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">2003</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Gold</FONT></TD>
   <TD align="center" width="6" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">6,894</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">8,387</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Effects of Hedging</FONT></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><font size="2" face="Times New Roman">-</font></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">635</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><HR noshade size=1></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><HR noshade size=1></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Total Gold Sales</FONT></TD>
   <TD align="center" width="6" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">6,894</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">9,022</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Interest and other income</FONT></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">365</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">326</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><HR noshade size=1></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><HR noshade size=1></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="6" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">7,259</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">9,348</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><HR noshade size=1></TD>
   <TD width="98" height="21"><HR noshade size=1></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><HR noshade size=1></TD>
   <TD width="108" height="21"><HR noshade size=1></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Gold Sold</FONT></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="98" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="108" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Ounces</FONT></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">17,424</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" colspan=2 width="125" height="21"><FONT size=2 face="Times New Roman">24,368</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="166" height="21"><FONT size=2 face="Times New Roman">Realized Price ($/oz)</FONT></TD>
   <TD width="6" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="98" height="21"><FONT size=2 face="Times New Roman">396</FONT></TD>
   <TD width="11" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="15" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="108" height="21"><FONT size=2 face="Times New Roman">344</FONT></TD>
   <TD width="19" height="21"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; text-indent:216pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Gold sales revenue was $6,894 in Q2 2004 compared with $8,387 in Q2 2003 reflecting lower sales volumes. S&#227;o Bento sold 17,424 ounces of gold in Q2 2004 at a realized price of $396/oz. compared to 24,368 ounces in Q2 2003 at a realized price of $344/oz. Gold production decreased by 32.7% compared to Q2 2003. &nbsp;This is due to the continued interference with production as a result of the shaft deepening activities and infrastructure development at depth. The Company expects this trend to continue through 2004 at which time ramp development will be completed allowing for reduced waste haulage and repositioning of equipment to mining activities. &nbsp;It is expected upon completion of the Shaft Deepening Project that production will increase and unit costs will decrease. Total cash and production costs per ounce for Q2 were $310 and $376, respectively, compared with $2
37 and $350 respectively, in 2003. &nbsp;Increase in cash costs per ounce is primarily a result of lower gold production levels and increased transportation costs as the mining is conducted beneath the present shaft bottom.</font></P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
14</font>
<p align="center">&nbsp;</p>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">In 2001, the Company liquidated its gold hedge position and remains unhedged. The Company continues to sell its gold production at spot prices and anticipates a strong gold price throughout fiscal 2004. The Company is forecasting an average gold price of $400/oz. in 2004.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Revenue includes a hedging gain in Q2 2003 of $635. The hedging gain results from the liquidation of a portion of the Company&#146;s hedge book in the years 1998 through 2001. The hedging amortization was completed in Q1 2004.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Interest and Other Income</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Interest and other income for Q2 2004 was $365, compared with $326 in Q2 2003 and results primarily from investments of the Company&#146;s substantial cash holdings. &nbsp;</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Expenses</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="441" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">2003</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="59"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="66"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Operating costs</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">5,250</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="13"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">5,785</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Depletion, depreciation and amortization</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">1,064</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">2,565</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;General and administrative</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">1,124</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">991</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Exploration expense</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">798</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">370</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Foreign exchange loss (gain)</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">1,715</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">(2,469)</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Stock based compensation expense</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">134</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">193</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Other</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="59"><FONT size=2 face="Times New Roman">108</FONT></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="66"><FONT size=2 face="Times New Roman">289</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="59"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="8"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="13"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="66"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="261"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9" style="border-top: 1 solid #000000; border-bottom: 2 solid #000000"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="59" style="border-top: 1 solid #000000; border-bottom: 2 solid #000000"><FONT size=2 face="Times New Roman">10,193</FONT></TD>
   <TD width="8" style="border-top: 1 solid #000000; border-bottom: 2 solid #000000"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="13" style="border-top: 1 solid #000000; border-bottom: 2 solid #000000"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="right" width="66" style="border-top: 1 solid #000000; border-bottom: 2 solid #000000"><FONT size=2 face="Times New Roman">7,724</FONT></TD>
   <TD width="11"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Operating costs at S&#227;o Bento were $5,250 for Q2 2004 compared with $5,785 for Q2 2003. &nbsp;The lower operating costs for Q2 of 2004 is the result of increased ore inventory compared to decreased ore inventory inQ2 2003.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<div align="center">
  <center>
<TABLE cellspacing=0><TR><TD valign=top width=341.933 colspan=6><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Production Highlights (All figures in U.S. Dollars)</font></P>
</TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=67.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Q2</font></B></P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Q2</font></B></P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Six months</font></B></P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Six months</font></B></P>
</TD></TR>
<TR><TD valign=top width=67.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD></TR>
<TR><TD valign=top width=134.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Gold Production</font></B></P>
</TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=134.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Sao Bento Mine, Brazil</font></P>
</TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=67.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Ore tonnes</font></P>
</TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,595</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94,497</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;175,181</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;186,601</font> </P>
</TD></TR>
<TR><TD valign=top width=134.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Grade
    (grams/tonne)</font></P>
</TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.37</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.95</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.27</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25</font> </P>
</TD></TR>
<TR><TD valign=top width=67.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Ounces</font></P>
</TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,007</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,772</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39,165</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,603</font> </P>
</TD></TR>
<TR><TD valign=top width=188.333 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Cash Operating Cost ($/oz.)</font></P>
</TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;303</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;230</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223</font> </P>
</TD></TR>
<TR><TD valign=top width=134.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Total Cash Cost ($/oz.)</font></P>
</TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;310</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;237</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;296</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;230</font> </P>
</TD></TR>
<TR><TD valign=top width=188.333 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Total Production Cost ($/oz.)</font></P>
</TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;376</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;357</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;345</font> </P>
</TD></TR>
<TR><TD valign=top width=67.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=243.067 colspan=4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Gold Sold &amp; GAAP Reconciliation (1)</font></B></P>
</TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=top width=67.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Ounces sold</font></P>
</TD><TD valign=top width=67.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,424</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,368</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,217</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48,222</font> </P>
</TD></TR>
<TR><TD valign=top width=134.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Realized Price ($/oz.)</font></P>
</TD><TD valign=top width=53.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;396</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;344</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;403</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</font> </P>
</TD></TR>
<TR><TD valign=top width=243.067 colspan=4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Operating costs per Income Statement ($000)</font></P>
</TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,250</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,785</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,515</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,835</font> </P>
</TD></TR>
<TR><TD valign=top width=188.333 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">GAAP reconciling items ($000)</font></P>
</TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(180)</font></P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(81)</font></P>
</TD></TR>
<TR><TD valign=top width=188.333 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Cash Operating Cost ($000)</font></P>
</TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,279</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,605</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,582</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,754</font> </P>
</TD></TR>
<TR><TD valign=top width=188.333 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Cash Operating Cost ($/oz.)</font></P>
</TD><TD valign=top width=54.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;303</font> </P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;230</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;288</font> </P>
</TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223</font> </P>
</TD></TR>
<TR><TD valign=top width=318.733 colspan=5><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Note 1: For more details see Section 10.
    Non-GAAP Measures</font></P>
</TD><TD valign=top width=23.2><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=76.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=70.4><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=22.067><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=top width=75.667><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">15<BR></font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Depreciation, depletion and amortization expenses for mining assets are recorded on the life-of-mine method. Other assets are depreciated over their estimated useful lives. &nbsp;The decrease in depreciation, depletion and amortization expense in Q2 2004 is a reflection of the substantial non-cash write-down recorded on S&#227;o Bento in fiscal 2003.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Corporate administration expense for Q2 2004 was $1,124 compared to Q2 2003 of $991. Higher corporate administration expense in 2004 reflects additional administration support required as the Company increases development activity. Increased corporate activity dedicated to growth initiatives required additional staffing. &nbsp;</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Exploration expenses for Q2 2004 were $798 compared to $370 in Q2 2003. &nbsp;The total amount spent in Q2 2004 is comprised of $298 relating to Turkey, $237 for Brazil and $263 in China including general Head Office exploration department costs.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company held a substantial portion of its cash balance in Canadian dollars resulting in a foreign exchange gain in 2003 and a loss in 2004. &nbsp;The Company is increasing its US dollar cash holdings in anticipation of incurring U.S. dollar denominated construction expenses at the Kisladag Mine.</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company uses the fair value accounting based method for stock options. &nbsp;&nbsp;In Q2 the Compensation Committee and the Board of Directors granted 295,000 stock options to existing employees and officers of the Company resulting in stock compensation expense of $134.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Board of Directors administers the Employee Stock Option Plan (the &#147;Plan&#148;), whereby from time to time grant stock options to employees, consultants or advisors the Company. &nbsp;In accordance with the terms of the Plan the Board of Directors and the Toronto Stock Exchange approved an amendment to the</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Plan increasing the reserve of Common Shares for issuance pursuant to the Plan from 10,200,000 to 12,741,263, effective May 13, 2004.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Income Taxes</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Current tax recovery for 2004 was $58 compared to current tax expense of $83 in 2003. &nbsp;</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">The future tax recovery of $1,203 is a result of Brazilian currency (&#147;Real&#148;) depreciation during Q2 2004 and a further reversal of the previously booked foreign exchange gain on the inter-company loans.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Related Party Transactions</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">The Company has no related party transactions to report.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">5. &nbsp;Review of Operations</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Sao Bento</font></B></P>
<font face="Times New Roman" size="2">
<BR>
</font>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Higher cash costs per ounce in 2004 were driven mainly by lower production levels. As the mine deepens and moves further away from the existing bottom of the shaft at 23<SUP>rd</SUP> level, it becomes more challenging to sustain historical ore production levels. &nbsp;In order to address this issue, the Company announced on April 2, 2003 its intention to deepen the shaft at S&#227;o Bento. The Company expects the deepened shaft to be commissioned in Q2 2005. The concrete lined shaft will be deepened by 370 meters from the 23<SUP>rd</SUP> level to the 28<SUP>th</SUP> level at an approximate cost of $12,000. This shaft deepening will provide a bottom working elevation approximately 1,300 meters below surface at the Mine&#146;s 28<SUP>th</SUP> level.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2"><BR>16</font></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Production is being hampered by the Shaft Deepening Project. &nbsp;For the first six months of 2004 the grade of ore mined was lower than the grade for the first six months of 2003 (8.27 g/t vs. 9.25 g/t) due to dilution. &nbsp;This was driven by poor ground conditions at 26 and 27 levels associated with the presence of a metabasite intrusive that intersects the orebody at the area scheduled for mining at those levels in 2004. In Q2 2004 S&#227;o Bento mined 84,595 tonnes of ore at a grade of 8.37 grams per tonne compared to 94,497 tonnes of ore in Q2 2003 at a grade of 8.95 grams per tonne. Mining is taking place below the existing shaft bottom, hence our present difficulties to sustain historical production levels. &nbsp;Furthermore the waste generated by the activities associated with the Shaft Deepening Project is temporarily contributing to the congestion on the underg
round haulage system. &nbsp;The Company expects an improvement in mine performance once the shaft deepening is completed in Q2 2005.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Higher cash costs per ounce were caused by lower gold production levels. &nbsp;Lower gold production was a direct consequence of lower ore production coming form the underground mine as a result of the Shaft Deepening Project.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Higher cash costs per ounce were caused by lower gold production as well as an appreciation of the Real from an average of 3.24 in the first half of 2003 to an average of 2.97 in the first half of 2004.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=373 colspan="5"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><B><font face="Times New Roman" size="2">Gold Production Cost per Ounce</font></B><font face="Times New Roman" size="2">&nbsp;</font></P>
</TD><TD valign=bottom width=108.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD></TR>
<TR><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Q2</font></B></P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Q2</font></B></P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Six months</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">Six months</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2004</font></B></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B><font face="Times New Roman" size="2">2003</font></B></P>
</TD></TR>
<TR><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD></
TR>
<TR><TD valign=bottom width=338 colspan="4"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Direct mining expenses&nbsp;</font></P>
</TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;$301</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;$210</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;$284</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;$214</font> </P>
</TD></TR>
<TR><TD valign=bottom width=192 colspan="2"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Inventory change&nbsp;</font></P>
</TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(6)</font></P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;15</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(3)</font></P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2</font> </P>
</TD></TR>
<TR><TD valign=bottom width=338 colspan="4"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Third party smelting, refining and transportation&nbsp;</font></P>
</TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5</font> </P>
</TD></TR>
<TR><TD valign=bottom width=192 colspan="2"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Vancouver costs&nbsp;</font></P>
</TD><TD valign=bottom width=96></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;1</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3</font> </P>
</TD></TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">By-product credits&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;- &nbsp;&nbsp;</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1)</font></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;(1)</font></P>
</TD></TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Cash operating cost per ounce&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;303</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;230</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;288</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;223</font> </P>
</TD></TR>
<TR><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD></
TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Royalties and Production taxes&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;7</font> </P>
</TD></TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Total cash costs per ounce&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;310</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;237</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;296</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;230</font> </P>
</TD></TR>
<TR><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><font face="Times New Roman" size="2">&nbsp;</font></TD></
TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Depreciation, Depletion and Amortization&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;58</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;95</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;53</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;105</font> </P>
</TD></TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Foreign Exchange Loss&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;2</font> </P>
</TD><TD valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;14</font> </P>
</TD><TD valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;3</font> </P>
</TD><TD valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6</font> </P>
</TD></TR>
<TR><TD valign=bottom width=288 colspan="3"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Reclamation and mine closure&nbsp;</font></P>
</TD><TD valign=bottom width=50.733><font face="Times New Roman" size="2">&nbsp;</font></TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;6</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;5</font> </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt; color:#0000FF" align=right><font face="Times New Roman" size="2">&nbsp;4</font> </P>
</TD></TR>
<TR><TD valign=bottom width=338 colspan="4"><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt"><font face="Times New Roman" size="2">Total production costs per ounce&nbsp;</font></P>
</TD><TD valign=bottom width=35.6><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:2pt double #000000" valign=bottom width=108.333><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$376</font> </P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=31.533><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$350</font> </P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=32.867><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$358</font> </P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=28.8><font face="Times New Roman" size="2">&nbsp;</font></TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=right><font face="Times New Roman" size="2">&nbsp;$345</font> </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align="center"><font face="Times New Roman" size="2">17</font></P>
<font face="Times New Roman" size="2">
<BR>
</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<font face="Times New Roman" size="2">
<BR>
<BR></font>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">6. &nbsp;Summary of Quarterly Results and 2nd Quarter Review</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<TABLE width="720" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="74" align="center"><B><FONT size=2 face="Times New Roman">2nd Quarter</FONT></B></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="70" align="center"><B><FONT size=2 face="Times New Roman">1st Quarter</FONT></B></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="79" align="center"><B><FONT size=2 face="Times New Roman">4th Quarter</FONT></B></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="82" align="center"><B><FONT size=2 face="Times New Roman">3rd Quarter</FONT></B></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="7" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="65" align="center"><B><FONT size=2 face="Times New Roman">2004</FONT></B></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><B><FONT size=2 face="Times New Roman">2004</FONT></B></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><B><FONT size=2 face="Times New Roman">2003</FONT></B></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><B><FONT size=2 face="Times New Roman">2003</FONT></B></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Revenue</FONT></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">7,259</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">9,940</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="6"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">9,592</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">9,841</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">Net income (loss) <SUP>1</SUP></font></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">(1,673)</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">(663)</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="6"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(46,529)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(1,630)</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="7" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="65" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="59" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Basic (loss) Income per share - U.S.</FONT></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">(0.01)</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><font size="2" face="Times New Roman">-</font></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.21)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.01)</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Diluted (loss) Income per share - U.S.</FONT></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">(0.01)</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><font size="2" face="Times New Roman">-</font></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.21)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.01)</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="7" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="65" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="59" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="74" align="center"><B><FONT size=2 face="Times New Roman">2nd Quarter</FONT></B></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="70" align="center"><B><FONT size=2 face="Times New Roman">1st Quarter</FONT></B></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="79" align="center"><B><FONT size=2 face="Times New Roman">4th Quarter</FONT></B></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD colspan=2 width="82" align="center"><B><FONT size=2 face="Times New Roman">3rd Quarter</FONT></B></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Revenue</FONT></TD>
   <TD width="7" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="65" align="center"><B><FONT size=2 face="Times New Roman">2003</FONT></B></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><B><FONT size=2 face="Times New Roman">2003</FONT></B></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><B><FONT size=2 face="Times New Roman">2002</FONT></B></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><B><FONT size=2 face="Times New Roman">2002</FONT></B></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">Net income (loss) <SUP>1</SUP></font></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">9,348</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">9,448</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="6"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">10,180</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">10,609</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">1,447</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">1,679</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="6"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(1,651)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="9"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">1,374</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Basic (loss) Income per share - U.S.</FONT></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="59" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><FONT size=2 face="Times New Roman">Diluted (loss) Income per share - U.S.</FONT></TD>
   <TD align="center" width="7"><FONT size=2 face="Times New Roman">$</FONT></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.01)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="365"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="7" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="65" align="center"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="11" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="center" width="59"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="4" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">(0.02)</FONT></TD>
   <TD width="8" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="71" align="center"><FONT size=2 face="Times New Roman">0.01</FONT></TD>
   <TD width="9" align="center"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE><P>
<FONT size=2 face="Times New Roman"> Net Income (loss) figures have been restated for the quarters to reflect the non-cash year end adjustments in fiscal 2003.</FONT>
</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">7.</font> </B></P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Liquidity and Capital Resources</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Cash and Financial Conditions</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Eldorado&#146;s cash position, including term deposits, increased from $41,438 at June 30, 2003 to $86,754 as at June 30, 2004. &nbsp;The Company&#146;s working capital was $91,396 as at June 30, 2004 compared with a working capital of $41,880 as at June 30, 2003. &nbsp;The Company&#146;s cash position decreased by $6,876 from March 31, 2004 due primarily to on-going development expenditures at Kisladag. Currently, the
Company is debt and hedge free with no off balance sheet financing structures in place. &nbsp;This positions the Company to continue with its strategy for value added growth. &nbsp;Cash is sufficient to fund initial construction of the Kisladag Mine ($62.2 million) and to continue with exploration in Brazil, Turkey and China.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s consolidated cash from operations for Q2 2004 was ($1,283) compared to $126 in Q2 2003. &nbsp;The negative cash flow from operations in Q2 is a direct result of lower gold sales, higher operating costs and the foreign exchange loss.</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Investing Activities</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">During Q2 2004, Eldorado spent $5,021 on investing activities, of which $3,591 were on property, plant and equipment mainly at S&#227;o Bento and $1,430 on mineral properties and deferred development in Turkey.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Year to date 2004 the Company has spent $11,824 in Turkey of which $11,527 has been spent on the Kisladag Project. &nbsp;At Sao Bento capital expenditures for the first six months were $6,570 of which $2,900 has been spent on the Shaft Deepening Project.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Financing Activities</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">In Q2 2004, stock options were exercised for cash in the amount of $120. In the past three years, the Company has raised $126,590, net of fees, in public financing, which have been used to eliminate debt and fund Eldorado&#146;s ongoing operations and development.</font> </P>
<p align="center"><font face="Times New Roman" size="2">18</font>
<p align="center">&nbsp;</p>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">8. &nbsp;Risks and Uncertainties</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Gold Price</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s profitability is linked to the price of gold as its revenues are derived primarily from gold mining. Gold prices are affected by numerous factors beyond the Company&#146;s control, including central bank sales, producer hedging activities, the relative exchange rate of the U.S. dollar with other major currencies, global and regional demand, political and economic conditions and production costs. Worldwide gold production levels also affect gold prices. In addition, the price of gold has on occasion been subject to rapid short-term changes due to speculative activities.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Exploration and Development</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The costs and results of Eldorado&#146;s exploration and development programs affect its profitability and value. As mines have limited lives based on proven reserves, Eldorado actively seeks to replace and expand its reserves, primarily through acquisitions, exploration and development of its existing operations and recognizance exploration. &nbsp;Exploration for minerals involves many risks and may not result in any new economically viable mining operations or yield new reserves to replace and expand current reserves. Determination of reserves is a process of estimation.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The acquisition of title to mineral properties is a detailed and time-consuming process. The Company has taken steps, in accordance with industry standards, to verify mineral properties in which it has an interest. Although the Company has taken every precaution to ensure that legal title to its properties is properly recorded in the name of the Company, there can be no assurance that such title will ultimately be secured.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Capital and Operational</font> </B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company&#146;s exploration development and operations are located in Brazil, Turkey and China and face potential political risks in these territories. The business of gold mining involves many operational risks and hazards. Through high operational standards, emphasis on hiring and training of appropriately skilled personnel and operational improvements, Eldorado works to reduce the risks associated with its projects. The Company maintains adequate insurance to cover normal business risk. The Company has one producing mine. &nbsp;Any adverse development affecting S&#227;o Bento would have an adverse effect on the Company&#146;s financial performance.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company depends on a number of key employees. &nbsp;The loss of any one could have an adverse effect on the Company. &nbsp;The success of the Company depends on attracting and maintaining qualified personnel in a competitive labour environment.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company has sufficient financial resources to undertake its presently planned exploration and development program. &nbsp;Further exploration and development of mineral resource properties or
eacquisitions beyond this may require additional capital. &nbsp;Accordingly, the continuing development of the Company&#146;s projects will depend upon the Company&#146;s ability to obtain financing through the joint venturing of projects, debt financing, and equity financing or other means. There is no assurance that the Company would be successful in obtaining the required financing.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Environmental</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s activities are subject to extensive federal, provincial, state and local laws and regulations governing environmental protection and employee health and safety. Eldorado is required to obtain</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<p align="center"><font face="Times New Roman" size="2">19</font>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<p align="left"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">governmental permits and provide associated financial assurance to carry on certain activities. Eldorado is also subject to various reclamation-related conditions imposed under federal, state or provincial air, water quality and mine reclamation rules and permits.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">While Eldorado has budgeted for future capital and operating expenditures to maintain compliance with environmental laws and permits, there can be no assurance that these laws will not change in the future in</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">a manner that could have an adverse effect on the Company&#146;s financial condition, liquidity or results of operations.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Laws and Regulations</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s mining operations and exploration activities are subject to extensive federal, provincial, state and local laws and regulations governing prospecting, development, production, exports, taxes, labour standards, occupational health and safety, mine safety and other matters. Such laws and regulations are subject to change which may restrict the Company&#146;s ability to operate. Eldorado draws on the expertise and commitment of its Management team, its advisors, its employees and contractors to ensure compliance with current laws and foster a climate of open communication and co-operation with regulatory bodies.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Legal Proceedings</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The nature of the Company&#146;s business subjects it to regulatory investigation, claims, lawsuits and other proceedings in the ordinary course of business. &nbsp;The result of these legal proceedings cannot be predicted with certainty.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">Currency Fluctuations</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado&#146;s operates in several jurisdictions namely U.S., Canada, Brazil and Turkey. &nbsp;The Company is exposed to currency fluctuations in these jurisdictions.</font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Political Risk</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado conducts operations in a number of countries, namely Brazil, Turkey and China. &nbsp;These operations are potentially subject to a number of political, economic and other risks. &nbsp;Eldorado is not able to determine the impact of political, economic or other risks on its future financial position.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">9. &nbsp;Outlook</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company anticipates current reserves will sustain operations at S&#227;o Bento until 2008. In Q2 2004 S&#227;o Bento produced 18,007 oz. of gold, 27.6% less than forecasted. &nbsp;Continued congestion underground associated with waste development at depth and the Shaft Deepening Project necessitate a reduction in
planned production to approximately 85,000 ounces for the year. &nbsp;Due to this reduction in planned production and other adverse factors as previously noted affecting operations, anticipated cash costs for the year have been upwardly revised to $270 per ounce for 2004, with 2005 production forecast to be 94,000 ounces at $230 per ounce. The Shaft Deepening Project at S&#227;o Bento continues according to plan, which will provide access to reserves and resources at the deeper levels of the Mine. The Company expects to complete the Shaft Deepening Project in 2005.</font> </P>
<p align="center"><font face="Times New Roman" size="2">
<BR>
20</font>
<p align="center">&nbsp;</p>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><font face="Times New Roman" size="2">MANAGEMENT DISCUSSION AND ANALYSIS</font></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">2nd Quarter ended June 30, 2004 and 2003</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2">Expressed in thousands of U.S. dollars except per share and per ounce amounts</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<font face="Times New Roman" size="2">
<BR>
<BR>
</font>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">With the completion of the acquisition of all private lands required for development of the Kisladag Project, the Company is in the final stages of completing the permitting process. &nbsp;The Zoning Plan application is expected to receive final approval in early August to be followed by approval of the
construction drawings and the granting of the Construction Permit. &nbsp;The granting of the Construction Permit will enable construction of the facility to commence and is presently anticipated in 2004.</font> </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company has been advised that litigation has been filed against the Ministry of Forestry and Environment to cancel the Kisladag EIA Positive Certificate and that the Company has been appointed co-defendant. &nbsp;The Company&#146;s present view is that this case is without merit and it will defend it vigorously. &nbsp;The Company is continuing with its development of the Kisladag Project.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Certain actions have been commenced by third parties against the Turkish Ministry of Energy and Natural Resources and such actions ultimately seek to cancel the mineral license for Efem&#231;ukuru. The basis of the litigation against the project is an alleged threat to the water quality in the Izmir catchment. &nbsp;At the Company&#146;s request, it has been added as a co-defendant in the litigation proceedings. The Company is assisting the Ministry with its defense and intends to vigorously defend its position. The Company is proceeding with an Environmental Impact Assessment Report for Efem&#231;ukuru. &nbsp;Upon receipt of a positive certificate from the Minister of Environment, the Company plans to commence additional drilling on the property, in preparation to completing a feasibility study in 2005.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">Eldorado continues its partnership with China National Gold Group Corporation (&#147;CNGC&#148;). The current focus of the work with CNGC is on three operating mines that have been identified as being of interest to Eldorado. The Company is also reviewing assets other than those held by CNGC in China. During Q2 2004 the Company signed a lease for an office in Beijing which is the first step in establishing a legal representative office.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">10. &nbsp;Non
- - GAAP Measures</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">The Company has included certain non-GAAP performance measures throughout this document. &nbsp;These non-GAAP performance measures do not have any standardized meaning prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures presented by other companies. &nbsp;Eldorado believes that, in addition to conventional measures, prepared in accordance with Canadian GAAP, certain investors use this information to evaluate Eldorado&#146;s performance. &nbsp;Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. &nbsp;Set out below are definitions for these performance measures and reconciliation&#146;s of the non-GAAP measures to reported GAAP measures.</font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><font face="Times New Roman" size="2">Unit costs:</font></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">A reconciliation of cash operating costs calculated in accordance with the Gold Institute Standard to the</font> </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2">cost of sales is included below:</font></P>
<font face="Times New Roman" size="2">
<BR>
<BR></font>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="64%"><B><FONT size=2 face="Times New Roman">Reconciliation of Cash Operating Cost per ounce 1</FONT></B></TD>
   <TD width="6%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE width="100%" border=0 cellspacing=0 cellpadding=0>
<TR>
   <TD width="64%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">Q2</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">Six months</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">Six months</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">2003</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">2004</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">2003</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Gold Ounces Sold</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">17,424</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">24,368</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">40,217</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">48,222</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><I><FONT size=2 face="Times New Roman">In thousands of US dollars except per ounce</FONT></I></TD>
   <TD width="6%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="6%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="9%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Operating costs per Consolidated Statements of Operations and Deficit</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">5,250</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">5,785</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">11,515</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">10,835</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Royalty expense and Production Taxes included above</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">(130)</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">(163)</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">(303)</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">(320)</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Effects of inventory adjustments</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">159</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">(17)</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">370</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">239</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Cash Operating Cost</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">5,279</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">5,605</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">11,582</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">10,754</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD><HR noshade size=1></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD><HR noshade size=1></TD>
   <TD><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
<TR>
   <TD width="64%"><FONT size=2 face="Times New Roman">Cash Operating Cost per ounce</FONT></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">303</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="6%"><FONT size=2 face="Times New Roman">230</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">288</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
   <TD align="right" width="9%"><FONT size=2 face="Times New Roman">223</FONT></TD>
   <TD width="2%"><font size="2" face="Times New Roman">&nbsp;</font></TD>
</TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><font face="Times New Roman" size="2"><BR></font></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><font face="Times New Roman" size="2">21</font></P>
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