ssr-fs2009q3.htm

Silver Standard Resources Inc.

(a development stage company)

Consolidated Balance Sheets

As at September 30, 2009

(expressed in thousands of US dollars – unaudited)

		September 30		December 31
	Note	2009		2008
		$			$
Assets

Current assets
Cash and cash equivalents		42,886			72,013
Accounts receivable		3,307			2,772
Marketable securities	3	11,037			10,923
Supplies inventories	4	4,580			-
Prepaid expenses and deposits		1,915			1,106
		63,725			86,814

Restricted cash		1,929			1,793
Other investments	6	24,902			21,803
Convertible debenture	5	5,487			5,973
Valued added tax recoverable		48,968			30,332
Mineral properties and property, plant, and equipment	7	573,248			421,190
		718,259			567,905
Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued liabilities		33,927			31,313
Accrued interest on convertible notes	8	536			2,066
Current portion of taxes payable		1,960			11,715
Current portion of asset retirement obligations		266			234
		36,689			45,328

Asset retirement obligations		3,771			3,229
Taxes payable		3,370			3,370
Future income tax liability		30,145			22,335
Long-term convertible notes	8	109,027			104,046
		183,002			178,308

Non-controlling interest		496			496

Shareholders' Equity

Share capital	9a	533,296			389,655
Value assigned to stock options	9b	40,625			36,502
Value assigned to convertible notes		37,383			37,383
Contributed surplus		510			510
Accumulated other comprehensive income		(17,606	)		(19,569	)
Deficit		(59,447	)		(55,380	)

		534,761			389,101

		718,259			567,905

Commitments (note 13)

Approved on behalf of the Board of Directors

“John R. Brodie” “Peter W. Tomsett”

John R. Brodie, FCA Peter W. Tomsett

(Director) (Director)

The accompanying notes are an integral part of the consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss)

(expressed in thousands of US dollars, except per share amounts – unaudited)

			Three Months Ended September 30						Nine Months Ended September 30
	Note		2009			2008			2009			2008
				$			$			$			$

Exploration and mineral property costs
Property examination and exploration				73			72			183			238
Reclamation and accretion				86			51			258			172
				(159	)		(123	)		(441	)		(410	)
Expenses
General and administration				2,547			1,972			7,213			6,074
Depreciation		7		59			78			165			225
Stock-based compensation		9b		1,247			2,600			4,770			7,436
Foreign exchange gain				(2,932	)		(1,591	)		(4,598	)		(3,300	)
				(921	)		(3,059	)		(7,550	)		(10,435	)
Other income (expenses)
Investment income				233			978			814			2,565
Gain on sale of marketable securities		3		71			-			1,824			2,090
Gain on sale of mineral properties		7		-			31,463			167			31,463
Gain (write-down) on other investments, net		5, 6		136			-			388			(17,903	)
Financing fees		8		-			-			-			(3,773	)
Interest expense on convertible notes		8		-			(681	)		-			(2,726	)
Gain on sale of silver bullion				-			-			-			23,699
Write-down of mineral properties		7		-			-			(377	)		-
Unrealized gain (loss) on financial instruments held-for-trading		5		158			(888	)		141			491
				598			30,872			2,957			35,906

Earnings (Loss) before income taxes				(482	)		27,690			(5,034	)		25,061

Income taxes expense (recovery):
Current income tax				-			12,842			(900	)		12,842
Future income tax		3		(387	)		2,897			(67	)		3,853

				(387	)		15,739			(967	)		16,695

Earnings (Loss) for the period				(95	)		11,951			(4,067	)		8,366

Weighted average shares outstanding (thousands)
Basic				70,143			62,699			67,864			62,687
Diluted				70,143			63,070			67,864			63,149

Earnings (Loss) per common share
Basic and diluted earnings (loss) per share				(0.00	)		0.19			(0.06	)		0.13

Comprehensive income (loss)
Earnings (Loss) for the period				(95	)		11,951			(4,067	)		8,366

Other comprehensive income (loss)

Unrealized gain (loss) on sale of marketable securities, net of tax		3		1,943			(14,080	)		1,841			(16,998	)

Reclassification of realized gain on sale of marketable securities, net of tax		3		(59	)		-			(1,513	)		(1,734	)
Foreign exchange gain on marketable securities		3		702			-			1,635			-
Translation adjustment on foreign operations		2		-			(19,852	)		-			(35,779	)

Other comprehensive income (loss) for the period				2,586			(33,932	)		1,963			(54,511	)

Comprehensive income (loss) for the period				2,491			(21,981	)		(2,104	)		(46,145	)

The accompanying notes are an integral part of the consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Consolidated Statements of Cash Flows

(expressed in thousands of US dollars - unaudited)

		Three Months Ended September 30				Nine Months Ended September 30
	Note	2009		2008		2009		2008
		$		$		$		$
Operating activities
Earnings (Loss) for the period		(95	)	11,951		(4,067	)	8,366
Items not affecting cash
Depreciation		59		78		165		225
Stock-based compensation	9b	1,247		2,600		4,770		7,436
Asset retirement obligations		76		37		221		116
Gain on sale of marketable securities	3	(71	)	-		(1,824	)	(2,090	)
Gain on sale of mineral properties	7	-		(31,463	)	(167	)	(31,463	)
Gain on sale of silver bullion		-		-		-		(23,699	)
Unrealized (gain) loss on held-for-trading financial instruments		(158	)	888		(141	)	(491	)
Accretion expense on convertible notes		-		331		-		1,283
Interest income on convertible debenture		(139	)	(162	)	(519	)	(162	)
Write-down of mineral properties	7	-		-		377		-
Write-down of convertible debenture and other investments	5, 6	-		-		2,002		17,903
Future income tax expense	3	(387	)	2,897		(67	)	3,853
Increase in non-current taxes payable		-		3,180		-		3,180
Unrealized foreign exchange gain		(1,873	)	(3,162	)	(3,280	)	(7,404	)
Increase (decrease) in non-cash working capital items	10	(4,336	)	1,917		(16,543	)	3,911

Cash used in operating activities		(5,677	)	(10,908	)	(19,073	)	(19,036	)

Financing activities
Shares issued for cash	9	51,030		218		151,786		1,661
Share issue costs	9	(3,124	)	-		(8,921	)	-
Proceeds from issuance of convertible notes	8	-		-		-		138,000
Financing costs related to equity portion of convertible notes financing	8	-		-		-		(1,473	)

Cash generated by financing activities		47,906		218		142,865		138,188

Investing activities
Mineral property costs		(8,274	)	(12,407	)	(16,941	)	(25,500	)
Property, plant and equipment		(37,420	)	(39,368	)	(121,368	)	(92,913	)
Increase in value added tax recoverable, net		(6,681	)	(5,042	)	(18,636	)	(10,409	)
Proceeds from sale of mineral property		-		22,435		-		22,435
Proceeds from sale of silver bullion		-		-		-		39,648
Proceeds from sale of marketable securities		197		-		4,026		2,780

Cash used in investing activities		(52,178	)	(34,382	)	(152,919	)	(63,959	)

Increase (decrease) in cash and cash equivalents		(9,949	)	(45,072	)	(29,127	)	55,193

Cash and cash equivalents - Beginning of period		52,835		181,865		72,013		81,600

Cash and cash equivalents - End of period		42,886		136,793		42,886		136,793


Supplementary cash flow information (note 10)

The accompanying notes are an integral part of the consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Statements of Shareholders’ Equity

For the nine months ended September 30, 2009

(expressed in thousands of US dollars, except share amounts - unaudited)


	Common Shares
	Number of shares		Amount			Values assigned to options			Values assigned to convertible notes		Contributed Surplus		Accumulated other comprehensive income			Retained earnings (deficit)			Total shareholders' equity
	(thousands)			$			$			$		$		$			$			$

Balance, December 31, 2006		61,646		370,196			17,460			-		510		6,308			(19,832	)		374,642
																				-
Transition adjustment of EIC-172 to opening balance		-		-			-			-		-		21,210			4,363			25,573
Issued for cash:																				-
Exercise of options		887		10,973			-			-		-		-			-			10,973
Exercise of warrants		-		-			-			-		-		-			-			-
For mineral property		9		338			-			-		-		-			-			338
Value assigned to options granted		-		-			14,443			-		-		-			-			14,443
Value of options exercised		-		4,197			(4,197	)		-		-		-			-			-
Donations		27		893			-			-		-		-			-			893
Other comprehensive income		-		-			-			-		-		67,019			-			67,019
Loss for the year		-		-			-			-		-		-			(33,965	)		(33,965	)

Balance, December 31, 2007		62,569		386,597			27,706			-		510		94,537			(49,434	)		459,916

Issued for cash:
Exercise of options		186		2,192			-			-		-		-			-			2,192
Value assigned to options granted		-		-			9,662			-		-		-			-			9,662
Value of options exercised		-		866			(866	)		-		-		-			-			-
Value assigned to convertible notes		-		-			-			37,383		-		-			-			37,383
Other comprehensive loss		-		-			-			-		-		(114,106	)		-			(114,106	)
Loss for the year		-		-			-			-		-		-			(5,946	)		(5,946	)

Balance, December 31, 2008		62,755		389,655			36,502			37,383		510		(19,569	)		(55,380	)		389,101

Issued for cash:
Public offering		5,826		99,037			-			-		-		-			-			99,037
Share issue costs		-		(5,648	)		-			-		-		-			-			(5,648	)
Exercise of options		28		365			-			-		-		-			-			365
Value assigned to options granted		-		-			1,937			-		-		-			-			1,937
Value of options exercised		-		139			(139	)		-		-		-			-			-
Other comprehensive loss		-		-			-			-		-		(91	)		-			(91	)
Loss for the period		-		-			-			-		-		-			(2,598	)		(2,598	)

Balance, March 31, 2009		68,609		483,548			38,300			37,383		510		(19,660	)		(57,978	)		482,103

Issued for cash:
Exercise of options		100		1,354			-			-		-		-			-			1,354
Share issue costs		-		(149	)		-			-		-		-			-			(149	)
Value assigned to options granted		-		-			1,625			-		-		-			-			1,625
Value of options exercised		-		585			(585	)		-		-		-			-			-
Other comprehensive loss		-		-			-			-		-		(532	)		-			(532	)
Loss for the period		-		-			-			-		-		-			(1,374	)		(1,374	)

Balance, June 30, 2009		68,709		485,338			39,340			37,383		510		(20,192	)		(59,352	)		483,027

Issued for cash:
Public offering		2,998		50,963			-			-		-		-			-			50,963
Share issue costs		-		(3,124	)		-			-		-		-			-			(3,124	)
Exercise of options		5		67			-			-		-		-			-			67
Value assigned to options granted		-		-			1,337			-		-		-			-			1,337
Value of options exercised		-		52			(52	)		-		-		-			-			-
Other comprehensive income		-		-			-			-		-		2,586			-			2,586
Loss for the period		-		-			-			-		-		-			(95	)		(95	)

Balance, September 30, 2009		71,712		533,296			40,625			37,383		510		(17,606	)		(59,447	)		534,761

The accompanying notes are an integral part of the consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

1. NATURE OF OPERATIONS

We are a development stage company that, since 1994, has assembled a portfolio of silver-dominant projects, which are located in seven countries in the Americas and Australia.

We are focused on advancing our five principal projects. These include the Pirquitas project, the San Luis project, the Pitarrilla project, the Diablillos project and the Snowfield project. In addition to our five principal projects, we hold a geologically-diverse portfolio of other predominantly silver projects in various stages of exploration.

Management has estimated that we will have adequate funds from existing working capital and other assets to meet our corporate, development, administrative and property obligations for the coming year, including the planned completion of construction of the Pirquitas project. We will periodically need to obtain additional financing to advance our principal projects and pursue other opportunities, and while we have been successful in the past, there can be no assurance that we will be able to do so in the future.

The recoverability of the amounts shown for mineral properties and related deferred costs is dependent upon the existence of economically recoverable reserves, our ability to obtain necessary financing to complete the development, and upon future profitable production. The amounts shown as deferred expenditures and property acquisition costs represent net costs to date, less amounts amortized and/or written-off, and do not necessarily represent present or future values.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These unaudited interim consolidated financial statements follow the same accounting policies as our most recent audited annual consolidated financial statements except for the changes relating to foreign currency translation (see “Changes in Accounting Policies” below). These statements do not contain all of the information required for annual financial statements and should be read in conjunction with our annual consolidated financial statements. In the opinion of management, all of the adjustments necessary to fairly present the consolidated financial statements set forth herein have been made. We have reclassified certain comparative figures to reflect the presentation used in our most recent annual consolidated financial statements, including reclassification of expenditures on the Pirquitas project from mineral property costs to property, plant and equipment expenditures under investing activities on the Consolidated Statement of Cash Flows; reclassification of pre-operating costs from construction costs to development property costs under the property, plant and equipment note; and consolidating general and administration expenses, salaries and employee benefits and professional fees as general and administration expenses on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss).

Changes in Accounting Policies

Foreign currency translation

Effective January 1, 2009, we determined that our functional currency had changed from the Canadian dollar to the US dollar as a result of a change in the nature of our operations.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Due to the development of the Pirquitas project as well as our other principal projects in countries other than Canada, a significant portion of our costs are incurred in US dollars. Our recent debt and equity financings were completed in US dollars and we now hold majority of our cash and cash equivalents in US dollars. With commercial production anticipated to commence at our Pirquitas project in 2009, our revenue stream will also be denominated in US dollars. Concurrent with the change in functional currency, we have also adopted the US dollar as our reporting currency.

As a result of the change in our functional currency, effective January 1, 2009, our integrated foreign currency operations have been translated to US dollars using the temporal method on a prospective basis. Under the temporal method, monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date; non-monetary items are translated at historic exchange rates; and income and expense items are translated at the average exchange rate for the period. Translation gains and losses are recognized in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss).

The comparative financial statements and corresponding notes have been restated from Canadian dollars to US dollars using the current rate method. Under this method, all assets and liabilities are translated into US dollars at the exchange rate prevailing at the balance sheet date; expense items are translated at the average rate of exchange for the period; one-time income or expense items are translated at the exchange rate on the date of the transaction; and the resulting translation adjustment is recorded as a cumulative translation adjustment (“CTA”) in accumulated other comprehensive income. See note 14 for effect of the change in reporting currency on prior year comparative figures.

Mining Exploration Costs

Effective March 27, 2009, we adopted Emerging Issues Committee (“EIC”) Abstract 174, “Mining Exploration Costs”. This standard provides guidance on the capitalization of exploration costs related to mining properties, in particular, and on impairment of long-lived assets. The adoption of this standard did not have a significant impact on our consolidated financial statements.

Goodwill and Intangible Assets

Effective January 1, 2009, we adopted Canadian Institute of Chartered Accountants Handbook (“CICA”) Section 3064, “Goodwill and Intangible Assets”, which replaced CICA Section 3062, “Goodwill and Other Intangible Assets,” and CICA Section 3450, “Research and Development Costs,” and EIC-27, “Revenues and Expenditures During the Pre-operating Period”. The standard reinforces the principle-based approach to the recognition of assets only in accordance with the definition of an asset and the criteria for asset recognition; and clarifies the application of the concept of matching revenues and expenses such that the current practice of recognizing assets that may not meet the definition and recognition criteria are eliminated. The adoption of this standard did not have a material impact on our consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

2. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Credit Risk and the Fair Value of Financial Assets and Financial Liabilities

Effective January 1, 2009, we adopted EIC Abstract 173, “Credit Risk and the Fair Value of Financial Assets and Financial Liabilities”. This standard requires companies to take into account their own credit risk and the credit risk of the counterparty in determining the fair value of financial assets and financial liabilities, including derivative instruments. The adoption of this standard did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements

Recent accounting pronouncements issued which may impact us in the future are as follows:

Business combinations and related sections

CICA Handbook Section 1582, “Business Combinations” and Section 1601, “Non-Controlling Interests”, replaces Sections 1581 and 1600, respectively. The new standards revise guidance on the determination of the carrying amount of assets acquired and liabilities assumed, goodwill and accounting for non-controlling interests at the time of a business combination. These standards are effective January 1, 2011 prospectively, with early adoption permitted. We are currently assessing the impact of the new standards on our consolidated financial statements.

Financial instruments

Amendments to CICA Handbook Section 3855, “Financial Instruments – Recognition and Measurement” were published by the CICA in July 2009 effective for fiscal years beginning on or after November 1, 2008. Amendments to this section have added guidance concerning the assessment of embedded derivatives upon reclassification of a financial asset out of the held-for-trading category; changed the categories into which a debt instrument is required or permitted to be classified; changed the impairment model for held-to-maturity financial assets to the incurred credit loss model of CICA Handbook Section 3025, “Impaired Loans”; and require reversal of previously recognized impairment losses on available-for-sale financial assets in specified circumstances.

Additional amendments to Section 3855 related to clarification on the recognition of prepayment options embedded in a debt instrument and on the calculation of interest on a financial asset after recognition of an impairment loss are effective January 1, 2011 on a prospective basis, with early adoption permitted.

CICA Handbook Section 3862, “Financial Instruments – Disclosures” has also been amended to improve financial instrument disclosures to include additional disclosure requirements about fair value measurement for financial instruments and liquidity risk disclosures. The amendments to Section 3862 are effective for fiscal years beginning on or after September 30, 2009.

We are currently assessing the impact of the new standards on our consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

3. MARKETABLE SECURITIES

At September 30, 2009, we held marketable securities with total fair value of $11,037,000 (December 31, 2008 - $10,923,000) and total cost of $7,548,000 (December 31, 2008 - $8,533,000).

Effective September 30, 2008, we retrospectively adopted EIC-172, “Income Statement Presentation of a Tax Loss Carryforward Recognized Following an Unrealized Gain in Other Comprehensive Income”, which required the tax benefit from the recognition of previously unrecognized tax loss carryforwards consequent to the recording of unrealized gains in other comprehensive income, such as unrealized gains on available-for-sale financial assets, to be recognized in net income. The adoption of this standard resulted in a reclassification of $2,897,000 and $3,853,000 during the three and nine months ended September 30, 2008 from other comprehensive loss to future income tax expense.

During the three and nine months ended September 30, 2009, we recorded unrealized gains of $2,342,000 (2008 – unrealized loss of $16,977,000) and $2,219,000 (2008 – unrealized loss of $20,495,000), respectively, in other comprehensive income on marketable securities designated as available-for-sale. The unrealized gains resulted in a future income tax recovery of $399,000 (2008 – expense of $2,897,000) for the three months ended September 30, 2009 and $378,000 (2008 – expense of $3,497,000) for the nine months ended September 30, 2009, representing the tax expense (benefit) arising on recognition of previously unrecognized loss (gain) carryforwards, with a corresponding impact on other comprehensive loss. Foreign exchange gains of $702,000 (2008 - $nil) and $1,635,000 (2008 - $nil) for the three and nine months ended September 30, 2009 related to marketable securities were recorded in other comprehensive loss.

During the three months ended September 30, 2009, we recorded a gain on sale of marketable securities of $71,000 (2008 - $nil) in net earnings, resulting in a corresponding reversal of an unrealized gain of $59,000 (2008 - $nil) from other comprehensive income and $12,000 (2008 - $nil) from future income tax recovery.

During the nine months ended September 30, 2009, we recorded a gain on sale of marketable securities of $1,824,000 (2008 - $2,090,000) in net earnings, resulting in a corresponding reversal of an unrealized gain of $1,513,000 (2008 - $1,734,000) from other comprehensive income and $311,000 (2008 - $356,000) from future income tax recovery.

4. SUPPLIES INVENTORIES

At September 30, 2009, we had $4,580,000 (2008 - $nil) in material and supplies inventories, which will be used for production at the Pirquitas mine in Argentina. Inventories are valued at the lower of average cost and net realizable value.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

5.	CONVERTIBLE DEBENTURE

In July 2008 we received a C$10 million convertible debenture (“Debenture”) from Aurcana Corporation (“Aurcana”) as part of the consideration we received for the sale of the Shafter Silver Project. In July 2009, Aurcana negotiated a revision to the coupon rate on the debenture from 3% per year to 1.5% in the first year and 4% per year thereafter. We received our first coupon payment of C$150,000 on July 15, 2009. As a result of this restructuring, during the nine months ended September 30, 2009 we recorded a write-down of our accrued interest and convertible debenture of $118,000 and $1,884,000, respectively, included in write-down on other investments.

At September 30, 2009, the carrying value of the debenture was $5,487,000 (December 31, 2008 - $5,973,000). Of this amount, $5,291,000 (December 31, 2008 - $5,923,000) represents the carrying value of the note receivable component estimated using the discounted cash flow model method and $196,000 (December 31, 2008 - $50,000) represents the fair value of the conversion feature using the Black Scholes method.

For the three months ended September 30, 2009, interest and accretion income of $216,000 (September 30, 2008 - $225,000) was recorded in earnings in relation to the note receivable component and an unrealized gain of $158,000 (September 30, 2008 - unrealized loss of $888,000) was recorded in relation to adjusting the fair value of the conversion feature.

For the nine months ended September 30, 2009, interest and accretion income of $720,000 (September 30, 2008 - $225,000) was recorded in earnings in relation to the note receivable component and an unrealized gain of $141,000 (September 30, 2008 – unrealized gain of $491,000) was recorded in relation to adjusting the fair value of the conversion feature.

6. OTHER INVESTMENTS

As at September 30, 2009, we had a total of $53,257,000 (C$57,102,000) invested in Canadian asset-backed commercial paper (“ABCP”). At the dates at which the Company acquired the investments, the non-bank sponsored ABCP was rated R-1 high by DBRS Limited (“DBRS”), the highest credit rating for commercial paper. In August 2007, the ABCP market experienced liquidity problems and was subsequently frozen. In September 2007, a Pan Canadian Investors Committee for Third-Party Structured ABCP (the “Committee”), consisting of a panel of major ABCP investors, was formed to restructure the affected ABCP trusts. In January 2009, the Committee successfully completed the restructuring and we have now received the restructured notes with a face value of $53,294,000 (C$57,142,000). At the time of receipt of the restructured notes, we received a retroactive interest payment on our original notes covering the period from August 2007 to August 2008 of $1,630,000. During the nine months ended September 30, 2009, we received additional retroactive interest payments totaling $624,000 covering the period from September 2008 to January 2009 and $136,000 in interest payments on the restructured notes. Interest income received from other investments was recorded to net loss for the period as a gain on other investments.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

6. OTHER INVESTMENTS (Cont’d)

The face value of the restructured notes is allocated as follows:

Notes	Expected Maturity Date	Legal Maturity Date	Interest Rate (1)	Face Amount $C(000)
MAVII Class A-1	January 22, 2017	July 15, 2056	BA - 0.5%		26,542
MAVII Class A-2	January 22, 2017	July 15, 2056	BA - 0.5%		21,944
MAVII Class B	January 22, 2017	July 15, 2056	BA - 0.5%		3,983
MAVII Class C	January 22, 2017	July 15, 2056	BA + 20%		1,623
					54,092

(1) BA represents Canadian dollar bankers acceptance interest rates with a maturity of 90 days.

We also received MAVII IA Tracking Notes with a face value of C$3,050,000.

As no secondary market has been developed for these restructured notes as at September 30, 2009, we estimated the fair value of the restructured notes using a valuation technique which incorporates a probability weighted approach applied to discounted future cash flows from the restructured notes and the fair value of our investments based on the indicative values contained in a report issued by J.P. Morgan, financial advisor to the Committee. Based on management’s best estimate, the fair value of the restructured notes at September 30, 2009 approximates its carrying value of $24,902,000 (December 31, 2008 - $21,803,000). As a result, no impairment was recorded for the three and nine months ended September 30, 2009 (three months ended September 30, 2008 - $nil, nine months ended September 30, 2008 - $17,903,000).

There is no certainty regarding the development of a secondary market for the restructured notes and therefore the fair value reported may change materially in subsequent periods.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

7. MINERAL PROPERTY COSTS AND PROPERTY, PLANT AND EQUIPMENT

Mineral property costs and property, plant and equipment consist of the following:

	September 30, 2009							December 31, 2008
			Accum.			Net Book				Accum.			Net Book
	Cost		Amort.			Value		Cost		Amort.			Value
		$		$		$			$		$			$

Mineral property costs		186,000		-			186,000		162,872		-			162,872
Development property costs		153,199		-			153,199		95,960		-			95,960
Construction in progress		213,434		-			213,434		142,777		-			142,777
Mining equipment and machinery		23,625		(4,570	)		19,055		18,728		(869	)		17,859
Other		2,965		(1,405	)		1,560		2,829		(1,107	)		1,722
		579,223		(5,975	)		573,248		423,166		(1,976	)		421,190

During the three and nine months ended September 30, 2009, we recorded $742,000 (2008 - $256,000) and $3,999,000 (2008 - $785,000), respectively, of depreciation on property, plant, and equipment of which $59,000 (2008 - $78,000) and $165,000 (2008 - $225,000) was charged to the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and $683,000 (2008 - $178,000) and $3,834,000 (2008 - $560,000) was deferred as mineral property costs.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

7. MINERAL PROPERTY COSTS AND PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Mineral Property Costs

			Exploration
			and		Total	Total
		Acquisition	development	Future tax	September 30	December 31
		costs	costs	effects	2009	2008
		$	$	$	$	$

Exploration Projects

Argentina
	Diablillos	4,516	11,604	-	16,120	14,803
	Other	18	196	-	214	189
Australia
	Bowdens	8,902	7,315	3,388	19,605	18,834
	Other	2	211	-	213	204
Canada
	Silvertip	1,485	261	-	1,746	1,742
	Snowfield	102	17,496	-	17,598	7,719
	Sulphurets	1,954	1,025	-	2,979	2,979
	Sunrise Lake	1,008	64	-	1,072	1,066
Chile
	Challacollo	2,660	4,359	590	7,609	7,026
	Other	41	267	-	308	265
Mexico
	Pitarrilla	10,982	48,181	2,135	61,298	56,992
	San Marcial	1,020	464	87	1,571	1,706
	Veta Colorada	3,688	899	215	4,802	4,689
	Other	811	1,870	-	2,681	2,265
Peru
	Berenguela	10,595	3,148	6,285	20,028	19,013
	San Luis	457	17,741	1,017	19,215	14,951
	Other	-	-	-	-	162
United States
	Candelaria	2,434	3,233	691	6,358	5,772
	Maverick Springs	565	1,892	126	2,583	2,495
		51,240	120,226	14,534	186,000	162,872

Development Projects

Argentina
	Pirquitas	45,980	91,608	15,611	153,199	95,960

In June 2009, we completed the sale of our remaining 25% interest in the San Juan property located in Durango State, Mexico to Orko Silver Corp. (“Orko”). Under the terms of the agreement, Orko paid us total consideration of $202,000, consisting of 306,000 shares of Orko. The sale resulted in a gain of $167,000.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

7. MINERAL PROPERTY COSTS AND PROPERTY, PLANT AND EQUIPMENT (Cont’d)

On July 17, 2008, we closed the sale of the Shafter Silver Project in Presidio County, Texas, to Aurcana Corporation (“Aurcana”). Under the terms of the agreement, Aurcana paid us total consideration of $38,133,000 (C$38,210,000) consisting of $22,954,000 (C$23,000,000) in cash, 15 million Aurcana common shares with a fair value of $6,886,000 and a $9,980,000 (C$10,000,000) convertible debenture with a fair value of $8,293,000. After deducting transaction costs of $519,000, sale of the Shafter Silver Project resulted in a gain on sale of mineral property of $31,463,000 (after-tax gain of $18,120,000).

During the nine months ended September 30, 2009, we allowed our mineral rights for the La Bandera project ($58,000) in Mexico and Veca project ($319,000) in Peru to lapse. As a result, a $377,000 write-down of mineral property was recorded to net loss for the period.

8. CONVERTIBLE NOTES

In February 2008, we sold $138,000,000 in senior convertible notes (“Notes”) for net proceeds of $132,753,000 after payment of commissions and expenses related to the offering. The unsecured Notes mature on March 1, 2028 and bear an interest rate of 4.5% per annum, payable semi-annually. The Notes are convertible into our common shares at a fixed conversion rate, subject to certain anti-dilution adjustments, only in the following events:

during specified consecutive trading periods, the market price of our common shares exceeds 130% of the conversion price of the Notes,

the trading price of the Notes falls to 97% or less of the amount equal to the then prevailing price of our common shares, multiplied by the applicable conversion rate,

the Notes are called for redemption,

upon the occurrence of specified corporate transactions, or

during specified periods in early 2013 and 2028.

The fair value of the debt portion of the Notes at initial recognition was estimated using a discounted cash flow model method. The fair value of the equity component was estimated using the residual value method. The debt component of the Notes is accreted over an expected life of 5 years using the effective interest method. Total financing fees associated with the transaction were $5,246,000, of which $3,773,000 was charged to net income for the period and $1,473,000 was charged to equity.

At September 30, 2009, the carrying value of accrued interest related to the Notes was $536,000 (December 31, 2008 - $2,066,000) and the long-term portion was $109,027,000 (December 31, 2008 - $104,046,000). For the three months ended September 30, 2009, interest expense and accretion expense related to the convertible notes was $1,565,000 (2008 - $1,536,000) and $1,708,000 (2008 - $1,491,000), respectively. For the nine months ended September 30, 2009, interest expense and accretion expense related to the Notes was $4,644,000 (2008 - $3,591,000) and $4,981,000 (2008 - $3,306,000), respectively. All interest and accretion expense incurred during the three and nine months ended September 30, 2009 was capitalized to construction in progress. During the three and nine months ended September 30, 2008, interest and accretion expense of $2,346,000 and $4,171,000, respectively, was capitalized to construction in progress and $681,000 and $2,726,000, respectively, was recognized as expense.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

9. SHAREHOLDERS’ EQUITY

(a)

Authorized Share Capital

Our authorized share capital consists of an unlimited number of common shares without par value.

During the three months ended September 30, 2009, we closed a public share offering of 2,997,816 common shares at a price of $17.00 per share, for aggregate gross proceeds of $50,963,000. After deducting underwriting fees and estimated offering expenses of $3,124,000, net proceeds were $47,839,000.

During the nine months ended September 30, 2009, we closed public share offerings of 8,823,529 common shares at a price of $17.00 per share, for aggregate gross proceeds of $150,000,000. After deducting underwriting fees and estimated offering expenses during the nine months ended September 30, 2009 of $8,921,000, net proceeds were $141,079,000.

(b) Options

At September 30, 2009, the total number of options outstanding was 4,898,750 with exercise prices ranging from C$10.50 to C$40.62 with weighted average remaining lives of 3.2 years. This represents 6.8% of issued and outstanding capital.

During the nine months ended September 30, 2009, 120,000 options were granted to employees exercisable over a 10 year period at a strike price of C$23.57 and average fair value of C$13.02. During the nine months ended September 30, 2008, 180,000 options were granted to employees and consultants exercisable over a 5 year period at a strike price between C$29.02 and C$32.08 and average fair value of C$9.86 based on the Black-Scholes option pricing model.

The allocation of fair value of options during the period was as follows:

	Three Months Ended September 30		Nine Months Ended September 30
	2009	2008	2009	2008
	$	$	$	$
Consolidated Balance Sheets
Mineral property costs	91	41	130	29

Consolidated Statements of Loss and Comprehensive Loss
Stock based compensation - Employee salaries and benefits	1,090	1,905	3,945	5,975
Stock based compensation - General and administration	157	695	825	1,461

	1,247	2,600	4,770	7,436
Total stock based compensation	1,338	2,641	4,900	7,465

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

10. SUPPLEMENTARY CASH FLOW INFORMATION

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2009		2008		2009		2008
Non-cash working capital activities	$		$		$		$
Accounts receivable	(943	)	(1,283	)	(653	)	15
Prepaid expenses and deposits	(288	)	(4,818	)	(809	)	(6,427	)
Inventories	(3,308	)	-		(4,580	)	-
Accounts payable and current portion of ARO	1,441		(254	)	526		(210	)
Accrued liabilities	302		204		503		334
Accrued interest on convertible debt	(1,540	)	(1,537	)	(1,530	)	594
Current portion of taxes payable	-		9,605		(10,000	)	9,605

Increase (decrease) in non-cash working capital items	(4,336	)	1,917		(16,543	)	3,911


	Three Months Ended				Nine Months Ended
	September 30						September 30
	2009		2008		2009		2008
Non-cash investing activities	$		$		$		$
Shares received for sale of mineral property	-		-		388		-

Interest and taxes paid
Interest paid	3,105		-		6,210		-
Taxes paid	-		-		9,100		-

11. RELATED PARTY TRANSACTIONS

During the three and nine months ended September 30, 2009, we recorded administrative, technical services and expense reimbursements of $38,000 (2008 - $305,000) and $377,000 (2008 - $1,099,000), respectively, from companies related by common directors or officers. At September 30, 2009, accounts receivable includes $15,000 (December 31, 2008 - $42,000) from these related parties. Amounts due from related parties are non-interest bearing and without specific terms of repayment. Transactions for expense reimbursement with related parties are at normal business terms.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

12. SEGMENTED FINANCIAL INFORMATION

We have one operating segment, which is the exploration and development of mineral properties. Mineral property expenditures by property are detailed in note 7. Substantially all of our gains and losses were incurred in Canada. Segment assets by geographic location are as follows:

															September 30, 2009
	Argentina		Australia		Canada		Chile		Mexico		Peru		United States			Total
		$		$		$		$		$		$		$			$


Mineral property costs and property,plant and equipment		402,022		19,818		24,391		7,917		70,546		39,613		8,941			573,248

Total assets		462,542		20,014		105,425		7,929		71,802		41,600		8,947			718,259

															December 31, 2008
	Argentina		Australia		Canada		Chile		Mexico		Peru		United States			Total
		$		$		$		$		$		$		$			$


Mineral property costs and property, plant and equipment		271,589		19,036		14,531		7,292		65,901		34,575		8,266			421,190

Total assets		303,279		19,130		125,370		7,294		68,376		36,148		8,308			567,905

13. COMMITMENTS

As at September 30, 2009, we have committed to payments under contractual obligations as follows:

	Less than 1 year	1-3 years	4-5 years	5+ years	Total
	$	$	$	$	$

Lease obligations	118	956	629	-	1,703
Asset retirement obligations	268	1,537	1,123	2,452	5,380
Long-term convertible notes*	6,210	12,420	144,210	-	162,840
	6,596	14,913	145,962	2,452	169,923

* Convertible notes are due in 2028 but expected to be repaid in 2013. The notes bear an interest rate of 4.5% per annum and are convertible into common shares at a fixed conversion rate upon specified events.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

14. EFFECT OF CHANGE IN REPORTING CURRENCY ON PRIOR YEAR COMPARATIVE FIGURES

Effective January 1, 2009, we determined that our reporting currency had changed from the Canadian dollar to the US dollar as a result of a change in the nature of our operations (note 2). The comparative figures were also translated into US dollars using the current rate method with the following effects:

Consolidated Balance Sheet

	December 31, 2008
	As originally stated in C$			As restated in US$
Assets

Current assets		106,312			86,814
Restricted cash		2,196			1,793
Other investments		26,700			21,803
Convertible debenture		7,315			5,973
Value added tax recoverable		37,145			30,332
Mineral properties and property, plant and equipment		515,790			421,190
		695,458			567,905

Liabilities

Current liabilities		55,510			45,328
Asset retirement obligations		3,954			3,229
Taxes payable		4,127			3,370
Future income tax liability		27,351			22,335
Long-term convertible notes		127,415			104,046
		218,357			178,308

Non-controlling interest		608			496

Shareholders' Equity
Share capital		463,125			389,655
Value assigned to stock options		41,164			36,502
Value assigned to convertible notes		36,553			37,383
Contributed surplus		649			510
Accumulated other comprehensive income		2,772			(19,569	)
Deficit		(67,770	)		(55,380	)
		476,493			389,101

		695,458			567,905

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

14.	EFFECT OF CHANGE IN REPORTING CURRENCY ON PRIOR YEAR COMPARATIVE FIGURES (Cont’d)

Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss)

	Three months ended September 30, 2008						Nine months ended September 30, 2008
	As originally stated in C$			As restated in US$			As originally stated in C$			As restated in US$
	(Restated)						(Restated)

Exploration and mineral property costs		(128	)		(123	)		(417	)		(410	)
Expenses		(3,185	)		(3,059	)		(10,625	)		(10,435	)
Other income		30,911			30,872			35,304			35,906
Future income taxes		(16,386	)		(15,739	)		(17,349	)		(16,695	)
Loss for the period		11,212			11,951			6,913			8,366
Deficit, beginning of period		(61,580	)		(53,019	)		(57,281	)		(49,434	)
Deficit, end of period		(50,368	)		(41,068	)		(50,368	)		(41,068	)

Loss for the period		11,212			11,951			6,913			8,366
Other comprehensive loss (gain) for the period		(14,659	)		(33,932	)		(19,343	)		(54,511	)
Comprehensive loss for the period		(3,447	)		(21,981	)		(12,430	)		(46,145	)

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

14.	EFFECT OF CHANGE IN REPORTING CURRENCY ON PRIOR YEAR COMPARATIVE FIGURES (Cont’d)

Consolidated Statement of Cash Flows

	Three months ended September 30, 2008						Nine months ended September 30, 2008
	As originally stated in C$			As restated in US$			As originally stated in C$			As restated in US$
	(Restated)						(Restated)
Operating activities
Earnings for the period		11,212			11,951			6,913			8,366
Adjustments for items not affecting cash		(15,028	)		(22,859	)		(10,541	)		(27,402	)
Cash generated by (used in) operating activities		(3,816	)		(10,908	)		(3,628	)		(19,036	)

Financing activities
Proceeds from issuance of convertible notes		-			-			134,936			138,000
Financing costs related to equity portion of convertible notes financing		-			-			(1,440	)		(1,473	)
Shares issued for cash		227			218			1,676			1,661
Cash generated by financing activities		227			218			135,172			138,188

Investing activities
Mineral property costs		(12,917	)		(12,407	)		(26,096	)		(25,500	)
Property, plant and equipment		(40,986	)		(39,368	)		(94,951	)		(92,913	)
Increase in value added tax recoverable (net)		(5,249	)		(5,042	)		(10,663	)		(10,409	)
Proceeds from sale of mineral property		22,480			22,435			22,480			22,435
Proceeds from sale of silver bullion		-			-			39,244			39,648
Proceeeds from sale of marketable securities		-			-			2,800			2,780
Cash generated by investing activities		(36,672	)		(34,382	)		(67,186	)		(63,959	)

Increase (decrease) in cash		(40,261	)		(45,072	)		64,358			55,193
Cash, beginning of period		185,248			181,865			80,629			81,600
Cash, end of period		144,987			136,793			144,987			136,793

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)

Consolidated summarized balance sheets:

				September 30, 2009									December 31, 2008

	Canadian			Adjustments			U.S.			Canadian			Adjustments			U.S.
	GAAP						GAAP			GAAP						GAAP
		$			$		$				$			$			$

Assets
Current assets		63,725			-			63,725			86,814			-			86,814
Other investments		24,902			-			24,902			21,803			-			21,803
Convertible debenture		5,487			-			5,487			5,973			-			5,973
Value added tax recoverable		48,968			-			48,968			30,332			-			30,332
Mineral property costs (a)i)		339,199			(250,650	)		88,549			258,832			(222,951	)		35,881
Other property, plant and equipment (a)vi)		234,049			3,600			237,649			162,358			3,600			165,958
Other assets		1,929			-			1,929			1,793			-			1,793

		718,259			(247,050	)		471,209			567,905			(219,351	)		348,554

Liabilities
Current liabilities		36,689			-			36,689			45,328			-			45,328
Long-term convertibles note		109,027			-			109,027			104,046			-			104,046
Other liabilities (a)i)		37,286			(30,145	)		7,141			28,934			(22,335	)		6,599

		183,002			(30,145	)		152,857			178,308			(22,335	)		155,973

Shareholders’ Equity
Share capital (a)iii)		533,296			(950	)		532,346			389,655			(950	)		388,705
Value assigned to:
Stock options (a)v)		40,625			(4,186	)		36,439			36,502			(4,186	)		32,316
Long-term convertible note (a)v)		37,383			-			37,383			37,383			-			37,383
Contributed surplus		510			-			510			510			-			510
Accumulated other comprehensive income (a)ii)		(17,606	)		2,852			(14,754	)		(19,569	)		5,230			(14,339	)
Deficit (a)i), (a)ii), (a)iii), (a)vi)		(59,447	)		(214,621	)		(274,068	)		(55,380	)		(197,110	)		(252,490	)

		534,761			(216,905	)		317,856			389,101			(197,016	)		192,085

Non-controlling interest		496			-			496			496			-			496

		718,259			(247,050	)		471,209			567,905			(219,351	)		348,554

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Consolidated summarized statements of loss:


			Three months ended September 30			Nine months ended September 30
	2009		2008		2009		2008
	$		$		$		$

Income (Loss) in accordance with Canadian GAAP	(95	)	11,951		(4,067	)	8,366
Mineral property costs for the year (a)i)	(11,059	)	(16,506	)	(17,857	)	(29,765	)
Future income tax expense on marketable securities (a)ii)	(387	)	2,896		(67	)	3,853
Gain on sale of mineral property (a)i)	-		6,948		35		6,948
Mineral property costs written-off during the year (a)i)	-		-		377		-
Financing fees on convertible debt (a)vi)	-		-		-		3,600

Income (Loss) in accordance with U.S. GAAP	(11,541	)	5,289		(21,579	)	(6,998	)

Other comprehensive income (loss) in accordance with Canadian GAAP	2,586		(33,932	)	1,963		(54,511	)
Translation adjustment	(632	)	16,225		(2,445	)	16,331
Future income tax expense on marketable securities (a)ii)	387		(2,896	)	67		(3,853	)


Other comprehensive income (loss) in accordance with U.S. GAAP	2,341		(20,603	)	(415	)	(42,033	)


Total comprehensive loss in accordance with U.S. GAAP	(9,200	)	(15,314	)	(21,994	)	(49,031	)

Basic weighted-average common shares (000’s)	70,143		62,699		67,864		62,687
Diluted weighted-average common shares (000’s)	70,143		63,070		67,864		62,687

Basic and diluted loss per share	(0.16	)	0.08		(0.32	)	(0.11	)

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Consolidated summarized statements of cash flows:


Three months ended September 30							Nine months ended September 30
	2009		2008		2009		2008
	$		$		$		$

Cash flows from operating activities
Pursuant to Canadian GAAP	(5,677	)	(10,908	)	(19,073	)	(19,036	)
Mineral property costs (a)i)	(8,274	)	(12,407	)	(16,941	)	(25,500	)
Financing fees on convertible debt (a)vi)	-		-		-		3,600

Pursuant to U.S. GAAP	(13,951	)	(23,315	)	(36,014	)	(40,936	)

Cash flows from financing activities
Pursuant to Canadian GAAP	47,906		218		142,865		138,188
Financing fees on convertible debt (a)vi)	-		-		-		(3,600	)

Pursuant to U.S. GAAP	47,906		218		142,865		134,588

Cash flows from investing activities
Pursuant to Canadian GAAP	(52,178	)	(34,382	)	(152,919	)	(63,959	)
Mineral property costs (a)i)	8,274		12,407		16,941		25,500

Pursuant to U.S. GAAP	(43,904	)	(21,975	)	(135,978	)	(38,459	)

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in Canada (“Canadian GAAP”), which differ in certain respects from those principles that we would have followed had our consolidated financial statements been prepared in accordance with accounting principles generally accepted in the United States and requirements promulgated by the Securities and Exchange Commission (“SEC”) (collectively “U.S. GAAP”). The major differences between Canadian and U.S. GAAP and their effect on the consolidated financial statements are summarized below:

Under Canadian GAAP, the costs of acquiring mineral properties and related exploration and development expenditures are deferred. SEC staff have interpreted U.S. GAAP to require that mineral property exploration and land use costs must be expensed as incurred until commercially mineable deposits are determined to exist within a particular property, as cash flows cannot be reasonably estimated prior to such determination. For U.S. GAAP purposes, we have expensed all land use costs for mineral properties and deferred exploration costs that have been incurred by us, excluding periodic option payments meeting the definition of a mineral right, for which commercially mineable reserves do not exist. Future income taxes related to mineral property costs are reversed accordingly.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

When proven and probable reserves are determined for a property and a final feasibility study prepared, any subsequent exploration and development costs of the property would be capitalized. Periodic option payments that meet the definition of a mineral property right, as defined in EITF 04-2, "Whether Mineral Rights are Tangible or Intangible Assets” (Codified within Accounting Standards Codification (“ASC”) 930), are viewed as a tangible asset and capitalized. Capitalized option payments are amortized over the option period as defined in the related option agreement. Once in production, any subsequent development costs would be treated as production costs charged to production. In early April 2006, a Feasibility Study Update for the Pirquitas property was completed. This study defined proven and probable reserves and, as a consequence, exploration and development costs relating to this property from March 31, 2006 have been deferred under U.S. GAAP.

In June 2009, we completed the sale of our remaining 25% interest in the San Juan property located in Durango State, Mexico to Orko (note 7). The sale resulted in a gain of $167,000 for Canadian GAAP after deducting the carrying value of the property. For U.S. GAAP, the gain on sale was increased by $35,000 reflecting the lower carrying value of the mineral property for U.S. GAAP purposes.

On July 17, 2008, we closed the sale of the Shafter Silver Project (note 7). For Canadian GAAP, the sale resulted in a gain of $31,463,000 after deducting the carrying value of disposed assets and liabilities and transaction costs. For U.S. GAAP, the gain on sale of mineral property was increased by $6,948,000, reflecting the lower carrying value of mineral property costs under U.S. GAAP.

For Canadian GAAP, cash flows relating to mineral property exploration and land use costs are reported as investing activities. For U.S. GAAP, these costs are characterized as operating activities.

ii)	Under U.S. GAAP, securities that are available-for-sale are recorded at fair value and unrealized gains or losses are included as part of comprehensive income. An impairment on available-for-sale securities is recorded in income if such loss is determined to be other than temporary.

Under Canadian GAAP, prior to January 1, 2007, marketable securities were valued at the lower of cost and market with any write-down recorded as a charge to earnings. Effective January 1, 2007, upon adoption of new CICA Handbook Section 3855, marketable securities have been designated as available-for-sale financial assets and are recorded at fair value consistent with U.S. GAAP. We recognized an adjustment of $25,573,000 to the opening balance of accumulated other comprehensive income, representing the unrealized gain on available-for-sale marketable securities held by us at January 1, 2007 under Canadian GAAP. No similar adjustment would be recognized under U.S. GAAP in 2007. Consequently, GAAP differences related to available-for-sale securities have been eliminated effective January 1, 2007.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15. MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Under Canadian GAAP, as described in note 3, effective September 30, 2008, the Company adopted the provisions of EIC-172 which required the tax benefits recognized consequent to the recording of unrealized gains in comprehensive income to be recognized in net income. Under U.S. GAAP, no similar provisions exist and such tax benefits would be recorded in other comprehensive income. For U.S. GAAP purposes, opening deficit as at January 1, 2007 would decrease and other comprehensive income would decrease by $4,363,000. Other comprehensive loss would increase and income tax recovery (expense) would decrease by $387,000 (2008 – expense of $2,897,000) and $67,000 (2008 – expense of $3,853,000) for the three and nine months ended September 30, 2009.

iii)

Under Canadian GAAP, before the introduction of CICA Handbook Section 1581, “Business Combinations”, the fair value of shares issued by an acquirer to effect a business combination was based on the quoted market price of shares at the date of acquisition. Under U.S. GAAP, before the introduction of FAS 141R (Codified within ASC 805), the fair value of shares issued is based on the market price surrounding the date the business combination agreement is agreed to and announced.

iv)

Canadian GAAP provides for investments in jointly controlled entities to be accounted for using proportionate consolidation. Under U.S. GAAP, investments in incorporated joint ventures are to be accounted for using the equity method. Under an accommodation of the SEC, the accounting for joint ventures need not be reconciled from Canadian to U.S. GAAP. The different accounting treatment affects only the presentation and classification of financial statement items and not net income or shareholders’ equity.

For U.S. GAAP purposes, we previously accounted for employee stock-based compensation arrangements using the intrinsic value method prescribed in Accounting Principles Board “APB”) Opinion No. 25, “Accounting for Stock Issued to Employees” and related interpretations. Accordingly, since stock options are granted at exercise prices that are at or above the quoted market value of our common shares at the date of grant, there is no compensation cost recognized by the company for options granted to employees. We adopted the fair value based method of accounting for employee stock-based compensation under U.S. GAAP effective January 1, 2005 using the modified prospective transition method. Under this method, we recognized employee stock-based compensation beginning January 1, 2005 as if the fair value method had been used to account for all employee awards granted, modified, or settled in fiscal years beginning after December 15, 1994.

For Canadian GAAP purposes, we adopted, as of January 1, 2004, the CICA’s amendments to Section 3870, “Stock-Based Compensation and other Stock-Based Payments”, which required the fair value method to be applied to employee stock-based compensation.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Effective January 1, 2006, we adopted Statement of Financial Accounting Standard (“SFAS”) No. 123R, “Share Based Payment” (“SFAS 123R”, Codified within ASC 718) for all employee stock-based awards granted, modified or settled after the effective date using the fair value measurement method. Compensation cost is recognized over the period during which an employee is required to provide service in exchange for the award – the requisite service period. For unvested awards outstanding as of the effective date, compensation was recognized based upon the grant-date fair value determined under SFAS No. 123 “Accounting for Stock-Based Compensation”. Upon adoption of SFAS 123R using the modified prospective method, there was no cumulative effect adjustment required and no differences exist between the accounting for employee stock-based compensation expense in 2006 to December 31, 2008 between Canadian and U.S. GAAP.

vi)

Under U.S. GAAP, financing fees on convertible debt are capitalized and amortized using the effective interest rate method. Financing fees were expensed under Canadian GAAP resulting in a GAAP difference. Accordingly, financing fees charged to net income would decrease by $3,600,000. In addition, under U.S. GAAP, related financing costs are classified as financing activities.

Other disclosures

The following additional information would be presented if these consolidated financial statements were presented in accordance with U.S. GAAP:

Accounts receivable

	September 30	December 31
	2009	2008
	$	$

Value added tax	(366)	241
Other receivables	3,673	2,531
	3,307	2,772

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

ii)

Financial instruments

					September 30, 2009
				Other
	Held for	Loans &	Available	financial	Carrying	Fair
	trading	receivables	for sale	liabilities	value	value
Financial assets	($)	($)	($)	($)	($)	($)
Cash and cash equivalents	42,886	-	-	-	42,886		42,886
Marketable securities (note 3)	-	-	11,037	-	11,037		11,037
Accounts receivable	-	3,307	-	-	3,307		3,307
Restricted cash	-	-	1,929	-	1,929		1,929
Other investments (note 6)	-	-	24,902	-	24,902		24,902
Convertible debenture (note 5) (1)	196	5,291	-	-	5,487		5,487

	43,082	8,598	37,868	-	89,548		89,548
Financial liabilities
Accounts payable and and accrued liabilities	-	-	-	33,927	33,927		33,927
Convertible notes (note 8) (2)	-	-	-	109,563	109,563		121,578
	-	-	-	143,490	143,490		155,505

					December 31, 2008
				Other
	Held for	Loans &	Available	financial	Carrying	Fair
	trading	receivables	for sale	liabilities	value	value
Financial assets	($)	($)	($)	($)	($)	($)
Cash and cash equivalents	72,013	-	-	-	72,013		72,013
Marketable securities (note 3)	-	-	10,923	-	10,923		10,923
Accounts receivable	-	2,772	-	-	2,772		2,772
Restricted cash	-	-	1,793	-	1,793		1,793
Other investments (note 6)	-	-	21,803	-	21,803		21,803
Convertible debenture (note 5) (1)	50	5,923	-	-	5,973		6,904

	72,063	8,695	34,519	-	115,277		116,208
Financial liabilities
Accounts payable and and accrued liabilities	-	-	-	31,313	31,313		31,313
Convertible notes (note 8) (2)	-	-	-	106,112	106,112		91,191

	-	-	-	137,425	137,425		122,504
(1) The fair value of convertible debenture is estimated using the discounted cash flow method at market rate on the balance sheet date.

(2) The fair value of convertible notes is estimated using average market quoted price provided by market makers in over-the-counter market on the balance sheet date.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

iii)

Counterparty credit risk

Credit risk arises from the non-performance by counterparties of contractual financial obligations. Our credit risk arises primarily with respect to our money market investments, convertible debenture receivable and investment in asset-backed commercial papers.

Effective September 2007, we manage our credit risk on money market investments by investing only in obligations of any Province of Canada, Canada or the United States of America or their respective agencies, obligations of enterprises sponsored by any of the above governments; bankers’ acceptances purchased in the secondary market and having received the highest credit rating from a recognized rating agency in Canada or the United States, with a term of less than 90 days; and bank term deposits and bearer deposit notes, with a term of less than 90 days.

Our maximum exposure to credit risk at the reporting date is the carrying value of cash and cash equivalents, other receivables, convertible debenture receivable (see note 5) and other investments (see note 6). At September 30, 2009 and December 31, 2008, there were no significant concentrations of credit risk and no amounts were held as collateral.

iv)

Development stage enterprise

We meet the definition of a development stage enterprise under SFAS No. 7, “Accounting and Reporting by Development Stage Enterprises” (“SFAS 7”, Codified within ASC 915). The following additional disclosures are required under U.S. GAAP:

Consolidated summarized statements of loss and deficit and cash flows since October 1, 1993, the date we made a strategic decision to concentrate on the acquisition and exploration of silver mineral properties in North, Central and South America.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Consolidated loss and deficit:

	October 1, 1993
	(inception) to
	September 30, 2009
		$

Mineral property exploration and reclamation		271,026
General and administration, salaries, professional fees		88,444
Other income		(84,646	)

Net loss for the period from October 1, 1993 to September 30, 2009, being the deficit accumulated during the development stage		274,824
Opening retained earnings, October 1, 1993		(755	)
Ending deficit, September 30, 2009		274,069

Consolidated cash flows:

	October 1, 1993
	(inception) to
	September 30, 2009
		$

Operating activities		(218,522	)
Investing activities		(323,692	)
Financing activities		584,225

Increase in cash and cash and cash equivalents		42,011
Cash and cash equivalents – October 1, 1993		875

Cash and cash equivalents – September 30, 2009		42,886

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

Additional shareholders’ equity disclosure required under SFAS 7

													Value				Compre-
		Common Shares					Sub-		Values		Values		assigned to				hensive			Retained			Total
	Issue	Number of					scriptions		assigned		assigned		convertible		Contributed		income (loss)			earnings (deficit)			shareholders’
	Price	shares		Amount			receivable		to options		to warrants		notes		Surplus								equity
	$	'000s			$			$		$		$		$		$		$			$			$
Balance October 1, 1993			3,410		1,758			-		-		-		-		-		-			755			2,513
Issued for cash	0.58		2,810		1,631			-		-		-		-		-		-			-			1,631
Non-cash
- Mineral properties	0.56		25		14			-		-		-		-		-		-			-			14
- Allotted but not issued			-		-			-		-		-		-		-		-			-			-
- Assigned values to options issued			-		241			-		-		-		-		-		-			-			241
Gain (loss) for year			-		-			-		-		-		-		-		1,626			120			1,746
Balance September 30, 1994			6,245		3,644			-		-		-		-		-		1,626			875			6,145
Issued for cash
- Private placement	0.78		2,570		2,004			-		-		-		-		-		-			-			2,004
Non-cash
- Mineral properties	3.20		15		48			-		-		-		-		-		-			-			48
- Allotted shares issued	3.16		75		237			-		-		-		-		-		-			-			237
- Assigned values to options issued			-		14			-		-		-		-		-		-			-			14
Gain (loss) for year			-		-			-		-		-		-		-		(809	)		(1,903	)		(2,712	)
Balance September 30, 1995			8,905		5,947			-		-		-		-		-		817			(1,028	)		5,736
Issued for cash
- Private placement	3.30		2,550		8,426			-		-		-		-		-		-			-			8,426
- Special warrants	3.10		2,000		6,190			-		-		-		-		-		-			-			6,190
Non-cash
- Mineral properties	4.02		85		343			-		-		-		-		-		-			-			343
- Finder's fees			-		(429	)		-		-		-		-		-		-			-			(429	)
- Assigned values to options issued			-		13			-		-		-		-		-		-			-			13
Gain (loss) for year			-		-			-		-		-		-		-		(45	)		(6,866	)		(6,911	)
Balance December 31, 1996			13,540		20,490			-		-		-		-		-		772			(7,894	)		13,368
Issued for cash
- Private placement	3.87		680		2,631			-		-		-		-		-		-			-			2,631
- Exercise of options	4.43		25		111			-		-		-		-		-		-			-			111
- For special warrants	3.33		745		2,478			-		-		-		-		-		-			-			2,478
Non-cash
- Mineral properties	3.83		311		1,192			-		-		-		-		-		-			-			1,192
- Finder's fees	3.87		20		77			-		-		-		-		-		-			-			77
- Assigned values to options issued			-		627			-		-		-		-		-		-			-			627
- Share issue costs			-		(245	)		-		-		-		-		-		-			-			(245	)
Gain (loss) for year			-		-			-		-		-		-		-		(416	)		(14,359	)		(14,775	)
Balance December 31, 1997			15,321		27,361			-		-		-		-		-		356			(22,253	)		5,464

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

													Value				Compre-
		Common Shares					Sub-		Values		Values		assigned to				hensive			Retained			Total
	Issue	Number of					scriptions		assigned		assigned		convertible		Contributed		income			earnings			shareholders’
	Price	shares		Amount			receivable		to options		to warrants		notes		Surplus		(loss)			(deficit)			equity
	$	'000s			$			$		$		$		$		$		$			$			$
Issued for cash
- Private placement			-		-			-		-		-		-		-		-			-			-
- Exercise of options	4.41		10		44			-		-		-		-		-		-			-			44
- For special warrants	4.26		630		2,681			-		-		-		-		-		-			-			2,681
Non-cash
- Mineral properties	2.97		85		252			-		-		-		-		-		-			-			252
- Assigned values to options issued			-		120			-		-		-		-		-		-			-			120
- Share issue costs			-		(221	)		-		-		-		-		-		-			-			(221	)
Gain (loss) for year			-		-			-		-		-		-		-		(351	)		(4,941	)		(5,292	)
Balance December 31, 1998			16,046		30,237			-		-		-		-		-		5			(27,194	)		3,048
Issued for cash
- Private placement	1.08		1,388		1,504			-		-		-		-		-		-			-			1,504
- Exercise of options	1.35		101		136			-		-		-		-		-		-			-			136
- Exercise of warrants	1.49		568		848			-		-		-		-		-		-			-			848
Non-cash
- Mineral properties	1.70		50		85			-		-		-		-		-		-			-			85
- On business combination	1.35		2,285		3,097			-		-		-		-		-		-			-			3,097
- Share issue costs			-		(90	)		-		-		-		-		-		-			-			(90	)
Gain (loss) for year			-		-			-		-		-		-		-		6			(6,710	)		(6,704	)
Balance December 31, 1999			20,438		35,817			-		-		-		-		-		11			(33,904	)		1,924
Issued for cash
- Private placement	1.16		1,633		1,896			-		-		-		-		-		-			-			1,896
- Exercise of options	1.35		807		1,093			-		-		-		-		-		-			-			1,093
- Exercise of warrants	1.24		1,274		1,577			-		-		-		-		-		-			-			1,577
Non-cash
- Mineral properties	1.72		28		47			-		-		-		-		-		-			-			47
- Finder's fees	1.16		87		101			-		-		-		-		-		-			-			101
- Fractional shares repurchased			-		-			-		-		-		-		-		-			-			-
- Share issue costs			-		(104	)		-		-		-		-		-		-			-			(104	)
Gain (loss) for year			-		-			-		-		-		-		-		(10	)		(4,470	)		(4,480	)
Balance December 31, 2000			24,267		40,427			-		-		-		-		-		1			(38,374	)		2,054
Issued for cash
- Private placement	1.82		1,914		3,478			-		-		-		-		-		-			-			3,478
- Exercise of options	1.59		1,941		3,076			-		-		-		-		-		-			-			3,076
- Exercise of warrants	1.21		1,733		2,091			-		-		-		-		-		-			-			2,091
Non-cash
- Mineral properties	2.23		1,000		2,230			-		-		-		-		-		-			-			2,230
- Finder's fees	1.82		59		108			-		-		-		-		-		-			-			108
- Assigned value to warrants issued			-		-			-		-		252		-		-		-			-			252
- Share issue costs			-		(128	)		-		-		-		-		-		-			-			(128	)
Gain (loss) for year			-		-			-		-		-		-		-		-			(11,852	)		(11,852	)
Balance December 31, 2001			30,914		51,282			-		-		252		-		-		1			(50,226	)		1,309

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

																Value				Compre-
		Common Shares					Sub-			Values			Values			assigned to				hensive			Retained			Total
	Issue	Number of					scriptions			assigned			assigned			convertible		Contributed		income			earnings			shareholders’
	Price	shares		Amount			receivable			to options			to warrants			notes		Surplus		(loss)			(deficit)			equity
	$	'000s			$			$			$			$			$		$		$			$			$
Issued for cash
- Private placement	3.26		4,750		15,459			-			-			-			-		-		-			-			15,459
- Exercise of options	2.03		696		1,414			-			-			-			-		-		-			-			1,414
- Exercise of warrants	2.40		1,584		3,806			-			-			-			-		-		-			-			3,806
Non-cash
- Mineral properties	4.90		199		973			-			-			-			-		-		-			-			973
- Finder's fees	3.10		80		250			-			-			-			-		-		-			-			250
- On conversion of conv. Debenture	4.49		361		1,619			-			-			-			-		-		-			-			1,619
- For mineral properties payables	4.25		597		2,538			-			-			-			-		-		-			-			2,538
- Assigned values to options issued			-		-			-			125			-			-		-		-			-			125
- Assigned value of exercised op/wts			-		262			-			(10	)		(252	)		-		-		-			-			-
- Donations	3.17		10		32			-			-			-			-		-		-			-			32
- Share issue costs			-		(508	)		-			-			-			-		-		-			-			(508	)
Gain (loss) for year			-		-			-			-			-			-		-		809			(14,920	)		(14,111	)
Balance December 31, 2002			39,191		77,127			-			115			-			-		-		810			(65,146	)		12,906
Issued for cash
- Private placement			-		-			-			-			-			-		-		-			-			-
- Exercise of options	3.09		536		1,656			-			-			-			-		-		-			-			1,656
- Exercise of warrants	3.09		2,780		8,580			-			-			-			-		-		-			-			8,580
- Subscriptions receive on warrants			-		-			350			-			-			-		-		-			-			350
Non-cash
- Mineral properties	5.38		88		474			-			-			-			-		-		-			-			474
- On settlement of interest	5.82		10		58			-			-			-			-		-		-			-			58
- Assigned values to options issued			-		-			-			145			-			-		-		-			-			145
- Assigned value of exercised options			-		128			-			(128	)		-			-		-		-			-			-
- Share issue costs			-		(42	)		-			-			-			-		-		-			-			(42	)
Gain (loss) for year			-		-			-			-			-			-		-		5,591			(10,277	)		(4,686	)
Balance December 31, 2003			42,605		87,981			350			132			-			-		-		6,401			(75,423	)		19,441
Issued for cash
- Private placement	9.68		2,955		28,609			-			-			5,254			-		-		-			-			33,863
- Exercise of options	4.33		526		2,277			-			-			-			-		-		-			-			2,277
- Exercise of warrants	3.84		2,687		10,311			-			-			-			-		-		-			-			10,311
Non-cash
- Mineral properties	14.92		2,680		39,991			-			-			-			-		-		-			-			39,991
- Finder’s fees	9.69		31		303			-			-			148			-		-		-			-			451
- Assigned values to options issued			-		-			-			41			-			-		-		-			-			41
- Assigned value of exercised options			-		118			-			(66	)		-			-		-		-			-			52
- shares issued on warrant subscriptions	3.76		93		350			(350	)		-			-			-		-		-			-			-
- Share issue costs			-		(1,166	)		-			-			-			-		-		-			-			(1,166	)
Gain (loss) for year			-		-			-			-			-			-		-		-			(46,910	)		(46,910	)
Adjustment for stock-based comp.			-		-			-			-			-			-		-		(4,631	)		-			(4,631	)
Balance – December 31, 2004			51,577		168,774			-			107			5,402			-		-		1,770			(122,333	)		53,720

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

															Value				Compre-
		Common Shares					Sub-		Values			Values			assigned to				hensive			Retained			Total
	Issue	Number of					scriptions		assigned			assigned			convertible		Contributed		income			earnings			shareholders’
	Price	shares		Amount			receivable		to options			to warrants			notes		Surplus		(loss)			(deficit)			equity
	$	'000s			$			$		$			$			$		$		$			$			$
Issued for cash
- Exercise of options	5.13		259		1,329			-		-			-			-		-		-			-			1,329
- Exercise of warrants	15.27		10		153			-		-			-			-		-		-			-			153
Non-cash
- Mineral properties	11.72		3		37			-		-			-			-		-		-			-			37
- Assigned values to options issued			-		-			-		3,462			-			-		-		-			-			3,462
- Assigned value of exercised options			-		10			-		(10	)		-			-		-		-			-			-
- Assigned value of exercised warrants			-		38			-		-			(38	)		-		-		-			-			-
Gain (loss) for year			-		-			-		-			-			-		-		6,444			(21,906	)		(15,462	)
Balance – December 31, 2005			51,849		170,341			-		3,559			5,364			-		-		8,214			(144,239	)		43,239
Issued for cash
- Public offering	22.83		7,200		164,384			-		-			-			-		-		-			-			164,384
- Exercise of options	8.63		669		5,773			-		-			-			-		-		-			-			5,773
- Exercise of warrants	16.31		1,387		22,617			-		-			-			-		-		-			-			22,617
Non-cash
- Mineral properties	15.91		530		8,442			-		-			-			-		-		-			-			8,442
- Assigned values to options issued			-		-			-		12,067			-			-		-		-			-			12,067
- Assigned value of exercised options			-		2,277			-		(2,277	)		-			-		-		-			-			-
- Assigned value of exercised warrants			-		5,643			-		-			(4,929	)		-		-		-			-			714
- Donations	18.71		11		206			-		-			-			-		-		-			-			206
- Share issue costs			-		(10,436	)		-		-			-			-		-		-			-			(10,436	)
- Options expired/forfeited			-		-			-		(75	)		-			-		75		-			-			-
- Warrants expired			-		-			-		-			(435	)		-		435		-			-			-
Gain (loss) for year			-		-			-		-			-			-		-		23,667			(10,340	)		13,327
Balance – December 31, 2006			61,646		369,247			-		13,274			-			-		510		31,881			(154,579	)		260,333
Issued for cash
- Exercise of options	3.71		887		10,973			-		-			-			-		-		-			-			10,973
Non-cash
- Mineral properties	6.55		9		337			-		-			-			-		-		-			-			337
- Assigned values to options granted			-		-			-		14,443			-			-		-		-			-			14,443
- Assigned value of exercised options			-		4,197			-		(4,197	)		-			-		-		-			-			-
- Donations			27		893			-		-			-			-		-		-			-			893
Other comprehensive loss for year			-		-			-		-			-			-		-		22,331			-			22,331
Gain (loss) for year			-		-			-		-			-			-		-		-			(68,143	)		(68,143	)
Balance - December 31, 2007			62,569		385,647			-		23,520			-			-		510		54,212			(222,722	)		241,167
Issued for cash
- Exercise of options	11.78		186		2,192			-		-			-			-		-		-			-			2,192
Non-cash
- Assigned values to options granted			-		-			-		9,662			-			-		-		-			-			9,662
- Assigned value of exercised options			-		866			-		(866	)		-			-		-		-			-			-
- Assigned value to convertible notes			-		-			-		-			-			37,383		-		-			-			37,383
Other comprehensive loss for year			-		-			-		-			-			-		-		(68,551	)		-			(68,551	)
Gain (loss) for year			-		-			-		-			-			-		-		-			(29,768	)		(29,768	)
Balance - December 31, 2008			62,755		388,705			-		32,316			-			37,383		510		(14,339	)		(252,490	)		192,085

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

															Value				Compre-
			Common Shares					Sub-		Values			Values		assigned to				hensive			Retained			Total
	Issue		Number of					scriptions		assigned			assigned		convertible		Contributed		income			earnings			shareholders’
	Price		shares		Amount			receivable		to options			to warrants		notes		Surplus		(loss)			(deficit)			equity
		$	'000s			$			$		$			$		$		$		$			$			$
Issued for cash
- Public offering		16.03		5,826		93,389			-		-			-		-		-		-			-			93,389
- Exercise of options		13.04		28		365			-		-			-		-		-		-			-			365
Non-cash
- Assigned values to options granted				-		-			-		1,937			-		-		-		-			-			1,937
- Assigned value of exercised options				-		139			-		(139	)		-		-		-		-			-			-
Other comprehensive loss for year				-		-			-		-			-		-		-		(2,079	)		-			(2,079	)
Gain (loss) for period				-		-			-		-			-		-		-		-			(5,958	)		(5,958	)
Balance - March 31, 2009				68,609		482,598			-		34,114			-		37,383		510		(16,418	)		(258,448	)		279,739
Issued for cash
- Exercise of options		13.54		100		1,354			-		-			-		-		-		-			-			1,354
- Share issue costs				-		(149	)		-		-			-		-		-		-			-			(149	)
Non-cash
- Assigned values to options granted				-		-			-		1,625			-		-		-		-			-			1,625
- Assigned value of exercised options				-		585			-		(585	)		-		-		-		-			-			-
Other comprehensive loss for year				-		-			-		-			-		-		-		(677	)		-			(677	)
Gain (loss) for period				-		-			-		-			-		-		-		-			(4,080	)		(4,080	)
Balance - June 30, 2009				68,709		484,388			-		35,154			-		37,383		510		(17,095	)		(262,528	)		277,812
Issued for cash
- Public offering		17.00		2,998		50,963			-		-			-		-		-		-			-			50,963
- Share issue costs				-		(3,124	)		-		-			-		-		-		-			-			(3,124	)
- Exercise of options		14.47		5		67			-		-			-		-		-		-			-			67
Non-cash
- Assigned values to options granted				-		-			-		1,337			-		-		-		-			-			1,337
- Assigned value of exercised options				-		52			-		(52	)		-		-		-		-			-			-
Other comprehensive loss for year				-		-			-		-			-		-		-		2,341			-			2,341
Gain (loss) for period				-		-			-		-			-		-		-		-			(11,541	)		(11,541	)
Balance - September 30, 2009				71,712		532,346			-		36,439			-		37,383		510		(14,754	)		(274,069	)		317,855

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

vi)

Additional fair value disclosure required under SFAS No. 157

In September 2006, FASB issued SFAS No. 157, “Fair Value Measurement” (“SFAS 157”, Codified within ASC 820) to define fair value, establish a framework for measuring fair value and to expand disclosures about fair value measurements. The statement only applies to fair value measurements that are already required or permitted under current accounting standards and is effective for fiscal years beginning after November 15, 2007. The adoption of SFAS 157 for financial instruments, as required at January 1, 2008, did not have a material effect on the company’s results of operations or financial position. The adoption of SFAS 157 for non financial assets and non-financial liabilities on January 1, 2009, as required, and did not result in a material effect on the company’s results of operations or financial position.

SFAS 157 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The company’s Level 1 assets include the valuation of available-for–sale investments with no trading restrictions using a market approach based upon unadjusted quoted prices for identical assets in an active market. The company’s Level 2 assets include the valuation of convertible debenture receivable based on the discounted cash flow approach; derivatives based on the Black-Scholes model; and long-term convertible notes based on average market quoted price provided by market makers in the over-the-counter market on the balance sheet date. The company’s Level 3 assets include the valuation of other investments as determined using a probability-based discounted cash flow approach.

	Fair market value			Quoted prices in active markets for identical assets		Significant other observable inputs			Significant unobservable inputs
				Level 1		Level 2			Level 3
Available-for-sale securities		11,037			11,037		-			-
Convertible debenture receivable		5,291			-		5,291			-
Other Investments		24,902			-		-			24,902
Derivatives		196			-		196			-
Long-term convertible debt		(121,578	)		-		(121,578	)		-

Total		(80,152	)		11,037		(116,091	)		24,902

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

vii)

Recently adopted accounting standards

In December 2007, FASB issued SFAS 160, “Non-controlling Interests in Consolidated Financial Statements” (“SFAS 160”, Codified within ASC 810), which specifies that non-controlling interests are to be treated as a separate component of equity, not as a liability or other item outside of equity. As a result of non-controlling interests being an element of equity, increases and decreases in the parent's ownership interest that leave control intact are accounted for as capital transactions.

The statement is effective for business combinations entered into on or after December 15, 2008, and is to be applied prospectively to all non-controlling interests, except for the presentation and disclosure requirements which require retrospective application. The adoption of SFAS 160 non-controlling interests as required at January 1, 2009 did not have a material effect on the company’s results of operations or financial position; however, the company retrospectively applied the disclosure requirements in these consolidated financial statements.

ii)	In December 2007, the FASB issued a revised standard on accounting for business combinations, SFAS 141R (Codified within ASC 805)

The statement is effective for periods beginning on or after December 15, 2008. We did not enter into a business combination during the nine months ended September 30, 2009; therefore, the adoption of SFAS 141R on January 1, 2009 did not have a material effect on the company’s results of operations or financial position.

iii)

In May 2008, FASB issued FASB Staff Position Accounting Principles Board 14-1 (“FSP APB 14-1”, Codified within ASC 470 and ASC 825), which revises the accounting treatment for convertible debt instruments that may be settled in cash upon conversion. FSP APB 14-1 requires the issuer to separately account for the liability and equity components of convertible debt instruments. The value assigned to the liability component would be the estimated fair value, as of the date of issuance, of similar debt without the conversion option, but including any other embedded features. The difference between the proceeds of the debt and the value allocated to the liability component would be recorded in equity. The standard is effective for periods beginning on or after December 15, 2008, and is to be applied retrospectively. The adoption of this standard on January 1, 2009 resulted in the elimination of the Canadian and United States GAAP difference on all balances with the exception of financing costs, which are expensed under Canadian GAAP and capitalized and amortized in accordance with U.S. GAAP.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15. MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

The results of adopting this standard have been retrospectively applied in these consolidated financial statements, resulting in an increase of $2,813,000 in other property, plant and equipment, a decrease of $29,425,000 in long-term convertible note, an increase of $5,145,000 on deficit, a $37,383,000 increase in value assigned to convertible debt as at January 1, 2009.

iv)

In June 2008, FASB Task Force reached a consensus on EITF Issue No. 07-5, “Determining Whether an Instrument (or embedded Feature) is Indexed to an Entity’s Own Stock” (Codified within ASC 815). The standard provides that an equity-linked financial instrument (or embedded feature) would not be considered indexed to the entity’s own stock if the strike price is denominated in a currency other than the issuer’s functional currency. The Issue is effective for periods beginning on or after December 15, 2008. The effect of adopting this EITF on January 1, 2009 did not have a material effect on the company’s results of operations or financial position.

In June 2009, FASB issued SFAS 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles – a replacement of FASB Statement No. 162” (“SFAS 168”, Codified within ASC 105). SFAS 168 identifies the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in the Codification will become non-authoritative. This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of this standard for the interim period ending September 30, 2009 resulted in additional disclosure included within these consolidated financial statements.

viii)

Impact of recently issued accounting standards

In August 2009, FASB amended SFAS 157 (Codified within ASC 820). The amendments address the impact of transfer restrictions on the fair value of a liability and the ability to use the fair value of a liability that is traded as an asset as an input to the valuation of the underlying liability. The amended standard also clarifies the application of certain valuation techniques. This standard is effective for interim and annual periods beginning after August 26, 2009. The Company is currently assessing the potential impact, if any, on its consolidated financial statements.

Silver Standard Resources Inc.

(a development stage company)

Notes to Consolidated Financial Statements

For the nine months ended September 30, 2009

(in US dollars, tabular amounts expressed in thousands, unless otherwise stated - unaudited)

15.	MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) (Cont’d)

In June 2009, FASB issued SFAS 167, “Amendments to FASB Interpretation No. 46(R” (“SFAS 167”, not yet included in Codification). SFAS 167 eliminates FASB Interpretation 46(R)’s exceptions to consolidating qualifying special-purpose entities, contains new criteria for determining the primary beneficiary, and increases the frequency of required reassessments to determine whether a company is the primary beneficiary of a variable interest entity. SFAS 167 also contains a new requirement that any term, transaction, or arrangement that does not have a substantive effect on an entity’s status as a variable interest entity, a company’s power over a variable interest entity, or a company’s obligation to absorb losses or its right to receive benefits of an entity must be disregarded in applying FASB Interpretation 46(R)’s provisions. The elimination of the qualifying special-purpose entity concept and its consolidation exceptions means more entities will be subject to consolidation assessments and reassessments. SFAS 167 is effective for fiscal years beginning after November 15, 2009, and for interim periods within that first period, with earlier adoption prohibited. The Company is currently assessing the potential impacts, if any, on its consolidated financial statements.

In June 2009, the FASB issued SFAS 166, “Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140” (“SFAS 166”, not yet included in Codification). SFAS 166 eliminates the concept of a qualifying special-purpose entity, creates more stringent conditions for reporting a transfer of a portion of a financial asset as a sale, clarifies other sale-accounting criteria, and changes the initial measurement of a transferor’s interest in transferred financial assets. SFAS 166 will be effective for transfers of financial assets in fiscal years beginning after November 15, 2009 and in interim periods within those fiscal years with earlier adoption prohibited. The Company is currently assessing the potential impacts, if any, on its consolidated financial statements.